Economic governance must rest on fairness and responsibility: FM Sitharaman

Speaking at the 18th Global Forum Plenary Meeting here, FM Sitharaman said transparency in tax matters is not just an administrative reform but a key pillar of building a stronger and more equitable society.

FM Sitharaman explained that when people and businesses pay their fair share of taxes and when evasion is strictly checked, countries become more stable and fair.

“India’s laws against illicit financial flows and undisclosed foreign assets reflect this commitment to fairness,” she said.

“The country’s participation in global standards like the Exchange of Information on Request and the Automatic Exchange of Information also shows its focus on transparency,” the Finance Minister added.

FM Sitharaman said transparency has a direct link to development, as public infrastructure, healthcare, education and welfare programmes depend heavily on domestic resources.

“When wealth goes untaxed, it widens both revenue and development gaps, especially in developing nations,” FM Sitharaman mentioned.

She added that every rupee or dollar mobilised through transparent systems helps improve lives.

The Finance Minister highlighted that transparency should be seen as a foundation for sustainable development and fiscal strength, not merely as a compliance requirement.

FM Sitharaman noted that India’s experience over the past decade shows improved voluntary compliance, with citizens more willing to follow rules when they trust that the system rewards honesty and firmly discourages evasion.

“This rise in tax morale is the result of simplification, clarity, and consistent efforts to build trust -- not just enforcement. Fairness and predictability, encourage public participation far more effectively than force,” the Finance Minister stated.

FM Sitharaman also spoke about India’s efforts to integrate exchanged information with broader analysis of compliance and risk.

“Technology and artificial intelligence offer powerful tools to process information more efficiently, but stressed that judgement, responsibility and respect for procedure must guide their use,” Finance Minister Sitharaman said.