The Prime Minister’s Economic Advisory Council Chairman (PMEAC) C. Rangarajan said the government should come out with a roadmap for withdrawal of stimulus in the upcoming budget.
When asked whether the budget should start the process of exit, Rangarajan said, “What is required, is a roadmap towards normalisation“.
He said the word rollback is too strong an expression and the stimulus exit has to be a gradual process.
“What one is talking about is a gradual transition towards a more normal situation,” Rangarajan said.
In order to help the industry combat the impact of global financial crisis, the government had provided three stimulus packages to the industry resulting in a revenue sacrifice of Rs 1.86 lakh crore.
On goods and service tax, he said any step taken in the budget that takes the country closer to GST should be welcomed.
Rate adjustment for moving towards GST should be attempted in the budget, he added.
The Goods and Services Tax (GST) will do away with most of the indirect taxes at the Centre like excise and service tax and at the states like VAT. The tax was scheduled to be implemented from April 1 this year.
