Budget only beginning, I did whatever I could do: Arun Jaitley

FM is being criticised, especially by rating agencies, for not repealing the retrospective tax amendment.

By: PTI | New Delhi | Updated: July 13, 2014 4:08 pm
"This is the beginning of our journey, not the end", said Jaitley. “This is the beginning of our journey, not the end”, said Jaitley.

Brushing aside criticism of not having done enough reforms in the Budget, Finance Minister Arun Jaitley has said this was the beginning of the journey and he did all he could do under the given circumstances.

“This is the beginning of our journey, not the end. Abhi hum jitna kar sakte the, humne utna kiya hai (Whatever I could do now, I have done). And all the decisions are not taken on day one,” Jaitley told the media.

Jaitley, who presented his maiden Budget on July 10, is being criticised, especially by rating agencies, for not repealing the retrospective tax amendment and not providing enough sops for the industry.

The Minister, however, has provided relief to the salary earners by sacrificing Rs 22,200 crore in direct taxes. Refuting the criticism, he said the government has taken important steps which are necessary but not taken in the past 10 years.

“Each one of those major issues, whether it is insurance or real estate, defence, retrospective tax, simplification of tax administration, transfer pricing (were important). So in 45 days, we have tried to address each one of them and then we have given impetus to the manufacturing sector.

“These are important decisions. Our government is very clear in some sector you got to give more relief. Aam aadmi par aap kitna bojh denge? (How much can we burden the common man?). So, that is why we tried to rationalise individual taxation. We have also removed inverted duty structures,” Jaitley said.

The Budget has proposed increasing the income tax exemption limit to Rs 2.50 lakh from Rs 2 lakh and raised the ceiling on investment in saving instruments to Rs 1.5 lakh from Rs 1 lakh per annum.

On criticism of Budget not having a detailed roadmap for fiscal consolidation, Jaitley said: “I have not spelt it out in details because I have provided for Expenditure Management Commission and if anybody feels that in 45 days you can come out with the scheme of rationalisation of subsidies to which people in the last 66 years have not found an answer, we must rate the agencies then.”

He said that there are two ways of reducing fiscal deficit — either you spend less or you earn more. “The ideal situation is that you should earn more because if you spend less then you are contracting expenditure and you may end up contracting some parts of the economy… I have looked at unresolved issues that they (UPA government) left behind or the problems they have left behind,” he said, adding in the period of 45 days he has tried to address most of these problems.

The Budget proposed restricting fiscal deficit this year to 4.1 per cent of GDP and bring it down to 3 per cent by 2016-17. This is in line with the road map laid out by the UPA government.

 

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  1. S
    Sudhir
    Jul 14, 2014 at 1:01 pm
    Indians are Paying for Sins of Congress UPA ………….Loot………………
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    1. A
      A S
      Jul 13, 2014 at 1:25 pm
      NDA was out of power for about 10 years. Most of the ministers are new to administration. First few months will be gaining experience. No management should attempt major changes without ensuring that there is enough managerial bandwidth. Further NDA doesn't have majority in RS. This calibrated approach is best. After all the Govt is elected for ten years.
      Reply
      1. B
        Bharatiyq
        Jul 13, 2014 at 1:54 pm
        Good budget. I hope all states will be allocated budget based on potion of states. This is very important for proper utilization of limited resources and speedy development of the conditions of common m. Instead of approving huge budget for certain states and meager budget for highly poted other states does not help overall development of the country. Govt also needs to ensure that influx of people from Bangladesh, stan and other bordering countries is reduced to a minimum. Govt also needs to ensure incentive for birth control(one child per family for all people). Otherwise, increased potion may swallow all the good things Govt is trying to do.
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        1. P
          Pradip Bhattacharya
          Jul 13, 2014 at 12:57 pm
          This is a very good budget. Congress never thought of interlinking rivers and water transport in the Ganges or setting up 100 smart cities or setting up so many IIT/IIM across India. Even a sport university in Manipur! Long live Modi Govt. Down with Sonia and Congress for ever.
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            Norman Coelho
            Jul 14, 2014 at 1:14 pm
            Lets give the BJP some breathing space - They have a herculean task ahead to clean up first. - We see them addressing critical issues like -arriving on time to work and making the bureaucrats and ministers produce with measured results . This is a first since 1947 ?Most of all, dynastic rule -where friends and relatives of those in power at the Union and State level , who enjo special treatment and perks -will hopefully will be a thing of the Past ? If the BJP is disciplined and continues this agenda , India Inc is definetly going to see better days ahead - The budget addresses infusion of foreign capital investment . - It is only through the ociation and collaboration with International business community can we see a better tomorrow .
            Reply
            1. S
              Sreenivas
              Jul 13, 2014 at 11:28 am
              Very true !
              Reply
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