Focus on Fiscal Consolidation, Says Finance Minister Arun Jaitley

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Finance Minister Mr. Arun Jaitley said that India is now focusing on fiscal consolidation under which the fiscal deficit stood 3.9 per cent in 2015-16 and 3.5 percent in 2016-17 and is supposed to be 3.2 percent for the budget session of 2017-18.

Economists have suggested to the Government to bring increase in Social Security Pension, reduces corporate tax up to 20% and hiking wages under NREGA.

Mr. Jaitley said the growth of second quarter marks the “economic recovery to arrest declining trend of growth witnessed in the last few quarters”

The Finance Minister also appreciated the provisions of the Financial Resolution and Deposit Insurance Bill and rescued by saying that the government will fully protect the public’s deposits in the financial institutions.

He also added rumors over FRDI Bill is baseless and the government’s Rs.2.11 Lacs crore capital infusion plan in State owned banks are to strengthen them and there will be no question of lender failing.

Mr. Jaitley said that India is on the plan path of fiscal consolidation as economic growth targets has already been raised up to 6.3% for the second quarter which was noted 5.7%  in the previous year.

“We have been able to achieve these fiscal targets due to focus on expenditure rationalization, plugging of loopholes in public expenditure through Direct Benefit Transfer Scheme and the Public Financial Management System and by making innovation revenue raising efforts, among others.” Finance Minister Mr. Arun Jaitley quoted.

This had been understood that the Government will overcome from fiscal deficit in 2018 if continues to follow this roadmap of fiscal consolidation.

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