Ahead of the Modi-government's first budget, the World Bank today suggested that India should roll out GST, reduce subsidies and broaden tax base to promote growth, projecting it to be lower at 5.5 per cent for 2014-15, from the earlier forecast of 5.7 per cent, reported PTI.
"Implementing the Goods and Services Tax (regime), targeting subsidies better and broadening the tax base will help create the fiscal space for supporting accelerated growth and poverty reduction," said Onno Ruhl, World Bank's Country Director-India.
He was speaking at a function here to release the World Bank's report on Global Economic Prospects (GEP) 2014. Lead author of the report Andrew Burns too was present at the launch of the report in India, as per the reports in the media.
"The growth in India is projected at 5.5 per cent in FY 2014-15, accelerating to 6.3 per cent in 2015-16 and 6.6 per cent in 2016-17," said GEP 2014.