French Finance Minister <a href="http://www.wionews.com/world/france-to-introduce-digital-tax-if-no-eu-deal-181913">Bruno Le Maire</a> said Wednesday that he was open to the possibility of the state becoming temporary owner of a doomed Ford plant to prevent large-scale job losses.

Around 850 jobs are on the line at the Blanquefort plant in southwest France, which has been turning out gearboxes for Ford since 1972.

Ford last week rejected an offer for the plant, where it plans to halt production by August 2019.

That decision infuriated the French government, which has been involved in negotiations to try to find a buyer, leading Le Maire to accuse the firm of "treachery".

On Wednesday he said he was ready to consider having the state step in to keep the site open.

Asked whether the state could buy the factory from Ford and then sell it to Franco-Belgian equipment manufacturer Punch Powerglide, whose offer was spurned by the US automaker, he told BFM television: "Why not? I'm open to this kind of solution".

"I'm open to the most original solution that guarantees the survival of a successful industrial site, which has a good [potential] buyer and workers that are fully committed," he said.

The Ford plant has become another battleground between French trade unions and American multinationals seeking to pare back their French operations.

Punch Powerglide offered to take on 400 workers, with unions agreeing in return to a three-year pay freeze and flexible working hours.

But Ford's local subsidiary FAI said that it did not find Punch's business plan convincing and that it would offer workers a redundancy plan instead — a decision labelled "hostile and unacceptable" by President Emmanuel Macron.

Le Maire said he had spoken by telephone Tuesday with the head of Ford's Europe operations, Steven Armstrong, for the second time since the announcement.&nbsp;

He warned that Ford risked "losing a lot in terms of reputation" in the affair.

The standoff is the first major spat between the government and a multinational since Macron, a pro-business centrist, came to power last year.

His Socialist predecessor Francois Hollande became embroiled in a drawn-out row with steel giant ArcelorMittal over the closing of a blast furnace in the eastern Lorraine region.

French Finance Minister Bruno Le Maire said Wednesday that he was open to the possibility of the state becoming temporary owner of a doomed Ford plant to prevent large-scale job losses.

French Finance Minister Bruno Le Maire said Wednesday that he was open to the possibility of the state becoming temporary owner of a doomed Ford plant to prevent large-scale job losses. Around 850 jobs are on the line at the Blanquefort plant in southwest France, which has been turning out gearboxes for Ford since 1972. Ford last week rejected an offer for the plant, where it plans to halt production by August 2019. That decision infuriated the French government, which has been involved in negotiations to try to find a buyer, leading Le Maire to accuse the firm of "treachery". On Wednesday he said he was ready to consider having the state step in to keep the site open. Asked whether the state could buy the factory from Ford and then sell it to Franco-Belgian equipment manufacturer Punch Powerglide, whose offer was spurned by the US automaker, he told BFM television: "Why not? I'm open to this kind of solution". "I'm open to the most original solution that guarantees the survival of a successful industrial site, which has a good [potential] buyer and workers that are fully committed," he said. The Ford plant has become another battleground between French trade unions and American multinationals seeking to pare back their French operations. Punch Powerglide offered to take on 400 workers, with unions agreeing in return to a three-year pay freeze and flexible working hours. But Ford's local subsidiary FAI said that it did not find Punch's business plan convincing and that it would offer workers a redundancy plan instead — a decision labelled "hostile and unacceptable" by President Emmanuel Macron. Le Maire said he had spoken by telephone Tuesday with the head of Ford's Europe operations, Steven Armstrong, for the second time since the announcement. He warned that Ford risked "losing a lot in terms of reputation" in the affair. The standoff is the first major spat between the government and a multinational since Macron, a pro-business centrist, came to power last year. His Socialist predecessor Francois Hollande became embroiled in a drawn-out row with steel giant ArcelorMittal over the closing of a blast furnace in the eastern Lorraine region.

France 'open' to temporary state control of Ford plant: Finance minister

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy.

He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi.

"Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel.

Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market."

One cannot say that one reads the books, data and research papers before forming opinions, he said.

"The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude.

It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis.

Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks.

Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate.

Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you".

He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review.

Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections.

He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal.

As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent.

Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets.

Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.&nbsp;

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders. Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy. He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi. "Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel. Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market." One cannot say that one reads the books, data and research papers before forming opinions, he said. "The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude. It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis. Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks. Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate. Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you". He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review. Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections. He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal. As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent. Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets. Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.

Regulators can't work in isolation: Jaitley on row with RBI

Union Finance Minister Arun Jaitley Saturday defended demonetisation, saying it was a "highly ethical" move and not a political one.

His statement comes a day after Prime Minister Narendra Modi and Rahul Gandhi engaged in a war of words during the respective election rallies over the decision suddenly announced in November 2016 to junk a bulk of the currency in circulation.

"It was a highly ethical move," Jaitley told reporters here in response to a query over demonetisation. "It was not a political move."

Jaitley was speaking after releasing the BJP's manifesto here ahead of the November 28 Madhya Pradesh Assembly election.

The minister said demonetisation has increased the tax return filings and also increased the revenue of the states and the Centre immensely.

Congress president Rahul Gandhi on Friday criticised the government over demonetisation, saying it was the "biggest scam" of India.

Addressing a rally in Ambikapur in Chhattisgarh ahead of the second phase of voting on November 20, Modi claimed people did not have issues with demonetisation, but "only a family".

The prime minister claimed the Congress was "worried" that he took away all the money its "minions and friends" had stashed under their beds and in sacks in one stroke.

Modi had said his government was investing the money recovered post-demonetisation on carrying out public works and funding welfare schemes.&nbsp;

Union Finance Minister Arun Jaitley Saturday defended demonetisation, saying it was a "highly ethical" move and not a political one. His statement comes a day after Prime Minister Narendra Modi and Rahul Gandhi engaged in a war of words during the respective election rallies over the decision suddenly announced in November 2016 to junk a bulk of the currency in circulation.

Union Finance Minister Arun Jaitley Saturday defended demonetisation, saying it was a "highly ethical" move and not a political one. His statement comes a day after Prime Minister Narendra Modi and Rahul Gandhi engaged in a war of words during the respective election rallies over the decision suddenly announced in November 2016 to junk a bulk of the currency in circulation. "It was a highly ethical move," Jaitley told reporters here in response to a query over demonetisation. "It was not a political move." Jaitley was speaking after releasing the BJP's manifesto here ahead of the November 28 Madhya Pradesh Assembly election. The minister said demonetisation has increased the tax return filings and also increased the revenue of the states and the Centre immensely. Congress president Rahul Gandhi on Friday criticised the government over demonetisation, saying it was the "biggest scam" of India. Addressing a rally in Ambikapur in Chhattisgarh ahead of the second phase of voting on November 20, Modi claimed people did not have issues with demonetisation, but "only a family". The prime minister claimed the Congress was "worried" that he took away all the money its "minions and friends" had stashed under their beds and in sacks in one stroke. Modi had said his government was investing the money recovered post-demonetisation on carrying out public works and funding welfare schemes.

Demonetisation highly ethical move, not political: Arun Jaitley

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported.&nbsp;

Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that.&nbsp;

Critics and cynics say GST slowed down economic growth, but it was a smoothly-implemented, monumental reform, the minister stated.

He also said that NPAs need to be minimised and steps taken in that regard are bearing fruits. &nbsp;

Jaitley's remarks follow former RBI Governor Raghuram Rajan comments wherein he blamed the indirect taxation reform for derailing India's growth story.

"You will always have critics and cynics who will come up and say it (GST) slowed down India's growth," Jaitley said, speaking at state-run Union Bank of India's 100th-anniversary celebrations event in Mumbai.

Jaitley said that the growth increased to 7 per cent, then to 7.7 per cent and went up till 8.2 per cent last quarter and specifically pointed out that this is much higher than the 5-6 per cent expansion achieved between 2012-14.

The Goods and Services Tax (GST), India's biggest tax reform since independence which came into force on July 1, 2017, had "disruptionist" impact on economic growth only for two quarters, he said.

Former RBI Governor Raghuram Rajan on Saturday launched an attack on the Central government, calling demonetisation and the Goods and Services Tax (GST) as the two major headwinds that held back India's economic growth last year.

Rajan added that the current seven per cent growth rate is not enough to meet the country's needs.

"The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India.

"The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said.&nbsp;

"What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back," news agency PTI quoted Rajan.&nbsp;

(With inputs from PTI)&nbsp;

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported. Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that.

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported. Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that. Critics and cynics say GST slowed down economic growth, but it was a smoothly-implemented, monumental reform, the minister stated. He also said that NPAs need to be minimised and steps taken in that regard are bearing fruits. Jaitley's remarks follow former RBI Governor Raghuram Rajan comments wherein he blamed the indirect taxation reform for derailing India's growth story. "You will always have critics and cynics who will come up and say it (GST) slowed down India's growth," Jaitley said, speaking at state-run Union Bank of India's 100th-anniversary celebrations event in Mumbai. Jaitley said that the growth increased to 7 per cent, then to 7.7 per cent and went up till 8.2 per cent last quarter and specifically pointed out that this is much higher than the 5-6 per cent expansion achieved between 2012-14. The Goods and Services Tax (GST), India's biggest tax reform since independence which came into force on July 1, 2017, had "disruptionist" impact on economic growth only for two quarters, he said. Former RBI Governor Raghuram Rajan on Saturday launched an attack on the Central government, calling demonetisation and the Goods and Services Tax (GST) as the two major headwinds that held back India's economic growth last year. Rajan added that the current seven per cent growth rate is not enough to meet the country's needs. "The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India. "The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said. "What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back," news agency PTI quoted Rajan. (With inputs from PTI)

GST is a 'monumental reform', hit growth for only 2 quarters: Jaitley

Union Finance Minister Arun Jaitley is expected to hold a meeting with Public Sector Banks today, news agency ANI reported.&nbsp;

Officials from Debt Recovery Tribunal, Bank Board Bureau, Ministry of Electronics and Information Technology, Ministry of Rural Development, Ministry of Housing and Urban Development will attend the meeting.

The Finance Minister is expected to hold discussions on the review of recovery, bank performance and reforms, financial inclusion, digitalisation, housing loans, MSME lending and new initiatives during the meeting.&nbsp;

Meanwhile, the <a href="http://www.wionews.com/business-economy/rupee-sinks-new-low-over-trumps-iran-oil-sanctions-fear-spike-crude-167524">Indian currency tumbled to a new low on Tuesday</a> to 72.96 falling 33 paisa in early trade.

The rupee had closed at 72.63, down 43 paisa on Monday ahead of impending US sanctions on Iran.&nbsp;

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The meeting chaired by Finance Minister Arun Jaitley will hold discussions on the review of recovery, bank performance and reforms, financial inclusion, digitalisation, housing loans, MSME lending and new initiatives.
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1044439762453622785?ref_src=twsrc%5Etfw">September 25, 2018</a></blockquote>
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The government had earlier this month announced an easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on Masala bonds to shore up rupee and check to the widening of current account deficit.

The rupee has been battered for over a month now amid sell-offs sweeping emerging markets following a rout in the currencies of Argentina and Turkey.

The Indian currency has set a string of record lows, dampening some of the optimism about India’s world-beating economic growth.

The rupee on last Friday closed at 72.20 to the US dollar, higher than the record low of 72.91 it had hit earlier this month, PTI reported.&nbsp;

(With inputs from agencies)&nbsp;

Union Finance Minister Arun Jaitley is expected to hold a meeting with Public Sector Banks today, news agency ANI reported. Officials from Debt Recovery Tribunal, Bank Board Bureau, Ministry of Electronics and Information Technology, Ministry of Rural Development, Ministry of Housing and Urban Development will attend the meeting.

Union Finance Minister Arun Jaitley is expected to hold a meeting with Public Sector Banks today, news agency ANI reported. Officials from Debt Recovery Tribunal, Bank Board Bureau, Ministry of Electronics and Information Technology, Ministry of Rural Development, Ministry of Housing and Urban Development will attend the meeting. The Finance Minister is expected to hold discussions on the review of recovery, bank performance and reforms, financial inclusion, digitalisation, housing loans, MSME lending and new initiatives during the meeting. Meanwhile, the Indian currency tumbled to a new low on Tuesday to 72.96 falling 33 paisa in early trade. The rupee had closed at 72.63, down 43 paisa on Monday ahead of impending US sanctions on Iran. The meeting chaired by Finance Minister Arun Jaitley will hold discussions on the review of recovery, bank performance and reforms, financial inclusion, digitalisation, housing loans, MSME lending and new initiatives. — ANI (@ANI) September 25, 2018 × The government had earlier this month announced an easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on Masala bonds to shore up rupee and check to the widening of current account deficit. The rupee has been battered for over a month now amid sell-offs sweeping emerging markets following a rout in the currencies of Argentina and Turkey. The Indian currency has set a string of record lows, dampening some of the optimism about India’s world-beating economic growth. The rupee on last Friday closed at 72.20 to the US dollar, higher than the record low of 72.91 it had hit earlier this month, PTI reported. (With inputs from agencies)

Finance Minister Jaitley to hold meeting over bank performance, housing loans today 

Union Minister Arun Jaitley held a meeting with the officials of Finance Ministry on Monday after he returned home post&nbsp;successful&nbsp;kidney transplant surgery.

The meeting which lasted for around half an hour was attended by Finance Secretary Hasmukh Adhia, Department of Economic Affairs Secretary Subhash Chandra Garg and Chief Economic Advisor Arvind Subramanian.

In the meeting, the officials briefed Jaitley on various issues related to the Ministry.

A senior official told ANI on the condition of anonymity, "The meeting was held today in the evening through Video Conferencing. It was a stock-taking exercise by Arun Jaitley as he was admitted in AIIMS for past three weeks. Currently, he is under the supervision of doctors and is in a controlled environment".

Jaitley, who had undergone a kidney transplant last month, announced his well being on Twitter today.

He took to Twitter to thank the doctors, nurses and paramedics who assisted him during his treatment.

His twitter read, "Delighted to be back at Home. My gratitude to the Doctors, Nursing officers and the paramedics who looked after me for over the past three weeks. I wish to thank all well-wishers, colleagues and friends who were very concerned and continued to wish me for my recovery".

Jaitley underwent a successful kidney transplant at the All India Institute of Medical Sciences (AIIMS) on May 14.

