11/11/2016
Underlining the government’s efforts to make decisions by building consensus, Jaitley expressed hope that the tricky issue of dual control under the Goods and Services Tax (GST) will also be resolved.
Stressing that no one has the fundamental right to deal in black money, the Finance Minister said that local purchasing power may be impacted for the next few days due to paucity of funds.
There are reports that higher allowances under the 7th Pay Commission which were to be implemented soon will be delayed when the situation returns to normalcy.
New Delhi, November 10: On Tuesday night Prime Minister took the nation by surprise and announced a crackdown on Rs 500 and Rs 1000 notes with effect from same midnight, making these notes invalid across India. The recent development has no doubt caused inconvenience to common people. But the most effected ones are government employees who have been eagerly waiting for the 7th Pay Commission award which may get delayed following Narendra Modi’s surgical strike on black money to curb rising black money, fake currency, and corruption. There are reports that higher allowances under the 7th Pay Commission which were to be implemented soon will be delayed when the situation returns to normalcy.
“The process of higher allowances may be delayed as now the government is busy for making situation normal after a surgical strike on black money,” a top official of Finance Ministry was quoted by a news portal on condition of anonymity. The official further added that “after the surgical strike on black money issues related to many other financial activities has been increased and the Narendra Modi government has to kept the process of higher allowances in the pipeline and are waiting for things to get normalised. However, the government is keen to implement the higher allowances speedily in a time-bound manner.”
The top official further added that “the Narendra Modi government is in fear of any eventual incident for a surgical strike on black money in the country and in view of the current scenario, the government has decided to delay the announce of higher allowances”.
The Central Government employees unions are pressing hard on the government to announce the higher allowance and they had recently called for a Parliament march on December 12. Earlier there were reports that the ‘Committee on Allowances’ has already given a final touch to its report on higher allowances. The committee met up with the deadline of four months given to it by the cabinet to submit its reports, the top official confirmed.
There are reports that the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee looking into the issue sticks with the 7th Pay Commission’s recommendations on allowances proposed higher allowances with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with effect from January 2016.
Recently Finance Secretary Ashok Lavasa said that his team is ready to submit its report whenever Finance Minister Arun Jaitley calls up. The committee on allowances was set up July this year in the direction of the cabinet.
from India.com News Desk
Global agencies not recognising India’s efforts, says Jaitley
New Delhi, November 10:
Expressing disappointment over India’s unchanged ratings, Finance Minister Arun Jaitley on Thursday said international agencies have not recognised efforts by the government to simplify processes and enhance the ease of doing business.
“I must acknowledge that the kind of steps we have taken, we still have not got from international agencies the full recognition of the effort we have put in,” he said at the Economic Editors’ Conference while stressing that the government has taken a number of steps to open the economy to foreign investment and has also simplified decision-making.
Earlier this month, global rating agency Standard and Poor’s retained India’s rating at BBB-/A-3 with a stable outlook and ruled out a rating review even next year.
In September, Moody’s Ratings too had said a review of India’s ratings may be possible only after one-two years. India’s position in the ease of doing business report in 2017 rose by just one rank.
The Finance Minister also argued that the country is doing reasonably well despite constraints in global economy.
“Tax collections have been reasonably good this year, there has been a spurt in public investment, foreign investment and local demand,” he said, adding that the government will also meet its fiscal deficit target, by “earning more and spending more”. Dual control under GST
Underlining the government’s efforts to make decisions by building consensus, Jaitley expressed hope that the tricky issue of dual control under the Goods and Services Tax (GST) will also be resolved.
He also ruled out any move to defer the rollout of the new tax regime, beyond April 1, 2017 and said it will have to be implemented soon as States will not have the power to levy tax beyond September 16, 2017.
“We have already sorted out 10 issues. The issue of dual control still remains, there is no reason why we will not be able to work out a reasonable solution on this,” he said.
Jaitley has called an informal meeting with State Finance Ministers to try and resolve the issue. The GST Council will be meeting on November 24 and 25 to discuss dual control as well as draft legislations. “Only the last stages (of decision making) remain and I do hope the GST Council is able to resolve that through a larger consensus also,” he said
.Currency Demonetisation
Stressing that no one has the fundamental right to deal in black money, the Finance Minister said that local purchasing power may be impacted for the next few days due to paucity of funds.
However, he ruled out concerns that demonetisation of high-value currency will impact local demand in the medium term. “Once the replacement takes place, the current level of consumption will come back,” he said.
Chief Economic Advisor Arvind Subramanian also said that though unaccounted wealth will be affected by the move, it should be seen as a “transfer of such money from the private to the public sector”
Courtesy :The Hindu Business line.