The government, on Saturday, said the budget 2014-15 had brought about clarity in tax policies, and it would walk the difficult path to bring growth impulses back into the economy amidst fiscal constraints.
Main focus “On the direct and indirect tax side, the main focus of the government is to revive growth, to revive the manufacturing sector, to take steps that will result in creation of jobs, to go in for tax rationalisation, to reduce tax litigations and ambiguity in policies,” Revenue Secretary Shaktikanta Das said.
At the post-budget interaction with industry chamber FICCI, Mr. Das said the budget had sought to bring in greater clarity in taxation policy. Finance Secretary Arvind Mayaram, who along with other secretaries of the Finance Ministry was interacting with industry leaders, said the government was open to discussing ideas with them and addressing their concerns. “My own perspective is that this is a growth-oriented Budget. It will bring the growth impulses back into the economy...we will have to move a very difficult path ahead, but there is a determination that the government would walk that path,” Dr. Mayaram said.
Industry had made many demands, Dr. Mayaram said, adding that the budget was not the last one, and there would be many occasions to address their issues.
On meeting the fiscal deficit target, Dr. Mayaram said: “There are always challenges and we have to go forward keeping in mind there are uncertainties, especially in the global situation. But as of now we are confident that we will be able to manage it at 4.1 per cent.” Meanwhile, Department of Financial Services Secretary G. S. Sandhu said many initiatives had been taken by the government to take economic growth rate to 7-8 per cent in the next three years.
Role of banks Banks, especially public sector banks, would play an important role in the growth of the economy, he said.
To strengthen public sector banks, the government has decided to allow these banks to raise capital largely from disinvestment to meet Basel-III norms.
Mr. Sandhu said there was a proposal to create an asset reconstruction company where some of these banks and the power companies could join hands and could set up a company that would revive incomplete projects and hand it over back to the promoter after revival. “Similarly for the road sector, there is a proposal from the National Highways Authority of India, which we have welcomed. They also want to form an asset reconstruction company for the road sector. Because a large number of road projects they are incomplete...and they have not been put to commercial use,” he said.
“So with the help of ARCs these projects can be completed… they can be put to commercial use and then money can start flowing back. That is another thing that we are looking at,” he added.
