The Hindu : Andhra Pradesh News : Black money crippling economy: Speaker

Online edition of India's National Newspaper
Monday, Jul 12, 2004

Andhra Pradesh

Andhra Pradesh

Black money crippling economy: Speaker

By Our Staff Reporter

NIZAMABAD, JULY 11. The Assembly Speaker, K. R. Suresh Reddy, has said black money was a major problem area in the country, causing great concern to policy-makers and financial administrators for decades.

Delivering the keynote address at a one-day seminar on `Union budget and Finance bill 2004' organised by the Nizamabad Continuing Professional Education chapter of the Southern Indian Regional Council (SIRC) of the Institute of Chartered Accountants of India here on Sunday, Mr. Reddy said, "Black money is almost crippling our economy. We have to find meaningful ways to solve this problem at the earliest." The Speaker also inaugurated the Nizamabad chapter of the SIRC.

Mr. Reddy said no Government was infallible and no tax law foolproof. He said chartered accountants could help the Government plug loopholes in tax laws. He said chartered accountants, with specialised knowledge in financial matters and skill in tax laws, are were the "right persons" to advise the Government about ways of improving its revenue.

The Speaker said that at every stage of financial administration, like the pre-budget exercise, post-budget introspection, preparation of tax laws or amendment of financial legislation, the Government and society required in-depth research by experts in the profession. He said chartered accountants could bridge the gulf with expert knowledge.

He said "the days of burdening certain classes with taxes and cushioning others with subsidies are gone. Now the Government is forced to achieve an equilibrium, both in taxing citizens and in subsidising the poor."

He said it was in this context that Governments needed the services of financial experts.

The Government's responsibilities, Mr. Reddy said, were increasing by the day. The revenues, however, were not so elastic. The Government, with limited resources at its disposal, was forced to cope. There ought to be a balance between increasing social demands and limited financial resources, he said.

The Chairman of SIRC of ICAI, J. Venkateswarulu, and G. V. V. Satyanarayana from Vijayawada, Devaraja Reddy from Hyderabad, and M. R. Vikram from Hyderabad, spoke. The seminar placed on record the services rendered by eminent Chartered Accountant, M. Simhachalam. Speakers complimented Mr. Simhachalam for completing 50 years in the profession.

The Convener of the Nizamabad chapter, D. Venkat Ramana and the Deputy convener, Gopaldas Jhawar, spoke. Delegates from Nizamabad, Karimnagar, Warangal, Adilabad, Hyderabad and Nanded participated.

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