India must focus on agriculture for sound economy'

Mangalore, March 24: To ensure that India fares well in its economy, it must focus on agriculture said Firoze B Andhyarujina, Senior Counsel, Mumbai High Court and an eminent authority on tax laws.

He was speaking at the panel discussion on 'India's Balance Sheet' organised by The Mangalore Branch of SIRC of ICAI in association with K Ganesh Shenoy Memorial Trust, Mangalore, in the city on Saturday.

Stressing that since India is basically an agricultural country, Mr. Andhyarujina said the government must look at agriculture as a means of improving its economy. “Focus should be on agriculture. The government must look at exporting the surplus agricultural produce after feeding our own people. Related aspects such as food storage and distribution must also be given attention to”, he said.

Raising the issue of poverty line, Mr. Andhyarujina said “India must ascertain as to who are the people belonging to the below poverty line (BPL). If the government places Rs 30 per day as the limit to identify people below poverty line, it does not even amount to 1 US Dollar. Where is the question of its impact on India's balance sheet then?” Terming service tax as a 'new phenomena, Mr. Andhyarujina said that Income Tax has become a 'tool of harassment of the common man'.

Observing that on the positive side, this year's budget has given scope for the development of infrastructure, Mr. Andhyarujina said that with proper channelization of resources and money, India can certainly progress. He added that India has an advantage as Indians possess qualities of innovation and thinking. “If India's balance sheet is ever drawn, the biggest intangible asset it would possess is the knowledge and patience of its people. India is on the path of betterment but it must look to contain inflation beforeit gets out of hand”, Mr. Andhyarujina said.

In his address, Prof G.V. Joshi, Professor of Economics at the Nitte-based Justice K.S. Hegde Institute of Management, said that Union Finance Minister admitted in his budget speech that fiscal deficit was on the rise. In a humourous remark, Prof. Joshi said “On that day, when Sachin Tendulkar continued his story of surplus, Pranab Mukherjee continued his story of deficit”. Stating that fiscal deficit is of recent origin, Prof. Joshi said that it has risen to 9.9% of the gross domestic product. Comparatively, he said, Karnataka's fiscal deficit which was highlighted in the stage budget presented by Chief Minister Sadananda Gowda is 2.8% of the gross domestic product calling it a 'marginal increase' which is not all that bad. “Economically Karnataka looks good although politically it is not”, Prof. Joshi remarked.

He also said that by trying to bring an amendment in an act concerning the fiscal deficits, the government will try to show non-plan expenditure as planned expenditure. Taking a dig at Pranab Mukherjee again, he said “Pranab quoted Shakespear in his speech saying that he is being cruel now to be kind later. Yes, he is being cruel this year and will be kind next year as next year elections will beround the corner”.

Murali Mohan, Chairman, Institute of Chartered Accountants of India (ICAI), Mangalore Chapter, moderated the session.