Arun Jaitley explains why agriculture, rural development and healthcare require a GST Council type structure

Continuing his series of blogs under title 'nda 2019', Finance Minister Arun Jaitley has highlighted why agriculture, Rural Development and Healthcare Require a GST Council Structure.

He also stated that:

" GST Council has become India’s first federal institution. Its working is a role model in or areas where federal institutions are needed in India. It displays maturity of India’s democracy and politics".

nda 2019 – Part - 10 (Final): Why Agriculture, Rural Development and Healthcare Require a GST Council Structure?

Yesterday, 19th March, 2019, GST Council held its 34th meeting.

GST was enabled by a Constitution Amendment which was unanimously approved by both Houses of Parliament. Several legislations to implement GST were passed by Parliament. Laws relating to State GST (SGST) were approved by all State Legislatures.

GST has enabled a single indirect tax in whole country. Its implementation, compared to several or countries in world, has been extremely smooth. Some initial teething trouble are to be expected. Everyone learns from experience. t only did GST consolidate multiple taxes and multiple cesses, it eliminated barriers in country overnight. whole of country became a single market. Inspectors were eliminated; taxes were reduced and interface between assesse and Department was reduced. online filing of returns and assessment was order of day. input tax credit prevented cascing effect of tax on tax and ensured that back chain in manufacturing and services was done through authorisedly. A more efficient system detected leaks and improved revenue collections. States have been guaranteed, for first five years, a 14 percent increase in annual revenue. For first time since Independence, consumers have witnessed a continuous reduction of taxes.

decision making process of Council

Chairing Council in its initial years has been one of my most satisfying experiences. quality of participation of State Finance Ministers and ir supporting Civil Servants was extremely high. debates in Council were on issues of substance. re was populism. Concern for revenue, consumers, industry and tre dominated discourse. y concentrated on simplifying procedures. Members shed ir political colours outside meeting venue. To satisfy ir political constituencies, some spoke outside meeting but inside re was an atmosphere of positive suggestions. At times conflicting views and reafter consensus.

Thousands of decisions have been taken in Council. se range from framing of new regulations, circulars, tifications and tariff fixation. Council was always prepared, based on market reports, to make changes wherever required.

States effectively h a two-third voting right and Central Government h one-third voting right. All decisions h to be approved by at least three-fourth majority. This necessarily meant that Centre and States h to work toger. Yet Council set an incredible precedent which recognises delicate balance of India’s federalism by taking all decisions through consensus and t once putting any decision to vote. I hope this continues in future. decision making culture involved extensive discussions flagging various viewpoints and, reafter, formulating consensus. A consensus is never imposed, it evolves. Where consensus was t possible, matter was t pursued.

lessons from GST Council

GST Council has become India’s first federal institution. Its working is a role model in or areas where federal institutions are needed in India. It displays maturity of India’s democracy and politics. When larger national interest requires, decision makers can rise to occasion. It negates popular impression that politicians of different shes of opinions will always be divided on party lines. It has worked to benefit of industry, tre, consumers and has become single most important tax reform in Independent India. question, thus, is why can’t this experiment be replicated elsewhere?

Agriculture, rural development and healthcare

Agriculture, rural development and healthcare are areas where, in larger national interest, GST Council experience heeds to be replicated. Both Central and State Governments have several schemes working for betterment of farmer. agricultural sector needs a major support. Both Centre and States spend a large part of ir budget in sector. Similarly, process of developing rural infrastructure and improving quality of life in vills has w started. A lot more needs to be done in both agriculture and rural development. Should Centre and States be only competing and t supplementing efforts of each or? Should y t be pooling ir resources and ensure that overlap or duplication takes place and that interest of largest number is protected and enhanced?

same is equally true on healthcare. Primary Health Centres, hospitals, health schemes for treatment of poor patients, supply of medicines at an affordable cost are all intended by both Central and State Governments to ensure that affordable healthcare is available to people. For those who cant afford healthcare, it is available at cost of Central and some State Governments. Is overlap of expenditure necessary or should it be pooled and spent in an optimum manner?

Are elected Governments intended to n-cooperate with each or or must y work on principle of “Bahujan Hitay Bahujan Sukhay”. West Bengal, Delhi, Odisha are amongst States which have refused to implement Ayushman Bharat where every poor family gets upto rupees five lakh of hospitalisation support annually. Rajasthan, Mhya Presh, Delhi, Karnataka and West Bengal are n-cooperative in PM Kisan scheme where small and marginal farmers get Rs.6000/- income support annually. Is this in public or national interest? Is it necessary to act against poor and allow compulsion of competitive politics to take over?

Society has great faith in wisdom of men and women. country hopes that wisdom prevails over transient political requirements.

HAPPY HOLI

te – This is 10th and last of my ‘nda 2019’ articles. However, I will continue to write when interventions in public cause are required.