Advocating “targeted subsidy” to genuinely poor citizens, Union Finance Minister Arun Jaitley on Friday said his Government would not encourage “populism” in its policies and backed strict fiscal discipline in future. Maintaining there was no contradiction in being ‘pro-business and pro-poor’, he appealed for “convergence of some consensus” on policy issues saying a robust economy generating large revenues and jobs would help reduce poverty.
Replying to the debate on the Union Budget 2014-15, he said the Government needs to correct lopsided subsidy policy that allows undeserving sections to benefit by it. The Budget was later approved by the House.
On the general economic situation, the Finance Minister said there has been some improvement in capital goods export, and “significant improvement” in Capital inflow but hastened to add “it is too early to say it is a trend”. He said the manufacturing sector was a cause of concern. Series of steps is needed to check inflation and promote growth, Jaitley said.
“Interest rates have gone up because inflation is high. I hope interest rate comes down (with decline in inflation),” he said adding the Budget only gives a broad direction: of policy and more decisions would be taken by the government outside it .
In the backdrop of Prime Minister Narendra Modi’s promise to provide roof to each citizen in the next 10 years, Jailtey said his Government wants to incentivise people to buy their own house and reach a situation where buying one is cheaper than taking on rent.
Jaitley earmarked Rs 50 crore for setting up de-addiction centres in Punjab.
Responding to the concerns raised by Telangana and Andhra Pradesh MPs, the Finance Minister said Government will honour all commitments made by then Prime Minister Manmohan Singh for Andhra Pradesh and Telangana. Hitting back at Congress for criticising passenger fare and freight hike, Jaitley said the former UPA government was “weak-kneed” in implementing the decision it took and the present dispensation has the “courage” to take the necessary step.
“Railway Board recommended increase in fares on February 6 and Railway Minister met Prime Minister on February 10. But you (Mallikarjun Kharge) developed cold feet because of elections. This shows weak-kneed government cannot take decision,” Jaitley said. “Khargeji you said let the economy suffer. let the Railways suffer. My voters should not suffer. So on May 16 in the evening you reversed the order on increase and said let your successor decide. This was a wise decision Khargeji took but did not have the courage to implement,” Jaitley said.
He wondered as to why Kharge was criticising the decision as “anti-people” when he had himself decided it. Jaitely then underlined the fact that there is a need for educating people about it. “You need to educate people that users need to pay. We have to sacrifice populism,” he said. eom Keen on facilitating return of displaced Kashmiri Pandits to Jammu and Kashmir, Jaitley also promised to raise the allocation for the purpose over and above Rs 500 crore provided in the Budget.