Union Finance Minister Arun Jaitley in an exclusive interview to Zee Business spoke about different facets of the Union Budget 2018.
Union Finance Minister Arun Jaitley in an exclusive interview to Zee Business spoke about different facets of the Union Budget 2018. He said that the budget is popular and not populist.
Jaitley said that the people have welcomed the budget overall. Reacting to criticism regarding not providing enough sops, Jaitley said that in the past three years enough relief has been given to them. Arun Jaitley highlighted how this budget will be greatly beneficial for the retired class.
Union Finance Minister assured that farmers will be compensated in case crops are destroyed.
Union Finance Minister said that they tried to do structural reforms in the first few years and time is ripe to consolidate the gains. However that is not adequate, according to Jaitley. After an honest introspection, need was felt to prioritise the rural sector, said Arun Jaitley. He also said that poor has the first right to government's money. Arun Jaitley also explained how middle class have been given several reliefs in the budget. He said standard deduction of nearly Rs 8000 crore has been given in the budget.
Jaitley said that salaried class are honest tax payers, hence all his budget had something for them. He listed out several steps taken in the past budgets.
When questioned about whether tax exemption should be increased in theory, Jaitley said that he felt the same before becoming Finance Minister. However, after studying, Union Finance Minister felt that many people are using improper ways to show proof for deductions. Jaitley said there is always a choice between narrowing tax base and providing relief to honest individuals.
Hence Arun Jaitley has chosen a mid-path- to increase the exemptions gradually and to give other reliefs to honest tax-payers. Arun Jaitley said that aspirational class who are earning Rs 5-7 lakh have to pay very minor amount of tax. But it would be on record. Jaitley said that he would continue to provide such reliefs.
Regarding hiking custom duty, Arun Jaitley said that encouraging manufacturing of goods which are available in abundance in India is a positive step for local industry, and is in national interest. He gave the example of footwear and phone manufacturing industry, where Indian businesses need to be promoted.
Jaitley played down the possible impact of raising MSP for farmers on inflation. He says the effect will be marginal and will not be substantial. He said NITI Aayoog will coordinate with states so that farmers can get proper amount. Jaitley was non-committal about the additional burden this step will have on the exchequer.
Jaitley says that in society three types of people are there. And it is the need of the hour to support those who are really deprived. Jaitley says the massive infrastructure push is helping every people of the country.
Union Finance Minister says in a disjointed manner, India is going towards a welfare state. But healthcare was completely missing, and now with Ayushman Bharat, govt will provide it to 10 crore family. “These 40 crore poor people have nothing for them. If they or any of their family members fall ill, they only have government hospitals to go to. By providing this comprehensive healthcare scheme, the government is empowering the poor,”said Jaitley.
Regarding criticism about not eliminating STT, Jaitley said that small players have been exempted and the creamy layer of the society shouldn't have any problem in giving taxes.
About possible inclusion of petroleum products in GST, Arun Jaitley said that most states are likely to be against it as it is a big source of revenue for them.
Regarding speculations about early general election, Arun Jaitley said that he doesn't see any possibility of it as of now. About fiscal deficit targets, Jaitley disagrees with the notion that it is a conservative estimate.
In his last budget before general elections, Finance Minister Arun Jaitley unveiled a slew of measures for agriculture as well as the rural sector and announced a new health insurance scheme for the poor, but provided little relief to the middle class.
With chaotic implementation of the Goods and Services Tax and demonetisation causing distress in the economy, Jaitley announced massive spending on rural and urban infrastructure as also lower tax rates for small and medium enterprises.
While continuing the 10-15 per cent surcharge on super- rich, he raised the health and education cess, levied on all taxable income, to 4 per cent from 3 per cent at present.
Keeping the income tax rates and slabs unchanged, he introduced a Rs 40,000 Standard Deduction for salaried employees and pensioners in lieu of the present exemption in respect of transport and medical expenses.
Jaitley however made import of a host of products -- from cellphone to perfumes and toiletry, from watches to parts of automobiles, sunglasses to truck and bus tyres, footwear to diamonds and edible oils to fruit juices -- costly by raising customs duty.
Fourteen years after it was scrapped, he brought back tax on gains made from sale of shares to offset revenue losses.
In the 110 minute speech, in which he kept switching from English to Hindi for wider mass appeal, Jaitley announced plans for agriculture, rural housing, organic farming, animal husbandry and fisheries with a total allocation of Rs 14.34 lakh crore.
"My government is committed for the welfare of farmers," he said announcing that his party's election promise of fixing a minimum support price (MSP) at 150 per cent of the cost will be implemented for all kharif crops this year.
The Union Budget 2018-19 was the last full budget before the general elections next year, when a vote on account would be presented. The next full budget will be presented by the new government. With GST and demonetisation pulling down GDP growth rate in Asia's third largest economy to its lowest level in three years, he said economic growth was picking up and "firmly on path to achieve 8 per cent plus growth soon". "Indian economy is now USD 2.5 trillion - seventh largest in the world. India is expected to become the fifth largest economy very soon," he said.
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 "Arun Jaitley in Zee Business")
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