(FE)
Amid the rising concerns over fiscal slippage and alleged security issues of Aadhaar, Finance Minister Arun Jaitley on Thursday hit out at the opposition in the Rajya Sabha, saying that it was the Modi government that brought UPA’s Goods and Services Tax (GST) and Aadhaar to their logical conclusions. He further said that the fiscal slippage was on the back of higher crude oil prices and payments under the 7th Pay Commission, and not a major concern for the government.
Arun Jaitley also said that the subsidies payout via Direct Benefit Transfer helped the economy a great deal. Referring to Moody’s rating upgrade, Arun Jaitley said it was not an easy task as India was left as among the fragile five economies under the UPA government, with double-digit inflation and 4.6% fiscal deficit.
The continuous rise in crude oil prices is indeed becoming a cause of concern for the government.With low GST collections in November and December and fiscal deficit already breaching the 3.2% target, the rise in oil prices will put India in a vulnerable position. However, Arun Jaitley said that the Indian economy is facing challenges due to the global slowdown and structural changes like the GST.
