Click here to download the Kelkar Committee report.
According to the report, Indian economy is headed for a "perfect storm" worse than 1991 because government's cashflow by March 2013 is threatening to be Rs 110,000 crore (Rs 1,100 billion) more in the red than the expected Rs 500,000 crore (Rs 5,000 billion).
The Kelkar Committee has recommended sharp reduction in subsidies on petroleum, food and fertiliser, which the government said was contrary to its policy of protecting the poor.
While many experts said the suggestion would go a long way in bringing down the annual food subsidy expenditure, they doubt the feasibility of the idea.
The Deenanath Mangeshkar Hospital in Pune, India, has stopped taking deposits from patients at the emergency department after a pregnant woman died after being turned away for non-payment. The hospital faced intense criticism following the incident, which involved the wife of a BJP MLC's personal secretary. The woman was shifted to another hospital where she died after delivering twins.
The Vijay Kelkar committee has cautioned that India's current account deficit (CAD) might rise to a record 4.3 per cent of gross domestic product (GDP) in 2012-13 if reforms to address this do not take place.
But the party favoured most of the proposals on indirect taxes.
BJP legislator Pravin Darekar filed a breach of privilege notice against stand-up comedian Kunal Kamra and Shiv Sena (UBT) spokesperson Sushma Andhare in the Maharashtra Legislative Council. Darekar accused Kamra of performing a song with insulting references to Deputy Chief Minister Eknath Shinde and Andhare of supporting the performance with objectionable language. He claimed their actions constituted contempt of the House. Shiv Sena MLA Ramesh Bornare also submitted a breach of privilege notice against Andhare for allegedly mocking Chief Minister Devendra Fadnavis. The Speaker will decide on the notices.
Stung by widespread criticism within the ruling Bharatiya Janata Party, Kelkar Committee on tax reforms is expected to submit watered down final reports on direct tax and indirect taxe
The Kelkar Committee, which was appointed by Finance Ministry to suggest a roadmap for fiscal consolidation, has suggested immediate hike in fuel prices and complete deregulation of diesel prices by start of 2014-15 fiscal.
The reforms proposed by the Kelkar Committee have wide ranging implications on the impact of tax on individuals.
While it is uncertain how much of the impact of The Kelkar reforms will be felt in the near term, over the next few years tax reforms are likely to move broadly in tandem with what has been suggested.
Vijay Kelkar, who headed the committee on tax reforms, on Tuesday warned that higher economic growth and foreign direct investment flow could not be achieved without hard fiscal reforms.
The government has made several region-wise and sector-wise allocations in its annual plan and budget proposals.
The Bharatiya Janata Party Committee on Kelkar panel recommendations on direct and indirect taxes has finalised its report and will submit it to party president M Venkaiah Naidu
Terming the ambitious eight per cent Tenth Plan growth target as achievable, President A P J Abdul Kalam on Monday indicated that the Budget would restructure the tax system on the basis of the roadmap laid out by the Kelkar Panel.
"In rural India, even minimal infrastructural facilities are not available for farmers. It is unthinkable to impose a tax on agricultural income, says Rajnath Singh
India's short-term problems should not obscure the necessary changes for long-term fiscal stability.
The strategy to achieve the target would be to maximise revenue collections and control expenditure, Chidambaram said, while seeking support of the political parties to deal with economic and financial problems facing the country.
The Rajnath Singh Committee on Kelkar recommendations on direct and indirect taxes on Monday submitted its report to Bharatiya Janata Party President M Venkaiah Naidu in the presence of Deputy Prime Minister L K Advani.
Budget to be presented on Friday is expected to carry out a "clean up" operation of tax administration besides measures to spur growth.
India had a transition from 'socialism with a limited entry to marketism without exit'.
Planning Commission, on Thursday, expressed reservations on Kelkar Committee proposal to bring processed foods under excise duty net saying it will badly affect growth in the sector.
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