Finance Secretary Tuhin Kant Pandey said that the announcement made in the Union Budget 2018-19 to increase crops MSP by 1.5 times will face many issues and challenges at the implementation stage.
Every economist knows that MSP and Inflation highly co-related and any increase in MSP will eventually resulted into price hike of many agricultural products, he said.
He said this while inaugurating a post-Budget analysis organised by the FICCI, Odisha chapter. “States are also having no idea how Center is going to implement this proposal. How it would calculate the cost is very important. Because, all States will have to agreed with that cost,” said he.
Pandey said allocation for major schemes like MGNREGA, PMGSY, PMAY, Tribal sub-plan is stagnant which not encouraging.
“In term of revenue, the Center has plans to collect more than 22 lakh crore. Out of which 7.88 lakh crore will be given to states. So, the net revenue of Center is just more than 14 lakh crore, he said.
FICCI State Council Chairman Subhrakanta Panda said that, “Corporate tax cut proposal will be beneficial for 98-99 per cent small and medium corporate houses, and for rest of 7,000-8,000 corporate houses the actual tax rate will be around 22-23 per cent because of various exemption declared by Government.”
He said fiscal deficit slippage reflected in the Budget is because of GST and demonetization. But positive impact of these two steps will be felt within next 2-3 years.
In next 3 years, Tax to GDP ratio would increase by 3 per cent. Once per cent increase means 1.5 lakh crore more revenue realization, which means the Government will get more money to spend for various social prorgamme, he said.
The programme concluded with a vote of thanks delivered by Sanjeev Mohanty of the FICCI.