THE CONGRESS PARTY'S PRIORITIES, PLANS AND PROGRAMMES

FISCAL P0LICY

The Congress reiterates its firm commitment to eliminating the revenue deficit of the central government in five years time so as to release more resources for investments in social and physical infrastructure. A detailed roadmap for accomplishing this will he unveiled within 30 days of coming to power so that a national consensus is also created.

The Congress will undertake major tax reforms to significantly expand the base of taxpayers, to substantially increase tax compliance and to make the tax administration more citizen-friendly. Without increasing tax rates, the Congress believes that the present Tax:GDP ratio of 14-15% must he raised to at least 18% by the end of the decade. VAT will be introduced in close cooperation and consultation with trade and industry. This will enhance the competitiveness of Indian industry and also check tax evasion.