Uncertain oil prices, slow global growth, ramping up private sector investment and tackling banks’ non performing assets or NPAs are the major challenges facing the government, Union Finance, Defence and Corporate Affairs Minister Arun Jaitley said.
The Centre will focus on building infrastructure on a war footing and spend on rural development, he said. India will continue to grow at 7%-8% a year and remain the world’s fastest growing economy. A further increase in the growth rate would be possible if the global economic recovery improves.
Addressing the 23rd Conference of Auditors’ General of Commonwealth Countries and British Overseas Territories in the capital, Mr. Jaitley said that the upcoming Goods and Services Tax regime will be a game changer.
“It will help in curbing tax evasion, bringing transparency and efficiency in tax administration, reducing the prices of various items by avoiding tax on tax and ensuring seamless transfer of goods from one region to another,” said an official statement quoting the minister.
Mr. Jaitley said the withdrawal of the legal tender character of ₹500 and ₹1,000 notes in November 2016, has removed the anonymity attached with cash. “The informal sector has to a large extent integrated with the formal sector and thereby making the Indian economy cleaner, transparent and efficient.”