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LATEST NEWS UPDATES | Arvind Panagariya raised red flags, couldn't stop power centres within -Pranav Mukul & Sunny Verma

Arvind Panagariya raised red flags, couldn't stop power centres within -Pranav Mukul & Sunny Verma

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published Published on Aug 3, 2017   modified Modified on Aug 3, 2017
-The Indian Express

In January, Arvind Panagariya had raised the first red flag on the possibility of taxpayers being harassed post-demonetisation and had reportedly written to the Prime Minister’s Office.

Under Arvind Panagariya, the Niti Aayog piloted several reforms ideas in both economic and social spheres, but the sudden departure of its vice-chairman has put under the spotlight the numerous occasions when difference of opinions between the think-tank and other wings of the government came to the fore.

Unlike the erstwhile Planning Commission, where deputy chairman Montek Singh Ahluwalia was the final authority after the Prime Minister, in the Niti Aayog, several important initiatives were being almost completely handled by other high-ranking officials of the think-tank, leading to creation of multiple power centres within the body. Another difference from Ahluwalia’s time at the Planning Commission was that while Panagariya was given a cabinet rank, he did not attend cabinet meetings, unlike his predecessor.

In January, Panagariya had raised the first red flag on the possibility of taxpayers being harassed post-demonetisation and had reportedly written to the Prime Minister’s Office, highlighting the need to codify rules to ensure that people, especially women, are not made to suffer for having deposited old notes between November 8 and December 30 last year.

Panagariya had suggested that there should be no questions asked on cash deposits up to Rs 2.5 lakh. This would help the taxman and the taxpayer, given the large number of depositors during the last 50 days. The income-tax department has been receiving information about cash deposits of over Rs 2 lakh and Rs 5 lakh from banks on daily basis.

During the first two years of the NDA government, Panagariya is also said to have been unhappy with the pace of reforms undertaken by the government, considering that the think-tank issued a number of recommendations for policy overhauls. The draft of Niti Aayog’s three-year action plan, which was prepared under Panagariya’s tenure, had also pointed out several concerns in the Centre’s economic policymaking that needed urgent attention. It had flagged numerous concerns including those over rising tax disputes; higher recapitalisation requirement for public banks burdened with non-performing assets; and, scope for interpretation in tax laws.

The document, which was released in April this year, also flagged the fundamental issue in the country’s expenditure planning which had a “strong tendency” towards revenue expenditure at the expense of capital expenditure. It also noted that within revenue expenditure, subsidies had overshadowed expenditure on social sectors such as health and education.

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The Indian Express, 2 August, 2017, http://indianexpress.com/article/india/arvind-panagariya-niti-aayog-raised-red-flags-couldnt-stop-power-centres-within-4778226/


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