Jaitley confident of over 8 per cent growth rate in FY 15-16, says economy will boost further

Union Finance Minister Arun Jaitley

New Delhi, Aug 6: Expressing confidence of over eight percent growth rate in the current fiscal year, Finance Minister Arun Jaitley has said the Indian economy will boost further with the government taking all effective measures in the financial sector.

Replying to a discussion on the Supplementary Demands for Grants in respect of the General Budget for 2015-16 in the Lok Sabha on Wednesday, Jaitley while elaborating the measures taken by the government said the banks, which are suffering due to Non-Performing Assets, will be recapitalised to the tune of Rs 1.80 lakh crore in the next five years to ensure their sound health.

The Finance Minister said the proposed Goods and Services Tax (GST) regime will bring buoyancy to the economy besides benefiting many consuming states like Odisha.

Jaitley said despite adverse global economy, the implementation of GST will boost Indian economy by one to two per cent, adding that major infrastructure projects with respect to national highways, steel and power will be infused with adequate funds.

Meanwhile, training his guns against Congress leader Mani Shankar Aiyar on the GST Bill issue, Jaitley asked whether the grand old party wants alcohol to be cheaper by bringing it under GST and reducing taxes on it.

He said: “Aiyar has cited an interesting reason for blocking GST Bill by claiming that alcohol for human consumption is taxed at very high rates by states due to which people consume ‘hooch’.”

Responding to Aiyar’s blog “How Congress will block GST”, Jaitley retorted that alcohol should be brought within the GST instead of leaving it to the taxing purview of states so that it can be taxed at the constitutional limit of 18 percent that the Congress party now proposes.

In his Facebook post titled ‘Hooch versus alcohol – Congress party’s priority’, Jaitley pointedly asked the Congress if
they agree with Aiyar’s stand.

(With Agency Inputs)

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