In year of turmoil, India still a bright spot: Arun Jaitley

‘GST, ease of biz, infra key focus for 2016’

Finance minister Arun Jaitley said on Sunday that the top priority of the Narendra Modi government in 2016 would be rolling out GST, rationalising direct taxes, ensuring the further ease of doing business and putting more money in physical and social infrastructure. Mr Jaitley dismissed the grumbling about the economy not having taken off as mere “cynicism” and said India had performed well in “a year of turmoil and volatility” across the world.

The finance minister said he would continue structural reforms in the New Year. “After having done that, I would like to concentrate essentially on three things — more money for physical infrastructure, more money on social infrastructure and last, more money on irrigation because that is a neglected sector,” Mr Jaitley told PTI.

“As the year ends, I look back with a sense of great satisfaction,” said the finance minister.

Mr Jaitley said India had been the bright spot with growth prospects of 7-7.5 per cent despite a global slowdown and adversities, and expressed optimism that the growth rate, which was “quite good”, would improve further in the months to come.

On murmurs that the economy had not really taken off, Mr Jaitley dismissed such grumbling as without merit and said “revenue collections do not go up without the economy taking off”. He added: “Cynicism is a way of life in India. You can question any other data but you cannot question the actual rise of revenue and the actual rise of revenue shows that the economy is doing better.” Asked if Indian industry was also prone to such cynicism, Mr Jaitley said: “Well, I think a section of Indian industry has overstretched itself, and those who have overstretched themselves see this as a universal problem.”

On the way ahead for the Indian economy, Mr Jaitley said a “fast-moving economy” will help generate more revenue that could be invested in physical and social infrastructure as well as in irrigation. “I have already been constrained by 42 per cent (tax) collections going to the states on the recommendation of the Finance Commission. Next year, I am constrained by '1,02,000 crores extra spending due to the Pay Commission. So I have to always keep counting my balance resources,” he said.