Arun Jaitley was in physical pain while presenting his first budget, but as the day passed, he regained his energy, explaining the thinking that went into the document. Here are some edited excerpts from his chat with journalists:

On the retrospective tax amendment

There are four issues that have come out. Does the Indian Parliament have the jurisdiction to legislate retrospectively? Yes, it has. Will this Government rely on retrospective tax legislation? No. Ordinarily we will not legislate to create fresh liabilities. If the 2012 amendment remains, are fresh notices going to be issued under those amendments? My answer is that the assessing officers will not issue those notices. They will report the matter to the CBDT, which will have a permanent mechanism to look into it. What happens to the past cases? They are pending in the court or other tribunals. We will wait for the judgement.

On rating agencies’surprise on lack of subsidy reform

I have provided for an expenditure management commission. And if anybody feels that in 45 days you can come out with a scheme for rationalisation of subsidies to which people have not found an answer in the last 66 years, we must rate the rating agencies. On the previous regime’s fiscal deficit target

There are two ways of tackling the fiscal deficit. Either you spend less or you earn more. The ideal situation is you earn more. I have looked at the unresolved issues they left behind, the problems they left behind — in some cases created — and I have, in a period of 45 days, tried to address most of these problems.

On Goods and Services Tax

States want CST compensation in order to trust the Centre. Their stand is reasonable. I have inherited a Bill of the past. And I need time to mobilise resources. So, the credibility of the Union depends on how fast I can mobilise the resources and at least have a roadmap to give the compensation. Once I establish my credibility with them, which I hope to do during the year, I will bring the Constitution amendment and the concerned legislations.

States want some items (petroleum products, mandi tax, alcohol) kept out. We will see what is to be done with it.

On gold

We will have to be cautious and careful on revenue deficit and fiscal deficit besides the current account deficit.

On FDI in insurance

What I have said reflects the Government’s view and the party will support it. My proposal is an FDI cap of 49 per cent, without any riders.

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