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Finance Minister Arun Jaitley on Friday outlined and defended the various steps and policy decisions taken by the Narendra Modi-led NDA government in its first year in office.
The finance minister said that the respect for India and PM Narendra Modi had increased not only in India, but in the entire world.
"Initiatives undertaken in sectors such as power, coal and mining are noteworthy; they show a transparent model for reforms," the FM said.
He added that the previous environment of gloom had been replaced by a climate of enthusiasm and the newfound zeal makes people restless with even a growth rate of 8%.
Pointing to the fact that decisiveness even in the face of obstructionism has been an important hallmark of the NDA government, he added that the nation was not ready to accept slow decision making.
Almost on daily or weekly basis, decisions are being taken to augment development, the Finance Minister said, adding that there is a need to expand economic activity even further.
Almost on daily or weekly basis, decisions are being taken to augment development, the Finance Minister said, adding that there is a need to expand economic activity even further.
On taxation, the minister said, "Measures have been taken to make taxation an instrument of promoting growth.The most important reform since independent India, in the area of indirect taxation, is being brought about - the GST."
High taxation rates are never investor or economy friendly and the government has taken measures to bring direct taxation rates to globally competitive levels, he added.
On direct taxation, the emphasis is two fold, Jaitley said.
"We are making corporate tax rates competitive with global levels. In our two budgets, we have ensured exemptions which will enable the individual tax payer to spend more and save more," the FM said.
There are legacy issues but no new tax dispute has been raised, he added.
"We are making corporate tax rates competitive with global levels. In our two budgets, we have ensured exemptions which will enable the individual tax payer to spend more and save more," the FM said.
There are legacy issues but no new tax dispute has been raised, he added.
On fiscal consolidation, Jaitley said all economic indicators have shown marked improvement. Important parameters like fiscal and current account deficit, growth rate, revenue figures, etc have stabilised, he added.
The government has improved the ease of doing business as well, the FM said, adding that the use of investigative agencies to go after corporates has ended.
The government has improved the ease of doing business as well, the FM said, adding that the use of investigative agencies to go after corporates has ended.
For infrastructure, Jaitley said, the government has found ways to spend higher through public spending.
Speaking about subsidies, Jaitley said that the government is going for increased rationalisation. Through DBT, LPG leakage has reduced, he added.
"The government has decided to increase public investment in agriculture (specifically irrigation) and rural infrastructure," the FM said.
Saying that India is an unpensioned society, the minister said the recently launched insurance schemes by the government had reached 7.5 crore people in a few weeks and the insurance schemes will bring the benefits of insurance to the common man. The new MUDRA Bank will bring finance to 5.7 crore small entrepreneurs, the FM added.
He said that the banking sector was under a lot of pressure due to global slowdown but reduction in non-performing Assets is a good sign.
He said that the banking sector was under a lot of pressure due to global slowdown but reduction in non-performing Assets is a good sign.
The time is right for the Reserve Bank of India (RBI) to cut interest rates, Jaitley added.
The Finance Minister also said the government had strengthened the system of federalism.
"NITI Aayog has been constituted,as an important pillar of the government's initiative to strengthen federalism," he said.
Jaitley added that the revenue realised through coal block auctions shall go to states and it’s an example of cooperative federalism.
He further said that the government has a clear roadmap for the year ahead and wants to pass the Land Bill and GST Bill in the next session.
"We will reduce stalled projects. Public procurement act, bankruptcy code, resolution of contracts, ease of doing business at the entry point are just some of the initiatives we have planned. We are moving forward with disinvestment and strategic disinvestment as well," he said.
The govt will also continue to squeeze black money generation by passing more legislation in coming year, he added.
