“Government has not consumed everything. We have not hidden anything. To have a balanced fiscal strategy, we have invested the money saved in farm sector, infrastructure sector and the health sector,” he said and asked if it was a “crime” to spend the money thus saved for the benefit of the people in a welfare state.
He also said that Finance Minister Arun Jaitley in his budget speech has also said that the fall in international crude oil prices has helped the Indian economy. Pradhan said while the government passed on 49 per cent of the benefits of the fall in global crude prices to consumers, it has given 41 per cent of fall in diesel prices to them.
“We have saved some money. This commodity is very volatile …We have to have a balanced fiscal strategy. Our Prime Minister has made it clear…we have saved some money and reinvested in other social sectors,” he said. The Minister, however, came under attack from the Opposition which accused his government of not passing on the benefits of falling crude prices to the consumers and instead keeping it by raising excise duties on both petrol and diesel.
Sitaram Yechury (CPI-M) said the benefits of the fall in the global crude prices has not been on passed to the people. While tax on petrol has been raised from Rs 9 to Rs 21, that on diesel from Rs 3 to over Rs 17.
“Instead of passing the benefits, you are collecting more excise. Why has it not been passed by the government and why it has been appropriated by government? The difference that has to be passed on to the consumer is consumed by the government who have collected extra money to the tune of Rs 54,000 crore and that is why your fiscal management happened,” he said accusing the Minister of evading a categorical reply.
Pradhan, however, said, the government has “not consumed everything” but invested in the social sector. Digvijay Singh (Cong) also accused the Centre of keeping the money with itself and said “this is injustice with the people” as government has thrice raised the excise duty even as the crude in Indian basket has reduced by 60 per cent. Tapan Kumar Sen (CPI-M) charged the Minister with not giving a “correct” answer.
New Delhi: A bill that seeks to revise the list of Scheduled Castes in some States and remove area-specific restrictions for certain communities was introduced in the Lok Sabha on Tuesday.
Social Justice Minister Thawar Chand Gehlot introduced The Constitution (Scheduled Castes) Order (Amendment) Bill, 2016 in the Lower House, amid noisy protests by members of different parties over a host of issues.
“The State governments of Chhattisgarh, Haryana, Odisha and West Bengal have proposed certain modifications in the list of Scheduled Castes by way of inclusion of certain communities, modification and removal of area restriction in respect of certain communities and exclusion of certain communities in the case of Odisha,” the bill says.
@Agency report.
FISCAL DEFICIT
* Fiscal deficit seen at 3.9% of GDP in 2015/16
* Fiscal deficit seen at 3.5% of GDP in 2016/17
* Plan expenditure seen at Rs 5.5 trillion in 2016/17
* Proposes to set up panel to review fiscal responsibility management act
RURAL ECONOMY
* Rural jobs programme allocated Rs 385 billion ($5.61 billion) in 2016/17
* Farmer welfare budget to total Rs 359.84 billion
* Rural road development to get Rs 190 billion
* Target of agriculture credit at Rs 9 trillion
* Interest subvention towards farm loans at Rs 150 billion
POLICY REFORMS
* Bankruptcy code for financial firms to be introduced in parliament in 2016/17
* RBI act is being amended for implementing monetary policy framework
* To list general insurances companies on stock exchanges
BANKING REFORMS
* Government to infuse 250 billion rupees capital into state-run banks in 2016/17; will find resources for additional capital for banks if required
TAXATION
* Will not resort to retrospective taxation in future; one time tax dispute resolution proposed for retrospective taxation
* To rationalise corporate tax for new manufacturing companies
* To implement general anti avoidance tax rule from April 1, 2017
* Security transaction tax on options raised to 0.05%
* Proposes to levy infrastructure cess of 1-4% on certain models of cars
* Raises factory gate tax on various tobacco products by 10-15%
* Proposes limited compliance window on undeclared income of domestic tax payers
* Proposes new dispute resolution scheme to resolve tax disputes
* Proposes to abolish 13 different levies
BORROWING
* Gross market borrowing seen at 6 trln rupees for 2016/17
INFRASTRUCTURE
* Allocates 2.21 trillion rupees for infrastructure development for 2016/17
* Allocation for roads and highways development at Rs 550 billion
* Capital expenditure on roads and rail development at Rs 2.18 trillion
INVESTMENT
* 100% foreign direct investment to be allowed in food processing industry
* Promises further reforms in foreign direct investment policy in insurance, pension, asset recast companies
DIVESTMENT
* To encourage central public enterprises to divest own assets for raising resources for new projects
@Agency report.