End surcharges, cesses and free fuel prices as reforms: Survey

New Delhi, July 2 (PTI) Recommending an end to all cesses
and surcharges on taxes, and free pricing of fertiliser and
fuel ahead of the Union Budget for 2009-10, the Economic
Survey Thursday suggested aggressive disinvestment and
financial sector reforms to bring the economy back to high
growth track.

"Review and phasing out of surcharges, cesses and
transaction taxes (such as commodities transaction tax,
securities transaction tax and fringe benefit tax)," it said,
prescribing possibly the boldest set of financial sector
reforms and lifting of all restrictions on farm sector trade.

The Survey, tabled in Parliament by Finance Minister
Pranab Mukherjee, also sought reduced role for government and
end of state monopoly in areas like Railways, coal and nuclear
power while seeking up to 49 per cent Foreign Direct
Investment in defence and insurance.

Asking for a disinvestment target of minimum Rs 25,000
crore annually, the Survey said that every single Public
Sector Enterprise should be listed while loss making
undertakings, that are beyond revival, should be auctioned.

The hitherto politically sensitive areas of FDI in multi-
brand retailing, also caught attention of the the Survey,
which recommended foreign investment in the area beginning
with food.

A day after the government raised the prices of petrol
and diesel by Rs four and two, respectively, it said that fuel
prices should be freed from government control.

Analysing the impact of the global financial crisis and
the challenges, the Survey said: "The Indian economy has
shock-absorbers that will facilitate early revival of the
growth." MORE PTI