M A I N   N E W S

Jaitley: Economy on recovery path
Sanjeev Sharma
Tribune News Service

‘Modi a very active PM’ Arun Jaitley said ministers working in the Central Government enjoyed decentralisation in decision-making that came with accountability “Modi remains a very active PM... certainly if you have a very active PM, along with the decentralised authority that has been given to us, there will be an element of accountability,” he said. Referring to ceasefire violations by Pakistan, he said the environment was not conducive for relations between New Delhi and Islamabad.

New Delhi, August 30
With the GDP growth figure hitting a two-and-a-half-year high, coinciding with the completion of 100 days of the Narendra Modi government in the office, the Centre today said the scenario would help accelerate growth in the coming months. Addressing a press conference to mark 100 days of the Modi government, Finance Minister Arun Jaitley today said several economic indicators, including GDP and inflation, were improving as a result of the steps taken by the government. He said the economy was turning around, investors’ confidence was improving and inflation was moderating.

“In the first quarter (April-June), a 5.7 per cent growth rate is encouraging. With the long-term impact of all new initiatives setting in, I am sure the impact in the coming quarters will be stronger," he said.

The GDP growth at 5.7 per cent in the first quarter of the current fiscal is highest in nearly two-and-a-half years.

Outlining the government’s future agenda, Jaitley said he had met members of the Expenditure Reforms Commission, which was likely to submit early recommendations on subsidy rationalisation. The Finance Minister had flagged the issue in his Budget speech.

Jaitley said implementation of the Goods and Services Tax (GST) was the top priority of the government and to arrive at a consensus on the issue he had met Chief Ministers and Finance Ministers of all states.

“Some states have been asking for some items to be exempted from the GST, but too many items cannot be kept out as it will defeat the purpose. But the government will provide compensation to the states to gain their trust,” he said.

Jaitley said the government would discuss with all political parties changes to be introduced in the Land Acqusition Act. “The Rural Development Ministry will hold these meetings which will explore if some more flexibility can be made available in the form of enlargement of exemptions,” he said.

On the Supreme Court ruling on coal block allocations, Jaitley said he hoped that a swift decision was taken as the fate of those coal blocks could not be allowed to hang fire. He said the judgment paved the way for fairer allocation of natural resources.