West Bengal: Tax and Economic Reforms

During the last two decades West Bengal has led the rest of the country with regard to agricultural performance and implementation of panchayat institutions. But these developments have begun to level out. At the same time the state has fallen behind in other sectors–Industry, higher Education and state of public finances, particularly–to an extent that is seriously worrying. With regard to industrial revival, the state stresses public Investment in transport and Communication, measures to improve higher education, foster industry-university collaborations, and help smallscale industries overcome specific market imperfections (access to credit, technology and distribution channels). In PUBLIC FINANCE, emphasis is placed on raising tax revenues (especially with regard to the service sector), limiting losses of Public Sector Undertakings, and widening the scope of land taxes and user fees. In the agricultural sector, the need for a greater role of the government with regard to Biotechnology, extension Services, Irrigation and flood control is emphasised, along with suggestions for encouraging and regulating Contract Farming with MNCs. Further, geraterempowerment of panchayats with regard to social service delivery and agro-business development, and Administrative Reforms to enhance accountability of State Government employees.
GDP- ₹11.20083 lakh crore (US$170 billion) (nominal GSDP at current prices; 2017-18)

₹7.29 lakh crore (US$120.93 billion) (nominal NSDP at Factor Cost in 2014-15, Base Year 2004-05)

International $612 billion (GSDP PPP at market prices in 2017-18)

GDP rank – 6^th (nominal GSDP, 2014-15)

GDP Growth – 7.1% (nominal GSDP Y-o-Y growth, 2015-16)

GDP per Capita -US$1437(nominal GSDP per capita, 2015-16)

Critical issues such as Ease of Doing Business, Land reforms and labour regulations are in the state domain. The state is quite successful in garnering these opportunities for Economic Development. As a result the state has become sixth largest economy, and recorded a state GDP growth rate of over 11% from 2004-05 to 2014-15. Further, Confederation of Indian Industry (CII) has identified sectors with high potential for the state including Agri& Food Processing, Infrastructure-2/”>INFRASTRUCTURE, Manufacturing & MSMEs, ICT & e-Governance, Tourism, Healthcare, Education & Skill development, Power & Energy and Environmental Sustainability.

Steps taken by state for economic reform:-

West Bengal had the lone reform in 2016 in the space of reforms and ease of doing business, easing regulations governing EMPLOYMENT of teachers.
Tenancy Reform:-Agricultural tenancy reform during 1970s offering security of tenure to tenants and regulating the share of output that is paid as rent on farm productivity.Under these laws, if tenants registered with the Department of Land Revenue, they would be entitled to permanent and inheritable tenure on the land they sharecropped as long as they paid the landlord at least 25 percent of output as rent. In the decade following the launching of Operation Barga, there was a significant improvement in the terms of tenants’ contracts and more secure tenure. Moreover, agricultural productivity grew faster in West Bengal compared to other states in India, earning the administration praise from many.
Industrial Reform:- In West Bengal industrialization was peak during 1980s. Since than state is facing de- industrialization. Government has taken many initiative for re- industrialization.

EX- The state government’s proposal to set up six new theme-based Township projects at Siliguri (education and Health), Bolpur (culture), Asansol (industry), Kalyani (information technology), Howrah (Sports) and Baruipur (senior citizen).All the six theme-based townships are on government land, and such land is limited. Acquiring land has proved to be the major bottleneck for growth of infrastructure and industry. The story of Tata’s proposed Nano project in Singur is too well-known for repetition.

Bengal Government has invested Rs 2,000 crore for improving infrastructure at Petrapole; bordering Bangladesh.

PPP Policy 2012:- West Bengal is the only state which has introduced a State Policy on Public Private PARTNERSHIP (PPP) to facilitate private investment in infrastructure including physical and social infrastructure. The objective of this policy is to enhance the Quality Of Life of the people of the state by providing better and efficient public services through participation of the private sector.
Initiatives of State Government for Ease of doing business:-Government of West Bengal has been in the forefront of initiatives undertaken for enabling Ease of Doing Business in West Bengal. The key to these reforms has been Business Process Reengineering leading to a Simplified Tax Regime and e-Governance(In VAT Administration; In Stamp Duty and Registration; In Excise Department; In Finance Department) for improved service delivery.
Simplified Tax Regime:-The Government of West Bengal intends to keep the tax system simple, fair, transparent and predictable to encourage the development of the private sector and the formalisation of the economy. Ease of Paying Taxes, is, therefore a crucial element in Ease of Doing Business and a stimulus in fostering co-operative State-Business Relationship. In an effort to stimulate economic growth and create a more business friendly Environment, keeping with the global trends, the Government of West Bengal, during the last one year(from 2015-16), has introduced significant reforms in tax policy and tax administration thereby reducing the compliance cost of paying major State taxes considerably.
E-Governance:- The significant e-Governance based tax policy initiatives introduced by the new Government in major tax structures are:-

