Addressing the problem of debt-laden banks
as a core “concern” for the economy, Finance Minister Arun Jaitley
on Friday pledged to find resources to ease banks
off stressed assets.
Jaitley, on the sidelines of the 70th Annual General Meeting (AGM) of Indian Bank Association (IBA), said the two major challenges that the Indian government faces are — encouraging private investment and improving the lending capacity of banks.
The finance minister stressed that bad loans have crippled the ability of lenders
to offer new credit and a push must be given to revive the sector.
He said that the government had amended laws to bring a speedy resolution of the bad debts of banks, including Insolvency
and Bankruptcy Code, 2016.
“India's ability to face challenges in the economy is much better, higher than what it traditionally has been," IANS reported. Further, he said that government stands with the banking system and will take “whatever steps are required to strengthen the banking system.”
Crediting the banking system for efficiently carrying out operations during demonetisation
followed by the remonetisation process, he said that the banks
with the constraint of time dealt with the large inflow of cash and distribution of new currency.
"There was a conscious effort being made to alter both the behaviour and spending pattern of society. A new normal was sought to being created,” Jaitley
said that demonetisation
created a new normal wherein cash transactions have been visibly reduced and tax base has expanded.
GST smoother than expected
He said that the new mechanism of indirect taxes — goods and services tax (GST) — was going smoother than expected and more people are likely to come under the taxation net.
said: "These are early days of implementation of the alternate taxation system. So far it is going smoother than expected. The decision-making mechanism on top has been reasonably institutionalised. The mechanism to issue day to day issues has been created and is robust,” reported IANS
"The number of people coming to the new tax network is likely to gradually expand," he added.
GST, which brings the economy under the umbrella of a uniform tax regime, was implemented from July 1, 2017.
India’s GDP growing at snail’s pace
grew slower at 5.7 per cent during April-June — the lowest in three years of the Modi government while lagging China for the second straight quarter — as manufacturing slowed ahead of the GST
launch and note ban impact lingered.
had recently attributed the lower GDP
numbers to pre-GST
de-stocking of goods and expressed hope that the economy will grow at 7 per cent, saying manufacturing has bottomed out.