Before the treatment, the 65-year-old minister was put on a dialysis for one month.

In September 2014, Jaitley underwent a bariatric surgery to treat weight gain because of a long-standing diabetic condition. The surgery was first performed at Max Hospital, but he had to be later shifted to AIIMS because of complications.

Jaitley had a heart surgery several years ago.

 
(With inputs from PTI)

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Jaitley underwent a successful kidney transplant at the All India Institute of Medical Sciences (AIIMS) on May 14

Union Minister Arun Jaitley held a meeting with the officials of Finance Ministry on Monday after he returned home post successful kidney transplant surgery. The meeting which lasted for around half an hour was attended by Finance Secretary Hasmukh Adhia, Department of Economic Affairs Secretary Subhash Chandra Garg and Chief Economic Advisor Arvind Subramanian. In the meeting, the officials briefed Jaitley on various issues related to the Ministry. A senior official told ANI on the condition of anonymity, "The meeting was held today in the evening through Video Conferencing. It was a stock-taking exercise by Arun Jaitley as he was admitted in AIIMS for past three weeks. Currently, he is under the supervision of doctors and is in a controlled environment". Jaitley, who had undergone a kidney transplant last month, announced his well being on Twitter today. He took to Twitter to thank the doctors, nurses and paramedics who assisted him during his treatment. His twitter read, "Delighted to be back at Home. My gratitude to the Doctors, Nursing officers and the paramedics who looked after me for over the past three weeks. I wish to thank all well-wishers, colleagues and friends who were very concerned and continued to wish me for my recovery". Jaitley underwent a successful kidney transplant at the All India Institute of Medical Sciences (AIIMS) on May 14. Before the treatment, the 65-year-old minister was put on a dialysis for one month. In September 2014, Jaitley underwent a bariatric surgery to treat weight gain because of a long-standing diabetic condition. The surgery was first performed at Max Hospital, but he had to be later shifted to AIIMS because of complications. Jaitley had a heart surgery several years ago. (With inputs from PTI)

Arun Jaitley returns after kidney transplant, holds meeting with Finance Ministry

After the Union Cabinet on May 23 approved an ordinance to set up the country`s first national sports university in Imphal, President Ram Nath Kovind gave his assent to the ordinance&nbsp;on Friday.

National Sports University Ordinance, 2018 will be on the lines of the National Sports University Bill, 2017, introduced in Lok Sabha last year.

It will be a specialised University, first of its kind, to promote sports education in the areas of sports sciences, sports technology, sports management and sports coaching besides functioning as the national training centre for select sports disciplines by adopting the best international practices.

The proposal was formally announced by the finance minister in his budget speech of 2014-15. For setting up the university, 325.90 acres of land has been made available by the Government of Manipur in the west Imphal district of Koutruk.

National Sports University Ordinance, 2018 will be on the lines of the National Sports University Bill, 2017, introduced in Lok Sabha last year

After the Union Cabinet on May 23 approved an ordinance to set up the country`s first national sports university in Imphal, President Ram Nath Kovind gave his assent to the ordinance on Friday. National Sports University Ordinance, 2018 will be on the lines of the National Sports University Bill, 2017, introduced in Lok Sabha last year. It will be a specialised University, first of its kind, to promote sports education in the areas of sports sciences, sports technology, sports management and sports coaching besides functioning as the national training centre for select sports disciplines by adopting the best international practices. The proposal was formally announced by the finance minister in his budget speech of 2014-15. For setting up the university, 325.90 acres of land has been made available by the Government of Manipur in the west Imphal district of Koutruk.

Country's 1st national sports university to be set up in Manipur

Finance minister Arun Jaitley on Saturday underwent a series of medical tests at the All India Institute of Medical Sciences (AIIMS) ahead of his kidney transplant surgery.

Jaitley, 65, who was admitted to AIIMS Friday evening in New Delhi, has been kept under observation. Sources said that keeping a kidney transplant patient under one-day observation is a routine medical procedure and his surgery is likely to be done on Sunday. The Union minister also underwent some medical tests following his admission to the hospital.

Jaitley is suffering from a kidney ailment and has not been attending office since Monday. He has not even taken oath of office after being re-elected to the Rajya Sabha. He has also been forced to cancel domestic public appearances as well as foreign visits, including a London visit scheduled for next week. The Finance Minister was to attend the 10th UK-India Economic and Financial Dialogue in London.

On Thursday, the Finance Minister had confirmed about his ailment with a post on Twitter. “I am being treated for kidney related problems & certain infections that I have contracted. I am therefore currently working from controlled environment at home. The future course of my treatment would be determined by the doctors treating me,” he had tweeted.

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I am being treated for kidney related problems & certain infections that I have contracted. I am therefore currently working from controlled environment at home. The future course of my treatment would be determined by the doctors treating me.
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/981897254964486144?ref_src=twsrc%5Etfw">April 5, 2018</a></blockquote>
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&nbsp;

He is likely to be operated by nephrologist Dr Sandeep Guleria from Apollo hospital, also brother of AIIMS director Randeep Guleria, who is a family friend of Jaitley.&nbsp;

In 2014 he had a gastric bypass operation to keep his diabetes in check.&nbsp;

Jaitley, 65, who was admitted to AIIMS Friday evening in New Delhi, has been kept under observation. Sources said that keeping a kidney transplant patient under one-day observation is a routine medical procedure and his surgery is likely to be done on Sunday

Finance minister Arun Jaitley on Saturday underwent a series of medical tests at the All India Institute of Medical Sciences (AIIMS) ahead of his kidney transplant surgery. Jaitley, 65, who was admitted to AIIMS Friday evening in New Delhi, has been kept under observation. Sources said that keeping a kidney transplant patient under one-day observation is a routine medical procedure and his surgery is likely to be done on Sunday. The Union minister also underwent some medical tests following his admission to the hospital. Jaitley is suffering from a kidney ailment and has not been attending office since Monday. He has not even taken oath of office after being re-elected to the Rajya Sabha. He has also been forced to cancel domestic public appearances as well as foreign visits, including a London visit scheduled for next week. The Finance Minister was to attend the 10th UK-India Economic and Financial Dialogue in London. On Thursday, the Finance Minister had confirmed about his ailment with a post on Twitter. “I am being treated for kidney related problems & certain infections that I have contracted. I am therefore currently working from controlled environment at home. The future course of my treatment would be determined by the doctors treating me,” he had tweeted. I am being treated for kidney related problems & certain infections that I have contracted. I am therefore currently working from controlled environment at home. The future course of my treatment would be determined by the doctors treating me. — Arun Jaitley (@arunjaitley) April 5, 2018 × He is likely to be operated by nephrologist Dr Sandeep Guleria from Apollo hospital, also brother of AIIMS director Randeep Guleria, who is a family friend of Jaitley. In 2014 he had a gastric bypass operation to keep his diabetes in check.

Video: Arun Jaitley to undergo kidney transplant today

Japan&#39;s Finance Minister, Taro Aso, may skip the G20 meeting to be held in Buenos Aires, Argentina next week. Finance leaders from 20 nations will gather at Argentina&#39;s capital city among leaders from across the world.&nbsp;

Aso&#39;s uncertainty on attending the meeting looms in the wake of a cronyism scandal that has paralysed the parliamentary undertakings in the country. Masatsugu Asakawa, Japan&#39;s top financial diplomat, would attend the G20 meeting instead.

Premier Shinzo Abe and Aso, who is his close ally, are under pressure after the finance ministry announced that it had altered records of a discounted sale of state-owned land to a school operator with ties to Abe&#39;s wife.

(With inputs from agencies)&nbsp;

Masatsugu Asakawa, Japan's top financial diplomat, would attend the G20 meeting instead

Japan's Finance Minister, Taro Aso, may skip the G20 meeting to be held in Buenos Aires, Argentina next week. Finance leaders from 20 nations will gather at Argentina's capital city among leaders from across the world. Aso's uncertainty on attending the meeting looms in the wake of a cronyism scandal that has paralysed the parliamentary undertakings in the country. Masatsugu Asakawa, Japan's top financial diplomat, would attend the G20 meeting instead. Premier Shinzo Abe and Aso, who is his close ally, are under pressure after the finance ministry announced that it had altered records of a discounted sale of state-owned land to a school operator with ties to Abe's wife. (With inputs from agencies)

Amid cronyism scandal, Japan's Finance Minister to skip G20 meeting

Japanese Prime Minister Shinzo Abe and his ally, Finance Minister Taro Aso, face mounting pressure over a suspected cronyism scandal as the finance ministry prepares to report on Monday that documents in the case were doctored.

Abe, now in his sixth year in office, had hoped to put the issue of the sale of state-owned land at a huge discount to a school operator with ties to his wife, Akie, behind him. But it has gathered steam with a series of fresh revelations.

A source with direct knowledge of the matter told Reuters on Saturday the finance ministry planned to report to parliament on Monday that it had found instances where content was deleted from documents submitted to lawmakers. The source spoke on condition of anonymity.&nbsp;

&quot;If this is true, isn&#39;t political responsibility unavoidable?&quot; Akira Nagatsuma, a senior lawmaker in the opposition Constitutional Democratic Party of Japan, told reporters on Sunday.

Abe has repeatedly denied he or his wife did favours for school operator Moritomo Gakuen, which bought the land and has said he would resign if evidence were found that they had. The issue last year sharply eroded Abe&#39;s popularity.

Former Moritomo Gakuen head Yasunori Kagoike and his wife were arrested in July on suspicion of illegally receiving subsidies.

On Friday, National Tax Agency chief Nobuhisa Sagawa abruptly resigned over his remarks in parliament about the case.&nbsp;

Also on Friday, media said police were investigating as possible suicide the death of a finance ministry official whose local office had handled the land sale.&nbsp;

&quot;If Minister Aso signed off on National Tax Agency chief Sagawa&#39;s resignation knowing about the falsified documents, moves seeking his resignation are inevitable,&quot; Yuichiro Tamaki, leader of the opposition Democratic Party, told reporters.

Suspicions of an attempted cover-up could slash Abe&#39;s ratings and dash his hopes of a third term as ruling Liberal Democratic Party leader. Victory in the LDP September leadership vote would put him on track to become Japan&#39;s longest-serving premier.

Critical blow

&quot;If Aso were forced out, it would be a critical blow to the prime minister, reinforcing the impression of a cover-up and depriving Abe of a key ally who has served as finance minister since December 2012,&quot; wrote Tobias Harris, vice president of consultancy Teneo Intelligence in an email report.

Sagawa headed the ministry division that submitted the documents before he was tapped as tax agency chief in July, appointment critics saw as a reward for his efforts to diffuse the issue with his statements to parliament last year.

Aso and Abe have both defended the appointment as &quot;appropriate&quot; and Aso has said he will not resign.

&quot;If these documents were falsified, the entire cabinet should resign,&quot; tweeted Mizuho Fukushima, a lawmaker with the tiny opposition Social Democratic Party. 
Abe, 63, swept back to power in December 2012 promising to revive the economy and bolster its defence.

It was a rare comeback for the conservative lawmaker, who quit abruptly in 2007 after a year in office marked by scandals in his cabinet, a deadlocked parliament and ill health.&nbsp;

His ruling bloc won a two-thirds &quot;super majority&quot; in an October lower house poll, helped by opposition disarray.&nbsp;

Former Moritomo Gakuen head Yasunori Kagoike and his wife were arrested in July on suspicion of illegally receiving subsidies

Japanese Prime Minister Shinzo Abe and his ally, Finance Minister Taro Aso, face mounting pressure over a suspected cronyism scandal as the finance ministry prepares to report on Monday that documents in the case were doctored. Abe, now in his sixth year in office, had hoped to put the issue of the sale of state-owned land at a huge discount to a school operator with ties to his wife, Akie, behind him. But it has gathered steam with a series of fresh revelations. A source with direct knowledge of the matter told Reuters on Saturday the finance ministry planned to report to parliament on Monday that it had found instances where content was deleted from documents submitted to lawmakers. The source spoke on condition of anonymity. "If this is true, isn't political responsibility unavoidable?" Akira Nagatsuma, a senior lawmaker in the opposition Constitutional Democratic Party of Japan, told reporters on Sunday. Abe has repeatedly denied he or his wife did favours for school operator Moritomo Gakuen, which bought the land and has said he would resign if evidence were found that they had. The issue last year sharply eroded Abe's popularity. Former Moritomo Gakuen head Yasunori Kagoike and his wife were arrested in July on suspicion of illegally receiving subsidies. On Friday, National Tax Agency chief Nobuhisa Sagawa abruptly resigned over his remarks in parliament about the case. Also on Friday, media said police were investigating as possible suicide the death of a finance ministry official whose local office had handled the land sale. "If Minister Aso signed off on National Tax Agency chief Sagawa's resignation knowing about the falsified documents, moves seeking his resignation are inevitable," Yuichiro Tamaki, leader of the opposition Democratic Party, told reporters. Suspicions of an attempted cover-up could slash Abe's ratings and dash his hopes of a third term as ruling Liberal Democratic Party leader. Victory in the LDP September leadership vote would put him on track to become Japan's longest-serving premier. Critical blow "If Aso were forced out, it would be a critical blow to the prime minister, reinforcing the impression of a cover-up and depriving Abe of a key ally who has served as finance minister since December 2012," wrote Tobias Harris, vice president of consultancy Teneo Intelligence in an email report. Sagawa headed the ministry division that submitted the documents before he was tapped as tax agency chief in July, appointment critics saw as a reward for his efforts to diffuse the issue with his statements to parliament last year. Aso and Abe have both defended the appointment as "appropriate" and Aso has said he will not resign. "If these documents were falsified, the entire cabinet should resign," tweeted Mizuho Fukushima, a lawmaker with the tiny opposition Social Democratic Party. Abe, 63, swept back to power in December 2012 promising to revive the economy and bolster its defence. It was a rare comeback for the conservative lawmaker, who quit abruptly in 2007 after a year in office marked by scandals in his cabinet, a deadlocked parliament and ill health. His ruling bloc won a two-thirds "super majority" in an October lower house poll, helped by opposition disarray.

Japan PM, finance minister face mounting pressure over suspected cronyism scandal

In a bid to pacify the sulking ally Telugu Desam Party (TDP), Finance Minister Arun Jaitley today promised Andhra Pradesh funds equivalent to what a special category state receives but drew a line saying politics cannot increase the quantum of money.

