SME Times News Bureau | 17 Sep, 2018
Finance Minister Arun Jaitley on Saturday hinted that the
Centre has no intention to cut fuel prices, saying that the government would
stick to its capital expenditure targets for achieving a higher trajectory of
growth while maintaining the budgeted 3.3 per cent fiscal deficit target in the
current year.
"The government is confident and
committed to strictly maintaining the 3.3 per cent fiscal deficit target. As
far as capital expenditure is concerned for maintaining the high trajectory
growth, we will end the year without any cuts and will maintain 100 per cent
capital expenditure, necessary for high trajectory growth," he told
reporters after a three-hour meeting at the Prime Minister's official
residence.
Jaitley, however, parried reporters' questions whether the issue of petroleum prices,
which have hit the roof, and whether the possibility of a cut in prices were
discussed, saying it was essentially an internal discussion relating to the
departments of the Finance Ministry.
The government has been maintaining that it was difficult to cut the excise
duty on imported crude because it has to maintain expenditure on various social
welfare schemes announced in the budget.
Jaitley said the primary focus of the Friday meeting was the current account
deficit and how to narrow it down.
"Today, the Economic Affair Department, Revenue Department, Expenditure
Department and Department of Investment and Public Asset Management made
detailed presentations before the Prime Minister. After the presentations, the
Prime Minister expressed satisfaction with respect to broad parameters in
relation to the economy and macroeconomic data so far emerging this year.
"We are confident of achieving higher growth rate than was projected in
the budget. Inflation is broadly under control and in direct tax collections,
we are moving ahead of schedule. Despite the stiff target, we are now seeing
the impact of anti-black money measures we have taken: demonetisation and GST.
There is a phenomenal increase in the base of the number of people filing tax
returns," he said.
The Finance Minister said the CBDT is clear that it would be able to collect in
excess of the budgeted tax.
"In regard to GST and indirect taxes, the GST is settling down and with
the pickup in consumption, it will show on the GST collections in future
months. Between the indirect and direct taxes, we will comfortably meet the
target, if not surpass it. As far as non-tax revenue is concerned, the entire
programme of divestment and strategic sales for this year, just as we exceeded
the target last year, we are confident of not only meeting the disinvestment
target, but exceeding it.
"On the basis of all these analyses, we are optimistic of our growth and
tax collections. As far as the fiscal deficit is concerned, we will be able to
stick to 3.3 per cent," Jaitley said.