Tags Posts tagged with "Arun Jaitley"

Arun Jaitley

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It is still unclear whether the deficit target for the current fiscal year would be met or not, but a hopeful view could be taken for next year’s target of 3 % of GDP.

The next budget will focus on farmers, jobs in mostly rural areas and infrastructure while making every attempt possible to follow a path of fiscal prudence.
This means that the government may increase funding for the agricultural sector in the budget for the upcoming fiscal year 2018-19. This move of the BJP government is supposed to gather political support for the party in the countryside ahead of elections.
Government of Prime Minister Narendra Modi’s won the election in his home state of Gujarat this week, but it was under the onslaught of discontent that was fuelled by falling incomes from farms and a hiking unemployment.
In 2018 and 2019, there will be eight more state elections in the country. All of these will lead up to a national election in the year 2019. On February 1 2018, Finance Minister Arun Jaitley is most likely to present his last budget, for the 2018-19 year that begins on April 1 2018.
Annual farm growth has decreased to 1.7 % in the previous quarter, mainly because of lower prices and output. The economic growth on the other hand has accelerated to 6.3% after growing at a 3-year low of 5.7 % in the same quarter.
The government can’t afford the anger of farmers anymore & from now on, will try to boost the economic growth and supply more funds to the agricultural sector. Arun Jaitley has signalled that his priority in this budget will be allocating more funds for rural and infrastructure sectors. According to another source, PM Narendra Modi would like to achieve 7.5 % to 8 % annual economic growth before the election campaign begins.
In the next fiscal, higher procurement prices will be offered for different crops following the fall in output this year. Apart from this, there will be extensive tax reforms, concerning the corporate demand to lower tax rates. By December 15, the government had raised almost $8 billion from the sale of shares in companies, which is more than 70 % of the full-year target. PM Narendra Modi, after pushing tax reforms like the GST, cuts in subsidies for the states and allowing more FDI in new sectors, now faces a challenge to create more jobs for millions of unemployed youths.
The allocations for farm and rural development ministries could be hiked in the next fiscal year by at least 20 %. The upcoming budget of 2018-19 is likely to enhance allocations for the transport and railways ministries by 1/4th. That is almost 1.5 trillion rupees. Finance ministry could also defer some expenses to the next fiscal year to maintain the fiscal deficit of current year at 3.2 % of the gross domestic product.
It is still unclear whether the deficit target for the current fiscal year would be met or not, but a hopeful view could be taken for next year’s target of 3 % of GDP. It is certain, however, that Prime Minister Narendra Modi will take the final decisions on the upcoming budget.

 

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He said that incidences of pelting of stones and protests in J&K and naxal activities in affected districts have reduced as an impact of demonetisation as these miscreants have run out of cash.

Union Finance Minister Arun Jaitley said on Tuesday, 07 November 2017 that demonetisation is a turning point in the country’s economic history and has provided the next generation with a fair and honest system to live in.

In a blog 1,843 words long, Arun Jaitley said that, November 8, 2016 signifies the resolve of the government of India to cure the country from the disease of black money. He said that the day would be remembered as a watershed moment in the books of history of Indian economy. Doing an overall analysis, he said, it would right to say that the country has moved on to a more cleaner, transparent and honest financial system.

On the eve of the demonetisation, which invalidated 86 per cent of the currency in circulation, Mr. Jaitley said that it has met its objective of reducing cash in our economy, ending the anonymity of cash, brought more individuals inside the tax net and all the while dealt a blow to black money holders.

He said that the benefits of the move may not yet be visible to some people but the next generation of India would view the decision with a great sense of pride.

On November 8 2016, Prime Minister Narendra Modi had announced the demonetisation of Rs.1,000 and old Rs.500 notes for fighting corruption, removing black money, cutting terror funding and removing fake currency in one stroke. Total currency worth Rs.17 lakh crore approx. was in circulation in country on November 8 2016. Around Rs.15 lakh crore worth of currency was withdrawn and as on June 30, 2017, approx. Rs.15 lakh crore has been deposited back in banks.

Mr. Jaitley said that post demonetisation, the currency in circulation is less by more than Rs.3 lakh crore. This meets with the objective of less cash economy in order to reduce the flow of black money in to the system.

The removal of anonymity has led to 56 lakh new individual tax payers who are filing returns this year and self-assessment tax paid by non-corporates has increased by 34%. The leads gathered during demonetisation period have led to the identification of 2.9 lakh suspected shell companies and 2.24 lakh companies were de-registered as a result. Actions were taken to freeze their bank accounts. He said that more than 28,000 companies had deposited and approx. withdrawn Rs.10,000 crore from 50,000 bank accounts before they were struck off.

The Income Tax Department took action against more than a thousand shell companies that were used by over 22,000 beneficiaries in laundering more than Rs.13,300 crore. To stop further money laundering, SEBI has introduced a Graded Surveillance Measure at stock exchanges.

He said that incidences of pelting of stones and protests in J&K and naxal activities in affected districts have reduced as an impact of demonetisation as these miscreants have run out of cash.

He also said that demonetisation led to a leap in digital payments. And more than 350 crore transactions, valued at around Rs.6.6 lakh crore were carried out through credit cards and debit cards. The value of transactions for debit and credit cards was Rs.4 lakh crore during 2015-16.

Jaitley said that, with the return of cash in the banking system, now almost entire cash holding in the economy can be tracked. This inflow includes suspicious transactions ranging over Rs.1 lakh crore. The tax administration is now using data analytics to find and crack suspicious transactions.