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BEPS’s Verifiable Impact on Global Economy Difficult to Capture
- Published on 10 July 2019
(Edited Image Courtesy: OECD)
“Our action has had a very concrete impact. First, you and other countries in the world have recovered taxes which had been defrauded for too long,” says a report from Organisation for Economic Co-operation and Development’s (OECD) Secretary General (SG), Angel Gurría.
The report on OECD/G20’s Base Erosion and Profit Shifting (BEPS) & related projects, submitted last month to The G20 Finance Ministers and Central Bank Governors, adds: “The very high profile of our work against tax fraud and tax avoidance has brought tax matters to the boardrooms and is having a massive impact”.
Have BEPS & related projects indeed delivered dazzling results? OECD, the projects proponent, would like the world to believe so.
G20 has, however, avoided endorsing success story as detailed out by SG’s report. International Monetary Fund (IMF) has also avoided optimism over BEPS outcome. It is here pertinent to cite IMF’s G-20 Surveillance Note issued last month.
As put by the Note, “There is an urgent need for a cooperative multilateral approach to reform the current system of international corporate taxation to address tax competition and reign in prevalent profit shifting by multinationals”.
Catalyze Growth by Optimizing use of Multilateral Loans
- Published on 05 July 2019
(Growth Image Courtesy: taxindiaonline.com)
“For the last 18 months there had been paralysis on the economic front. The last two governments postponed taking vital decisions. The fiscal position was allowed to deteriorate”, stated Prime Minister P.V. Narasimha Rao on 9th July 1991 in a broadcast to the Nation explaining rationale for reforms.
If late Mr. Rao served as PM today, he might have made a similar about observation about policy paralysis (PP) in the arena of independently verifiable urban reforms (UR). PP led to cancellation of two world Bank-aided, UR projects - one in 2006 under UPA and another in 2019 under Modi-led NDA Govt.
These & similar other cancelled projects have ensured that urban rot persists. The rot explode periodically as it is now: Over two dozen deaths due to recent wall collapses in Maharashtra and Odisha, average 10 pot-hole deaths/day across India, avoidable fire tragedies, water crisis as in Chennai and other cities and unstoppable growth in slums. Monsoon mirrors state of Governance in India.
All problems are due to multiple flaws in urban governance for which Centre, States & cities need to share the blame. On paper, the Union Government is executing wonderful urban reforms.
Cancellation of two successive UR-linked, cities development projects is not an isolated case of India dropping project proposals. Such developments happen every year after long negotiations with multilateral financial institutions (MFIs) such as World Bank (WB), Asian Development Bank (ADB), etc.
Assess State of Cooperative Federalism with an Open Mind
- Published on 19 June 2019
“We have invited her with all due respect and I am still hoping that she will accept my personal invitation and attend the meeting on June 15th and give us the idea as to how to improve Niti further”.
Niti Aayog Vice-Chairman Rajiv Kumar stated this while responding to West Bengal Chief Minister Mamata Banerjee’s decision to boycott NITI Aayog’s (NA’s) fifth Governing Council meeting (GCM).
She should have changed her mind and attended the meeting. The least she can do even now is to submit a detailed paper on weakened Cooperative Federalism (CF) to him.
The suggested paper should list flaws in NA’s working as compared the performance of National Development Council (NDC) and Planning Commission. These two institutions, created by Jawaharlal Nehru, were wound up by Modi Government in 2015.
Other Chief Ministers from Opposition-ruled States should have latched on to Dr. Kumar’s offer to give suggestions to improve NA’s working.
Mamata didi has indeed erred by writing to Prime Miniser Narendra Modi, who is also NA Chairman, that she would not attend the meeting. Boycott and sulk is not the solution. Participation in the meeting to put hard facts about damage done to CF is the way to go.
She should take a leaf out of late Selvi J. Jayalalithaa’s book.
‘Walk the Talk’ Should be Agenda for Mr. Modi & his Govt
- Published on 02 June 2019
(Image Courtesy: PIB)
“You can imagine that when work on such large scale would start then how much iron ore, how much cement factories, how many men will be needed and it will generate employment for many a people. We can get an answer to the concern of the GDP of the country”.
Mr. Narendra Modi visualized this growth model while speaking on the need for India to develop 100 new cities. He spun this dream four months before he led BJP to win historic mandate in 2014 lok sabha polls.
Addressing BJP’s national executive Council on 19th January 2014, Mr. Modi stated: “Why should not there be 100 new cities in our country, modern cities, in accordance with the concept of walk to work, smart cities, health city, sports city and many other such specialized cities as per the need..! Friends we can realize the dream of 100 new cities for this country..!”
In the same meeting, he expounded his 17 ideas of India. An idea in point is Sarvey Bhavantu Sukhin, Sarvey Santu Niramaya (May all be happy, May all be healthy). This is a variant of much-awaited Achhe Din that figured in Mr. Modi’s tweet on 15th May 2014 – “India has won! भारत की विजय। अच्छे दिन आने वाले हैं।”
Neither new cities nor his Utopian Ideas of India figured in his campaign for 2019 Lok Sabha polls. The idea of building new cities was downgraded to a mission to transform 100 existing cities into smart cities. Not one smart city is visible today.