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Union Finance Minister Arun Jaitley has said that taxes don’t go into the pocket of the government but go back to the people. He has also made it clear that fifth year of the Modi government will focus on the consolidation of programmes and polices launched so far.
Jaitley, who is recovering from a kidney transplant surgery, expressed his opinion in a blog published on the occasion of completion of four years of the Modi government.
His comments on taxes come at a time when people and the Opposition are criticising the heavy taxes on fuel products.
Targeting Rahul Gandhi, he said, “The Congress President must remember that taxes don’t go into the pocket of the government. They go back to the people for better infrastructure, better social sector expenditure and poverty reduction programmes.”
At present, the Centre levies excise duty at a specific rate of ₹19.48 a litre on petrol and ₹15.33 a litre on diesel. Excise on all petroleum products helped the Centre earn ₹99,184 crore in 2014-15 which rose to ₹1,78,591 crore in 2015-16, ₹2,42,691 crore in 2016-17 and ₹1,60,156 crore during the first 9 months of FY18.
Jaitley mentioned that from the last year of the UPA, the infrastructure expenditure to this year has increased by 134 per cent during the current year.
More expenditure
Jaitley reminded that resources are transferred to the States with 42 per cent devolution of taxes. “Notwithstanding the perpetual grumbling, last year of the UPA witnessed ₹5,15,302 crore being transferred to the States. This year the proposed transfer is 145 per cent higher and will be at ₹12,62,935 crore. This is over and above what the States earn from the GST where they have been constitutionally protected with a 14 per cent annual increase. The States independently levy their own taxes,” he said.
Macro fundamentals
The Finance Minister said that India has transformed from being a part of the “fragile five” to the “bright spot” on the global economic scene. A regime of policy paralysis has been transformed into one of decisions and actions.
Meanwhile, independent research agencies have estimated the economy to grow between 7.1 and 7.5 per cent during January-March quarter of FY18.
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