As the TDP threatened to quit the ruling NDA alliance led by the BJP at the Centre, Jaitley said his government was committed to meeting all promises made to Andhra Pradesh at the time of carving out of Telangana four years back.

But giving special category status, as demanded by Andhra Pradesh Chief Minister Chandrababu Naidu, to any state apart from those in the North East and three hilly provinces is not constitutionally possible after the implementation of the 14th Finance Commission recommendation, he said.

However, to make up for that, the Centre would give Andhra Pradesh funds equivalent to what a special category status state gets, he said. 
For special category status category states, the Centre meets 90 per cent of the funds required in a centrally sponsored scheme as against 60 per cent in case of normal category states. The remaining funds are provided by the state governments.

He said the Centre had committed 90 per cent of the funds for centrally sponsored schemes in Andhra Pradesh, equivalent to special category states, through other means like external agencies like World Bank, but the state government wanted funds to be routed through agri-lending bank NABARD. The Centre is agreeable to even that provided a mechanism is worked out, he told reporters at his office here.

Asked about the threat of TDP to pull out of the NDA if more funds are not allocated, he said: &quot;political issue cannot increase the quantum of money because the Centre has no free-floating funds&quot;. 
&quot;Every state in India has the right to the central fund in the same manner. Sentiment does not decide the quantum of funds, it is the constitutional award of the Finance Commission which decides on the quantum of funds that the states get,&quot; he said.

Asked about Congress President Rahul Gandhi&#39;s promise to give the state the special category status if his party is voted to power, Jaitley said, &quot;I still have to follow constitutional award&quot; of the 14th Finance Commission. 
He said the Centre is committed to giving funds to Andhra Pradesh equivalent to what a special status state gets, he said.

The 14th Finance Commission raised the share of states in taxes collected by the Centre to 42 per cent from 32 per cent but abolished special category states.

&quot;The principal issue relates to what is the implication of a special status. The special status was originally granted to states in North East because they have their own resources which were inadequate and the revenue was inadequate,&quot; he said.

Jaitley said while the promise of special category status to Andhra Pradesh was legally possible when the state was bifurcated, there is no such category after constitutional award by the 14 Finance Commission.

&quot;Instead states which are in deficit in terms of revenue, we are compensating them because everyone gets a hike of 10 per cent to 42 per cent plus for a certain period; revenue deficit will be taken care of and a provision for revenue deficit was made in the case of Andhra Pradesh,&quot; he said.

For Andhra Pradesh, the 90:10 funding of schemes instead of usual 60:40 would be implemented &quot;notwithstanding the fact that the word special status is not there&quot;, he said.

During consultations in 2016, it was proposed that grants given by external agencies like World Bank, ADB and JICA to Andhra Pradesh would be repaid 90 per cent by the Centre and remaining 10 per cent by the state.

However, in January this year, the state government modified the request and demanded the money through NABARD.

&quot;Now if NABARD gives directly to the central government, it gets added to the fiscal deficit. If it gives to the state government, it will get added to the state&#39;s fiscal deficit, and therefore reduces the borrowing capacity of the state,&quot; he said.

To overcome this, it was proposed last month that a special purpose vehicle is created in the state which deals with the development work. The NABARD fund will come into that corporation and the money would be repaid to NABARD 90:10 ratio.

&quot;We are awaiting a response, I hope it is a positive response, and the state tells us in what manner they want,&quot; he said. &quot;At no stage has the Centre said that we won&#39;t give it.&quot;

Jaitley hoped for a positive outcome as he believed that the state needs assistance.

On revenue deficit, he said Rs 4,000 crore has already been paid for 2014-15 and only Rs 138 crore remains.

On the demand for tax incentives, he said in his Budget proposals he has already announced measures like investment and depreciation allowance.

&quot;AP has suffered because of bifurcation and whatever support is required because of that (we will give),&quot; he said, adding all issues have to be resolved within the framework of Centre and state relation.

The Centre is agreeable to even that provided a mechanism is worked out, he told reporters at his office here.

In a bid to pacify the sulking ally Telugu Desam Party (TDP), Finance Minister Arun Jaitley today promised Andhra Pradesh funds equivalent to what a special category state receives but drew a line saying politics cannot increase the quantum of money. As the TDP threatened to quit the ruling NDA alliance led by the BJP at the Centre, Jaitley said his government was committed to meeting all promises made to Andhra Pradesh at the time of carving out of Telangana four years back. But giving special category status, as demanded by Andhra Pradesh Chief Minister Chandrababu Naidu, to any state apart from those in the North East and three hilly provinces is not constitutionally possible after the implementation of the 14th Finance Commission recommendation, he said. However, to make up for that, the Centre would give Andhra Pradesh funds equivalent to what a special category status state gets, he said. For special category status category states, the Centre meets 90 per cent of the funds required in a centrally sponsored scheme as against 60 per cent in case of normal category states. The remaining funds are provided by the state governments. He said the Centre had committed 90 per cent of the funds for centrally sponsored schemes in Andhra Pradesh, equivalent to special category states, through other means like external agencies like World Bank, but the state government wanted funds to be routed through agri-lending bank NABARD. The Centre is agreeable to even that provided a mechanism is worked out, he told reporters at his office here. Asked about the threat of TDP to pull out of the NDA if more funds are not allocated, he said: "political issue cannot increase the quantum of money because the Centre has no free-floating funds". "Every state in India has the right to the central fund in the same manner. Sentiment does not decide the quantum of funds, it is the constitutional award of the Finance Commission which decides on the quantum of funds that the states get," he said. Asked about Congress President Rahul Gandhi's promise to give the state the special category status if his party is voted to power, Jaitley said, "I still have to follow constitutional award" of the 14th Finance Commission. He said the Centre is committed to giving funds to Andhra Pradesh equivalent to what a special status state gets, he said. The 14th Finance Commission raised the share of states in taxes collected by the Centre to 42 per cent from 32 per cent but abolished special category states. "The principal issue relates to what is the implication of a special status. The special status was originally granted to states in North East because they have their own resources which were inadequate and the revenue was inadequate," he said. Jaitley said while the promise of special category status to Andhra Pradesh was legally possible when the state was bifurcated, there is no such category after constitutional award by the 14 Finance Commission. "Instead states which are in deficit in terms of revenue, we are compensating them because everyone gets a hike of 10 per cent to 42 per cent plus for a certain period; revenue deficit will be taken care of and a provision for revenue deficit was made in the case of Andhra Pradesh," he said. For Andhra Pradesh, the 90:10 funding of schemes instead of usual 60:40 would be implemented "notwithstanding the fact that the word special status is not there", he said. During consultations in 2016, it was proposed that grants given by external agencies like World Bank, ADB and JICA to Andhra Pradesh would be repaid 90 per cent by the Centre and remaining 10 per cent by the state. However, in January this year, the state government modified the request and demanded the money through NABARD. "Now if NABARD gives directly to the central government, it gets added to the fiscal deficit. If it gives to the state government, it will get added to the state's fiscal deficit, and therefore reduces the borrowing capacity of the state," he said. To overcome this, it was proposed last month that a special purpose vehicle is created in the state which deals with the development work. The NABARD fund will come into that corporation and the money would be repaid to NABARD 90:10 ratio. "We are awaiting a response, I hope it is a positive response, and the state tells us in what manner they want," he said. "At no stage has the Centre said that we won't give it." Jaitley hoped for a positive outcome as he believed that the state needs assistance. On revenue deficit, he said Rs 4,000 crore has already been paid for 2014-15 and only Rs 138 crore remains. On the demand for tax incentives, he said in his Budget proposals he has already announced measures like investment and depreciation allowance. "AP has suffered because of bifurcation and whatever support is required because of that (we will give)," he said, adding all issues have to be resolved within the framework of Centre and state relation.

Arun Jaitley: Will give money equivalent of special status to Andhra Pradesh

In a sharp reaction to the detection of banking frauds, Finance Minister Arun Jaitley on Saturday targeted wilful defaulters, calling them &ldquo;scars on the economy&quot; and took a dig at banking regulators, saying in India only politicians faced flak for such issues while regulators manage to skip the heat.&nbsp;

Speaking at the Global Business Summit, Jaitley said incidents of bank frauds will impact ease of doing business in India.

&ldquo;The old concept that the money that has been borrowed may or may not be returned has to end now. The law would be tightened to ensure criminal acts in business punished wherever the culprit is,&rdquo; Arun Jaitley said at the event.

&ldquo;Cases of willful default is something which is much more than a business failure and also bank frauds. If you periodically have incidents like these, the entire effort of ease of doing business goes to background and these scars on the economy take the front seat,&rdquo; Jaitley said.

Highlighting the role of regulators in the economy, Jaitley hinted at the introduction of new regulations, adding that they need to keep a &quot;third eye&quot; on the sector. He also said tighter laws need to be implemented to ensure criminal acts in business lead to punishment, wherever the culprit is.

&quot;Unfortunately, in the Indian system, we politicians are accountable, but regulators are not,&quot; he added.

In lieu of the 1.77 billion dollar Punjab National Bank (PNB) fraud involving top jewellery designer Nirav Modi, and his uncle Mehul Choksi, Jaitley had earlier stressed on the need for supervisory agencies to assess what new systems had to be put in place to find those who were cheating banks.

&quot;What were auditors doing? If both internal and external auditors have looked the other way and failed to detect, then I think CA professionals must introspect. Supervisory agencies also must introspect what are the additional mechanisms they have to put in place,&quot; he said.

(With inputs from ANI)

"Unfortunately, in the Indian system, we politicians are accountable, but regulators are not," Jaitley said.

In a sharp reaction to the detection of banking frauds, Finance Minister Arun Jaitley on Saturday targeted wilful defaulters, calling them “scars on the economy" and took a dig at banking regulators, saying in India only politicians faced flak for such issues while regulators manage to skip the heat. Speaking at the Global Business Summit, Jaitley said incidents of bank frauds will impact ease of doing business in India. “The old concept that the money that has been borrowed may or may not be returned has to end now. The law would be tightened to ensure criminal acts in business punished wherever the culprit is,” Arun Jaitley said at the event. “Cases of willful default is something which is much more than a business failure and also bank frauds. If you periodically have incidents like these, the entire effort of ease of doing business goes to background and these scars on the economy take the front seat,” Jaitley said. Highlighting the role of regulators in the economy, Jaitley hinted at the introduction of new regulations, adding that they need to keep a "third eye" on the sector. He also said tighter laws need to be implemented to ensure criminal acts in business lead to punishment, wherever the culprit is. "Unfortunately, in the Indian system, we politicians are accountable, but regulators are not," he added. In lieu of the 1.77 billion dollar Punjab National Bank (PNB) fraud involving top jewellery designer Nirav Modi, and his uncle Mehul Choksi, Jaitley had earlier stressed on the need for supervisory agencies to assess what new systems had to be put in place to find those who were cheating banks. "What were auditors doing? If both internal and external auditors have looked the other way and failed to detect, then I think CA professionals must introspect. Supervisory agencies also must introspect what are the additional mechanisms they have to put in place," he said. (With inputs from ANI)

In India, politicians are accountable but regulators are not, says Arun Jaitley

Breaking his silence over the Rs 11,400 crore fraud at India&#39;s second-biggest bank, PNB, Finance Minister Arun Jaitley today said the state will chase down cheaters to the end even as he took the management of the lender to task for its failure to check the delinquents.

Without naming either the alleged kingpin of the fraud, billionaire jeweller Nirav Modi, or Punjab National Bank, Jaitley questioned the ethics of some businesses in the country and asked as to why the bank&#39;s internal and external auditors could not detect the fraud which had been going on for 7 long years.

&quot;It is incumbent on us as a state, till the last legitimate capacity of the state, to chase these people (fraudsters) to the last possible conclusion to make sure the country is not cheated,&quot; he said addressing the annual meeting of Association of Development Financial Institutions in Asia &amp; Pacific (ADFIAP) here.

Also read: <a href="http://www.wionews.com/india-news/cbi-arrests-former-head-of-pnbs-brady-house-mumbai-branch-33561" target="_blank">CBI arrests former head of PNB&#39;s Brady House branch</a>

Modi, whose diamond creations have draped Hollywood stars such as Kate Winslet and Dakota Johnson, and firms linked to him are alleged to have acquired fraudulent letters of undertaking (LoUs) from one PNB branch in Mumbai between 2011 and 2017 to obtain loans from Indian banks overseas. Investigative agencies have raided Modi&#39;s properties and arrested bank employees.

Jaitley said the government had been step by step addressing issues like high-level of bad debts and need for more capital, but the effort has been put to challenge with the unravelling of the fraud.

He reminded the public sector banks that Prime Minister Narendra Modi gave managements the autonomy they needed with none from the government calling.

&quot;When authority is given to the managements you are expected to utilise that authority effectively and in a right manner. Therefore the question for the management itself is were they found lacking? And on the face of it the answer seems yes they were,&quot; he said.

The lenders, he said, were &quot;unable to check who amongst them were delinquent&quot;. He went on to ask what the auditors were doing.

&quot;Both internal and external auditors really have looked the other way or failed to detect,&quot; he said.

Chartered accountants and those who control the discipline, should start introspection and &quot;say what legitimate actions are to be taken&quot;, he said.

&quot;And also there is an important challenge where the supervisory agencies are now to introspect as what are the additional mechanisms they have to put in place to ensure that stray cases don&#39;t become a pattern again,&quot; he said. &quot;And stray cases are nipped in the bud and an example be made out of people that these bad examples itself are never to be repeated.&quot;

Jaitley said frauds have a cost to the country as well as to the tax payer.

&quot;It&#39;s a direct cost and it has an indirect cost that it impinges on development, which impinges on the lending capacity of banks as an institution and therefore impinges upon developmental finance,&quot; he said.

On the banking sector, the Finance Minister said financing for trade and businesses increases when banks have the ability to lend.

This ability over the past few years has faced challenges in increased bad debt or NPAs. &quot;One of the direct consequences of this was that the ability of the state to spend and lend even for developmental activities itself will get curtailed,&quot; he said.

After struggling to find solution, the government &quot;finally hit upon the right point through the insolvency and bankruptcy code&quot; that provides for recovery of due amounts through sale of assets of defaulters.

