Fragility To Fast Track?

Dr B. Yerram Raju

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Arun Jailtley mentioned that the UPA's fragile economy is on fast track now. CSO forecast of GDP growth on the eve of the Budget 2018-19, however, is 6.5%, the slowest of the last four years. What has moved fast?

Union Budget presentation moved from March end to February end. The Insolvency and Bankruptcy Code completed its first anniversary. But the MSMEs are yet to get their deal. All the goods carriers from North East to down South Kerala move without any check post hurdles and the palm-greasing, saving nearly Rs 30,000 crore for various companies. Indirect tax reform through GST, with all its initial hiccups is still with glitches. Tax compliance moved an inch up on direct taxes although only 1.2% of the tax filers paid taxes.

EODB ranking of the World Bank scaled up from 142 low in 2014 to 100 in 2017 with several States also improving their rankings. The first rank has been retained by Telangana for the second year in succession in 2017. The Insolvency and Bankruptcy Code and Real Estate Regulation Act significantly contributed to this ranking. Companies cleaned up post demonetisation with about a lakh of shady companies removed from registration. Several directors of such companies were also blacklisted.