Published on Thu, Feb 25, 2010 at 12:43 | Updated at Thu, Feb 25, 2010 at 13:07 | Source : Moneycontrol.com
India is ending FY10 with a sense of confidence, Finance Minister Pranab Mukherjee said. Mukherjee was speaking to media persons soon after the Economic Survey and Thirteenth Finance Commission (TFC) report were tabled in Parliament, a day ahead of the Union Budget.
“FY10 has been one of the most unusual years for the Indian economy,” the minister said.
The Economic Survey tabled on Thursday reiterated the view that the Indian economy was firmly back on track after encountering the global downturn and predicted a return to 9% GDP growth by FY12.
The TFC report urged the government to rein in fiscal excess and cut down on its deficit. India’s fiscal deficit in the current financial year stands at 6.8% on account of high government spending during the financial crisis. The minister said most of the recommendations of the TFC panel had been accepted.
Mukherjee also spoke about the ambitious goods and service tax (GST) that, when implemented, would do away with a host of other taxes. The central government has been in talks with states over sharing of revenues and Mukherjee said it would give a higher share to states despite the fiscal strain.
“We would compensate states on the revenue loss when GST is rolled out,” Mukherjee said. “Local bodies would also get a share of central taxes.
