Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Package soon to boost economy; no cuts in fuel rates: Jaitley

Author: IANS/Thursday, September 21, 2017/Categories: Economy

Package soon to boost economy; no cuts in fuel rates: Jaitley

New Delhi - Finance Minister Arun Jaitley hinted at a package of measures to boost the economy, while virtually ruling out any cut in duties on petroleum products to check the spike in fuel prices.

"We have taken note of all the economic indicators that are available. This has been a pro-active government on the reforms agenda. Over the last two days, I have had a series of discussions with ministerial colleagues and various secretaries. 

"The government will take additional measures in the coming days after consulting the Prime Minister. Whenever the measures are taken, you will come to know of it," Jaitley told reporters here following a meeting of the union cabinet. 

The Finance Minister chaired a high-level meeting to review the economic situation and discuss measures, including a possible stimulus package, to be taken amidst an economic slowdown.

The meeting was attended by, among others, Railway Minister Piyush Goyal, Commerce Minister Suresh Prabhu, Chief Economic Advisor Arvind Subramanian and Secretaries in the Finance Ministry -- Ashok Lavasa, Subhash Chandra Garg, Hasmukh Adhia, Rajiv Kumar and Neeraj Kumar Gupta.

Originally, the review was to take place with Prime Minister Narendra Modi's participation.

On the current high transport fuel prices, Jaitley said it was a temporary spike in global prices caused by the supply-demand mismatch due to hurricanes that hit the US coast.

Asked about the possibility of a cut in excise duties on petroleum products, he said government needed money for public spending to push growth and for social sector schemes.

"States are taking so much tax... earlier under the fortnightly pricing regime, when two years back we lowered fuel prices, states like Delhi, Haryana would immediately raise VAT to earn more money. States under the Left and Congress should take steps to lower cesses," he said. 

Referring to opposition about price-rise, Jaitley said the parties which kept quiet when inflation was in double-digits, were now crying when it is at 3.3%, which is within the RBI mandate of keeping inflation under 4%.

"During monsoon, there is normally a spike in vegetable prices and inflation is still at 3.36%," he added.

Jaitley's high level meetings follow a sharp fall in latest key macro indicators such as the Gross Domestic Product (GDP) and industrial production, as well as a widening Current Account Deficit.

Pulled down by sluggish manufacturing, growth in the Indian economy in the first quarter of this fiscal fell to 5.7%, clocking the lowest GDP growth rate since Prime Minister Modi assumed office in May 2014.

The August consumer price index (CPI) inflation in India shot up a full one percentage point to 3.36%, from 2.36% in July, led by a spike in food prices. 

The Index of Industrial Production (IIP) in July rose by 1.2% as compared to the same month of last year. It had declined by (-)0.1% during June this year.

Regarding the technical glitches that have plagued the digital filing of GST returns by businesses, Jaitley blamed it on last minute rush to meet the deadline.

"A lot of the GST problem is self-invited by assessees. For example, today (September 20) is the last date for filing returns (July), but till last night only 25% had paid their taxes," he said.

"So, if 75% of people wait till the last day, the system is bound to crash... its capacity is 1 lakh per hour or 24 lakh through the entire day. Till last night, there was no problem," he added. 

Print Rate this article:
No rating

Number of views (151)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free