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Jayant Sinha, who took charge on Monday as Union minister of state (Mos) for finance, said the country’s gross domestic product (GDP) growth rate should cross 6-6.5 per cent in FY16. And, that job creation and inflation management were ‘top priorities’.
“This year, as you know, we are expecting the growth to pick up and be on the accelerating trajectory. Hopefully...we will (after next year) be in the seven-eight per cent (annual) sustainable growth trajectory, which is essential for India,” said the 51-year-old, a first-time MP and alumnus of Indian Institute of Technology, Delhi, and Harvard Business School.
GDP growth had slumped to 4.7 per cent in 2013-14 and is estimated to be 5.4-5.9 per cent this year.
Sinha, earlier a fund manager and partner in consultancy firm McKinsey, said the government was closely monitoring tax collections and would meet its fiscal targets for the year.“We think we have the situation well in hand. And, we have been fortunate to have the tailwinds of lower oil prices, which are going to help on the expenditure side,” he said.
Finance Minister Arun Jaitley had budgeted a fiscal deficit of 4.1 per cent of gross domestic product for FY15. However, with half the year already over, only a little more than 30 per cent of the total tax targets have been met. The disinvestment programme of Rs 58,425 crore has yet to start.
Sinha, son of former finance minister Yashwant Sinha, also hoped the government would be able to push the insurance Bill and the Constitutional amendment Bill on a national goods and services tax (GST) during the next session of Parliament, beginning November 24. On the former, which seeks to raise the FDI cap in the sector from 26 per cent to 49 per cent, he said, “When it comes to Parliament, we are confident we will get the support we require”. And, on GST: “With all of that hard work, with the involvement of all stakeholders, particularly for the states, we are sure will be able to show some positive results in this session.”
Sudarshan Bhagat, new MoS for rural development, said all defects in the land acquisition Bill would be addressed after he'd taken a thorough look at the law. And, similarly for the Mahatma Gandhi National Rural Employment Guarantee Act. “All the course corrections will be done keeping in mind the interest of the general public,” he said.
The government has defended the proposed alterations as aimed at making it more effective and cutting non-targeted expenditure. Critics say the changes go against the fundamental principles of the law, to provide some job guarantee in rural areas.
Bandaru Dattatreya, who is MoS for labour but with independent charge, said after taking charge that he'd bring changes in sectoral laws to benefit workers. “It is our duty to protect labour. I will look into all the laws carefully,” he said.
