The group on socio-economic challenges, headed by Congress General Secretary Digvijaya Singh, on Saturday endorsed the recent reform steps taken by the UPA Government.
It also gave a set of suggestions to the Government to address the issue of growing fiscal deficit and on fixing the poor implementation of flagship schemes. The group felt that it is time for “prudential and bold” reform decisions.
The session of the All-India Congress Committee, scheduled on Sunday, is likely to endorse the ongoing reform process.
Sources in the group said though all the members endorsed the reform moves, they said subsidies should be targeted at the poor, and the Government’s measures to address the fiscal deficit should not harm the poor.
Mandatory CSR
Members suggested that Corporate Social Responsibility (CSR) should be linked to the Centre’s flagship schemes. They said that most CSR activities were being used, at the moment, to avoid tax. In the presence of Corporate Affairs Minister Sachin Pilot, members said the Companies Act should be amended to make CSR mandatory.
Members said there should be specific guidelines to monitor CSR spending. “For example, the Government should decide that all CSR spending should go to the health sector in a particular year. This could be easily linked to the National Rural Health Mission. Next year, the spending may go to the education sector and the Sarva Shiksha Abhiyaan could be linked to CSR,” a delegate said.
There were also suggestions that the ambit of direct taxes should be expanded. Reducing indirect taxes will cut the burden on the common man. “Tax reforms should be expedited, along with taking strong measures to curb black markets,” another member said.
Skill upgradation was another topic for discussion. There were suggestions that the skilled labour force should be allowed to work under MGNREGS. “This will help the rural workforce as well as the future of the scheme,” a leader said.
Diesel decontrol
There were also discussions on the decision to decontrol diesel prices. Delegates suggested that such measures are viewed as anti-people, though they helped oil companies cut their deficit.
Petroleum Minister Veerappa Moily, however, ruled out a rollback. “There is no question of rollback,” Moily told reporters outside the venue. He said the demand to deregulate oil prices was there since the regime of the Opposition NDA.