Several economists encouraged the Government to maintain corporate taxation structure but simplify it. They asked the Government to eliminate direct and indirect tax exemptions. They wanted special treatment for the education sector and tighter legislation on private foundation inheritance encouraging them to invest in higher education and wanted more Government subsidies for research and development. Talking to the Federal Finance Minister P. Chidambaram in a pre-budget brain storming session, economists were worried about the slow pace of reforms, the ballooning fiscal deficit, lumbering tax laws, and lack of adequate incentives to encourage Foreign Direct Investment. They said that increased reforms and FDI will create jobs and opportunities and thereby reduce poverty. They also advocated lesser economic controls on economic activities to spur job creation.

Home Page