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

Some market talk, some gossip – learnings over tea at RBI

A Fly on the RBI Wall: An Insider’s View of the Central Bank By Alpana Killawala Rupa Publications, 248 pages, Rs 595  

Coalition politics not expected to impact India’s foreign policy

Prime minister Narendra Modi has strived incessantly to bring laurels and much needed recognition for the nation since May 2014 when he was sworn in as the head of state. The poser which can be deliberated upon is this: What will be the consequential impact of the new era of coalition politics which confro

New govt`s first decision pushes for farmer welfare

The BJP-led NDA government has started its term with its first decision relating to farmer welfare. Narendra Modi took charge of office as prime minister of India for the third time on Monday, a day after he and his colleagues were sworn in by the president of India. In his fi

Narendra Modi takes oath for third term

Narendra Modi made history Sunday evening as he was sworn in by president Droupadi Murmu for a third successive term. Modi thus becomes the first prime minister since Jawaharlal Nehru to have comptered two full terms and beginning a third consecutive term. In the swearing-in c

Modi appointed PM for the third time

Narendra Modi was Friday appointed the prime minister for a historic third time, as president Droupadi Murmu invited him to form the next government. The swearing-in ceremony for the new council of ministers will take place on Sunday. “The President, having satisfied herself on the bas

Elections 2024: ‘Nearly half the winners have declared criminal cases’

As many as 251 of the 543 winning candidates of the just-concluded general elections, that is, 46 percent of them, have declared criminal cases against themselves, according to an analysis carried out by the Association for Democratic Reforms (ADR). This number has been consistently rising – from 162

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter