Subramanian Swamy’s statement comes at a time when millions of households in the country are feeling the pinch. As a result of increasing inflation and medical prices fixed in the aftermath of Covid-19. Subramanian Swamy, a Rajya Sabha MP and economist, has a daring idea for the government. Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2022-23 on February 1.
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Swamy justified his statement by stating that there are other ways to raise money than income tax. “I initially proposed this at the start of our tenure as a BJP administration. When we were collecting roughly 4 lakh crore in income tax receipts, which is nothing.” “If you look at the entire Budget 2022-23, it has now risen to almost 8-9 lakh crore,” Swamy told BT.
“At the time, I said there are alternative ways of raising resources without taxation, such as auctioning 2G licenses; how much did you get from the first auction?” 4 lakh crore – precisely the amount of income tax,” he added.
He went on to say that there is the possibility of obtaining funds through coal auctions. And that “there is no shortage of alternative avenues for the government to raise taxes.”
“And when the economy is doing well, people are more eager to pay taxes.” Also, make it a law that money from corporations that is reinvested is exempt from all taxes. As a result, the savings rate will rise, as will the growth rate,” Swamy stated.
Subramanian Swamy also stated that he will cut loan interest rates from the current prime lending rate of 12% to 9%.
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That is also within our control; banks may do it and hike fixed deposit interest rates from 6% to 9%. Swamy emphasized that the quantity of household savings in terms of GDP share has decreased as a result of the current Union Budget 2022-23 pressures . As a result, he claims, investments have decreased.
He also stated that the economy has yet to reach the level of growth recorded in the fourth quarter of 2019-20. While forecasts and official data point to high growth in India place in this fiscal year. Swamy says it would all rely on how the economy performs in the coming quarters.