Jaitley said initial response to the Code has been encouraging.

Also, he said, government is infusing an unprecedented Rs 2.11 lakh crore capital in the banks.

&quot;That decision itself as some of my friends in Parliament described also had moral issues because at the end of the day when NPAs become unacceptably high, you expect the taxpayer really to fund what unprincipled sections of the industry have been able to take out,&quot; he said.

Stating that though there is a moral hazard in that kind of solution, he said there was no other option and government had to take that difficult course itself.

&quot;As it seems, situation appeared to be coming on track (but) you have now again emerging challenges,&quot; he said. &quot;Therefore these emerging challenges eventually all strike at one of the big purposes, which is development and growth and the need for developmental banks itself. And the need for the increasing the capacity of the developmental finance itself. Any such system of banking really functions on trust.&quot;

That trust is inherent in the lender-creditor relationship. &quot;I think that relationship in India blurred itself out when a section, not so ethical a section perhaps thought that it was not its responsibility to pay back. And therefore we had to come back with hard solutions,&quot; he added.&nbsp;

'It is incumbent on us as a state, till the last legitimate capacity of the state, to chase these people (fraudsters) to the last possible conclusion to make sure the country is not cheated,' Jaitley said

Breaking his silence over the Rs 11,400 crore fraud at India's second-biggest bank, PNB, Finance Minister Arun Jaitley today said the state will chase down cheaters to the end even as he took the management of the lender to task for its failure to check the delinquents. Without naming either the alleged kingpin of the fraud, billionaire jeweller Nirav Modi, or Punjab National Bank, Jaitley questioned the ethics of some businesses in the country and asked as to why the bank's internal and external auditors could not detect the fraud which had been going on for 7 long years. "It is incumbent on us as a state, till the last legitimate capacity of the state, to chase these people (fraudsters) to the last possible conclusion to make sure the country is not cheated," he said addressing the annual meeting of Association of Development Financial Institutions in Asia & Pacific (ADFIAP) here. Also read: CBI arrests former head of PNB's Brady House branch Modi, whose diamond creations have draped Hollywood stars such as Kate Winslet and Dakota Johnson, and firms linked to him are alleged to have acquired fraudulent letters of undertaking (LoUs) from one PNB branch in Mumbai between 2011 and 2017 to obtain loans from Indian banks overseas. Investigative agencies have raided Modi's properties and arrested bank employees. Jaitley said the government had been step by step addressing issues like high-level of bad debts and need for more capital, but the effort has been put to challenge with the unravelling of the fraud. He reminded the public sector banks that Prime Minister Narendra Modi gave managements the autonomy they needed with none from the government calling. "When authority is given to the managements you are expected to utilise that authority effectively and in a right manner. Therefore the question for the management itself is were they found lacking? And on the face of it the answer seems yes they were," he said. The lenders, he said, were "unable to check who amongst them were delinquent". He went on to ask what the auditors were doing. "Both internal and external auditors really have looked the other way or failed to detect," he said. Chartered accountants and those who control the discipline, should start introspection and "say what legitimate actions are to be taken", he said. "And also there is an important challenge where the supervisory agencies are now to introspect as what are the additional mechanisms they have to put in place to ensure that stray cases don't become a pattern again," he said. "And stray cases are nipped in the bud and an example be made out of people that these bad examples itself are never to be repeated." Jaitley said frauds have a cost to the country as well as to the tax payer. "It's a direct cost and it has an indirect cost that it impinges on development, which impinges on the lending capacity of banks as an institution and therefore impinges upon developmental finance," he said. On the banking sector, the Finance Minister said financing for trade and businesses increases when banks have the ability to lend. This ability over the past few years has faced challenges in increased bad debt or NPAs. "One of the direct consequences of this was that the ability of the state to spend and lend even for developmental activities itself will get curtailed," he said. After struggling to find solution, the government "finally hit upon the right point through the insolvency and bankruptcy code" that provides for recovery of due amounts through sale of assets of defaulters. Jaitley said initial response to the Code has been encouraging. Also, he said, government is infusing an unprecedented Rs 2.11 lakh crore capital in the banks. "That decision itself as some of my friends in Parliament described also had moral issues because at the end of the day when NPAs become unacceptably high, you expect the taxpayer really to fund what unprincipled sections of the industry have been able to take out," he said. Stating that though there is a moral hazard in that kind of solution, he said there was no other option and government had to take that difficult course itself. "As it seems, situation appeared to be coming on track (but) you have now again emerging challenges," he said. "Therefore these emerging challenges eventually all strike at one of the big purposes, which is development and growth and the need for developmental banks itself. And the need for the increasing the capacity of the developmental finance itself. Any such system of banking really functions on trust." That trust is inherent in the lender-creditor relationship. "I think that relationship in India blurred itself out when a section, not so ethical a section perhaps thought that it was not its responsibility to pay back. And therefore we had to come back with hard solutions," he added.

Will chase PNB fraudster to the end, says Jaitley. Blames bank management for scam

Union Finance Minister Arun Jaitley on Tuesday said that it was incumbent on the state to chase down those who cheat the banking system.

The Finance Minister called out to the auditors, senior banking officials, chartered accountants and supervisory agencies &quot;to introspect&quot;.

&quot;When authority is given to the management then you are expected to utilize authority effectively and in the right manner. Therefore, the question for management here is if they were found lacking, on the face of it seems they were,&quot; Jaitley noted.&nbsp;

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When authority is given to the managements then you are expected to utilize authority effectively and in the right manner and therefore question for management is if they were found lacking, on the face of it seems they were: FM Arun Jaitley on banks <a href="https://t.co/rwI7W38iaT">pic.twitter.com/rwI7W38iaT</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/965941717789704192?ref_src=twsrc%5Etfw">February 20, 2018</a></blockquote>
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&quot;Also what were the auditors doing? If both internal and external auditors have looked other way and failed to detect then I think CA professionals must introspect. Supervisory agencies also must introspect what are the additional mechanisms they have to put in place,&quot; he added further.&nbsp;

The Finance Minister was speaking at the 41st Annual Meeting of Association of Development Financial Institutions in Asia and Pacific (ADFIAP). His statements came in the wake of a mega scam where the PNB detected a 1.77 billion dollar fraud involving jeweller Nirav Modi and others.

(With inputs from ANI)&nbsp;

Those who cheat banking system will be chased down: Arun Jaitley

Union Finance Minister Arun Jaitley on Tuesday said that it was incumbent on the state to chase down those who cheat the banking system. The Finance Minister called out to the auditors, senior banking officials, chartered accountants and supervisory agencies "to introspect". "When authority is given to the management then you are expected to utilize authority effectively and in the right manner. Therefore, the question for management here is if they were found lacking, on the face of it seems they were," Jaitley noted. When authority is given to the managements then you are expected to utilize authority effectively and in the right manner and therefore question for management is if they were found lacking, on the face of it seems they were: FM Arun Jaitley on banks pic.twitter.com/rwI7W38iaT — ANI (@ANI) February 20, 2018 × "Also what were the auditors doing? If both internal and external auditors have looked other way and failed to detect then I think CA professionals must introspect. Supervisory agencies also must introspect what are the additional mechanisms they have to put in place," he added further. The Finance Minister was speaking at the 41st Annual Meeting of Association of Development Financial Institutions in Asia and Pacific (ADFIAP). His statements came in the wake of a mega scam where the PNB detected a 1.77 billion dollar fraud involving jeweller Nirav Modi and others. (With inputs from ANI)

<a href="http://www.wionews.com/india-news/arun-jaitley-chairs-pre-budget-meeting-in-delhi-29924" target="_blank">Ahead of the Budget Session</a> of Parliament commencing on January 29, Finance Minister Arun Jaitley performed the symbolic &#39;Halwa Ceremony&#39; here on Saturday.

The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the <a href="http://www.wionews.com/india-news/my-governments-only-agenda-for-budget-is-development-pm-modi-to-zee-news-30099" target="_blank">Union Budget</a> for 2018-19.

The &#39;halwa ceremony&#39; is observed to maintain the secrecy of the budget preparation process. As part of the ritual, which has continued for long, &#39;halwa&#39; is prepared in a big &#39;kadhai&#39; or wok and served to the entire staff in the ministry.

The significance of this is the commencement of printing of documents related to the budget. It is said that officials from the ministry are required to stay back at the printing press itself until the Budget is presented in Parliament, barring select senior officials.

Apart from Jaitley, those present at the ceremony were Chief Economic Adviser Arvind Subramanian, Economic Affairs Secretary Subhash Chandra Garg, MoS Finance Shiv Pratap Shukla and others.

The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the Union Budget for 2018-19

Ahead of the Budget Session of Parliament commencing on January 29, Finance Minister Arun Jaitley performed the symbolic 'Halwa Ceremony' here on Saturday. The ceremony, which was performed at North Block in Delhi, marks the inauguration of the formal printing of different documents relating to the Union Budget for 2018-19. The 'halwa ceremony' is observed to maintain the secrecy of the budget preparation process. As part of the ritual, which has continued for long, 'halwa' is prepared in a big 'kadhai' or wok and served to the entire staff in the ministry. The significance of this is the commencement of printing of documents related to the budget. It is said that officials from the ministry are required to stay back at the printing press itself until the Budget is presented in Parliament, barring select senior officials. Apart from Jaitley, those present at the ceremony were Chief Economic Adviser Arvind Subramanian, Economic Affairs Secretary Subhash Chandra Garg, MoS Finance Shiv Pratap Shukla and others.

Jaitley performs 'Halwa' ceremony ahead of Budget Session

The Finance Minister while addressing the media on the recapitalisation of public sector banks has assured that the&nbsp;banks were &quot;article of faith&quot; and would never fail.

He said that the Department of Financial Services has been undertaking a detailed exercise as to the amount of capital that needs to be infused into public sector banks.&nbsp;

Jaitley said that the main objective of the flow of this capital to the public sector is to keep these banks in good health.

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Department of Financial Services has been undertaking a detailed exercise as to the amount of capital that needs to be infused into public sector banks: FM Jaitley <a href="https://t.co/fuXhrtQyBY">pic.twitter.com/fuXhrtQyBY</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/956107708947603456?ref_src=twsrc%5Etfw">January 24, 2018</a></blockquote>
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The main objective of this flows from the Government&#39;s responsibility to keep public sector banks in good health: FM Jaitley <a href="https://t.co/DYT7BRswom">pic.twitter.com/DYT7BRswom</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/956108002804752384?ref_src=twsrc%5Etfw">January 24, 2018</a></blockquote>
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Referring to the poor condition of the public sector&nbsp;banks, Jaitley said that the government aims to build an institutional mechanism to ensure that they do not experience the same problem that they &quot;inherited&quot;.

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Jaitly was addressing the media to devise a plan for Rs 2.11 lakh crore recapitalisation plan which the ministry had announced in October 2017.&nbsp;

The plan was introduced to support the struggling public sector banks incurring losses for a long time.&nbsp;

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Speaking in the recapitalisation of public sector banks, Finance Minister Arun Jaitley has said that the Department of Financial Services has been undertaking a detailed exercise as to the amount of capital that needs to be infused into public sector banks.

The Finance Minister while addressing the media on the recapitalisation of public sector banks has assured that the banks were "article of faith" and would never fail. He said that the Department of Financial Services has been undertaking a detailed exercise as to the amount of capital that needs to be infused into public sector banks. Jaitley said that the main objective of the flow of this capital to the public sector is to keep these banks in good health. Department of Financial Services has been undertaking a detailed exercise as to the amount of capital that needs to be infused into public sector banks: FM Jaitley pic.twitter.com/fuXhrtQyBY — ANI (@ANI) January 24, 2018 × The main objective of this flows from the Government's responsibility to keep public sector banks in good health: FM Jaitley pic.twitter.com/DYT7BRswom — ANI (@ANI) January 24, 2018 × Referring to the poor condition of the public sector banks, Jaitley said that the government aims to build an institutional mechanism to ensure that they do not experience the same problem that they "inherited". #WATCH: Finance Minister Arun Jaitley addresses the media in Delhi https://t.co/LE2L43PX2z — ANI (@ANI) January 24, 2018 × Jaitly was addressing the media to devise a plan for Rs 2.11 lakh crore recapitalisation plan which the ministry had announced in October 2017. The plan was introduced to support the struggling public sector banks incurring losses for a long time.

Govt to ensure good flow of capital to public sector banks to ensure their good health: Arun Jaitley

Prime Minister Narendra Modi on Sunday gave yet another indication that the upcoming budget will not be a populist one.

Last week, asked <a href="http://www.wionews.com/india-news/my-governments-only-agenda-for-budget-is-development-pm-modi-to-zee-news-30099">in an interview to the Zee Group</a> whether the budget would be political one where he would try to appease the voter, PM Modi said that his government&#39;s <a href="http://www.wionews.com/india-news/upa-government-was-unable-to-solve-gst-issues-pm-modi-to-wion-30214">only mantra was development</a>.

&quot;Budget or no budget. Election or no election. First budget or last budget. BJP and Modi have only one mantra -- development. whatever is required to achieve this mission, we will do. That has been our only intention,&quot; PM Modi had said in the interview.

In an interview to a news channel on Sunday, when asked&nbsp;if his government will turn populist in its last full-year budget before the general elections in 2019, the prime minister again hinted that the budget would not be populist.

He said it was a &quot;myth&quot; that the common man expects &quot;freebies and sops&quot; from the government.

&quot;But those who have seen me as the chief minister (of Gujarat) and also as the prime minister (would know) common man does not want all these things. It is a myth,&quot; he said.

The common man, he said, expects honest governance. &quot;He doesn&#39;t demand sops and freebies. It is our myth.&quot;

PM Modi said his government was taking decisions to fulfil the needs and aspirations of the common man.

Asked specifically if he will resist populism in the budget, the prime minister said it needs to be decided if the country needs to grow and become strong, should &quot;this political culture, the Congress culture, be followed&quot;.

He also said that the budget fell under the purview of the finance minister and that he did not want to interfere in it.

The budget will be presented on February 1.

