Assuring India Inc. of the National Democratic Alliance’s commitment to economic reforms, Union Finance Minister Arun Jaitley said here on Saturday that the government would announce more steps to rationalise subsidies.
“I had a series of meetings with the Expenditure Management Commission. In the next few months ... maybe earlier than that, they will come out with some interim recommendations so that we can proceed with rationalisation,” Mr. Jaitley said.
Recalling the government’s decision to link the diesel price with the market price, the Minister told the India Economic Conclave, organised by the television channel ET Now , it would help reduce the subsidy burden. The Centre had set up a commission to suggest steps to rationalise subsidies and bring down the fiscal deficit. Mr. Jaitley expressed confidence that the government would be able to push the Insurance and the Goods and Service Tax (GST) Bills in this session of Parliament.
Special Correspondent reports:
Mr. Jaitley ruled out the NDA government “tinkering” with the country’s federal structure to help push economic reforms faster.
The democratic process “has its own dynamics” and that should go on, the Minister said when asked why the government could not straightaway convene a joint session of both Houses of Parliament to help pass key laws (in the backdrop of the BJP not having a majority in the Rajya Sabha).
Mr. Jaitley said that even in the past, legislation had been passed in the Rajya Sabha on the basis of a consensus among the parties. The Constitutional provisions required that a Bill was first considered and passed by the Lok Sabha and then went to the Rajya Sabha. It was only when a Bill was unable to sail through in the Rajya Sabha, in an extraordinary situation, a joint session was convened.
Underscoring this position, Mr. Jaitley said the Upper House as the Council of States, with its members elected by the respective Assemblies, enabled the participation of the States in the Centre.
On Prime Minister Narendra Modi’s meeting with the Chief Ministers on Sunday on replacing the Planning Commission, the Minister said, “Empowering the States has been one of our critical beliefs. I do hope that after tomorrow’s meeting, whatever decision will be taken, probably the States will be in a better position.”