In VAT Administration:-

e-Registration – West Bengal is the only State in the country to have made e-registration mandatory along with introduction of dematerialized Registration Certificate
e-Sahaj– West Bengal is one of the few States in the country to have made Online Return filing compulsory for all dealers for all the Acts.
Simplified System of Self-Audit by the Taxpayers

– Taxpayers with annual turnover between Rs. 1.5 – Rs. 3 crore would have to submit only a “SelfAudited Statement” instead of Final Accounts audited by a Chartered Accountant or a Cost Accountant.

Simplified Way Bill Generation

– Introduction of on-line generation of a singledocument dematerialized waybill. The State Government has also allowed e-waybill facility to unregistered dealers.

Amnesty Scheme for Registration – allowing unregistered dealers to get registered on payment of only a nominal Percentage of their declared taxable turnover.
Online VAT refund and payment of refund through Electronic Clearing System

– payment of industrial assistance to the small and medium scale industrial units is made through Electronic Clearing System and the amount is directly credited to the dealer’s bank account.

Payment of Industrial Promotion Assistance (IPA) claims are being made through ECS (NEFT) and application for IPA are also being received on-line.
Online submission of form 16 exercising option for Composition Scheme
e-Anti-evasion Complaint Service
e-Sales Tax Deduction at Source (TDS) Service
e-Application for Industrial Promotion Assistance Scheme
Introduction of the scheme of VAT Return Preparers
Introduction of Digital Signature Certificate (DSC) in return

*Introduction of New Decision Support System

In Stamp Duty and Registration:-

Introduction of Computerised Registration in all 239 Registration offices in the State:

– One day delivery system introduced.

– Easy searching of records throughout the computerised period.

– Issuance of computerized certified copy from scanned document.

– Facility of Registration in the office of Registrar of Assurance, Kolkata for any property located anywhere in West Bengal

Rationalization of Stamp Duty
National Land Records Modernization Programme (NLRMP): – Registration and its simultaneous mutation of the property under L & LR Deptt. under a single window system.
Introduction of e-stamping system and Other Facility for property registration.
Launching of website of the Registration and Stamp Revenue Directorate.

In Excise Department:-

Launching of website of Excise Department
Introduction of system for receiving duties and fees through e-gateway of bank
Introduction of Import Pass for Bulk Spirit (IPBS)

In the Finance Department :-

Introduction of web-based online file tracking and management system – will enable the individual Department to know the status of the file at any point of time.
GRIPS – online and off-line receipts of tax and non-tax revenue through Government Receipts Portal System in electronic mode and incorporation in the e-Treasury through Reserve Bank of India.

State Incentives to the Industry:-The State of West Bengal offers some of the best incentives to the industries for promotion of Industrial Investment in the State. The Incentives to the industry have been revised under the “The West Bengal State Support for Industries Scheme, 2013”. Various incentives like Tax holidays, Patent Registration, Credit availability to industries; export incentives, single window etc. have been incorporated in it.

SOME MORE SCHEMES OF STATE GOVERNMENT FOR ECONOMIC REFORM:-

Industrial Promotion Assistance (IPA)
Waiver of Electricity Duty.
Addition Incentive on Generation of Employment for industries
Stamp Duty rationalization i.e. Exemption from Stamp Duty etc.
Fiscal Incentives for Investment under Scale – 2, 3 & 4
Faster and easy Patent Registration.
Waiver and Land conversion Fee.

Tax Reforms IN WEST BENGAL:-

Constitution of India in Part seven define tax domain of central and state government. Taxes like sales taxes, VAT, State excise duty, entertainment tax, professional taxes etc. falls in domain of state government. Apart from these some other taxes like Octori, Property tax, Cesses of state tax subject, local levy and local body (Panchayat and Municipal) taxes also falls under state subject.

