Finance Minister Arun Jaitley, who is on a visit to the US, discusses inclusion of India in the global financial market, tax reforms, GST and the growth rate of the economy.
Finance Minister Arun Jaitley, who is on a visit to US, discusses the reforms and initiavtes taken by the Modi governent. In his speech, he talks about putting India on the global map, reforms proposed by the government, transparency in decision making process and the Goods and Services Tax Bill (GST).
Highlights of the speech: Important decision making had come to standstill in the last few years before our government came to power with slow growth and widespread corruption.
Many sectors have since been opened like defence, insurance and liberalized construction and real estate sectors. Easing out process still a challenge, but many states are bringing in reforms in the labour market.
Government is working on bringing amendments. Country’s tax structure and legal system have been reviewed.
There is need to streamline taxation structure, Companies Act, indirect tax reforms. Process to bring down corporate tax to 25 percent has started and will be completed over the next five years. Goods and Services Tax Bill (GST) has got approval from most of the states.
Rajya Sabha Select Panel is expected to submit its report on GST by second week of July Transparency has been brought in governance, government’s decision making process as well in allocation of natural resources. Government has worked towards bringing down Subsidy
Bill significantly by rationalizing subsidies without any opposition from the society. 12.5 crore home are getting LPG subsidy directly into their bank accounts.
Government is working on bringing Kerosene under Direct Benefit Transfer (DBT). Transparency bought in the process by filtering duplicate accounts for subsidy payments. Efforts have been made for inclusion of India into the global financial market.
The government is satisfied only marginally with economic growth rate of 7.5 percent. Despite global slowdown, economy is moving at a reasonable pace.
Government is working to improve the 30 percent saving rate. Government had scope to reduce fiscal deficit, but refrained to ensure adequate expenditure.
Capital expenditure has improved and there has been visible increment in investment and expenditure in the infrastructure sector.
There is huge scope of improvement in manufacturing as well as in agriculture sectors. Largest number of non-performing assets (NPAs) exists in the steel industry. Import duty has been hiked on steel to improve the domestic sector.
Global low oil price rates have assisted in containing the domestic fiscal deficit and inflation.
The benefit of low prices has also been passed onto the consumers.
Government has taken into account food management to ensure no impact on inflation if the monsoons are below the expected levels.
Government is looking at increased investments in agricultural sector. Focus is on rural development.
Long terms plans of the government include reducing the country’s poverty levels. Financial inclusion programme of government has been a success. Nearly 10 million citizens have been brought under the insurance schemes.
Working towards making India an attractive destination for investors. Government is hopeful of implementing GST in order to improve the manufacturing and agriculture sector.
Approval of states for GST important as it will benefit them.
Tamil Nadu is the only state, which is not in favor of GST.
Alcohol not included in GST on request of majority of states. Government is confident that GST will be backbone of the IT industry.
CSR is a major source of fund for government’s clean India mission.
Government supports the Central Statistics Office (CSO) and ensures that there is no serious substance in-charge that GDP is misleading.
Government holding in banks can be brought to 52 percent in various phases.
With assistance from Reserve Bank of India, government is looking to find more resources for banks. Budgetary allocation for banks to recapitalize is on the agenda.
Source: Money control