Exuding confidence that the economy will register 6 per cent growth next fiscal, finance minister Arun Jaitley on Wednesday spelt out further reforms including plans to raise the foreign investment cap in insurance sector and work for making the tax regime ‘civilised’ to attract overseas investments.
Responding to the debate on the first supplementary demand for grants in the Lok Sabha, he also announced that the government would release of Rs 11,000 crore to states in the current fiscal as part payment towards compensation for the lowering of central sales tax.
“…despite difficult and challenging situation, I propose to release about Rs 11,000 crore, which is one-third, this year as a part payment as a CST compensation to the states,” he said. This would help facilitate roll-out of the Goods and Services Tax.
Meanwhile, referring to the select committee on insurance which submitted its report earlier in the day, Jaitley said, “Large investments are waiting to come in. We have to open the doors.”
“How long are we going to remain a country which does not have adequate health insurance. Forget other forms of insurances LIC can take care of life insurances but you need to expand these sector … public health system is not adequate,” he said.
Meeting with state FMs on GST today
NEW DELHI: Finance minister Arun Jaitley will meet state finance ministers on Thursday to address the challenges in the roll out of the goods and services tax (GST).
The meeting would “discuss some of the challenges that the states see at this point of time”, said minister of state for finance Jayant Sinha on the sidelines of the Delhi Economics Conclave. ENS