Tax reforms undertaken recently by government of West Bengal:-

TAX REFORMS UNDERTAKEN :-

Tax Administration Reforms Tax Policy Reforms

Direct Reforms * REFORMS IN VAT LAWS

(Restructuring, Reorganisation)

Indirect Reforms (Through ICT & Process Reengineering)

Direct Administration Reforms: Reorganisation in the Directorate of Commercial Taxes:-

Re-organization of the Enforcement Wing :- The enforcement wing, the Bureau of Investigation has been trifurcated into three wing spatially covering the entire state. To further rationalize, each such Unit was subdivided in Zones. The existing domain of Charge/Circle was kept in mind while demarcating the respective are of operation for such Zone.

Tax Administration Reforms: Reorganization in the Bureau of Investigation:-

A comparative collection figure of Direct Tax recovered by the reorganised Bureau of Investigation on y-o-y basis goes to reflect reasonable progress.

Tax Administration Reforms: Formation of the Data Analysis Wing (DAW):-

The main function of this Wing is the analysis of the Database to tap the probable evasion of tax. This is done by utilizing the huge database of digitised information. Data Analysis Wing has so far generated more than 400 (Four Hundred) reports.

DAW HAS GENERATED REPORTS ON :-

DEALER WISE ANALYSIS OF TREND OF PAYMENT OF TAX IN SUCCESSIVE FINANCIAL YEARS.
COMMODITY-WISE COLLECTION, TREND, ANALYSIS AND PROJECTION FOR THE GOVT FROM TIME TO TIME.
IMPORT OF GOODS FROM OUTSIDE TO WEST BENGAL.
MOVEMENT OF GOODS USING WEST BENGAL AS TRANSIT.
IDENTIFICATION OF FAKE CLAIMS FOR INPUT TAX CREDIT BY DEALERS
SHARED DATA WITH OTHER STATES AS WELL AS CENTRAL GOVT TAX AGENCIES
SALE-PURCHASE MISMATCH
CENTRALIZED NOTICES TO DEALERS
PROVISIONAL ASSESSMENT
UNAUTHORIZED ITC FROM DEALERS

Administrative Reforms through Greater Use of Information and communication technology in Directorate of Commercial Taxes:- E. Online registration of dealers under WBVAT, CST and WBST Act.

Compulsory e-registration
Complete e-processing including

– electronic submission of query, if needed,

– submission of online response by dealers and its receipt by the system,

– facility for tracking the status of the application over web and

– Generation of Registration Certificate.

No pre-registration hearing of the prospective dealer
Significant reduction of service delivery time with the Issue of RC online.
Tatkhanik (instant) registration – New scheme for companies registered under Companies Act, and for dealers already registered with Central Excise or Service Tax or any other state VAT.
Composite VAT Registration (CVN)

– Immediate registration for small traders dealing exclusively in intra-state trade.

– Fixed payment of taxes (Rs 12000/Rs 7000 p. a.)

– No need to file return or maintain book for VAT compliance.

– Will not be assessed or audited.

– No visit by Tax Officers

Indirect Administrative Reforms through Greater Use of Information and Communication Technology in Directorate of Commercial Taxes:-I. E. Online filing of VAT, CST and WBST returns.

Mandatory e-filing of returns by all dealers
Automatic arithmetical scrutiny of the returns filed
Setting up of authorised facilitation centres to assist dealers, if needed
Dealers can also take the help of Vat Return Preparers (VRPs) trained by the directorate

Introduction of Digital Signature Certificate (DSC):-

Dealer can file electronic return using Digital Signature
Thus, no need to submit paper returns
To popularize the use of Digital Signature Certificate ( DSC ) an incentive scheme introduced to encourage and help small dealers in procuring DSC free of cost

Online payment and digitization of over the counter payment through GRIPS:-

Compulsory e-Payment for dealers having tax liability more than Rs 2 lakh per annum
E-Payments are received in the state through the ‘Government Receipt Portal system'(‘GRIPS‘). • One common portal for all Government Receipts.
Smaller dealers can also use GRIPS challan to make Over The Counter (OTC) payments.
No need to file hard copy of challans in case of e-Payments.
80% of tax payment is through e-Payment
All nationalised banks and selected (major) private banks authorised to collect taxes

Online application, generation and printing of dematerialised CST related Forms:-

