17 March , New Delhi
The Lok Sabha Tuesday has passed the General Budget 2015-16 and supplementary demands for grants for 2014-15.
Replying to the debate in the House , Finance Minister Arun Jaitley pitched for huge domestic and foreign investment for country’s economic growth.
Jaitley said, if the country has to achieve a double digit growth, the growth of Railways and highways needs to be revived. The Finance Minister said, this year, the economic growth will be 7.4 per cent and next year it is expected to be over eight per cent.
He added that the current account deficit, which was hovering around 4.7 per cent during the last two years has come down to 1.3 per cent.
Rubbishing the Opposition’s criticism that the government is working for the corporate sector, he said, the government has decided to bring down the corporate tax from 30 to 25 per cent over the next four years.
Mentioning the fact that the actual corporate tax comes to 23 per cent after adjusting various exemptions, Jaitley said, higher rates of corporate tax is regressive. He said, government wants to phase out the exemptions and bring it to 25 per cent.
Refuting the charges of not giving concessions to middle class, he said, the NDA government has given Rs 1,70,000 tax concessions to ordinary tax payers in its two budgets.
Defending the government’s decision to abolish the wealth tax, the Minister said, the government has proposed imposing two per cent tax on super rich, which will result in generating nine thousand crore rupees.
He asked the Opposition to shun the policy of obstructionism for the sake of spurring the economic growth. The government has redefined the federal economic structure and the States will get Rs 1,86,000 more from the pool of divisible taxes.
Reiterating the Centre’s commitment to check generation of black money, the Finance Minister said, the government will bring a bill in this session to punish the guilty.
He said, the new law will provide for penalty of three hundred per cent and also ten years’ imprisonment. There will be no settlement commission in such cases, the Finance Minister said.