 
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PM Modi said it was a 'myth' that the common man expects 'freebies and sops' from the government

Prime Minister Narendra Modi on Sunday gave yet another indication that the upcoming budget will not be a populist one. Last week, asked in an interview to the Zee Group whether the budget would be political one where he would try to appease the voter, PM Modi said that his government's only mantra was development. "Budget or no budget. Election or no election. First budget or last budget. BJP and Modi have only one mantra -- development. whatever is required to achieve this mission, we will do. That has been our only intention," PM Modi had said in the interview. In an interview to a news channel on Sunday, when asked if his government will turn populist in its last full-year budget before the general elections in 2019, the prime minister again hinted that the budget would not be populist. He said it was a "myth" that the common man expects "freebies and sops" from the government. "But those who have seen me as the chief minister (of Gujarat) and also as the prime minister (would know) common man does not want all these things. It is a myth," he said. The common man, he said, expects honest governance. "He doesn't demand sops and freebies. It is our myth." PM Modi said his government was taking decisions to fulfil the needs and aspirations of the common man. Asked specifically if he will resist populism in the budget, the prime minister said it needs to be decided if the country needs to grow and become strong, should "this political culture, the Congress culture, be followed". He also said that the budget fell under the purview of the finance minister and that he did not want to interfere in it. The budget will be presented on February 1.

Budget may not be populist, indicates PM Modi

Finance Minister Arun Jaitley said Thursday that India would become the world&#39;s fastest-growing economy in two years.&nbsp;

Jaitley, who was speaking in the Lok Sabha, was quoting from IMF data.&nbsp;

Jaitley also answered the question of why his goods and services tax has five slabs, one of the harshest criticisms of the GST:&nbsp;

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I went to Singapore. There they levy 7% GST on both Mercedes and food. Can this be done in India, a country where a large population lives below the poverty line? How can same tax slab be implemented on a luxurious item &amp; a necessity?: FM Arun Jaitley in Lok Sabha <a href="https://t.co/UBBSFNPzZO">pic.twitter.com/UBBSFNPzZO</a>
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Jaitley added that &quot;within a matter of months, we have been able to stabilise GST. We reduced rate with increase in revenue.&quot;&nbsp;

Jaitley that &quot;structural reform may pose momentary difficulty initially but in the long run it will prove to be beneficial.&quot;&nbsp;

This is something the government has been saying for a while -- that the &quot;disruptions&quot; of GST and demonetisation will bear fruit in the long run. &nbsp;

Jaitley, who was speaking in the Lok Sabha, was quoting from IMF data

Finance Minister Arun Jaitley said Thursday that India would become the world's fastest-growing economy in two years. Jaitley, who was speaking in the Lok Sabha, was quoting from IMF data. Jaitley also answered the question of why his goods and services tax has five slabs, one of the harshest criticisms of the GST: I went to Singapore. There they levy 7% GST on both Mercedes and food. Can this be done in India, a country where a large population lives below the poverty line? How can same tax slab be implemented on a luxurious item & a necessity?: FM Arun Jaitley in Lok Sabha pic.twitter.com/UBBSFNPzZO — ANI (@ANI) February 8, 2018 × Jaitley added that "within a matter of months, we have been able to stabilise GST. We reduced rate with increase in revenue." Jaitley that "structural reform may pose momentary difficulty initially but in the long run it will prove to be beneficial." This is something the government has been saying for a while -- that the "disruptions" of GST and demonetisation will bear fruit in the long run.

India to become fastest-growing major economy in two years: Jaitley

<a href="http://www.wionews.com/business-economy/india-to-become-fastest-growing-major-economy-in-two-years-jaitley-32232" target="_blank">India to become fastest-growing major economy in two years: Jaitley</a>

Finance Minister Arun Jaitley said Thursday that India would become the world&#39;s fastest-growing economy in two years.&nbsp;Jaitley, who was speaking in the Lok Sabha, was quoting from IMF data.

<a href="http://www.wionews.com/south-asia/bangladesh-ex-pm-khaleda-zia-jailed-for-graft-but-likely-to-be-freed-on-bail-pending-appeal-32223" target="_blank">Bangladesh: Ex-PM Khaleda Zia jailed for graft, but likely to be freed on bail pending appeal</a>

Former Bangladesh Prime Minister and opposition leader Khaleda Zia was&nbsp; <a href="http://www.wionews.com/south-asia/ex-bangladesh-pm-khaleda-zia-sentenced-to-5-years-in-graft-case-32203" target="_blank">jailed for five years for corruption</a>&nbsp;on Thursday as thousands of supporters took to the streets of the capital to protest her innocence.

<a href="http://www.wionews.com/india-news/spice-jet-flight-suffers-tyre-burst-during-take-off-no-injuries-reported-32234" target="_blank">Spice Jet plane suffers tyre burst during </a><a href="http://www.wionews.com/india-news/spice-jet-flight-suffers-tyre-burst-during-take-off-no-injuries-reported-32234" target="_blank">take</a><a href="http://www.wionews.com/india-news/spice-jet-flight-suffers-tyre-burst-during-take-off-no-injuries-reported-32234" target="_blank"> off</a><a href="http://www.wionews.com/india-news/spice-jet-flight-suffers-tyre-burst-during-take-off-no-injuries-reported-32234" target="_blank">, main Chennai Airport runway closed</a>

The suspected tyre burst was reported during the take-off of the flight. After which the plane was turned back and landed safely at Chennai airport.&nbsp;

<a href="http://www.wionews.com/india-news/deepika-padukone-and-ranveer-singh-are-set-to-have-a-beach-wedding-this-year-32214" target="_blank">Deepika Padukone and Ranveer Singh are set to have a beach wedding this year?</a>

They may be tight lip about it, but reports suggest that Ranveer Singh and Deepika Padukone are all set to walk down the aisle this year.&nbsp;

<a href="http://www.wionews.com/india-news/supreme-court-postpones-ayodhya-dispute-hearing-to-march-14-32208" target="_blank">Supreme Court asks for English translations of documents, postpones Ayodhya dispute hearing to March 14</a>

The Supreme Court postponed Thursday the hearing in the Ram Janmabhoomi-Babri Masjid dispute to March 14.

India to become fastest-growing major economy in two years: Jaitley Finance Minister Arun Jaitley said Thursday that India would become the world's fastest-growing economy in two years. Jaitley, who was speaking in the Lok Sabha, was quoting from IMF data. Bangladesh: Ex-PM Khaleda Zia jailed for graft, but likely to be freed on bail pending appeal Former Bangladesh Prime Minister and opposition leader Khaleda Zia was jailed for five years for corruption on Thursday as thousands of supporters took to the streets of the capital to protest her innocence. Spice Jet plane suffers tyre burst during take off, main Chennai Airport runway closed The suspected tyre burst was reported during the take-off of the flight. After which the plane was turned back and landed safely at Chennai airport. Deepika Padukone and Ranveer Singh are set to have a beach wedding this year? They may be tight lip about it, but reports suggest that Ranveer Singh and Deepika Padukone are all set to walk down the aisle this year. Supreme Court asks for English translations of documents, postpones Ayodhya dispute hearing to March 14 The Supreme Court postponed Thursday the hearing in the Ram Janmabhoomi-Babri Masjid dispute to March 14.

WION Evening News Brief, February 8, 2018

Finance Minister Arun Jaitley met with industry heavyweights Friday morning <a href="http://www.wionews.com/business-economy/as-expected-budget-2018-friendly-to-farmers-big-on-health-stocks-fall-31454" target="_blank">a day after releasing his Budget</a>.&nbsp;

There are sections of the economy which need government aid, Jaitley told the CEOs, taking off from where he had left off in his Budget. Jaitley&#39;s last full year Budget before the general elections in 2019 has been called pro-poor, populist, and aimed at the elections next year.&nbsp;

The stress in the farm sector is real, Jaitley said Friday. (Critics of his government have been saying the same thing for some time now.)

On Thursday, Jaitley had announced in his Budget that farmers would be paid 1.5 times the cost of production of their kharif crops.&nbsp;

The MSP has to be reasonable, Jaitley said Friday. And that the agriculture ministry, state governments, and NITI Aayog would work out the details.&nbsp;

Jaitley added Friday that the government was concentrating on targeting the welfare of individual rural homes, providing interest subventions, and aid for irrigation to rural areas.&nbsp;

Jaitley&#39;s biggest announcement on Thursday however had been the creation of the world&#39;s largest health insurance programme. The programme, Jaitley said, would cover 500 million people -- close to half of the country&#39;s population -- with 50 million families insured for up to Rs 5 lakh a year.&nbsp;

The &quot;health scheme is a major target for the government&quot;, Jaitley said Friday.&nbsp;

Jaitley said the health insurance programme too was first envisaged by the NITI Aayog. He added that the programme could be built on a trust or insurance model, and that the scheme would kick off on April 1, 2018.&nbsp;

Jaitley said Friday the MSP and healthcareprogrammes were &quot;ambitious&quot;&nbsp;and that the real success would lie in implementing it.

&ldquo;We were concerned this year on account of various global and domestic factors that this had to be a &lsquo;spend-more&rsquo; and not a &lsquo;save-more&rsquo; budget,&quot; Jaitley added.&nbsp;

Jaitley&#39;s Buget had offered a number of other sops to the poor, especially the rural poor -- including the distribution of eight million free gas connections, and four million free electricity connections.&nbsp;

The sops however mean the governnment will breach its fiscal deficit target. Jaitley said Thursday that the target this year was&nbsp;3.3%, up from the earlier 3%.&nbsp;

The stock markets did not respond well to the announcement. They dove further after Jaitley announced long-term capital gains on the sale of shares above Rs 1 lakh would be taxed at 10%. Jaitley said Friday that that had been a &quot;tough call&quot;.&nbsp;

Also read: <a href="http://www.wionews.com/india-news/day-after-union-budget-sensex-drops-324-points-nifty-below-11000-on-ltcg-jitters-31550" target="_blank">Sensex drops 324 points, Nifty below 11,000 on LTCG jitters</a>

He added Friday that the &quot;manufacturing sector has picked up in the last few months&quot;. But that India has a serious challenge ahead of it when it comes to tax compliance and increasing the tax base. He added that tax rates in India are low. That no other country has a five per cent tax slab and that you cannot get slabs any lower than the ones we already have.&nbsp;

The finance minister met Friday with industry heavyweights

Finance Minister Arun Jaitley met with industry heavyweights Friday morning a day after releasing his Budget. There are sections of the economy which need government aid, Jaitley told the CEOs, taking off from where he had left off in his Budget. Jaitley's last full year Budget before the general elections in 2019 has been called pro-poor, populist, and aimed at the elections next year. The stress in the farm sector is real, Jaitley said Friday. (Critics of his government have been saying the same thing for some time now.) On Thursday, Jaitley had announced in his Budget that farmers would be paid 1.5 times the cost of production of their kharif crops. The MSP has to be reasonable, Jaitley said Friday. And that the agriculture ministry, state governments, and NITI Aayog would work out the details. Jaitley added Friday that the government was concentrating on targeting the welfare of individual rural homes, providing interest subventions, and aid for irrigation to rural areas. Jaitley's biggest announcement on Thursday however had been the creation of the world's largest health insurance programme. The programme, Jaitley said, would cover 500 million people -- close to half of the country's population -- with 50 million families insured for up to Rs 5 lakh a year. The "health scheme is a major target for the government", Jaitley said Friday. Jaitley said the health insurance programme too was first envisaged by the NITI Aayog. He added that the programme could be built on a trust or insurance model, and that the scheme would kick off on April 1, 2018. Jaitley said Friday the MSP and healthcareprogrammes were "ambitious" and that the real success would lie in implementing it. “We were concerned this year on account of various global and domestic factors that this had to be a ‘spend-more’ and not a ‘save-more’ budget," Jaitley added. Jaitley's Buget had offered a number of other sops to the poor, especially the rural poor -- including the distribution of eight million free gas connections, and four million free electricity connections. The sops however mean the governnment will breach its fiscal deficit target. Jaitley said Thursday that the target this year was 3.3%, up from the earlier 3%. The stock markets did not respond well to the announcement. They dove further after Jaitley announced long-term capital gains on the sale of shares above Rs 1 lakh would be taxed at 10%. Jaitley said Friday that that had been a "tough call". Also read: Sensex drops 324 points, Nifty below 11,000 on LTCG jitters He added Friday that the "manufacturing sector has picked up in the last few months". But that India has a serious challenge ahead of it when it comes to tax compliance and increasing the tax base. He added that tax rates in India are low. That no other country has a five per cent tax slab and that you cannot get slabs any lower than the ones we already have.

Stress in farm sector is real, Jaitley says day after Budget

Prime Minister Narendra Modi on Thursday hailed the <a href="http://www.wionews.com/india-news/top-takeaways-from-union-budget-2018-31457" target="_blank">Budget 2018 presented by Arun Jaitley</a> in Rajya Sabha, saying it will accelerate the economic growth as it is focused on all the sectors.

The prime minister said the Budget will strengthen the &#39;New India&#39; vision because it is farmer friendly, common citizen friendly, business environment friendly and development friendly.

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From food processing to fiber optics, roads to shipping, youth to senior citizen, rural India to Ayushmaan Bharat, Digital India to Start Up India, this budget strengthens hopes and aspirations of crores of Indians: PM Modi <a href="https://twitter.com/hashtag/UnionBudget2018?src=hash&amp;ref_src=twsrc%5Etfw">#UnionBudget2018</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/958974398970650624?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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He further congratulated the finance minister for the decision regarding the Minimum Support Price (MSP), adding it will help the farmers tremendously.

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I congratulate the Finance Minister for the decision regarding Minimum Support Price. I am sure it will help the farmers tremendously: PM Modi <a href="https://twitter.com/hashtag/UnionBudget2018?src=hash&amp;ref_src=twsrc%5Etfw">#UnionBudget2018</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/958974716642983936?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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PM Modi was further hopeful that farmers, Dalits and tribal communities will gain from the budget and will create new opportunities for rural India.

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Humne ease of living ki bhaavna ka vistaar ujjwala yojna mein bhi dekha hai. Ye yojna desh ke ghareeb mahilaon ko na sirf dhuyen se mukti dila rahi hai balki unke sashakrikaran ka bhi bada maadhyam bani hai: PM Modi <a href="https://twitter.com/hashtag/UnionBudget2018?src=hash&amp;ref_src=twsrc%5Etfw">#UnionBudget2018</a>
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The Budget 2018 is a testimony to Prime Minister Narendra Modi&rsquo;s commitment towards agricultural growth and farmers&rsquo; welfare.

