ISSUES AND PRIORITIES

| The Survey advocates a different approach to tackle the twin balance sheet problems of overleveraged companies and bad loan-encumbered banks Set up a centralised Public Sector Asset Rehabilitation Agency to take charge of the largest, most difficult cases, and make politically tough decisions to reduce debt The Survey says structural reform in the banking sector has to consider the issue of government majority ownership in public sector banks On fiscal management, the Survey highlights the risk in India’s strategy of relying on rapid growth, rather than steady primary balance adjustment, to reduce debt To build on the long-term benefits of demonetisation, the Survey suggests a series of follow-up actions | | | | This includes measures to drive demand, faster remonetisation, tax reforms, including bringing land and real estate into the GST, reducing tax rates and stamp duties While giving a thumbs-up to the concept of a universal basic income (UBI), the Survey notes a number of implementation challenges could make UBI another add-on to anti-poverty and social programmes, making it financially unaffordable The Survey suggests a radically different route to regional and social development, including offering UBI as an option for availing social benefits The Survey calls for more privatisation in the civil aviation, banking and fertiliser sectors, to further the economic reforms process Real estate prices could fall further, as investing undeclared income in real estate becomes more difficult, the Survey says