FM Reminds Cong of `Legacy', Seeks Early GST Bill Passage

Jaitley says world should not think Parliament is being `obstruction' to reforms

Finance minister Arun Jaitley has said Parliament should not send a message that it is an obstacle to reforms making a strong appeal for early passage of goods and services tax while reaching out to the main opposition Congress to think about the “legacy“ it would leave behind by not supporting the measure when there is a need to strengthen the economy to shield it from global headwinds.

“It not difficult for India to grow at 8-9 %.....We need to strengthen domestic economy so that become resilient to global shocks...“ Jaitley said and appealed to the Congress party to support the constitution amendment bill for GST, which is stuck in the Upper House.

“I would urge the current leadership of Congress party also to look at the history and legacy they want to leave behind. Support these measures so that we are able to grow faster. We have more money to get rid of poverty much faster,“ he said adding that those who try to create impediments want to poverty to perpetuate. “... By short-sighted vision, we end up hurting the poor in this country ,“ the finance minister said. He said a message should not go to the world that Parliament is being an “obstruction“ to the reform process as he noted India is being seen as a “bright spot“ when other major economies have slowed down. The Rajya Sabha has not functioned most of this winter session.

The GST bill, which aims at reforming the direct taxation system in the country , can push the country's growth by 1-1.5%, Jaitley said in the Lok Sabha while replying to a debate on the second batch of supplementary demand for grants of Rs.56,256 crore which was later approved.

He said the best solution to pov erty eradication is enabling the country to grow faster which will generate jobs and increase resources of the government.

He noted that GST was first brought by the previous Congress-led government and was “unquestionably“ the “collective wisdom of everybody ... But today they oppose.“

Jaitley, who spoke in the absence of Congress, which was boycotting the House over alleged 'vendetta politics', said he was conveying the message to the main opposition party through the Chair.

He hoped that the growth in the current year would be 7-7.5% and the fiscal deficit would be restricted to 3.9% of the GDP with quality “much superior“ than previous government.

The fiscal deficit target will be met without any cut in expendi ture, he said, adding whatever amount has been promised to various schemes as also to the states will be given.

There will not be any difference between budget estimate and revised estimate, Jaitley said.

“With moderately good GDP numbers, fiscal deficit under control, we intend to achieve current account deficit (CAD) at 1.2% of the GDP (in the current fiscal),“ he said.

He underlined the need for faster growth of the country to insulate itself from the global economic crisis which is recurring frequently . “The world has become integrated...Crisis, volatility and turmoil has become a new global norm...we have to strengthen our economy so that we become resilient to a large extent from this turmoil,“ he said.

Talking about various challenges, Jaitley said Indian exports have suffered because of global slowdown and reduced purchasing power of importing nations.The second challenge, he said is with regard to deficient monsoon which has been below normal for the last two consecutive years. “I hope the Rain God will be as kind to this government next year as it has been to the previous government,“ he said as he noted that Monsoon has never failed for three consecutive years earlier.

The other challenge concerns the slower private sector investment in the country , the finance minister said, adding when private sector investment slows down, the onus of promoting investment falls on the government. “When there is a challenging situation private investment slows down,“ he said.

He said the country can take some satisfaction from the fact that it is one of the fastest growing major economy of the world but the challenge is to make India grow much faster.

The Economic Times, New Delhi, 16th Dec. 2015