 "FM says reforms to continue despite disruptions in Parliament")
Finance Minister Arun Jaitley on Saturday accused the Opposition of obstructing the reform process as the ongoing session of Parliament faced disruptions.
He, however, said subsidies would be rationalised because most of these were non-legislative decisions. “In the weeks and months to come, you should expect a lot more decisions in this regard from the government,” the finance minister said at an event here.
So far as legislative reforms were concerned, Jaitley said the government would use the joint session of Parliament as the last resort because reforms were also the art of making things possible. He said while the government has less numbers in the Rajya Sabha, the composition of the upper house of Parliament was changing.
On legislative business, Jaitley said the insurance bill, the coal legislation and the constitution amendment bill on the goods and services tax were to be taken up in Parliament in the days to come.
“The debate with regard to the insurance bill is almost coming to an end. Hopefully, within a few weeks, it should produce some results,” the finance minister said. A select committee of Parliament is expected to submit its recommendations on the insurance bill on December 10, after which the bill could be taken up in Parliament. Jaitley said he had convened a meeting of state finance ministers on the GST on December 11 to discuss the revised draft of the constitution amendment bill. A day later, the empowered committee of state finance ministers is going to meet on the issue. The finance minister also said he was working with the mining department on a law for minerals other than coal. Admitting that the land law was a big challenge, Jaitley said he was confident of building consensus on it as well. “Reforms are the art of possible and this art involves carrying not only your friends but a large amount of public opinion along with you,” he added.
Reforms will include the banking sector as well. “I do hope in months to come, we can see a significant movement in that direction. The banking sector needs a large number of reforms and there is a whole programme that we have set in place as far as the sector is concerned,” Jaitley said.
Besides, the finance minister is looking at rationalising subsidies to take a second step in expenditure management after the decontrol of diesel prices.
“I have had a series of meetings with the expenditure management commission. They are working effectively with regard to rationalisation of subsidies and I do hope in the next few — even a month would be an ovestatement, may be earlier — they were able to come out with some interim recommendations so that we can proceed with rationalisation,” the finance minister said.
He added manufacturing was an area of concern, because of which the indirect tax collection target posed a challenge. However, the direct tax mop-up would be close to target, he said.
The government has a fiscal deficit estimate of 4.1 per cent of the gross domestic product, but the deficit has touched almost 90 per cent of the target in the first seven months of the current fiscal year.
Disinvestment is going to play a crucial role in reining in the fiscal deficit. The government has kicked off the programme with a five per cent stake sale in Steel Authority of India. “Friday’s response of the market has been fairly encouraging, particularly the fact that retail investors oversubscribed the issue by 2.5 times,” Jaitley said.
Speaking at the event in New Delhi, ICICI Bank Chief Executive Officer Chanda Kochhar said, “The whole push towards (the new government’s effort to boost manufacturing) I think directionally is a big achievement.” Talking about the focus area for the government, she said, “What needs to be done is to achieve final closure for the various projects that have been languishing and dragging so far.”
Besides, there was need to improve the supply side so that inflation in the long term could be tamed, said xxxxxx.
He, however, said subsidies would be rationalised because most of these were non-legislative decisions. “In the weeks and months to come, you should expect a lot more decisions in this regard from the government,” the finance minister said at an event here.
So far as legislative reforms were concerned, Jaitley said the government would use the joint session of Parliament as the last resort because reforms were also the art of making things possible. He said while the government has less numbers in the Rajya Sabha, the composition of the upper house of Parliament was changing.
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On legislative business, Jaitley said the insurance bill, the coal legislation and the constitution amendment bill on the goods and services tax were to be taken up in Parliament in the days to come.
“The debate with regard to the insurance bill is almost coming to an end. Hopefully, within a few weeks, it should produce some results,” the finance minister said. A select committee of Parliament is expected to submit its recommendations on the insurance bill on December 10, after which the bill could be taken up in Parliament. Jaitley said he had convened a meeting of state finance ministers on the GST on December 11 to discuss the revised draft of the constitution amendment bill. A day later, the empowered committee of state finance ministers is going to meet on the issue. The finance minister also said he was working with the mining department on a law for minerals other than coal. Admitting that the land law was a big challenge, Jaitley said he was confident of building consensus on it as well. “Reforms are the art of possible and this art involves carrying not only your friends but a large amount of public opinion along with you,” he added.
Reforms will include the banking sector as well. “I do hope in months to come, we can see a significant movement in that direction. The banking sector needs a large number of reforms and there is a whole programme that we have set in place as far as the sector is concerned,” Jaitley said.
Besides, the finance minister is looking at rationalising subsidies to take a second step in expenditure management after the decontrol of diesel prices.
“I have had a series of meetings with the expenditure management commission. They are working effectively with regard to rationalisation of subsidies and I do hope in the next few — even a month would be an ovestatement, may be earlier — they were able to come out with some interim recommendations so that we can proceed with rationalisation,” the finance minister said.
He added manufacturing was an area of concern, because of which the indirect tax collection target posed a challenge. However, the direct tax mop-up would be close to target, he said.
The government has a fiscal deficit estimate of 4.1 per cent of the gross domestic product, but the deficit has touched almost 90 per cent of the target in the first seven months of the current fiscal year.
Disinvestment is going to play a crucial role in reining in the fiscal deficit. The government has kicked off the programme with a five per cent stake sale in Steel Authority of India. “Friday’s response of the market has been fairly encouraging, particularly the fact that retail investors oversubscribed the issue by 2.5 times,” Jaitley said.
Speaking at the event in New Delhi, ICICI Bank Chief Executive Officer Chanda Kochhar said, “The whole push towards (the new government’s effort to boost manufacturing) I think directionally is a big achievement.” Talking about the focus area for the government, she said, “What needs to be done is to achieve final closure for the various projects that have been languishing and dragging so far.”
Besides, there was need to improve the supply side so that inflation in the long term could be tamed, said xxxxxx.