No more borrowing, says Jaitley and talks of cuts in spending

Fiscal deficit target of 4.1% will be met, assures the finance minister

GN Bureau | February 6, 2015


#arun jaitley   #budget   #mumbai   #finance minister  

Finance minister Arun Jaitley does not believe in living on borrowed money. This means the government will not overshoot limits imposed on fiscal deficit.

However, to maintain 4.1% fiscal deficit target the government is planning to reduce its spending. "We're trying to rationalise expenditure as far as the government is concerned because we do not want the government to live on borrowed money indefinitely," Jaitley told a gathering of industrialists and planners gathered at Mumbai on Friday.

"The whole concept of spending beyond your means and leaving the next generation in debt to repay what we are overspending today is never prudent fiscal policy," he said. The finance minister was addressing a gathering of top industrialists and planners through video conferencing at an event — ‘Mumbai First: Turning the city into an international finance hub’

These spending cuts would be over and above 10% that the government has already announced to meet the budgeted 4.1% fiscal deficit target. In fact the target has already been breached in November itself -- four months ahead of the end of the financial year on March 31.

As he hits the budget month, Jaitley spoke of a stable tax regime. “Our taxation policy was not exactly investor friendly. In the last few months, we’ve made a huge effort to smoothen tax disputes and those issues which were bringing the Indian revenue structure a bad name.

“I’ve always believed that where taxes are to be paid, taxes will be collected, but no unfair effort will be made by the state so that investors are unnecessarily harassed in that area,” he said.

On reforms, he said power, energy, railways and ports will be high on priority for the government and hinted at more public investment into these sectors.

And how these areas will get funds? Jaitley spoke of international financing models to fund investment in priority areas.

“I think the international models of inviting finance, which is internationally available from various sources, is extremely important.

“In the last few weeks we have had a series of visitors who showed a great amount of interest in financing our infrastructure if a particular model can be created. I cannot go into details of these models, but these are under active consideration of the government and you will see soon hear from us,” Jaitley added.

Comments

 

Other News

Modi inaugurates India’s longest bridge in Assam

  Prime minister Narendra Modi celebrated three-year of his government on May 26 by inaugurating Dhola-Sadiya bridge over the Brahmaputra river in Assam’s Tinsukia district. It is the longest bridge in India, which runs 9.15 km from end to end and connects Assam with Arunachal Pradesh.

IndianOil registers highest ever profit of Rs 19,106 crore

 IndianOil posted a net profit of Rs 19,106 crore for 2016-17 fiscal as compared to a profit of Rs 11,242 crore in the last fiscal. The income from operations for the financial year 2016-17 was Rs 4,45,373 crore as compared to Rs 4,06,828 crore in the previous fiscal. IndianOil`s income from

Maiden flight of HAL’s light utility helicopter

 Hindustan Aeronautics Limited (HAL) carried out first flight of light utility helicopter (LUH)-PT-2 on May 22 at its Bengaluru-based facility. The flight duration was about 22 minutes and pilots reported nil snag, HAL said.   “These maiden flights of indig

The rise and rise of muscular nationalism

 Narendra Modi is like Greek mythology’s King Midas: whatever he touches turns into gold. Most people in this country are left dazzled by his ability to make dramatic announcements with a statuesque flourish.   The past three years of the Modi government have left the

BHEL unveils 270 MW thermal unit in Maharashtra

Bharat Heavy Electricals Limited (BHEL) has added another feather to its cap by successfully commissioning another 270 MW thermal unit at RattanIndia Nasik Power Limited’s 5x270 MW thermal power project at Sinnar (Nasik) in Maharashtra.   This is the fourth unit to be c

India is second largest stainless steel producer in the world: steel minister

Chaudhary Birender Singh, minister for steel, said that the Indian steel industry is at the cusp of a significant milestone by becoming the second largest stainless steel producer in the world, leaving behind Japan. He said that the steel sector is only an example of all-round development in India. The c



Video

सुषमा ने किया देश की बेटी का स्वागत

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter