Letter to BS: Are we heading towards achche din or a poor show?

This refers to “Budget 2020: Govt unlikely to offer relief on Income tax” (January 27). It was intriguing to learn that the tax collection (both direct and indirect taxes) may fall short by Rs 2 trillion this fiscal owing to the continued sluggishness in the Indian economy. As revealed in this report, the likely shortfall in respect of personal and corporate taxes might be as high as Rs 1.5 trillion with the share of the goods and services tax also being a staggering Rs 50,000 crore. As regards these twin direct taxes missing the targets, it seems that the FM had not done her homework before ushering in the cuts in the corporate tax rates last year.  
 

Sadly, the much publicised revisit of the personal income tax regime — based on the recommendations of a direct taxes committee report — may also turn out to be a bubble getting burst on its own, as the FM may take some convenient shelter behind the depleted tax collection vis-a-vis the budgeted targets. But who may be held responsible for such a poor show? Moreover, why not wisely fix some realistic targets while preparing the Union Budget? It, however, may not be a surprise if the golden goose, the Reserve Bank of India, is once again pressurised into parting with a share of its most prudently maintained (read preserved) reserves. Where are we headed? Towards achche din? For whom?

Kumar Gupt, Panchkula

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