Economic growth set to cross 7%

Finance minister meets MPs to discuss and seek suggestions on the budget

GN Bureau | February 9, 2015


#union budget   #arun jaitley   #gdp   #economic growth  


Economy grew at 7.5% during December 2014 quarter. The economy will grow 7.4% in the year through March 31, aided by a 7.5% increase in October-December, the ministry of statistics and programme implementation said in New Delhi on Monday. Last month it revised the previous year’s expansion to 6.9% from 4.7%,

Secretary and Chief Statistician of India T C A Anant announced that India’s economic growth was estimated as 7.4% (2014-2015) compared to growth rate of 6.6% (2013-14).

The economy grew 5.7 per cent in the first quarter and 5.3 per cent in the second quarter of 2014-15, aggregating 5.5 per cent in the first six months. These numbers are based on GDP exclusive of indirect taxes (net of subsidies), which in technical jargon is termed GDP at factor cost. Besides, the base year is 2004-05.

These would be revised on the basis of GDP inclusive of indirect taxes (net of subsidies) and on the new base year of 2011-12. Economic growth has already been revised to 5.1 per cent from the earlier 4.5 per cent for 2012-13 and 6.9 per cent from the earlier 4.7 per cent for 2013-14.

Meanwhile, finance minister  Arun Jaitley has said that overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction. The finance minster was making the opening remarks at the first meeting of the Parliamentary Consultative Committee attached to his ministry held on Monday to discuss ‘Suggestions for the Budget’.

Jaitley said that current account deficit will be under control and will try to keep fiscal deficit also within the prescribed limit. The finance minister said that the growth rate would be better than the last year as per the old system.

Various suggestions were given with regard to the forthcoming budget by the participating members which include significant increase in allocation for judicial sector for setting- up fast track courts in order to clear the heavy back log of pending court cases in various courts; abolition of differential import tax levied on end use basis as this leads to misuse and corruption, steps be taken to broaden the tax base and impose small tax at flat rate on everyone including small businessmen so that everyone is a stakeholder in the country’s development.

Other suggestions included focus on inland waterways, rationalization of subsidies including in case of urea leading to its excessive use which in turn spoiled the quality of land and brought down the productivity, more concession for migrant workers and agricultural labourers, incentives for modernization of agriculture to make it viable, focus on creating strong rural infrastructure, incentives for agri-exports, more tax benefits to cooperative sector, incentivize use of ethanol in petrol, more allocation for animal husbandry and veterinary research, boost to micro-irrigation, 50% subsidy by the Central Government for drip irrigation be extended to all farmers in all areas and financing of remaining 50% liberally by banks through soft loans to farmers among others. Other suggestions include labour reforms, settlement of issue of wages etc of staff of public sector banks and insurance companies and focus on skill development programmes for workers and labourers among others.

Some other suggestions included structural reforms in manufacturing sector, incentives in income tax for exporters, incentivize import of cutting edge technology rather than finished products, and online scrutiny of tax returns to bring high level of transparency and probity.

Other suggestions included incentivizing tourism by creating tourism infrastructure as tourism has a great potential both for generating revenue as well as creating employment opportunities. More allocation to Archaeological Survey of India for preserving cultural heritage, incentives to local bodies and private sector for solid waste management, tax relief to women especially those working in informal sector and more allocation for education and health sectors among others. Suggestions were made to fill-up the vacant positions in CBDT and CBEC for better revenue collections and law be amended to ensure that registered offices of the companies/corporate houses are located where their substantial business take place to avoid tax evasion etc.

See full report here

 

Comments

 

Other News

Imperative omissions in the Constitution

The making of the Indian Constitution and its subsequent adoption on January 26, 1950 required the founding members to go through several pieces of the legal document that the country already had during the British rule, let alone the Constitution of other countries. Until 1857, these laws, although applie

R-Day parade to showcase India’s military might, cultural diversity

President Ram Nath Kovind will lead the Nation in celebrating the 73rd Republic Day today as part of ‘Azadi ka Amrit Mahotsav’ across the country. The celebration will see a series of new events conceptualised by the defence ministry during the main parade on Rajpath along with

INS Khukri to be handed over to Diu administration today

As the nation celebrates its 73rd Republic Day, INS Khukri will be handed over to the Diu administration in a ceremonial event at the Khukri Memorial. INS Khukri, the lead ship of the Indian Navy’s Khukri class corvettes, is an indigenous surface-to-surface missile fitted vessel that h

The perils of metro roads – A Delhi/NCR context

The anxiety and chaos that we face on our city roads are endemic, dangerous, and deadly. It emerges from a combination of too many vehicles, road conditions, ineffective traffic controls, poor planning and lack of innovative corrections, loose enforcement, and lacking traffic discipline in the commuters, t

‘Classified’, a scintillating expose of the ISRO spy story

Classified: Hidden Truths in the ISRO Spy Story By J. Rajasekharan Nair Srishti Publishers, 280 pages, Rs 350 The Indian Space Research Organisation (ISRO) was rocked by a spy case in 1994, taking down in its wake six persons, including S. Nambi Narayanan. The

If Rahul is in race to prove himself a better Hindu, our efforts have paid off: Ram Madhav

Ram Madhav, a member of the RSS National Executive, has said that Congress leader Rahul Gandhi proudly proclaiming to be a better Hindu is a welcome step and the opposition’s newfound claim that their Hinduism is superior to the Hinduism of RSS is the new competition in India.   &nbs

Visionary Talk: Ram Madhav, Member Rashtriya Swayamsewak Sangh with Kailashnath Adhikari


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter