Govt. will ensure stimulating environment for business: Jayant Sinha

Minister of State for Finance Jayant Sinha on Saturday said the government would create a stimulating environment for the industry and also facilitate banks in improving their balance sheets to augment growth.

He further said that it was imperative to encourage young minds to become entrepreneurs, as in the coming decade natural resources would become scarce and automation will restrict the creation of new jobs.

"if India's GDP continues to grow at the rate of 7-8 per cent then the country would double its economy and become a $4 trillion from the present $2 trillion. Private investment is the engine to pull the economy forward. The government would create a stimulating environment for the industry and also facilitate banks in improving their balance sheets to augment growth," Sinha said while addressing an interactive session at FICCI's 88th Annual General Meeting here.

Sinha said that when he assumed office, every macro indicator was in a bad shape and stabilizing it takes at least 2-3 years.

"Infrastructure projects were stalled, power, metals and agriculture sectors were vulnerable due to lack of policy with a host of legacy issues such as clearing a number of State liabilities, to be addressed.But the NDA government was able to stabilize the macro economy of the country within 12-18 months." he added.

Sinha said that the proof of this is improved tax administration with increased revenue collection and higher tax buoyancy; much stronger budgetary governance with clearly stated expenditure and revenue targets; and improvement in the quality of government expenditure, which moved away from subsidies towards public investments.

"When the government came to power the fiscal deficit was 4.4%. But now the government was on course to achieve the fiscal deficit target of 3.9% in the present financial year. However, with the coming of 'One Rank One Pension' and the 7th Pay Commission, it would become a difficult task to achieve the fiscal deficit target of 3.5% in the next financial year," he added.