Finance Minister Arun Jaitley unveiled a reform-minded budget today, vowing to lift economic growth to rates of 7-8 per cent.
Finance Minister Arun Jaitley unveiled a reform-minded budget, vowing to lift economic growth to rates of 7-8 per cent by promoting manufacturing and infrastructure and overhauling populist subsidies. In an exclusive interview to NDTV, Mr Jaitley speaks about his budget:
Following are the highlights of the interview:- Difference between process of economic management and ideas is that you have to carry the country's popular opinion.
- Several items on the table were left undecided or left by the past government in a complicated form.
- I haven't tried to burden any section unfairly.
- My agenda for 45 days was 'let me address the immediate concerns.'
- Have indicated the thrust of direction this government wants to go in.
- Immediate concern was the loss of confidence in the economy.
- The first and the last parts of the speech show the policy direction.
- India is a very complex nation. There are the state governments, the parliamentarians, the economists. Budget has to cater to all.
- There is going to be stability as far as tax regime is concerned. We are not enthusiastic about fresh action on this account. (on retrospective tax)
- Some issues have curiously been raised by the NDA governments in the states. I will try to come out with a legislative scheme by the end of this financial year. (on Goods and Services Tax)
- In the process of closing door on retrospective tax. It creates an adverse impact on economy.
- I have been monitoring figures and substantially it is food. In that it is milk, protein related items and onions and potatoes. (on inflation)
- We have created a strong framework - at an early stage trying to arrest the increase in prices of onions and potatoes.
- If you have moderate interest rates, we can have a pre-2004 situation where paying an EMI was cheaper than paying rent.
- In a couple of years, it will certainly be possible to get deficit to around 3 per cent.
- Disinvestment numbers little over 50,000 crores - this target is going to be achieved.
- No grey areas in taxation, stability in tax policies.
- If we have a good monsoon, RBI will moderate rates.
- As far as real estate is concerned, I have reduced size and capital requirements in tier-II cities to encourage FDI.
- The idea is you can't be additionally taxed because of a pass-through.
- Rebates are being worked out.
- Time to start looking at FDI in Defence manufacturing - I've upped it to 49 per cent.
- My only regret is that I did not have enough money in my pockets to given them a little more.
- People must have more money and they must be incentivised to save money.
- This is the beginning of a process - there are a few steps that are directional and these are a part of the road map.
- Four months of this fiscal are over. It will take two or three months to formulate the scheme. So we have provided 100 crores for this year.
- I have absolutely no regret - Jai Prakash Narayan or Syama Prasad Mookerjee or Sardar Patel each have to be honoured.
- Rs 20 crore or Rs 100 crore schemes are all schemes, wherein to prep for the first year you will spend the money. If you need more, ask us for more and we will come out with revised estimates in November.
- We have been fair to the states. I put up a map of India and made sure every state gets some part of the national assets we're trying to create.