GROWTH SHOULD NOT SUFFER DUE TO CREDIT CRUNCH: FM
Ahead of the RBI central board’s meeting on Monday, Finance Minister Arun Jaitley
(pictured) said growth must not be throttled by limiting credit availability and liquidity. He said it was necessary that growth did not suffer because of the cleaning up of the banking system from the “collectively committed sins” during 2008-14 when the regulatory mechanisms overlooked high debt accumulation.
Union Finance Minister Arun Jaitley on Saturday defended demonetisation, saying it was a “highly ethical” move and not merely a political one.
His statement comes a day after Prime Minister Narendra Modi and Congress President Rahul Gandhi engaged in a bitter war of words during their respective election rallies over the decision suddenly announced in November 2016 to junk a bulk of the currency in circulation.
“It was a highly ethical move,” Jaitley told reporters here in response to a query over demonetisation. “It was not merely a political move.”
Jaitley was speaking after releasing the BJP’s manifesto ahead of the November 28 Madhya Pradesh Assembly election. Further backing the note-ban move, he said, “It was no secret that many in India were not tax-compliant, compelling them to put their undeclared money into the banks had an ethical rationale to it.”
The Modi government has taken a series of measures to boost revenue base of both the resources has helped Centre and states, the Finance in allocation of more capital Minister said. for welfare schemes launched
“Every move this government for the poor. has taken so far, from On Andhra Pradesh and demonetisation to the GST, to West Bengal governments putting the entire tax system withdrawing the “general consent” direct or indirect on online, accorded to the Central Jan Dhan accounts.. this has Bureau of Investigation (CBI) helped us to formalise a large to conduct raids and probes, part of Indian economy... there Jaitley said those who had a is still work in progress and the lot to hide would fear the central net impact of this is that both agency. The agency would the Centre and states now have now need permission from the much large revenues,” he said. respective state governments
Jaitley said when the Modi to carry out any investigation government took office in May in these states, except those 2014, 38 million people filed ordered by the courts and income tax returns and this against central government number has now increased officials. manifold. This figure soared to “There is no sovereignty of 68.6 million in (the last) four any state in the matter of corruption. years, he said, adding: “At the It is believed that end of five years it might double Andhra’s move is not motivated to the figure when Modi came by any particular case, but to power. Demonetisation and by the fear of what is likely to the GST were not merely political happen. I am not saying anything moves.” more than that at the
Jaitley said increase in government moment,” he added.