e-Governance News

e-Service tax for users of e-Governance

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The Government of India will spend a whopping Rs 23,000 crore on various e-Governance initiatives and a part of the funds invested would be recovered through an innovative e-Service tax to be paid by the users of the electronic governance.


The funds for the e-Governance initiatives would be generated through Public-Private-Partnerships (PPP) and the same would be recovered through e-Service tax to be paid by the users. While the government is spending lots of money on e-Governance, results are not commensurate with the expenditure. The main focus would be to provide e-Governance at an affordable price so that it could become an effective tool for pushing the GDP growth and sustainable development of the country. There is a crying need to reengineer the existing processes along with infrastructure development through innovative PPP enhancing the efficiency and effectiveness of the central and state e-Government initiatives in order to achieve 10 per cent GDP growth, in its current second phase. e-Governance initiatives help in the better expenditure management and revenue collection thereby leading to capital gain. The capital gained can be utilised for the infrastructure development in the growing sectors like telecom, IT, infrastructure. Hence, leading to a double digit GDP growth.

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