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

NITI Aayog rolls out three year action agenda

 Even as a vision and a strategy agenda is in "advanced stages" of finalisation at NITI Aayog, the government think tank has released a draft three year action agenda for public consultation.  The draft action agenda, divided in seven parts and 24 chapters, proposes to reduce

It’s a cause of worry, says NHRC on killing of 25 CRPF troopers

The National Human Rights Commission (NHRC) on Tuesday said it was “disturbed” over the killing of 25 Central Reserve Police Force (CRPF) personnel by Naxalites in Chhattisgarh on April 24. The troopers were attacked while on duty for securing road construction work in the Bur

99% complaints filed through Twitter resolved: BSNL

 Twitter Sewa unveiled by the ministry of telecommunications last year to resolve users’ complaints through micro blogging site Twitter has yielded fruitful results by resolving 99 percent of the complaints.   According to BSNL data, as on April 15, 2017, it has receiv

People of Delhi now hate Kejriwal: Vijay Goel

What is your perception about Arvind Kejriwal’s brand of politics?   In Delhi, after the BJP and the Congress, people wanted to give the Aam Aadmi Party a chance. However, after the Delhi assembly polls, his (Kejriwal`s) political fortune has been on the declin

BHEL’s biggest foreign power project takes off in Bangladesh

Bharat Heavy Electricals Limited’s biggest export order, valued at Rs 10,000 crore for setting up 1,320 MW Maitree thermal power project in Bangladesh has taken-off following the issuance of the ‘notice to proceed’ by the developer.   BHEL said that it won a

For a free and open access

Mozilla is working on two separate goals in net neutrality. One is to bring everyone online; ensure that everyone has access to the internet. The other is to ensure that the network should remain open and diverse. We want people to have access to the whole diversity of the internet and not just in



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter