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Finance Minister P Chidambaram is optimistic of achieving 6 per cent in the current fiscal. He also blamed some of the BJP-ruled States for stalling Goods and Services Tax (GST).
“If investments pick up, I think it is possible to aim and achieve a growth rate of 6 per cent in 2014-15 even while I recognise that international situation remains very, very tepid,” he said at a press conference at the Congress headquarters on Thursday.
Chidambaram’s statement came a day after Prime Minister Manmohan Singh was told in the internal Planning Commission meeting that economy was in a delicate situation and there were no major signs of revival. In fact, the slower growth forecast for China and US has increased the worries for India.
He said if the new government “follows sound policies” and the 10-point agenda outlined in the interim Budget, going forward 2014-15 would be considerably better than 2013-14. It may be noted that growth for 2013-14 is estimated at 4.9 per cent against a decade low of 4.5 per cent in 2012-13.
Attack on NDAChidambaram attacked the performance of the NDA Government, saying after two years of poor performance, “Prime Minister Vajpayee was forced to replace the Finance Minister (Yashwant Sinha)”, he said.
Earlier, Sinha had posed 18 questions to Chidambaram on price rise, unemployment and economic growth.
Tax ReformsTalking about the two big tax reforms, Goods & Services Tax (GST) and Direct Taxes Code (DTC), Chidambaram said his party was committed to introduce both.
“Who has stalled GST and DTC? When a consensus on GST was nearly reached, it was the governments of Madhya Pradesh and Gujarat that stalled further progress,” he said pointing fingers at BJP. Issues that had been settled were reopened, he said while adding that the consensus reached on the draft of the Constitution Amendment Bill was broken and work on the GST Bill was interrupted.
GST, DTC wrangleHe also said a senior BJP leader had “pleaded in favour” of GST and DTC. Chidambaram said the Finance Ministry has now prepared a new DTC and has put it in the public domain. It is aimed at replacing the Income Tax Act of 1961.
“The UPA and the Congress remain committed to introducing and passing the DTC in the next Lok Sabha,” Chidambaram added.
The BJP in its election manifesto has promised to bring in GST, but is silent on DTC.
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