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

Household debt up, but India still lags emerging-market economies: RBI

Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...

External spillovers likely to hit India's financial system: RBI report

While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...

CA Online

Search This Blog