Jaitley announced a series of amendments to the schemes implemented to uplift the agriculture sector&nbsp;and rural populace.&nbsp; 
&nbsp;

He further congratulated the finance minister for the decision regarding the MSP

Prime Minister Narendra Modi on Thursday hailed the Budget 2018 presented by Arun Jaitley in Rajya Sabha, saying it will accelerate the economic growth as it is focused on all the sectors. The prime minister said the Budget will strengthen the 'New India' vision because it is farmer friendly, common citizen friendly, business environment friendly and development friendly. From food processing to fiber optics, roads to shipping, youth to senior citizen, rural India to Ayushmaan Bharat, Digital India to Start Up India, this budget strengthens hopes and aspirations of crores of Indians: PM Modi #UnionBudget2018 — ANI (@ANI) February 1, 2018 × He further congratulated the finance minister for the decision regarding the Minimum Support Price (MSP), adding it will help the farmers tremendously. I congratulate the Finance Minister for the decision regarding Minimum Support Price. I am sure it will help the farmers tremendously: PM Modi #UnionBudget2018 — ANI (@ANI) February 1, 2018 × PM Modi was further hopeful that farmers, Dalits and tribal communities will gain from the budget and will create new opportunities for rural India. Humne ease of living ki bhaavna ka vistaar ujjwala yojna mein bhi dekha hai. Ye yojna desh ke ghareeb mahilaon ko na sirf dhuyen se mukti dila rahi hai balki unke sashakrikaran ka bhi bada maadhyam bani hai: PM Modi #UnionBudget2018 — ANI (@ANI) February 1, 2018 × The Budget 2018 is a testimony to Prime Minister Narendra Modi’s commitment towards agricultural growth and farmers’ welfare. Jaitley announced a series of amendments to the schemes implemented to uplift the agriculture sector and rural populace.

Budget 2018 focused on all sectors, will accelerate economic growth: PM Modi

Finance Minister Arun Jaitley will today present the current NDA government&#39;s fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence.

The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

With the recent elections in Gujarat indicating erosion of BJP&#39;s rural vote base, Jaitley may also unveil incentives for the farm sector. 
Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit.

Also on Jaitley&#39;s menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

But he has to do all this while sticking to the road map of narrowing one of Asia&#39;s largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop.

This will be India&#39;s first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia&#39;s third largest economy. 
There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years.

He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them.

Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can&#39;t be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target.

In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget.

The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

While P Chidambaram had presented the previous UPA government&#39;s vote-on-account in February 2014, Jaitley had presented a full budget in July that year. 
The Budget for 2018-19 will be the first budget post implementation of the GST regime.

Even though independent India&#39;s biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers.

With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change.

While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.&nbsp;

Finance Minister Arun Jaitley will present this government's fifth and arguably toughest Budget today

Finance Minister Arun Jaitley will today present the current NDA government's fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence. The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance. With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector. Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation. There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit. Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low. But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade. The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow. Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop. This will be India's first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia's third largest economy. There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years. He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them. Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit. Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship. There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target. In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL. Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year. The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year. Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget. The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government. While P Chidambaram had presented the previous UPA government's vote-on-account in February 2014, Jaitley had presented a full budget in July that year. The Budget for 2018-19 will be the first budget post implementation of the GST regime. Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers. With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change. While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

Jaitley has tough task of choosing between populism, prudence in today's Budget

The Union budget to be presented by the Finance Minister on 1st February is crucial for at least three reasons. Firstly, the budget comes at a time when the growth rate of the economy is projected to be at 6.5% for the current financial year, the lowest since the Modi government assumed office. Secondly, the budget comes in the backdrop of a major economic policy change of introducing Goods and Services Tax (GST) that the government initiated last year. Thirdly, this is perhaps the last full budget that the government will be placing before the Lok Sabha elections, due in 2019. Let us look at these issues seriatim.&nbsp;

&nbsp;

The growth rate of Gross Value Added (GVA) is projected to be 6.1% in 2017-18, as against 6.6% in 2016-17 and 7.9% in 2015-16. This growth slowdown is a manifestation of the fact that investment is simply not picking up in the economy. As a share of GDP, the investment declined from 31.3% in 2013-14 to 29% in 2017-18 (projected). The Centre for Monitoring the Indian Economy (CMIE) has reported that new project announcements by the Indian corporate sector reached a 13 year low in December 2017.&nbsp;

&nbsp;

The investment and growth slowdown in the country is a result of a complex set of factors. Firstly, it is now clear, even to die-hard supporters of the government, that the policy of demonetisation had a very serious adverse impact on the economy, particularly the informal sector, while unearthing precious little worth of black money. The uncertainty created because of this hard-headed measure and the concomitant contraction of economic activity has resulted in an economic slowdown in the country.

&nbsp;

Secondly, the problem of corporate debt overhang in the economy and the resulting bad loans in the banking sector are primarily responsible for the investment slowdown. The Reserve Bank of India reports that gross non-performing advances ratio increased from 9.6% to 10.2% between March and September 2017. Burdened with these NPAs, the credit growth rate of the banks is much below what it was a few years back. The government has not been able to solve the problem of NPAs in the Indian banking sector.&nbsp;

&nbsp;

In fact, when Mr. Jaitley became the Finance Minister, the gross non-performing assets of the scheduled commercial banks was around Rs. 2.6 trillion. This had reached around Rs. 8 trillion by March 2017, even after the government writing off a significant amount of the NPAs. Rather than take stringent action against the defaulters and recover the money, the government has brought a new Financial Resolution and Deposit Insurance (FRDI) bill, with the clause of bail-in which can jeopardise the stability of the public banking sector in India. This twin problem of NPAs and investment slowdown has to be tackled by the government.&nbsp;

&nbsp;

One of the ways in which the government can deal with the problem of the investment slowdown is to step up public investment. However, as a result of its adherence to the FRBM Act, the government is committed to maintaining a fiscal deficit which is 3.2% of GDP for the current fiscal. But as per the Controller General of Accounts data, the fiscal deficit has overshot the target (112% of the target set last year) by the end of November 2017. During the same period, last year, the fiscal deficit was 85% of the target in November 2016.&nbsp; Additionally, if the GDP projection does not meet target (which is possible given a downward revision of GDP growth projection), then clearly the fiscal deficit ratio is going to increase. The government, therefore, will have to cut back on expenditures in the remaining months of the fiscal to try and remain within the fiscal deficit target.

&nbsp;

This problem is basically a result of the inability of the government to meet revenue targets. It has been reported that tax collections under GST have been declining since its inception. In July, Rs 92283 crore was collected which declined to Rs 80808 crore in November 2017. Moreover, data shows that non-tax revenue has suffered a hit this fiscal. This is because the dividend from RBI has decreased by Rs 30000 crore and spectrum sales target have not been met. The shortfall in the RBI dividend, by the way, is a direct result of the policy of demonetisation. With the huge deposits in the banks, the interest paid to customers as well as banks to hold the deposit, plus the costs of new note printing drastically reduced the profitability of RBI, which resulted in a decline in its dividend paid to the government.

&nbsp;

This stressed fiscal situation is further aggravated by another crucial development. When Modi assumed office in 2014, the price of a barrel of crude oil in the international market was more than $100 which subsequently halved its value. Taking advantage of this low oil price, the government increased the excise duty on petroleum products, such that while crude oil prices declined, retail prices did not. Through this imposition of excise duties, the government collected 1.8% of GDP as revenue. The total excise duty collection from the oil sector doubled. Now, however, crude oil prices are rising up. As a result, retail prices of petrol and diesel are also increasing. For example, within 6 months, the price of petrol in Kolkata increased by more than Rs 6/litre. Rising oil prices have cascading effects on inflation, and they are politically sensitive. Therefore, the government is faced with a situation where they may have to reduce excise duty on oil, like they did in October last year. This will only aggravate government&rsquo;s revenue mobilisation problem.

&nbsp;

There has been a lot of discussion in the media regarding the rural and agriculture sector with speculation that the government would be announcing some relief for this sector. It is true that agriculture sector is in crisis. The political manifestations of this have been in terms of farmers&rsquo; agitations in Maharastra, Madhya Pradesh, Rajasthan and other states. Even in Gujarat, the BJP&rsquo;s support base was dented in the rural areas. The root cause of this crisis is non-remunerative prices for agricultural products, the problem of agricultural loans and government&rsquo;s refusal to write off farmers&rsquo; debts.&nbsp;

&nbsp;

The government also had promised to double the income of the farmers. Far from doubling, what has happened is that the agricultural growth rate has slowed down in the country. In such a situation and given the election year, the buzz around rural sector spending increasing is natural. However, the macroeconomics of the budget with shortfalls in revenue generation will tie up the government&rsquo;s hands. Either the government has to impose a new set of taxes to generate resources to be spent in the rural areas. Or else, the expenditure will be nominally increased in rural areas, at the cost of expenditures in other sectors.&nbsp;

&nbsp;

The other major challenge of the government is job creation. While the PM has now turned around from digital economy towards designating pakoda making as gainful employment, the fact of the matter is that there is a slowdown in the job-generating capacity of the economy. The annual survey of Labour Bureau shows the real picture where there has been a decline in employment between 2013-14 and 2015-16. What the government will do in terms of providing jobs to the youth remain to be seen.

&nbsp;

What is, however, binding the government to raise resources in a progressive manner and go for large-scale fiscal stimulus is not economics but its own politics and a warped notion of economic policy. In a situation where there are growth and investment slow down, agrarian crisis, growing joblessness, undergraduate economics teaches us that a fiscal stimulus will surely help in improving the situation. This stimulus can be funded by simply taxing the rich and super-rich in the country.&nbsp;

&nbsp;

It has been reported by Oxfam that the top 1% of India&rsquo;s population amassed 73% of the total wealth created in the country last year. The super-rich in our country are truly having ache din. If these wealth earners are taxed, such expansionary policies can be undertaken. The tax-GDP ratio in India is one of the lowest in the world.&nbsp; This is so at a time when India is having a record number of dollar billionaires. It is however unlikely that a government which goes ecstatic with an improvement in ranking in the faulty &lsquo;ease of doing business&rsquo; will try to impose burdens on the rich for spending on aam admi.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

It has been reported by Oxfam that the top 1% of India’s population amassed 73% of the total wealth created in the country last year.

The Union budget to be presented by the Finance Minister on 1st February is crucial for at least three reasons. Firstly, the budget comes at a time when the growth rate of the economy is projected to be at 6.5% for the current financial year, the lowest since the Modi government assumed office. Secondly, the budget comes in the backdrop of a major economic policy change of introducing Goods and Services Tax (GST) that the government initiated last year. Thirdly, this is perhaps the last full budget that the government will be placing before the Lok Sabha elections, due in 2019. Let us look at these issues seriatim. The growth rate of Gross Value Added (GVA) is projected to be 6.1% in 2017-18, as against 6.6% in 2016-17 and 7.9% in 2015-16. This growth slowdown is a manifestation of the fact that investment is simply not picking up in the economy. As a share of GDP, the investment declined from 31.3% in 2013-14 to 29% in 2017-18 (projected). The Centre for Monitoring the Indian Economy (CMIE) has reported that new project announcements by the Indian corporate sector reached a 13 year low in December 2017. The investment and growth slowdown in the country is a result of a complex set of factors. Firstly, it is now clear, even to die-hard supporters of the government, that the policy of demonetisation had a very serious adverse impact on the economy, particularly the informal sector, while unearthing precious little worth of black money. The uncertainty created because of this hard-headed measure and the concomitant contraction of economic activity has resulted in an economic slowdown in the country. Secondly, the problem of corporate debt overhang in the economy and the resulting bad loans in the banking sector are primarily responsible for the investment slowdown. The Reserve Bank of India reports that gross non-performing advances ratio increased from 9.6% to 10.2% between March and September 2017. Burdened with these NPAs, the credit growth rate of the banks is much below what it was a few years back. The government has not been able to solve the problem of NPAs in the Indian banking sector. In fact, when Mr. Jaitley became the Finance Minister, the gross non-performing assets of the scheduled commercial banks was around Rs. 2.6 trillion. This had reached around Rs. 8 trillion by March 2017, even after the government writing off a significant amount of the NPAs. Rather than take stringent action against the defaulters and recover the money, the government has brought a new Financial Resolution and Deposit Insurance (FRDI) bill, with the clause of bail-in which can jeopardise the stability of the public banking sector in India. This twin problem of NPAs and investment slowdown has to be tackled by the government. One of the ways in which the government can deal with the problem of the investment slowdown is to step up public investment. However, as a result of its adherence to the FRBM Act, the government is committed to maintaining a fiscal deficit which is 3.2% of GDP for the current fiscal. But as per the Controller General of Accounts data, the fiscal deficit has overshot the target (112% of the target set last year) by the end of November 2017. During the same period, last year, the fiscal deficit was 85% of the target in November 2016. Additionally, if the GDP projection does not meet target (which is possible given a downward revision of GDP growth projection), then clearly the fiscal deficit ratio is going to increase. The government, therefore, will have to cut back on expenditures in the remaining months of the fiscal to try and remain within the fiscal deficit target. This problem is basically a result of the inability of the government to meet revenue targets. It has been reported that tax collections under GST have been declining since its inception. In July, Rs 92283 crore was collected which declined to Rs 80808 crore in November 2017. Moreover, data shows that non-tax revenue has suffered a hit this fiscal. This is because the dividend from RBI has decreased by Rs 30000 crore and spectrum sales target have not been met. The shortfall in the RBI dividend, by the way, is a direct result of the policy of demonetisation. With the huge deposits in the banks, the interest paid to customers as well as banks to hold the deposit, plus the costs of new note printing drastically reduced the profitability of RBI, which resulted in a decline in its dividend paid to the government. This stressed fiscal situation is further aggravated by another crucial development. When Modi assumed office in 2014, the price of a barrel of crude oil in the international market was more than $100 which subsequently halved its value. Taking advantage of this low oil price, the government increased the excise duty on petroleum products, such that while crude oil prices declined, retail prices did not. Through this imposition of excise duties, the government collected 1.8% of GDP as revenue. The total excise duty collection from the oil sector doubled. Now, however, crude oil prices are rising up. As a result, retail prices of petrol and diesel are also increasing. For example, within 6 months, the price of petrol in Kolkata increased by more than Rs 6/litre. Rising oil prices have cascading effects on inflation, and they are politically sensitive. Therefore, the government is faced with a situation where they may have to reduce excise duty on oil, like they did in October last year. This will only aggravate government’s revenue mobilisation problem. There has been a lot of discussion in the media regarding the rural and agriculture sector with speculation that the government would be announcing some relief for this sector. It is true that agriculture sector is in crisis. The political manifestations of this have been in terms of farmers’ agitations in Maharastra, Madhya Pradesh, Rajasthan and other states. Even in Gujarat, the BJP’s support base was dented in the rural areas. The root cause of this crisis is non-remunerative prices for agricultural products, the problem of agricultural loans and government’s refusal to write off farmers’ debts. The government also had promised to double the income of the farmers. Far from doubling, what has happened is that the agricultural growth rate has slowed down in the country. In such a situation and given the election year, the buzz around rural sector spending increasing is natural. However, the macroeconomics of the budget with shortfalls in revenue generation will tie up the government’s hands. Either the government has to impose a new set of taxes to generate resources to be spent in the rural areas. Or else, the expenditure will be nominally increased in rural areas, at the cost of expenditures in other sectors. The other major challenge of the government is job creation. While the PM has now turned around from digital economy towards designating pakoda making as gainful employment, the fact of the matter is that there is a slowdown in the job-generating capacity of the economy. The annual survey of Labour Bureau shows the real picture where there has been a decline in employment between 2013-14 and 2015-16. What the government will do in terms of providing jobs to the youth remain to be seen. What is, however, binding the government to raise resources in a progressive manner and go for large-scale fiscal stimulus is not economics but its own politics and a warped notion of economic policy. In a situation where there are growth and investment slow down, agrarian crisis, growing joblessness, undergraduate economics teaches us that a fiscal stimulus will surely help in improving the situation. This stimulus can be funded by simply taxing the rich and super-rich in the country. It has been reported by Oxfam that the top 1% of India’s population amassed 73% of the total wealth created in the country last year. The super-rich in our country are truly having ache din. If these wealth earners are taxed, such expansionary policies can be undertaken. The tax-GDP ratio in India is one of the lowest in the world. This is so at a time when India is having a record number of dollar billionaires. It is however unlikely that a government which goes ecstatic with an improvement in ranking in the faulty ‘ease of doing business’ will try to impose burdens on the rich for spending on aam admi. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Taxing the super rich is how we can revive Indian economy

