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The Finance Minister P Chidambaram has expressed optimism that growth rate in the current fiscal could be 6 per cent. At the same time, he has blamed some of the BJP ruled states for stalling Goods and Services Tax.
"I think it's possible to aim and achieve a growth rate of 6 per cent in 2014-15, even while I recognise that the international situation remains very, very tepid," he said in a press conference at Congress headquarters on Thursday. 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.
This statement has come a day after the Prime Minister Manmohan Singh was told in the internal Planning Commission meeting that economy is in a delicate situation and there are no major signs of revival. Now, estimated slower growth rate in China and the US have also raised worries for India.
Highlighting achievements of 10 years of UPA rule at the Centre, Chidambaram used this opportunity to term two years of BJP-led NDA regime that is, 2000-01 and 2002-03 as United Progressive Alliance (UPA) rule and also attacking former Finance Minister Yashwant Sinha. After two years of poor performance, the "Prime Minister Vajpayee was forced to replace the Finance Minister (Yashwant Sinha)," he said. Earlier, Sinha posed 18 questions to Chidambaram on on price rise, unemployment and economic growth.
Tax Reforms
Talking about two big tax reforms, Goods & Services Tax (GST) and Direct Tax Code (DTC), Chidambaram said his party is committed to introduce both. Making allegations against BJP in delaying GST, he asked: "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. Issues that had been settled were reopened."
He added that the consensus reached on the draft of the Constitution Amendment Bill was broken and work on the GST Bill was interrupted.
He also said senior BJP leader Sinha 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.
It may be noted that the BJP in its election manifesto has promised to bring in GST, but it is silent on DTC
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