Finance Minister Arun Jaitley said India is becoming restless for a higher rate of growth, and if recommendations are implemented, then it has the “potential to trigger much more economic activity”. Releasing the Three Year Action Agenda (2017-18 to 2019-20) prepared by the Niti Aayog, Jaitley said, “India and Indians are increasingly becoming restless... they expect higher rate of growth, more decisions to be taken and higher economic activity itself to take place.”
The agenda said, “Indeed, there are good prospects that we will return to 8 per cent plus growth trajectory in another 2-3 years if not sooner. Therefore, the chances of massive cut in the poverty rate in the upcoming decade are excellent.” Former Niti Vice chairman Arvind Panagariya said the agenda was finalised after a series of consultations with various stakeholders. The document has suggested various reforms for doubling farmers' income, need for higher capital support for public banks, lowering of stamp duties to boost the real estate sector, and others.
The agenda proposes to link central expenditure to future priorities, shifting additional allocations to high-priority sectors which are more likely to promote development. It read, “The proposals imply substantial expansion in expenditures by 2019-20 on education, health, agriculture, rural development, defence, railways, roads, and other categories of capital expenditure.” It also suggested ways to facilitate urbanisation and deal with key challenges like affordable housing, infrastructure, public transport, and promotion of Swachh Bharat. Jaitley said, “This document really has the potential for becoming, for those in the government, a good textbook (of future reforms)”.
The Niti Aayog has also pitched for providing infrastructure sector status to the real estate development, which will help bring down interest costs in the sector. It suggested that the states may consider reducing the stamp duty rates, including the property registration fee to 3-3.5 per cent, from as high as 8 per cent in some of the states. “A high rate (stamp duty) creates the incentives for the buyer of property to declare a lower value and pay a part of the payment in black.”
