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In his address at a session titled 'Crafting an economic turnaround', organised by Confederation of Indian Industry here, Jaitley said "last few months I am struggling to rationliase of our tax structure, to make it as far as non adversary, our efforts going to be make sure that our structure are transparent. Our taxation tis oo adversary and we scared investors away. I don't favour the idea of having any concealed fiscal deficit,"said Jaitley, adding that in the last decade India missed opportunity and track.
The Centre is trying to correct the situations and opened doors for many areas. "Last government was criticised slower or for not taking steps, but people asked why we are so aggressive".
The Finance Minister said that initial phase of the government was to restore the credibility of the Indian economy. "Our decisions are now consistent and transparent."
On Centre's decision to take the ordinance route to introduce few legislations, Jaitley said that the Government was a forced one as the wisdom of the Lok Sabha was being constantly questioned by the indirectly by Rajya Sabha.
"I can understand it happens once in a while, but then its a serious question that it raises with regards to our functioning. if every legislation passed by the directly elected house is questioned by the indirectly elected house and in such case you have to resort back to the constitutional mechanism (through ordinance) if one house is not allowed to function that doesn't mean the country will stop functioning.
On the States roles, he said, at present India not only have federal structure, but also in a competitive federalism. The Centre wants to take the state governments along with the reforms after addressing their concerns. For example, he said in GST it is mobilising support of the states and he once again assured that no state will loose one single Rupee of revenue.
He noted, few manufacturing states in the country have doubt that they wont get the share and the Centre assured that they would get their share plus for the first five years Centre will give cushion for all the states. He noted, currently around Rs 2 lakh crore being collected through service tax including States' share. "GST in the long run means also lower tax," said Jaitley, adding that the Centre also want to cut down number of Centre sponsored schemes, so that the State will have more money in their hands to spend their own welfare schemes.
Stressing upon the need to rationalise the subsidies Jaitley said he is looking at the suggestions made by the Expenditure Commission.
The Union Minister also asked the States and political parties to have a common national vision on economic policies as they have in relation with security and foreign policies.
Besides, global attitude, today domestic mood have also changed. Process of rate cut have started, interest rates indicates that it is in downward movement.
India got a competitive advantage currently as compared to other competing countries. India is moving faster than them and with the change of general mood the agenda of the government has changed.
"Though the year will not a be great year, it will be a better year", said the Finance Minister, who said the Government need to take special steps as far as public investment concerned.
