Fiscal deficit target of 3.2% realistic,he says
Finance Minister Arun Jaitley on Friday said an institution to tackle non-performing assets (NPAs) of banks and over-leveraged companies could not be funded by the government alone through budgetary support.He,however,did not dismiss the idea of the body mooted by the Economic Survey.
Interacting with representatives of industry chambers,two days after he tabled the Budget in the Lok Sabha, Jaitley said he would not like to get into a situation where eventually NPAs become a government issue and the whole thing has to be supported out of the Budget.
The Economic Survey for 2016-17 stated the country has been trying to solve its‘Twin Balance Sheet’problem — overleveraged companies and bad-loan encumbered banks,alegacy of the boom period around the Global Financial Crisis.So far,there had been limited success,it said.
It suggested a centralised Public Sector Asset Rehabilitation Agency (PARA),which could take charge ofthe largest, most difficult cases, and make politically tough decisions to reduce debt.
The finance minister said ideas offered by the Survey were there for discussion and eventual implementation. “We take the suggestions (of the Survey) on board,”he said.
Adding :“The earlier suggestions on bad bank will also be taken into consideration.But,I will not be able to comment on what eventually emerges as a solution.” The Survey had said the problem of twin balance sheet kept increasing,while credit and investment kept falling.
Gross NPAs of public sector banks climbed to almost 12 percent of their gross advances by September end of 2016.
India’s NPA ratiois higher than any other major emerging market,excempt Russia,the Survey had said.
Jaitley also said up beat projections for tax revenues and disinvestment proceeds will help meet a “realistic” fiscal deficit target of 3.2 per cent of gross domestic product for 2017-18.
The finance minister said the revenue target for 2017-18 does not factor in the full gains accruing from demonetisation in the form of higher taxesn on undisclosed income.
The government has pegged disinvestment receipts at Rs 72,500 crore for 2017-18,against Rs 40,000 crore in the Revised Estimates for the current financial year.
Jaitley defended a levy of 10 percent surcharge on those earning over Rs 50 lakh and upto Rs 1 crore,saying there sources in a largely non-tax compliant society will have to come from the more affluent.
Looking forward to introduce the Goods and Services Tax (GST) from July,the finance minister said that and compensation Bills would be tabled in Parliament in the second half of the current Budget session, which would reconvene on March 9 after a month-long recess.The GST Council will meet on February 18 to approve the draft central GST,state GST and integrated GST Bills.
On bad bank
The economic survey always carries ideas for discussion and eventually implementation,even if you cannot do it immediately. and,we take that suggestion (on para) on board
On revenues
As far as demonetization is concerned,we will bear in mind revenue and other gains from it.they have not been fully factored (in the budget)
04TH FEBRUARY,2017, BUSINESS STANDARD, NEW-DELHI
Finance Minister Arun Jaitley on Friday said an institution to tackle non-performing assets (NPAs) of banks and over-leveraged companies could not be funded by the government alone through budgetary support.He,however,did not dismiss the idea of the body mooted by the Economic Survey.
Interacting with representatives of industry chambers,two days after he tabled the Budget in the Lok Sabha, Jaitley said he would not like to get into a situation where eventually NPAs become a government issue and the whole thing has to be supported out of the Budget.
The Economic Survey for 2016-17 stated the country has been trying to solve its‘Twin Balance Sheet’problem — overleveraged companies and bad-loan encumbered banks,alegacy of the boom period around the Global Financial Crisis.So far,there had been limited success,it said.
It suggested a centralised Public Sector Asset Rehabilitation Agency (PARA),which could take charge ofthe largest, most difficult cases, and make politically tough decisions to reduce debt.
The finance minister said ideas offered by the Survey were there for discussion and eventual implementation. “We take the suggestions (of the Survey) on board,”he said.
Adding :“The earlier suggestions on bad bank will also be taken into consideration.But,I will not be able to comment on what eventually emerges as a solution.” The Survey had said the problem of twin balance sheet kept increasing,while credit and investment kept falling.
Gross NPAs of public sector banks climbed to almost 12 percent of their gross advances by September end of 2016.
India’s NPA ratiois higher than any other major emerging market,excempt Russia,the Survey had said.
Jaitley also said up beat projections for tax revenues and disinvestment proceeds will help meet a “realistic” fiscal deficit target of 3.2 per cent of gross domestic product for 2017-18.
The finance minister said the revenue target for 2017-18 does not factor in the full gains accruing from demonetisation in the form of higher taxesn on undisclosed income.
The government has pegged disinvestment receipts at Rs 72,500 crore for 2017-18,against Rs 40,000 crore in the Revised Estimates for the current financial year.
Jaitley defended a levy of 10 percent surcharge on those earning over Rs 50 lakh and upto Rs 1 crore,saying there sources in a largely non-tax compliant society will have to come from the more affluent.
Looking forward to introduce the Goods and Services Tax (GST) from July,the finance minister said that and compensation Bills would be tabled in Parliament in the second half of the current Budget session, which would reconvene on March 9 after a month-long recess.The GST Council will meet on February 18 to approve the draft central GST,state GST and integrated GST Bills.
On bad bank
The economic survey always carries ideas for discussion and eventually implementation,even if you cannot do it immediately. and,we take that suggestion (on para) on board
On revenues
As far as demonetization is concerned,we will bear in mind revenue and other gains from it.they have not been fully factored (in the budget)
04TH FEBRUARY,2017, BUSINESS STANDARD, NEW-DELHI
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