No manual issue of ‘C’ forms and ‘F’ forms.
Online issue, filing and processing of ‘C’ forms and ‘F’ forms.
Dealers may generate ‘C’ and ‘F’ forms electronically based on the return data.
Generation of CST forms is immediate.
All CST forms issuance and utilisation data is fully updated and available on TINXSYS simultaneously.
System of physical production of ‘C’ and ‘F’ forms done away with.
Mere filing of the statement online on our portal and matching with TINXSYS suffices.
Installation of State of the art Server for Internal Application (IMPACT)

VAT Refund and Payment through ECS:-

To speed up refund the Directorate had earlier introduced e filing of application and refund through ECS mode.
During 2012-13, the Directorate introduced online verification of ITC
Documentation has been reduced to the bare minimum
Online filing of refund application, its processing
Facility for tracking the status and transfer of refund amount to the bank account of the assessed electronically.

E-Industrial Promotion Assistance Scheme (e-IPAS):-

Government of West Bengal refunds a certain portion of tax paid by certain class of manufacturers as assistance to industrial promotion
In online e-IPAS, dealer is able to apply for such assistance online and also gets the assistance online through ECS in his bank account.

Online Dealer’s Profile:-

Confidential access to Dealer’s Profile
Dealer can access information of his/her profile related to :-

– Tax payment

– Returns

– Waybill

– Central Declaration Forms

– Assessment

– Audit

– Sale Purchase mismatch

– Publishing of all notification and dealer related information

Any time updating of contact information and generation of password.

Road Ahead For Greater Use of Information and Communication Technology in Directorate of Commercial Taxes:-
Online Appeal, Revision & Review :

– E-service for online appeal, revision and review and generation of modified demand.

– A copy of the notices will be sent to dealer’s profile along with print copies.

– Notifications will be sent by SMS and email to dealer during the processing of appeal cases.

– This will help the taxpayers avail the judicial forum more easily and also help the administration to follow up such cases.

Document Management System

– Introducing the Document Management System and its integration with IMPACT

– This service would ensure proper maintenance of all documents submitted by dealer and generated at the office for easy searching and retrieval by all users

– Internal processes would become virtual (paperless)

– Seamless integration of different internal processes viz. Return filing, Scrutiny, Assessment/Audit, Appeal, Recovery

– Integration with electronic issue of notices (emails) and SMS intimation

– Automatic alert to dealers at each stage of internal processing.

Tax Policy Reforms by Directorate of Commercial Taxes:-

ASSESSMENT

– Dealer is deemed assessed on the date of submission of return

– Major reform in law to practically do away with assessment

– No routine assessment

– To be done in specific actionable intelligence

AUDIT

– Instead of routine assessments, Audit of few dealers selected randomly based on RISK ANALYSIS and Dealer profiling

– Audit report gets converted into demand and no further assessment and hence avoidance of duplication

AUDIT BY C.A. OR COST ACCOUNTANT:-

Audit only when turnover exceeds Rs 5 Crore
Concept of self audit introduced for dealers with turnover between 1.5 Cr to 5 Crore. This has reduced the cost of compliance and unnecessary harassment.

OTHER TAX REFORMS:-

Provision of disallowance of input tax credit for non-maintenance of stock register done away with
Filing of appeal means automatic stay of demand. No separate petition needed. Saves the cost to the dealer and effort of the directorate.

FINALLY, Report of the Third Party Audit on e-Services of Commercial Taxes:-
Report of Third Party Audit on e-Registration
Report of Third Party Audit on e-Refund
Report of Third Party Audit on e-Return
Report of Third Party Audit on e-STDS
Report of Third Party Audit on e-Payment
Report of Third Party Audit on e-Forms & Automated Notice Issuing System etc.

Apart from these structural reforms state government announced some more tax changes like-

Abolition of agricultural land (khajna in Bengali) tax below the stipulated upper limit (of six acres) . The decision is expected to provide relief to an estimated 55 lakh small and medium farmers in the State and it will cost the State about ₹200 crore in revenue.
The State Budget 2015-16 announced that threshold limit of annual turnover for payment of VAT to be enhanced from INR 5 Lakhs to INR 10 Lakhs;
Threshold annual turnover limit for submitting VAT Audit Report enhanced from INR 5 Crs to INR 10 Crs – filing of self-audit statement by dealers with an annual turnover of less than Rs. 10 Crs. done away with;
Input Tax Credit on duty credit scrips proposed to be allowed to manufacturers also.
The time of VAT refunds has decreased from eight to nine months (2010-11) to just one month.
At present, Profession Tax enrolment is required for online VAT registration. The Government has proposed to integrate the online system so that a dealer can obtain both of them at a time.

