Business

Jaitley Applauds Current Growth Rate, Says Future Looks Brighter

ANANYA BHATNAGAR | 0
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| June 18 , 2018 , 18:49 IST

In a long blog, on Monday, Finance Minister Arun Jaitley commended the fourth quarter GDP growth of 7.7 percent saying that the future looks much brighter than the past.

Jaitley wrote, "The fourth quarter result of GDP data showed a phenomenal 7.7 percent growth rate and has established India firmly as the fastest growing global economy. This trend, according to experts, is likely to continue for the next few years.”

Jaitley added, "With structural reforms like demonetization, the implementation of the Goods and Services Tax (GST) and the enforcement of the Insolvency and Bankruptcy Code (IBC), we had two challenging quarters, those who predicted a two percent decline in GDP growth have been conclusively proved wrong."

Through his blog, he tried to address various economic issues that are concerning people, these range from rising oil price, structural reforms, and job creation. He also praised the social sector schemes and the rural development programmes launched by the government.

The Finance Minister also added, "These involve legislations which are path-breaking and development works in roads, railways, housing, power, sanitation -- which yield high social benefits -- require a high level of government expenditure. This type of government spending promotes growth. This is what we are witnessing today."

Writing about job creation he said that the analysis of the data released, clearly shows that the construction sector is expanding by double digits.

It is a job-creating sector. Investment is increasing. Domestic investment is also increasing. The FDI is at an unprecedented level."

Speaking on the recent critical issue of Non-Performing Accounts (NPA), he added that IBC has unlocked value in non-performing assets. "Fixed capital formation is growing. Manufacturing is expanding. We are spending huge amounts on infrastructure creation. Expenditure on rural projects has increased. The social sector schemes, more particularly the financial inclusion programmes, have created a wave of self-employment. Each one of these is a high job-creating sector.”

Finally speaking about the escalated fuel prices, he said: "if people pay their taxes honestly the high dependence on oil products for taxation eventually comes down."

He said despite higher compliances in the new system, as far as the non-oil taxes are concerned, "we are still far from being a tax complaint society. Most sections apart from salaried employees still have to improve their track record.

The effort for next few years has to be to replicate the last four years and improve India's tax to GDP ratio by another 1.5 percent."

Arun Jaitley recently went through a kidney replacement surgery. He is still recovering and is expected to join back his office soon.