This issue consists of three research papers. Mohammad Faridul Alam and
Nikhil Chandra Shil, in their paper, “Fiscal Measures in the Bangladesh
National Budget of 2009-10: An Appraisal of Income Tax”, highlight the important fiscal measures taken through the National Budget of 2009-10. The paper identifies and reviews the current status of tax structure in Bangladesh, assesses the performance of income tax in the context of Bangladesh’s tax structure, and identifies the changes in the income tax law. The authors are of the opinion that fiscal decentralization is critical for establishing an efficient tax system in Bangladesh.
Chukwuma Agu, in his paper, “Fragile States! Why Subnational Governments in Nigeria Cannot Subsist on Internally Generated Revenue?”, shows that there is serious concern about sustainability of states in Nigeria owing to high dependence on centrally collected and shared federation account. This is partly because the federation account is funded mainly from revenue from oil—an exhaustible resource with fluctuating international price and demand. Realizing the lack of sustainability of the situation, the author sets out to evaluate the state of Internally Generated Revenue (IGR) in states in Nigeria. The paper is based on a survey of the five states of the South-East region of Nigeria. It evaluates sources of revenue, methods of revenue collection, remittance of such revenue to government coffers and points out some of the loopholes and strengths of the system. It notes that modern technology is yet to be incorporated in the planning and collection approaches of IGR, with officials relying mainly on physical visitation, memos and letters to notify taxpayers. The paper also examines the issue of untapped sectors, their implications and options for tapping into them, particularly essential for the government to woo the private sector, improve its image and trust and then, enter into partnership with the private sector to grow critical sectors of the economy.
Om Parkash and A S Sidhu, in their paper, “Direct Tax Reforms in India:
A Comparative Study of Pre- and Post-Liberalization Periods”, analyze the impact of direct tax reforms on the Indian economy in terms of various economic indicators and compare it with the pre-reform period. The paper reveals that tax reforms introduced during the post-liberalization period could not generate the results as desired. The reduction in direct tax rates could not lead to better tax compliance in a much desired manner. Tax reforms have increased the number of assessees but the resultant increase in the tax revenue has not been sufficient. The major share of taxes comes from low income groups. This ineffectiveness will widen the gap between rich and poor and will lead to further inequality in the society. The rising arrears of taxes have further put a question mark on the efficiency and effectiveness of the tax collecting machinery. The authors argue that the widening fiscal deficit over the period will reduce investments in social sectors, like education and health. Therefore, there is a very strong need to review the tax reform policies being followed in the post-liberalization period.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
