Chief Minister K. Chandrasekhar Rao hoped that the next Union government, to be formed after Lok Sabha elections, will be one with a vision to leverage the economy.
Speaking at the discussion on Vote on Account budget for 2019-20 in the Assembly here on Saturday, Mr. Rao said he proposed to the 15th Finance Commission that the Reserve Fund in the RBI to the tune of ₹13 lakh crore and ₹11 lakh crore of Maha Ratna companies were lying idle and should be utilised to boost the economy. It was a crime to keep funds idle when several States were seeking funds for capital expenditure.
For practising cooperative federalism, he said, ruling parties should be dynamic to bring qualitative change in people’s lives. He said China within two to three decades emerged as the top economy and army power because it built several projects to leverage its economy overcoming several challenges.
Citing examples of developed countries, he said Japan loans were 300% more than its GDP and US was the highest borrower in the world. It was the ability to repay the loans that mattered , he said.
He said the amnesty given for income tax evasion did not evoke response in India because they imposed 70% penalty. In a small country like Indonesia ₹24 lakh crore came into the market under its amnesty scheme as it imposed a penalty of only 5%. When at 30% income tax, people were evading tax, how could amnesty scheme at 70% penalty work, he wondered.