Thursday, July 02, 2009

== Economic Survey recommendatios

Some the recommendataions that have come up when the Economic Survey was taken.
Allow 100% foreign direct investment (FDI) in health, weather insurance.
Decontrol sugar and fertilizer industries.
Convert producer subsidies into direct consumer subsidies.
Raise FDI in defence production to 40%.
Lift price controls on all drugs, especially essentials.
Separate telecom licences from spectrum allocation.
Introduce new income tax code.
Rationalise dividend distribution tax (DDT); avoid double taxation.
Phase out tax surcharges, cesses, transaction taxes.
Remove commodities transaction tax (CTT), fringe benefit tax (FBT), securities transaction tax (STT).
Review customs duty exemptions.
Eliminate inverted duty structure.
Covert specific textile duties to ad velorum.
Raise FDI in insurance to 49%.
List unlisted public sector units (PSUs), offload at least 10% equity.
Cut oil, fertilizer, food subsidy leakages.
Limit liquefied petroleum gas (LPG) subsidy to six to eight cylinders per year.
K-oil subsidy only for non-electrified, non-LPG homes.
Aim to generate Rs 25,000 crore.
Start by selling 5-10% of profitable non-navratnas.
Auction loss making PSUs.
Link small saving rates to gilt and bank deposits.
Telecom: Auction spectrum; make it freely tradeable.

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