States role in reforms stressed

States role in reforms stressed
ENS ECONOMIC BUREAU

NEW DELHI, DECEMBER 30: Finance Minister Yashwant Sinha today said that states will be involved as equal partners in second generation economic reforms and indirect tax reforms started last year will be carried forward in the coming Union Budget.

``My effort will be to fully involve states in the second generation reforms as in a federal polity it will be difficult to move forward without the involvement of states,'' Sinha said inaugurating the annual general meeting of PHD Chamber of Commerce and Industry (PHDCCI) here today.

Direct tax reforms carried out by successive governments, he noted, had helped in better tax compliance, adding that he was confident that the country would get back to the high 11 to 12 per cent tax-GDP ratio in the coming years from the current level of about nine per cent.