<p>Chidambaram, a former finance minister, had expressed these views at the full Planning Commission meeting headed by Prime Minister Manmohan Singh last month.<br /><br />“We are really underestimating our capacity to raise resources, especially tax resources. Since non-plan expenditure is difficult to contain, the tax-GDP ratio must be raised especially by taxing conspicuous consumption and imposing inheritance tax,” Chidambaram had said.<br /><br />According to the minutes of the meeting held on April 21, the Home Minister had also underlined the need for streamlining the manufacturing sector to generate more jobs.<br /><br />The Plan panel has proposed to raise the tax-GDP ratio from projected 7.7 per cent in the 11th Plan (2007-12) to 8 per cent in 12th Plan (2012-17). It also wants the ratio to be raised from estimated 7.2 per cent in 2011-12 to 8.8 per cent in 2016-17, terminal year of the 12th Plan.<br /></p>
<p>Chidambaram, a former finance minister, had expressed these views at the full Planning Commission meeting headed by Prime Minister Manmohan Singh last month.<br /><br />“We are really underestimating our capacity to raise resources, especially tax resources. Since non-plan expenditure is difficult to contain, the tax-GDP ratio must be raised especially by taxing conspicuous consumption and imposing inheritance tax,” Chidambaram had said.<br /><br />According to the minutes of the meeting held on April 21, the Home Minister had also underlined the need for streamlining the manufacturing sector to generate more jobs.<br /><br />The Plan panel has proposed to raise the tax-GDP ratio from projected 7.7 per cent in the 11th Plan (2007-12) to 8 per cent in 12th Plan (2012-17). It also wants the ratio to be raised from estimated 7.2 per cent in 2011-12 to 8.8 per cent in 2016-17, terminal year of the 12th Plan.<br /></p>