(FE)
While one criticism of the recent sharp reduction in corporate tax rates is that it might not boost consumption demand which is in the doldrums, the Niti Aayog has recommended that a scheme for large-scale public procurement of buses be launched soon, on the lines of the Jawaharlal Nehru National Urban Renewal Mission (JNURM), which was a component of the post-Lehman fiscal stimulus in 2009.
The think-tank, according to a senior official, said as many as 60,000 buses be procured over a year or so, using predominantly funds from the Central Budget, but also with part-financing of the scheme by state governments through their road transport corporations. “The procurement of a large number of buses by the government would give a boost to the (crisis-ridden) automobile sector as well as the public transport system, with beneficial implications for the economy,” the official said.
