Jaitley hints at special steps to boost public spending
With one-and-a-half months left for the Budget, Finance Minister Arun Jaitley on Monday said the Government will take “special steps” to boost public spending on infrastructure and initiate measures to rationalise subsidies. “Even with the present constraint of fiscal deficit in revenue, it’s a challenging and a difficult opportunity for us. But I think we have to take some special steps as far as public investments is concerned,” he said.
The Minister underlined the need for stepping up public investments in infrastructure sector to boost economic growth. “The whole PPP model is still under stress and we have to revive this. This is a course we are on and hopefully, with clarity in governance, we will be able to proceed,” he said while addressing a CII function here.
Referring to the need to rationalise subsidies, the Minister said: “From January 1, LPG subsidy is going through banks...We have to gradually rationalise all possible subsidies.” The Government is expected to incorporate the suggestions of the Expenditure Finance Commission headed by former RBI Governor Bimal Jalan in the budget proposals for 2015-16, which will be presented by Jaitley next month.
Jalan is reported to have submitted interim recommendations to the Finance Ministry suggesting various steps to rationalise subsidies and public expenditure. The Government’s subsidy bill towards oil and fertilisers runs into lakhs of crores of rupees. The Minister also underlined the need for stability in tax and other policies to make India an attractive place for investment.
The implementation of the Goods and Services Tax (GST), he added, will help in improving the business climate in the country. The GST, Jaitley said, was welcomed by differentstates and that “none of them will lose a single rupee” following the implementation of the new indirect tax regime. “A seamless transfer of GST is going to add to the GDP. It will make business easier. In the long run it may even lower taxes. Higher buoyancy is going to help the States in areas where States had no share of taxation (like) service tax,” Jaitley said.
Stating that today almost Rs two lakh crore are collected as Service Tax and States also have a share of it, he said some consuming States will gain from day one of GST implementation. Referring to the proposed changes in land acquisition laws, Jaitley said that it would eventually help farmers to get a better price for their land.
Moreover, he added, establishment of rural infrastructure and industrial corridors would increase the price of land and generate employment for rural youth. Commenting on the changes in companies law, he said the Government is committed to improving ease of doing business. “Yes, we are committed to the ease of doing business...We worked out the amendment, I moved the amendment in Parliament that has been unanimously passed by Lok Sabha and it is now pending before the Rajya Sabha,” he added.
Jaitley said he wondered why the industry chambers supported new Companies Act brought by the previous UPA government though it had incorporated some of the provisions from anti-terrorism and narcotics laws. Also, he said the previous companies law unduly favoured minority shareholders. “The basis of company’s law in India is corporate democracy. Rule by minority is completely to the contrary. Now this Company Law which has been passed has provisions which actually enable rule by minority,” Jaitley said.
‘Need to gradually rationalise all subsidies’
Chennai: Ahead of the 2015-16 Budget, Finance Minister Arun Jaitley on Monday said there was a need to rationalise all subsidies and ensure stability in policies to attract investment and drive growth. “From January 1 LPG subsidy is going through banks...We have to gradually rationalise all possible subsidies,” the Minister said while addressing a CII function here.
The Government is expected to incorporate the suggestions of the Expenditure Finance Commission headed by former RBI Governor Bimal Jalan in the budget proposals for 2015-16. Jalan is reported to have submitted interim recommendations to the Finance Ministry suggesting various steps to rationalise subsidies and public expenditure.
The Government’s subsidy bill towards oil, fertilisers runs into lakhs of crores of rupees. The Minister also underline the need for stability in tax and other policies to make India an attractive place for investment. The implementation of the Goods and Services Tax (GST), he added, will help in improving the business climate in the country.
- Bharat-22 ETF oversubscribed, investors put in bids worth Rs 12,500 cr so far 23 Jun 2018 | PTI
- Markets stage strong comeback, log 5th weekly gains 23 Jun 2018 | PTI
- ‚ÄėHSCC, EPIL in advanced stages for merger with similarly placed CPSEs' 23 Jun 2018 | PTI
- EU slaps tariffs on US as trade war erupts 23 Jun 2018 | AFP
- Business Corner 23 Jun 2018 | PNS
- Prabhu says India trying to resolve trade disputes with many nations 23 Jun 2018 | PTI
- PM pitches for double-digit GDP growth 23 Jun 2018 | PNS
- Panama Paper Leaks: MAG looking into fresh revelations, says FinMin 22 Jun 2018 | PTI
- Markets skid on trade turbulence, macro risks 22 Jun 2018 | PTI
- NPAs to see reduction of Rs 5K cr in Q1 on change in NPA norms for small business: Rajiv Kumar 22 Jun 2018 | PTI
Sunday EditionView All
17 Jun 2018 | VR Jayaraj | Kochi
In a swift move intended at stemming the protests brewing in the State police force against certain top officials’ ‘feudalistic’ practice of persecuting policemen and camp followers by using them as house servants, the Kerala Government on Saturday removed ADGP Sudesh Kumar, whose daughter was the other day booked for assaulting and verbally abusing his official police driver, from the position of head of the Armed Police Battalion. The action against...
STATE EDITIONSView All
23 Jun 2018 | PNS | Kochi
MCD still waiting for HC order on encroachment Dehradun: Days after the High Court ordered the officials to remove encroachment from different areas of Dehradun like markets, streets and footpaths in four weeks, the officials concerned said on Friday that they were still waiting for the order to come. They, however, assured that they would execute the order once they get a copy and read it thoroughly...