By NEW DELHI: Junior minister for finance Anurag Singh Thakur has been within the thick of action, working closely together with his boss Nirmala Sitharaman, on steps to revive the economy. In an interview, he tells TOI that the govt is hospitable more steps and clarifications on LTA benefits for personal sector employees may come as early as in the week . Excerpts:
What is the feedback that you simply are becoming about the newest round of stimulus?
The overall intention was to assist the less privileged or the less fortunate through this package. it had been given to government employees, but the spending are going to be on certain goods, which can benefit the common small businesses that are affected. If state governments and corporates come on board and cash in of the scheme, an outsized section are often helped, directly and indirectly. People are expecting the fine print, what are the principles and therefore the moment they are going through that you simply will see many state governments choosing similar packages. Even the company sector may consider them.
What is the feedback that you simply are becoming about the newest round of stimulus?
The overall intention was to assist the less privileged or the less fortunate through this package. it had been given to government employees, but the spending are going to be on certain goods, which can benefit the common small businesses that are affected. If state governments and corporates come on board and cash in of the scheme, an outsized section are often helped, directly and indirectly. People are expecting the fine print, what are the principles and therefore the moment they are going through that you simply will see many state governments choosing similar packages. Even the company sector may consider them.
Should you spend Rs 3 lakh to urge Rs 30,000 LTA tax sop?
On the private sector side, when will there be clarifications regarding those that have opted for the exemption-free regime or have already withdrawn their LTA?
Of course, there’ll be clarifications on who qualifies for the scheme and who are excluded.
How soon can we expect those clarifications?
In the coming week.
What does one need to say about the criticism that both the the stimulus packages are well in need of the expectations and that they don’t lookout of the strain that’s there within the economy?
If you check out the sooner packages too, there was criticism. there’ll be some section which can believe criticising the measures. But you’ve got to seem at the larger picture, India is that the only country which has provided free foodgrains to the poorest 800 million, and for eight months. additionally , Rs 68,000 crore has been transferred on to the bank accounts of the poorest of the poor. Then there are steps for MSMEs. we’ve been fine tuning of these packages from time to time supported feedback.
The steps have helped get the economy getting back within the right direction|not off course”> on target and this is often visible in the numbers, be it record e-way bills or GST figures. people that had gone back to their villages try to travel back to the industries. If you check out the last few months, people now have more confidence but everyone needs take care .
Do we expect more steps if things demands. there have been expectations that a number of the services sectors like tourism, hospitality, restaurants, airlines that they might be helped with some measures.
Restaurants which were shut started home delivery, even five-star hotels have started home delivery. Their volume has increased. Earlier, we wont to attend salons and now they’re coming to your home. So, things have changed drastically. Many sectors like travel, tourism, hospitality, cinemas are impacted the foremost . The moratorium scheme gave them some relief, the emergency credit line scheme they got additional 20% capital . There could be many that don’t bank, they don’t avail the banking services, but we tweaked the relief packages to incorporate professionals and other such small segments. We aren’t closing the doors. We are always open watching things of how quickly each sector is returning on target . If any sector, whether it’s services or manufacturing is hit, and wishes handholding and help we are still hospitable look those sectors. we’ve used this era to inaugurate several reforms, which were pending for years be it within the farm sector or labour or MSMEs.
Is the government too worried about the fiscal deficit and holding itself back from an enormous bang stimulus package?
Our packages are line with what other countries have done. What we try to try to to is that whatever we do today shouldn’t impact the longer term . it’s a balanced approach. We don’t want businesses to suffer and shut down, we would like them to survive, revive and grow. Supply side has been fixed now to spice up the demand the govt has taken several measures. to mention whether the stimulus was ok or not i feel time will tell.
Some of the states are still unhappy with the GST compensation formula and that they want the Centre to borrow the whole Rs 2.3 lakh crore…
We have had detailed discussions and it had been clearly stated that no state will need to bear the burden. As of today, most states have agreed to the Rs 1.1 lakh crore borrowing formula.
Do we expect more steps if things demands. there have been expectations that a number of the services sectors like tourism, hospitality, restaurants, airlines that they might be helped with some measures.
Restaurants which were shut started home delivery, even five-star hotels have started home delivery. Their volume has increased. Earlier, we wont to attend salons and now they’re coming to your home. So, things have changed drastically. Many sectors like travel, tourism, hospitality, cinemas are impacted the foremost . The moratorium scheme gave them some relief, the emergency credit line scheme they got additional 20% capital . There could be many that don’t bank, they don’t avail the banking services, but we tweaked the relief packages to incorporate professionals and other such small segments. We aren’t closing the doors. We are always open watching things of how quickly each sector is returning on target . If any sector, whether it’s services or manufacturing is hit, and wishes handholding and help we are still hospitable look those sectors. we’ve used this era to inaugurate several reforms, which were pending for years be it within the farm sector or labour or MSMEs.
Is the government too worried about the fiscal deficit and holding itself back from an enormous bang stimulus package?
Our packages are line with what other countries have done. What we try to try to to is that whatever we do today shouldn’t impact the longer term . it’s a balanced approach. We don’t want businesses to suffer and shut down, we would like them to survive, revive and grow. Supply side has been fixed now to spice up the demand the govt has taken several measures. to mention whether the stimulus was ok or not i feel time will tell.
Some of the states are still unhappy with the GST compensation formula and that they want the Centre to borrow the whole Rs 2.3 lakh crore…
We have had detailed discussions and it had been clearly stated that no state will need to bear the burden. As of today, most states have agreed to the Rs 1.1 lakh crore borrowing formula.
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What does one need to tell the charge that the choice within the GST Council was taken on majoritarian grounds and it had been not unanimous?
If you inquire from me after 22 hours of patient hearing, due deliberations, discussions, if 21 states are posing for their share of cash , they need to boost it and that they want the GST Council and therefore the Centre to facilitate it, nine states can’t deny the proper of 21. that might be unfair. All we said was let 21 states raise the funds, we’ll facilitate and let the nine states, if they need to continue discussions with us we’ll , continue discussions and you’ve got the choices and you’ll check out those options.
What is the feedback about the agricultural economy?
Rural economy is really doing well. it’s not only MGNERGA or agriculture, but it’s also the infrastructure spending, which helps create more jobs. there’s a requirement for tractors, motorbikes, four wheelers, houses. People are spending on these and aren’t holding back.
Inflation is at 7.3%. How big a worry is that? what’s being done to tackle high food inflation?
If you check out the six years of the Modi government, inflation has always been under check if you compare with the double-digit figure during UPA rule. I don’t see it as a challenge, this is often a short lived phenomenon and is seasonal and can ease call at the approaching days. Inflation are going to be in check
If you check out the six years of the Modi government, inflation has always been under check if you compare with the double-digit figure during UPA rule. I don’t see it as a challenge, this is often a short lived phenomenon and is seasonal and can ease call at the approaching days. Inflation are going to be in check