Finance Minister Arun Jaitley tables the Economic Survey of 2018 in Parliament estimating the real GDP growth to clock 6.75 percent this fiscal year.

The&nbsp;economic survey predicts 7-7.5 percent growth in 2018-19. Employment, education &amp; agriculture will be the focus areas this term, noted Jaitley.&nbsp;

The survey was expected to take a close look at demonetization and the implementation of GST. The online report of the survey shared by Chief Economic Adviser, Arvind Subramanian, notes the following:&nbsp;

&quot;One of the aims of demonetization and the Goods and Services Tax (GST) was to increase the formalization of the economy and bring more Indians into the income tax net, which includes only about 59.3 million individual taxpayers...&nbsp;Has this happened and to what extent? At first blush, there does seem to have been a substantial increase in the number of new taxpayers.&nbsp;As income growth over time pushes many of the new tax filers over the 
threshold, the revenue dividends should increase robustly.&quot;

The online copy of the complete survey has dedicated sections on &#39;State of Indian Economy&#39;, &#39;View of the Indian Economy Through GST&#39;, &#39;Climate, Climate Change and Agriculture&#39;, among others.&nbsp;

The event precedes the presentation of this year&#39;s Budget on February 1 and marks the commencement of the first phase of the budget session.&nbsp;

The Economic Survey is the Finance Ministry&#39;s yearly document that reviews the economic development of the country in the past year.

Chief Economic Adviser Arvind Subramanian shared details about the survey in an official web blog yesterday.&nbsp;

The highlights of the survey will be shared by Mr Subramanian at a press conference at 1:30 pm today.

Prime Minister Narendra Modi recently hinted at the possibility of this year&#39;s to be non-populist in nature.&nbsp;

The phase 1 of the session will wrap up on February 9. The second phase will take place from March 5 to April 6.

&nbsp;

The Economic Survey will also review the pros and cons of the Modi government's demonetization move carried out in November 2016

Finance Minister Arun Jaitley tables the Economic Survey of 2018 in Parliament estimating the real GDP growth to clock 6.75 percent this fiscal year. The economic survey predicts 7-7.5 percent growth in 2018-19. Employment, education & agriculture will be the focus areas this term, noted Jaitley. The survey was expected to take a close look at demonetization and the implementation of GST. The online report of the survey shared by Chief Economic Adviser, Arvind Subramanian, notes the following: "One of the aims of demonetization and the Goods and Services Tax (GST) was to increase the formalization of the economy and bring more Indians into the income tax net, which includes only about 59.3 million individual taxpayers... Has this happened and to what extent? At first blush, there does seem to have been a substantial increase in the number of new taxpayers. As income growth over time pushes many of the new tax filers over the threshold, the revenue dividends should increase robustly." The online copy of the complete survey has dedicated sections on 'State of Indian Economy', 'View of the Indian Economy Through GST', 'Climate, Climate Change and Agriculture', among others. The event precedes the presentation of this year's Budget on February 1 and marks the commencement of the first phase of the budget session. The Economic Survey is the Finance Ministry's yearly document that reviews the economic development of the country in the past year. Chief Economic Adviser Arvind Subramanian shared details about the survey in an official web blog yesterday. The highlights of the survey will be shared by Mr Subramanian at a press conference at 1:30 pm today. Prime Minister Narendra Modi recently hinted at the possibility of this year's to be non-populist in nature. The phase 1 of the session will wrap up on February 9. The second phase will take place from March 5 to April 6.

Budget 2018: Arun Jaitley tables Economic Survey in Parliament, predicts 7-7.5% growth in 2018-19

Days before&nbsp;presenting the Union Budget, the NDA government on Thursday held a pre-budget session in Delhi.

Union Finance Minister Arun Jaitley chaired the meeting with Finance Ministers of all states and Union Territories.

Suggestions relating to Union Budget were presented from different state ministers in the meeting.

The Budget session will begin on January 29 and the budget will be presented on February 1.&nbsp;

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Delhi: Union Finance Minister Arun Jaitley chairs Pre-Budget meeting with Finance Ministers of all states and Union Territories. <a href="https://t.co/ymrSsB8ONF">pic.twitter.com/ymrSsB8ONF</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/953854436241108993?ref_src=twsrc%5Etfw">January 18, 2018</a></blockquote>
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In the pre-budget meeting, the finance minister will hear the state ministers from the Union Budget

Days before presenting the Union Budget, the NDA government on Thursday held a pre-budget session in Delhi. Union Finance Minister Arun Jaitley chaired the meeting with Finance Ministers of all states and Union Territories. Suggestions relating to Union Budget were presented from different state ministers in the meeting. The Budget session will begin on January 29 and the budget will be presented on February 1. Delhi: Union Finance Minister Arun Jaitley chairs Pre-Budget meeting with Finance Ministers of all states and Union Territories. pic.twitter.com/ymrSsB8ONF — ANI (@ANI) January 18, 2018 ×

Arun Jaitley chairs pre-budget meeting in Delhi

The Indian economy slowed down in 2016-17, with the gross domestic product declining drastically from 8 per cent in 2015-16 to 7.1 per cent the next year, government said on Friday.

Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors.

He said in the Lok Sabha that the lower rate of global economic growth in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth in industry sector were some of the reasons for the low growth rate in 2016-17.

&quot;Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors,&quot; he said during Question Hour.

As per the latest estimates from Central Statistics Office, the growth rate of Gross Domestic Product (GDP) at constant prices was 7.5 per cent, 8.0 per cent and 7.1 per cent respectively in 2014-15, 2015-16 and 2016-17.

The growth in GDP at constant market prices was 5.7 per cent and 6.3 per cent in Quarter 1 (Q1) and Quarter 2 (Q2) of 2017-18 respectively.

Jaitley claimed that despite the slowdown, as per the IMF, India was the fastest growing major economy in 2016 and second fastest growing major economy in 2017 in the world.

He said the government has taken various initiatives to boost the growth of the economy, including giving a fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct investment policy and special package for textile industry.

The minister said the government had also announced various measures in the 2017-18 budget to promote growth which included a push to infrastructure development by giving infrastructure status to affordable housing, higher allocation to highway construction and focus on coastal connectivity.

&quot;For highways development, the Bharatmala Pariyojana has been launched. The government has launched a phased programme for bank recapitalisation. This entails infusion of capital to the public sector banks, that is expected to encourage banks to enhance lending,&quot; he said.

Jaitley said the Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner.

He said the other growth promotion measures included lower income tax for companies with annual turnover up to Rs. 50 crore, further measures to improve the ease of doing business, and a major push to the digital economy.

Jaitley said as per information available from Reserve Bank of India, the gross bank credit (outstanding) for agriculture and allied sectors was Rs. 9,923.87 billion as of 2016-17 as against Rs. 8,829.42 billion as on 2015-16.

&quot;The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities,&quot; he added.

Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors

The Indian economy slowed down in 2016-17, with the gross domestic product declining drastically from 8 per cent in 2015-16 to 7.1 per cent the next year, government said on Friday. Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors. He said in the Lok Sabha that the lower rate of global economic growth in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth in industry sector were some of the reasons for the low growth rate in 2016-17. "Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors," he said during Question Hour. As per the latest estimates from Central Statistics Office, the growth rate of Gross Domestic Product (GDP) at constant prices was 7.5 per cent, 8.0 per cent and 7.1 per cent respectively in 2014-15, 2015-16 and 2016-17. The growth in GDP at constant market prices was 5.7 per cent and 6.3 per cent in Quarter 1 (Q1) and Quarter 2 (Q2) of 2017-18 respectively. Jaitley claimed that despite the slowdown, as per the IMF, India was the fastest growing major economy in 2016 and second fastest growing major economy in 2017 in the world. He said the government has taken various initiatives to boost the growth of the economy, including giving a fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct investment policy and special package for textile industry. The minister said the government had also announced various measures in the 2017-18 budget to promote growth which included a push to infrastructure development by giving infrastructure status to affordable housing, higher allocation to highway construction and focus on coastal connectivity. "For highways development, the Bharatmala Pariyojana has been launched. The government has launched a phased programme for bank recapitalisation. This entails infusion of capital to the public sector banks, that is expected to encourage banks to enhance lending," he said. Jaitley said the Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner. He said the other growth promotion measures included lower income tax for companies with annual turnover up to Rs. 50 crore, further measures to improve the ease of doing business, and a major push to the digital economy. Jaitley said as per information available from Reserve Bank of India, the gross bank credit (outstanding) for agriculture and allied sectors was Rs. 9,923.87 billion as of 2016-17 as against Rs. 8,829.42 billion as on 2015-16. "The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities," he added.

India's economic growth slowed down in 2016-17: Finance Minister Arun Jaitley

South Africa will use its annual budget next year to outline &quot;decisive&quot; policy to strengthen its fiscal framework, the finance ministry said on Saturday after S&amp;P Global Ratings cut its local currency debt to &quot;junk&quot; status.

S&amp;P announced the downgrade on Friday, citing a further deterioration in the country&#39;s economic outlook and public finances. Moody&#39;s, meanwhile, placed South Africa on review for a downgrade.

&quot;The 2018 Budget will outline decisive and specific policy measures to strengthen the fiscal framework,&quot; the finance ministry said in a statement, without giving more detail.

The downgrade by S&amp;P comes after finance minister Malusi Gigaba shocked markets on October 25 by flagging sharply weaker growth expectations, a wider budget deficit, and rising government debt.

The government has since appointed a judicial commission of inquiry into the causes of a 50 billion rand ($3.6 billion) revenue shortfall and to investigate a possible erosion of the nation&#39;s revenue collection capability.

Economic growth has slowed to near zero in recent years and business and consumer sentiment have plumbed multi-decade lows as political uncertainty weighs on the economy.

Infighting within the ruling African National Congress ahead of a conference in December to elect a successor to President Jacob Zuma as party chief has also sapped investor confidence.

&quot;Restoring business and consumer confidence, and catalysing inclusive growth is the top priority of government,&quot; the finance ministry said.

South African businesses have been in talks with the government more than a year to try to avoid credit rating downgrades, but when Zuma in March replaced finance minister Pravin Gordhan with Gigaba, S&amp;P and Fitch cut its ratings a notch within a week.

Nedbank, one of the nation&#39;s largest lenders, on Saturday warned that the latest move by S&amp;P will make it more expensive for government and the private sector to raise funding.

&quot;The February budget statement is South Africa&rsquo;s last chance to demonstrate the structural reforms and fiscal consolidation that are required to improve economic growth prospects and prevent Moody&rsquo;s from also downgrading the local currency debt to below investment grade,&quot; Chief Executive Mike Brown said.

A Moody&#39;s downgrade would trigger the exit of South Africa&#39;s local currency debt from important global bond indices, Brown added.

'Restoring business and consumer confidence, and catalysing inclusive growth is the top priority of government,' said Malusi Gigaba, finance minister

South Africa will use its annual budget next year to outline "decisive" policy to strengthen its fiscal framework, the finance ministry said on Saturday after S&P Global Ratings cut its local currency debt to "junk" status. S&P announced the downgrade on Friday, citing a further deterioration in the country's economic outlook and public finances. Moody's, meanwhile, placed South Africa on review for a downgrade. "The 2018 Budget will outline decisive and specific policy measures to strengthen the fiscal framework," the finance ministry said in a statement, without giving more detail. The downgrade by S&P comes after finance minister Malusi Gigaba shocked markets on October 25 by flagging sharply weaker growth expectations, a wider budget deficit, and rising government debt. The government has since appointed a judicial commission of inquiry into the causes of a 50 billion rand ($3.6 billion) revenue shortfall and to investigate a possible erosion of the nation's revenue collection capability. Economic growth has slowed to near zero in recent years and business and consumer sentiment have plumbed multi-decade lows as political uncertainty weighs on the economy. Infighting within the ruling African National Congress ahead of a conference in December to elect a successor to President Jacob Zuma as party chief has also sapped investor confidence. "Restoring business and consumer confidence, and catalysing inclusive growth is the top priority of government," the finance ministry said. South African businesses have been in talks with the government more than a year to try to avoid credit rating downgrades, but when Zuma in March replaced finance minister Pravin Gordhan with Gigaba, S&P and Fitch cut its ratings a notch within a week. Nedbank, one of the nation's largest lenders, on Saturday warned that the latest move by S&P will make it more expensive for government and the private sector to raise funding. "The February budget statement is South Africa’s last chance to demonstrate the structural reforms and fiscal consolidation that are required to improve economic growth prospects and prevent Moody’s from also downgrading the local currency debt to below investment grade," Chief Executive Mike Brown said. A Moody's downgrade would trigger the exit of South Africa's local currency debt from important global bond indices, Brown added.

