Par panel for revival policy to overcome economic problems

Significantly, the Standing Committee on Finance headed by BJP MP Yashwant Sinha, in its report tabled in Parliament, said it looked forward to clarity and consistency in policies and regulations so that investors, especially foreign, do not shy away from investing in the country.

The Committee's call for speeding up enactment of pending financial reforms bills include those relating to pension fund, insurance, banking and Direct Taxes Code and the companies law. The Committee has already given its reports on these Bills.

The report on 'Current Economic Situation And Policy Options' said the need of the hour was to put the economy on growth track through a "well thought out revival policy" of more effective decision making, time bound clearance of projects, transparent tax regime and enhanced domestic investment.

 

Noting that investor confidence has been hit by retrospective amendment to tax laws and the new General Anti- Avoidance Rules (GAAR), the Committee said that the government needed to create conducive climate to promote investments.

"To bring back the country on growth track, investments needs to be pepped up and for investments to pick up a conducive investment climate needs to be created. Hence, the Committee recommends speeding up of policy reforms and removing investment hurdles," the report said.

Concerned over lack of sync between fiscal and monetary policies, a Parliamentary panel today asked the government to take urgent steps to supplement RBI's initiatives to contain inflation and trigger sustainable growth. MORE