TN parties cry foul over Jaitley visiting Jaya
Chennai:With one-and-a-half months left for the Budget, Finance Minister Arun Jaitley on Monday said the government will take “special steps” to boost public spending on infrastructure and initiate measures to rationalise subsidies.
“Even with the present constraint of fiscal deficit in revenue, it’s a challenging and a difficult opportunity for us. But I think we have to take some special steps as far as public investments is concerned,” he said.
The Minister underlined the need for stepping up public investments in infrastructure sector to boost economic growth.
“The whole PPP model is still under stress and we have to revive this. This is a course we are on and hopefully, with clarity in governance, we will be able to proceed,” he said while addressing a CII function here. Referring to the need to rationalise subsidies, the Minister said: “From January 1, LPG subsidy is going through banks…We have to gradually rationalise all possible subsidies.”
The government is expected to incorporate the suggestions of the Expenditure Finance Com-mission headed by former RBI Governor Bimal Jalan in the budget proposals for 2015-16, which will be presented by Jaitley next month. Jalan is reported to have submitted interim recommendations to the Finance Ministry sug-gesting various steps to rationalise subsidies and public expenditure. The government’s subsidy bill towards oil and fertilisers runs into lakhs of crores of rupees. The Minister also underlined the need for stability in tax and other policies to make India an attractive place for investment.
The implementation of the Goods and Services Tax (GST), he added, will help in improving the business climate in the country.
The GST, Jaitley said, was welcomed by different states and that “none of them will lose a single rupee” following the implementation of the new indirect tax regime.
“A seamless transfer of GST is going to add to the GDP. It will make business easier. In the long run it may even lower taxes. Higher buoyancy is going to help the States in areas where States had no share of taxation (like) service tax,” Jaitley said.
Stating that on Monday almost Rs two lakh crore are collected as Service Tax and States also have a share of it, he said some consuming States will gain from day one of GST implementation. Referring to the proposed changes in land acquisition laws, Jaitley said that it would eventually help farmers to get a better price for their land. Moreover, he added, establishment of rural infrastructure and industrial corridors would increase the price of land and generate employment for rural youth.
Commenting on the changes in companies law, he said the government is committed to improving ease of doing business.
“Yes, we are committed to the ease of doing business…we worked out the amendment, I moved the amendment in Parliament that has been unanimously passed by Lok Sabha and it is now pending before the Rajya Sabha,” he added.
Jaitley said he wondered why the industry chambers supported new Companies Act brought by the previous UPA government though it had incorporated some of the provisions from anti-terrorism and narcotics laws.Also, he said the previous companies law unduly favoured minority shareholders.
“The basis of company’s law in India is corporate democracy. Rule by minority is completely to the con-trary. Now this Company Law which has been passed has provisions which actually enable rule by minority,” Jaitley said.
A day after Union Minister Arun Jaitley met AIADMK chief Jayala-lithaa, political parties in Tamil Nadu, including DMK and NDA ally PMK, on Monday questioned its propriety at a time when her appeal against her con-viction in an assets case is pending in the Karnataka High Court. “Is it proper to go to the residence of a convicted person Jayala-lithaa and meet her when her appeal is pending in a court in the disproportionate assets case?” DMK President M Karunanidhi asked in a statement here. NDA ally PMK and Tamil Nadu Congress Committee President E V K S Elangovan also took exception to the meeting.
In the first high-profile visit after Jayalalithaa was let out on bail in the wealth case, Jaitley had last night called on her at her Poes Garden residence. The 40-minute meeting, described by AIDMK as a courtesy call, came in the wake of the Centre’s move to drum up support for ordinances, including coal block allocation in a likely Joint Parliamentary session. PMK founder leader Dr S Ramadoss, who has been critical of the Narendra Modi government on several issues, said the meeting gave rise to suspicion.
“Why should a central minister meet a convicted person?It is highly con-demnable and gives rise to suspicion…Centre should explain,” he told reporters in Salem. Elangovan accused Jaitley of “trampling political ethics” by calling on Jayalalithaa. He alleged that the BJP had been ‘masque-rading’ as an anti-graft party and stands exposed now. Karunanidhi slammed Jaitley’s comment that it was a “courtesy call” and quoted a Tamil proverb to ask if there was any difference between such a comment and a plain lie.(PTI)