Gently all these Indirect Tax have been subsumed in goods and service tax (GST).Under the new system, the state government has minimal say in future tax reform. All the decision related to text structure will be taken by GST Council which is a federal body.

West Bengal is one of the most populous states in India, with a Population of over 90 million people. The state has a long history of economic reforms, dating back to the early 1990s. These reforms have helped to improve the state’s economy and have made it a more attractive place for businesses to invest.

One of the most important aspects of West Bengal’s economic reforms has been the introduction of new taxes. These taxes have helped to generate revenue for the state and have also helped to improve the state’s tax collection system.

The history of tax reforms in West Bengal can be traced back to the early 1990s. At that time, the state government introduced a number of new taxes, including a value-added tax (VAT) and a service tax. These taxes were designed to replace the old system of taxes, which was based on sales tax.

The introduction of these new taxes was a major step forward for the state’s economy. The VAT and service tax were much more efficient than the old system of taxes, and they helped to generate more revenue for the state.

In addition to introducing new taxes, the state government also made a number of changes to the way that taxes were collected. These changes helped to improve the state’s tax collection system and made it more difficult for businesses to evade taxes.

The current tax system in West Bengal is based on the VAT and service tax. The VAT is a consumption tax that is levied on the sale of goods and services. The service tax is a tax that is levied on the provision of services.

The VAT and service tax are both administered by the West Bengal State Tax Department. The department is responsible for collecting the taxes, enforcing the Tax Laws, and providing taxpayers with assistance.

There are a number of challenges to tax reforms in West Bengal. One of the biggest challenges is the lack of awareness about the new tax system. Many businesses are not aware of the new taxes and how they are supposed to be collected.

Another challenge is the lack of Resources. The West Bengal State Tax Department is understaffed and underfunded. This makes it difficult for the department to collect taxes and enforce the tax laws.

Finally, there is a lack of political will to reform the tax system. The state government is reluctant to make changes to the tax system because it is afraid of losing revenue.

There are a number of ways to address the challenges to tax reforms in West Bengal. One way is to increase awareness about the new tax system. The state government can do this by conducting workshops and seminars for businesses.

Another way to address the challenges is to increase resources for the West Bengal State Tax Department. The government can do this by hiring more staff and providing the department with more funding.

Finally, the state government needs to show more political will to reform the tax system. The government needs to be willing to make changes to the tax system, even if it means losing revenue in the short term.

Tax reforms are essential for the economic development of West Bengal. The state government needs to continue to reform the tax system in order to improve the state’s economy and make it more attractive for businesses to invest.

The following are some of the benefits of tax reforms in West Bengal:

Increased revenue: Tax reforms can help to increase the state’s revenue. This can be used to fund important government programs and services.
Improved tax collection: Tax reforms can help to improve the state’s tax collection system. This can make it more difficult for businesses to evade taxes.
Reduced Corruption: Tax reforms can help to reduce corruption in the tax system. This can make the system more efficient and fair.
Improved business environment: Tax reforms can help to improve the business environment in West Bengal. This can make the state more attractive for businesses to invest.

The following are some of the challenges of tax reforms in West Bengal:

Lack of awareness: Many businesses are not aware of the new tax system and how they are supposed to be collected. This can lead to confusion and non-compliance.
Lack of resources: The West Bengal State Tax Department is understaffed and underfunded. This makes it difficult for the department to collect taxes and enforce the tax laws.
Lack of political will: The state government is reluctant to make changes to the tax system because it is afraid of losing revenue.

Despite the challenges, tax reforms are essential for the economic development of West Bengal. The state government needs to continue to reform the tax system in order to improve the state’s economy and make it more attractive for businesses to invest.

What is tax reform?

Tax reform is the process of changing the way that a government collects taxes. This can involve changing the rates, brackets, or deductions that are used to calculate taxes. Tax reform can also involve changing the Types of Taxes that are collected.

What are the goals of tax reform?

The goals of tax reform can vary depending on the country or jurisdiction that is undertaking the reform. However, some common goals include:

Increasing tax revenue
Reducing the tax burden on businesses and individuals
Making the tax system more efficient and fair
Reducing tax avoidance and evasion

What are the different types of tax reform?

There are many different types of tax reform. Some common types include:

Base broadening: This involves increasing the tax base, which is the total amount of income or wealth that is subject to Taxation. This can be done by reducing deductions, exemptions, and credits.
Rate reduction: This involves lowering the tax rates that are applied to income or wealth.
SIMPLIFICATION: This involves making the tax code simpler and easier to understand. This can be done by reducing the number of tax brackets, deductions, and credits.
Fairness: This involves making the tax system more fair by ensuring that everyone pays their fair share of taxes. This can be done by closing loopholes and ensuring that the wealthy pay a higher share of taxes.

What are the benefits of tax reform?

The benefits of tax reform can vary depending on the type of reform that is implemented. However, some common benefits include:

Increased tax revenue: Tax reform can increase tax revenue by broadening the tax base or raising tax rates.
Reduced tax burden: Tax reform can reduce the tax burden on businesses and individuals by lowering tax rates or increasing deductions and credits.
More efficient and fair tax system: Tax reform can make the tax system more efficient and fair by simplifying the tax code and closing loopholes.
Reduced tax avoidance and evasion: Tax reform can reduce tax avoidance and evasion by making the tax code simpler and easier to understand.

What are the risks of tax reform?

The risks of tax reform can vary depending on the type of reform that is implemented. However, some common risks include:

Decreased tax revenue: Tax reform can decrease tax revenue if it broadens the tax base or lowers tax rates too much.
Increased compliance costs: Tax reform can increase compliance costs for businesses and individuals if it makes the tax code more complex.
Unintended consequences: Tax reform can have unintended consequences, such as reducing economic growth or increasing inequality.

What are the challenges of tax reform?

The challenges of tax reform can vary depending on the country or jurisdiction that is undertaking the reform. However, some common challenges include:

Political opposition: Tax reform is often politically unpopular, as it can involve raising taxes or reducing popular deductions and credits.
Technical complexity: Tax reform is often technically complex, as it requires understanding the tax code and its impact on businesses and individuals.
Implementation challenges: Tax reform can be difficult to implement, as it requires changes to the tax code, regulations, and administrative procedures.

What is the future of tax reform?

The future of tax reform is uncertain. However, some trends that are likely to continue include:

The trend towards base broadening and rate reduction: This trend is likely to continue as governments seek to increase tax revenue while reducing the tax burden on businesses and individuals.
The trend towards simplification: This trend is likely to continue as governments seek to make the tax code simpler and easier to understand.
The trend towards fairness: This trend is likely to continue as governments seek to make the tax system more fair by ensuring that everyone pays their fair share of taxes.

Question 1

Which of the following is not a type of tax?

(A) Income tax
(B) Sales tax
(C) Property tax
(D) Wealth tax

Answer
(D) Wealth tax is not a type of tax. It is a levy on the net worth of an individual or a household.

Question 2

Which of the following is not a goal of economic reforms?

(A) To increase economic growth
(B) To reduce POVERTY
(C) To improve the standard of living
(D) To increase government revenue

Answer
(D) Increasing government revenue is not a goal of economic reforms. Economic reforms are aimed at improving the efficiency of the economy and increasing economic growth.

Question 3

Which of the following is not a factor that can affect economic growth?

(A) The level of investment
(B) The level of education
(C) The level of technology
(D) The level of government regulation

Answer
(D) The level of government regulation is not a factor that can affect economic growth. Government regulation can affect economic growth, but it is not a direct factor.

Question 4

Which of the following is not a type of economic reform?

(A) Fiscal reform
(B) Monetary reform
(C) Trade reform
(D) Labor market reform

Answer
(A) Fiscal reform is not a type of economic reform. Fiscal reform is a type of government policy that aims to improve the efficiency of the government’s finances.

Question 5

Which of the following is not a benefit of economic reforms?

(A) Increased economic growth
(B) Reduced poverty
(C) Improved standard of living
(D) Increased government revenue

Answer
(D) Increased government revenue is not a benefit of economic reforms. Economic reforms are aimed at improving the efficiency of the economy and increasing economic growth. Increased government revenue is a possible outcome of economic reforms, but it is not a goal.