After doling out concessions across all categories of taxpayers in the Union Budget, Finance Minister Arun Jaitley on Saturday hinted that if the economy picks up steam, more such relaxations could be in the offing.
In an interview to television channel India TV, the Finance Minister claimed that since Independence, his was the first Budget in which income tax exemptions were given across all three taxpayers' categories for the first time.
"We do not want a high taxation regime. It was because of the high taxation regime of the previous government that inflation rose. I think there was never a Union Budget since 1947, which gave Rs 50,000 concessions across all three classes of tax payers, right from the lower to the middle and higher income brackets", he said, according to a release issued by the channel.
The Finance Minister said that had there been more room available in terms of greater finances, "I would have given more (relief). May be, if the Government has more money tomorrow, I will raise (the concessions)." Jaitley expressed hope that taxpayers spend more and save more, which, in turn, would lead to higher economic growth and give a boost to manufacturing sector, which had been seeing negative growth in the last two years.
At the same time he defended the Government's policy to allow 49 per cent FDI in the defence sector, saying that he would prefer companies headed by Indians with 49 per cent FDI in manufacturing defence equipments in India, rather than opting for imports."As far as I know, it was Sonia ji (Congress President) who had been opposing 49 per cent FDI in defence, and was preferring imports of defence equipments", said Jaitley.
The Finance Minister, who also holds the Defence portfolio, pointed out that 26 per cent FDI in defence was permitted during the previous NDA regime under Atal Bihari Vajpayee. "We are the largest importer of defence equipments in the world. For the last one and a half months, most of the foreign leaders who came to meet us were pitching for sale of their defence equipments," Jaitley said.
On Congress leaders questioning the lack of any reference to black money in his budget speech, Jaitley pointed out that the budget was an accounting statement and there was no need to mention the issue of black money.
"let me remind you, the Modi Government in its first cabinet meeting decided to set up the special investigation team under Supreme Court to probe black money stashed in offshore accounts. I directed my ministry to hand over all details related to offshore black money to the team, except in cases where there are international commitments (not to reveal names). When the Swiss authorities indicated that they were ready to give details of Indians having accounts in Swiss banks, our ministry immediately sent them a letter seeking details. Our government does not have any sympathy towards people having black money", said the Finance Minister.
On former Finance Minister P Chidambaram's remarks that the budget speech was only a reiteration of the policies and targets of the UPA government, Jaitley said, "I would then be very happy if the Congress supports our budget. But I know they won't support. The UPA Government had left the economy in a mess."
He however expressed optimism about introducing the Goods and Service Tax (GST regime) soon. "It was Chidambaram who had proposed GST in 2006-07. We called the state finance ministers twice within a month. Their initial questions were that if the Centre usurps our rights to collect taxes, how can we trust the Centre on giving us our duesIJ When we were in the opposition, we had similar reservations," the television channel release said quoting the minister.
"We are hardly 50 days in office, and there are unpaid bills of states pending for the last five years. I would rather pay off those bills first. When the revised grants will come, I will have to see from where I can pay those bills. At least, I am hopeful about the GST. The two states that are raising the issue of unpaid bills are Gujarat and Punjab, both (components of) NDA Governments," Jaitley added. Once these outstanding bills are paid off, he said the Government will be in a position to introduce the GST regime, which will help increase the GDP.