South Africa to outline 'decisive' policy in 2018 after debt rating cut

Union Finance Minister Arun Jaitley today said Parliament sessions were often rescheduled to ensure they did not overlap with elections and claimed the Congress had done so too in the past.

On Congress president Sonia Gandhi&#39;s allegation that the government was &quot;sabotaging&quot; the Winter session of Parliament, Jaitley said the opposition party had also delayed a session in 2011 and even earlier because the sittings coincided with election campaigns.

&quot;It has been a tradition and it has happened several times that Parliament sessions are rescheduled when an election is happening,&quot; he told reporters here.

He also said the session would be held and the Congress &quot;totally exposed&quot;.

&quot;The Congress has given the most corrupt government in its ten years of rule, while Narendra Modi has given the most honest government. By forcibly saying that a truth is a lie does not make it a lie,&quot; Jaitley said.

He said the Congress had itself rescheduled Parliament sessions several times.

&quot;(The) timing is decided such that they do not overlap with election campaigns. (Congress) did so in 2011, and even before that,&quot; the senior BJP leader said.

The Winter session of Parliament usually starts in the third week of November and lasts until the third week of December.

&quot;Parliament session will be held for sure and on all subjects, and the Congress will be totally exposed,&quot; Jaitley said.

Sources said the government was considering a truncated Winter session of around 10 days starting from the second week of December.

Addressing a meeting of the Congress Working Committee in New Delhi today, Sonia Gandhi said, &quot;The Modi government in its arrogance has cast a dark shadow on India&#39;s Parliamentary democracy by sabotaging the Winter session of Parliament on flimsy grounds.&quot;

Congress President Sonia Gandhi had made the allegation

Union Finance Minister Arun Jaitley today said Parliament sessions were often rescheduled to ensure they did not overlap with elections and claimed the Congress had done so too in the past. On Congress president Sonia Gandhi's allegation that the government was "sabotaging" the Winter session of Parliament, Jaitley said the opposition party had also delayed a session in 2011 and even earlier because the sittings coincided with election campaigns. "It has been a tradition and it has happened several times that Parliament sessions are rescheduled when an election is happening," he told reporters here. He also said the session would be held and the Congress "totally exposed". "The Congress has given the most corrupt government in its ten years of rule, while Narendra Modi has given the most honest government. By forcibly saying that a truth is a lie does not make it a lie," Jaitley said. He said the Congress had itself rescheduled Parliament sessions several times. "(The) timing is decided such that they do not overlap with election campaigns. (Congress) did so in 2011, and even before that," the senior BJP leader said. The Winter session of Parliament usually starts in the third week of November and lasts until the third week of December. "Parliament session will be held for sure and on all subjects, and the Congress will be totally exposed," Jaitley said. Sources said the government was considering a truncated Winter session of around 10 days starting from the second week of December. Addressing a meeting of the Congress Working Committee in New Delhi today, Sonia Gandhi said, "The Modi government in its arrogance has cast a dark shadow on India's Parliamentary democracy by sabotaging the Winter session of Parliament on flimsy grounds."

Not sabotaging winter session of Parliament: Arun Jaitley

&nbsp;An anti-corruption court in <a href="http://www.wionews.com/south-asia/domestic-and-international-flights-affected-due-to-smog-in-paks-punjab-province-24138">Pakistan</a> on Tuesday issued an arrest warrant for <a href="http://www.wionews.com/videos/pakistans-finance-minister-ishaq-dar-faces-arrest-6438">Finance Minister Ishaq Dar</a>, media reported, after the veteran politician failed to turn up for several court hearings.

The warrant comes at an awkward time for Pakistan, which wants to raise in excess of $1 billion on international debt markets through a Sukuk and a Eurobond in coming months and wants to woo international investors.

Dar, who has been charged with amassing wealth beyond his known sources of income, has for three weeks missed court hearings conducted by the anti-graft agency the National Accountability Bureau (NAB), prompting a judge to issue a non-bailable arrest warrant, the English-language Dawn newspaper and other media reported.

Dar, who is receiving medical treatment in London and now faces arrest upon his return to Pakistan, has pleaded not guilty.

A spokesman for the NAB was not immediately available for comment.

The charges against Dar followed an investigation into the finances of former Prime Minister Nawaz Sharif, who was ousted in July after the Supreme Court disqualified him for not declaring a small salary from his son&#39;s off-shore company.

The finance minister is one of Sharif&#39;s closest political allies and Dar&#39;s son has married Sharif&#39;s daughter. Both men deny any wrongdoing.

Dar has rejected growing calls to resign amid a worsening economic outlook for Pakistan, which is battling to stave off a balance of payments crisis amid dwindling foreign currency reserve and a widening current account deficit.

An anti-corruption court issued the warrant after Ishaq Dar failed to turn up for a number of hearings

An anti-corruption court in Pakistan on Tuesday issued an arrest warrant for Finance Minister Ishaq Dar, media reported, after the veteran politician failed to turn up for several court hearings. The warrant comes at an awkward time for Pakistan, which wants to raise in excess of $1 billion on international debt markets through a Sukuk and a Eurobond in coming months and wants to woo international investors. Dar, who has been charged with amassing wealth beyond his known sources of income, has for three weeks missed court hearings conducted by the anti-graft agency the National Accountability Bureau (NAB), prompting a judge to issue a non-bailable arrest warrant, the English-language Dawn newspaper and other media reported. Dar, who is receiving medical treatment in London and now faces arrest upon his return to Pakistan, has pleaded not guilty. A spokesman for the NAB was not immediately available for comment. The charges against Dar followed an investigation into the finances of former Prime Minister Nawaz Sharif, who was ousted in July after the Supreme Court disqualified him for not declaring a small salary from his son's off-shore company. The finance minister is one of Sharif's closest political allies and Dar's son has married Sharif's daughter. Both men deny any wrongdoing. Dar has rejected growing calls to resign amid a worsening economic outlook for Pakistan, which is battling to stave off a balance of payments crisis amid dwindling foreign currency reserve and a widening current account deficit.

Pakistan court issues arrest warrant for finance minister: Media

Finance Minister Arun Jaitley on Wednesday defended the multiple slabs under the Goods and Services Tax.&nbsp;

The GST -- which was meant to replace India&#39;s myriad indirect taxes with one single tax -- has come under severe criticism.

Traders say it is convoluted, the government&#39;s critics say it was a second &quot;shock&quot; (after demonetisation) to the economy, and economists question its multiple slabs.&nbsp;

Why would a single tax have multiple slabs they ask.&nbsp;

Jaitley told ANI Wednesday that bringing everything under 18% GST would help those buying luxury items.&nbsp;

And he took a potshot at the Congress, asking whether they wanted to make Mercedeses and BMWs cheaper?&nbsp;

&quot;Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs &amp; Mercedes cheaper?&quot; Jaitley asked.&nbsp;

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Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs &amp; Mercedes cheaper?: Jaitley <a href="https://t.co/ISYskznsd0">pic.twitter.com/ISYskznsd0</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923108287553323008?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He took another potshot at the Congress&#39;s senior leaders, saying they knew little about the intricacies of the GST.&nbsp;

&quot;I think finance ministers of Congress states know about slabs of GST. National-level leaders of Congress speaking on it, perhaps know less about it,&quot; he said.&nbsp;

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Congress had adequate opportunity to be in power, and I cant recollect a single significant step that they ever took against black money: FM <a href="https://t.co/yTxZjvZlhB">pic.twitter.com/yTxZjvZlhB</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923138919461396480?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He also took a potshot at the Congress over the condition of India&#39;s public sector banks.&nbsp;

&quot;This conditions of banks was given to us as inheritance and as a solution it was necessary to pump in funds,&quot; Jaitley said.&nbsp;

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> Live: Finance Minister Arun Jaitley speaks to ANI on economy, Kashmir &amp; other issues. <a href="https://t.co/0SAQzFCBd2">https://t.co/0SAQzFCBd2</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923119368535339009?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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Jaitley&#39;s team had on Tuesday announced what they called an &quot;unprecedented&quot;&nbsp;recapitalisation of the country&#39;s public sector banks to boost the economy.&nbsp;

<a href="http://www.wionews.com/business-economy/india-approves-324-billion-state-bank-recapitalisation-plan-22838" target="_blank">Also read:&nbsp;Public sector banks to get Rs 2.11 lakh crores over next two years </a>

Jaitley and the government have copped a lot of flak of late over the health of the economy, with the critics blaming demonetisation and GST for its current health.&nbsp;

On Wednesday, Jaitley said a &quot;lot of relief&quot; had been given over GST.&nbsp;

&quot;Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 crore, a lot has been done for relief,&quot; he said.&nbsp;

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Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 Cr, a lot has been done for relief: FM <a href="https://twitter.com/hashtag/GST?src=hash&amp;ref_src=twsrc%5Etfw">#GST</a> <a href="https://t.co/JmJz0R35Ky">pic.twitter.com/JmJz0R35Ky</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/923114603495616513?ref_src=twsrc%5Etfw">October 25, 2017</a></blockquote>
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He also said the sops were in no way connected to the upcoming Gujarat elections. That&nbsp;they were long-term reforms.&nbsp;

 
&nbsp;

'Does Congress want to make BMWs & Mercedes cheaper?' Jaitley asked

Finance Minister Arun Jaitley on Wednesday defended the multiple slabs under the Goods and Services Tax. The GST -- which was meant to replace India's myriad indirect taxes with one single tax -- has come under severe criticism. Traders say it is convoluted, the government's critics say it was a second "shock" (after demonetisation) to the economy, and economists question its multiple slabs. Why would a single tax have multiple slabs they ask. Jaitley told ANI Wednesday that bringing everything under 18% GST would help those buying luxury items. And he took a potshot at the Congress, asking whether they wanted to make Mercedeses and BMWs cheaper? "Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs & Mercedes cheaper?" Jaitley asked. Bringing everything under 18% (GST) is helping those who spend on luxury items. Does Congress want to make BMWs & Mercedes cheaper?: Jaitley pic.twitter.com/ISYskznsd0 — ANI (@ANI) October 25, 2017 × He took another potshot at the Congress's senior leaders, saying they knew little about the intricacies of the GST. "I think finance ministers of Congress states know about slabs of GST. National-level leaders of Congress speaking on it, perhaps know less about it," he said. Congress had adequate opportunity to be in power, and I cant recollect a single significant step that they ever took against black money: FM pic.twitter.com/yTxZjvZlhB — ANI (@ANI) October 25, 2017 × He also took a potshot at the Congress over the condition of India's public sector banks. "This conditions of banks was given to us as inheritance and as a solution it was necessary to pump in funds," Jaitley said. #WATCH Live: Finance Minister Arun Jaitley speaks to ANI on economy, Kashmir & other issues. https://t.co/0SAQzFCBd2 — ANI (@ANI) October 25, 2017 × Jaitley's team had on Tuesday announced what they called an "unprecedented" recapitalisation of the country's public sector banks to boost the economy. Also read: Public sector banks to get Rs 2.11 lakh crores over next two years Jaitley and the government have copped a lot of flak of late over the health of the economy, with the critics blaming demonetisation and GST for its current health. On Wednesday, Jaitley said a "lot of relief" had been given over GST. "Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 crore, a lot has been done for relief," he said. Lot of relief has been given, from filing quarterly returns to 1% tax for turnover under 1 Cr, a lot has been done for relief: FM #GST pic.twitter.com/JmJz0R35Ky — ANI (@ANI) October 25, 2017 × He also said the sops were in no way connected to the upcoming Gujarat elections. That they were long-term reforms.

Jaitley defends multiple GST slabs, says single slab would make Mercs & BMWs cheaper

The government on Tuesday waived penalty on delayed filing of initial GST returns for the months of August and September.

&quot;To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived,&quot; Finance Minister Arun Jaitley tweeted.

He said that the late fee which has been already charged to businesses will be credited back to taxpayers&#39; accounts.

The government had earlier waived late fee for delayed filing of the maiden returns for the month of July under the Goods and Services Tax (GST) regime.

Businesses have been demanding that the government waives penalty for delayed filing of 3B returns.

As per the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes.

As per the data with the GST Network (GSTN), a huge chunk of businesses file their returns after the expiry of the due date.

While only 33.98 lakh July returns were filed till the due date, the number has now gone up to 55.87 lakh. Similarly for August 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later.

Also for September while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till yesterday.

The GST law provides for a nominal fee of Rs 100 per day on Central GST and an equivalent amount on State GST in case of late filing of returns and payment of taxes.&nbsp;

"To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived," Finance Minister Arun Jaitley tweeted.

The government on Tuesday waived penalty on delayed filing of initial GST returns for the months of August and September. "To facilitate taxpayers, late fee on filing of GSTR-3B for August and September has been has been waived," Finance Minister Arun Jaitley tweeted. He said that the late fee which has been already charged to businesses will be credited back to taxpayers' accounts. The government had earlier waived late fee for delayed filing of the maiden returns for the month of July under the Goods and Services Tax (GST) regime. Businesses have been demanding that the government waives penalty for delayed filing of 3B returns. As per the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes. As per the data with the GST Network (GSTN), a huge chunk of businesses file their returns after the expiry of the due date. While only 33.98 lakh July returns were filed till the due date, the number has now gone up to 55.87 lakh. Similarly for August 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later. Also for September while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till yesterday. The GST law provides for a nominal fee of Rs 100 per day on Central GST and an equivalent amount on State GST in case of late filing of returns and payment of taxes.

Govt waives fine for delayed filing of August, September GST returns

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