Finance Minister Has An Onerous Job: Arun Jaitley On Maintaining Fiscal Deficit

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Finance Minister Arun Jaitley addressed media after tabling the Union Budget for 2016-17 in the Parliament. Below are the highlights:

As far as consolidation agenda is concerned, public sector banks, the govt is open to the idea of bringing down its equity to 52%
We are looking at consolidation, among subsidiaries, of weak banks with strong banks
We realised that this year we could meet targets and realised deficit objectives as well
Reality of India is that in today’s set up agriculture sector, physical infrastructure, rural sector all need to be looked into
The first and immediate agenda is to strengthen the banks by recapitalisation
This budget deals with the reality of India, and it is: In today’s economic setup, agrarian sector is a serious challenge, rural infrastructure must also be addressed, at the same time physical infrastructure must be addressed
This budget is thus a combination of several things.
I think this is the largest ever simplification in tax laws
GST will come through Constitution amendment, all taxation decisions are converging in that direction
I don’t have to acknowledge the economic situation, the whole world is acknowledging that.
Indian economy is integrated with world, some world situations will impact us.
Important to see how do we build a firewall to resist impact of global situation to maximum and best of our ability
Till GST doesn’t come resource mobilisation is necessary if one has to spend more
There can’t be premium on either avoidance or evasion
The Finance Minister has an onerous job, he has to spend more and maintain 3.5% (fiscal deficit). Therefore he needs resources
The budget provides relief to small and middle level taxpayers through presumptive tax and simplification of tax system