From AI to KYC, a hectic 100 days for next govt
₹1-trillion corpus for financing private sector research and innovation in sunrise sectors. The government’s scheme for attracting investments into manufacturing through production-linked incentives, too, covers sectors like electronics, pharmaceuticals, telecom, medical devices and drones. The measures being worked on broadly follow the NDA government’s approach of undertaking reforms that help the overall economy and strengthen the exchequer for social transfers rather than offering upfront tax cuts or subsidies.
This approach was evident from the interim budget for FY25 presented on 1 February, which chose not to be populist despite the impending national polls. Besides, the initial months of the new government will be the opportune time to pursue reforms, said the person, who spoke on condition of anonymity. Experts said that one goal the government has to pull off would be to increase the tax-to-GDP ratio for raising resources for its programmes.
“Tax-to-GDP ratio has to be raised from about 18% (Centre and states combined) to about 25%, which will generate the necessary resources for the government to undertake both the physical and social infrastructure expansion projects. It is critical to chart out a path to reach that long term goal of tax-GDP ratio with medium term milestones," said EY chief policy advisor D.K. Srivastava, stressing the need for a wider tax base.
Ease of living will be a key element of the 100-day agenda. One of the measures the government is working on is making it easier for citizens to engage with various financial institutions as well as other agencies catering to the public to avoid multiple know your customer (KYC) verifications. Towards that goal, the use of a central KYC (CKC) registry
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