Profit not bad word, resources needed to service poor:Jaitley

Asserting that profit is not a bad word, government tonight said the low tax regime envisaged in the budget is aimed at boosting economic activity and suggested interest rates for sectors like housing would come down with moderation in inflation.
Finance Minister Arun Jaitley justified the government's decision to further open up sectors like defence and insurance to FDI saying the country required huge amount of resources to speed up development by perking up manufacturing that would lead to job-creation and poverty alleviation.
"When investment from within is inadequate, FDI is an additionality of resource. So, it is essential we have adequate resources, it will lead to economic activity, job creation. Need profitability for economic activity.

"We have reached a stage where profit is not a bad word. Unless there is a profit, there will be no taxes", he said in Rajya Sabha while replying to a debate on the budget as well as demands for grants for various ministeries. The budget and the appropriation bills were passed later.
He underlined that governemnt will not have enough resources to fund social welfare programmes unless there are profits and taxes.
"Let me make a very candid confession, if you say I have helped business, I have no hesitation to be called pro-business. Does it help the middle class? Yes, it does. Does it help poor, yes it does. There is no contradiction...You need to be pro-industry... (to) service poor," Jaitley said.

Referring to budget proposals, he said the government has made efforts to help the middle class save and spend.
In this regard, he said the government will encourage people to buy their own houses instead of paying rent.
"If inflation moderates and RBI agrees, which I am sure will agree, (government would like) to bring down interest rates... We want to go back to a situation of Vajpayee's time when buying a flat becomes cheaper than taking on rent. So that installments becomes less than rent," he added.