Budget proposals will bring back growth: Mayaram

Finance Secretary Arvind Mayaram today said measures announced in the Budget would instill confidence among investors and bring back economic growth.

"... Going forward we are expecting growth to come back with the measures which has been announced by Finance Minister. The growth should comeback into the economy and with that there will be tax buoyancy," Mayaram told reporters outside the Parliament.

Noting that the tax targets announced by the Finance Minister, are not ambitious, Mayaram said there would be tax buoyancy.

"Tax targets are not ambitious because if you look at the numbers that we are looking at our estimation is that the growth is more than 5%...Close to 5.6%, 5.7%. Then there will be tax buoyancy," Mayaram said.

When asked whether corporates would be disappointed on retrospective tax issue, Mayaram said that safeguards have already been put in place to ensure that there is no harassment.

"I think this is for the first time, such a mechanism has been put in place... Committee will have to look at it. It is a huge step forward and this will instill confidence in the investors," the Finance Secretary said.

In his maiden Budget speech, Finance Minister Arun Jaitley said the government has decided that "all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfers and coming to the notice of the assessing officers will be scrutinised by a high level committee".

The committee, to set up by CBDT, would look into such cases before initiating any action.

"I hope that investor community, both within India and abroad would repose confidence on our stated position and participate in the Indian growth story with renewed vigour," Jaitley said.

On recapitalisation of public sector banks, Mayaram said the measures announced in this regard would provide a big push for the banking sector. Budget has set aside Rs 11,200 crore for PSU bank recapitalisation.

"We need to strengthen the banking system to provide the necessary finance for growth and for investment to go forward. I think the measures announced today are path breaking announcements and we will see going forward the banking system will have a resurgence," he said.