New Delhi, February 28: Lauding Finance Minister Pranab Mukherjee for presenting a balanced Budget, Prime Minister Manmohan Singh on Monday said that the Budget matches challenges faced by the economy.
“It is certainly important to curb inflammatory expectations; finance minister has done a commendable job by planning to reduce fiscal deficit,” PM said.
He also congratulated the FM for maintaining a high growth rate despite the adverse international economic climate, while praising it is a reformist Budget.
While accepting at fiscal consolidation remains an area of focus, the PM pointed out: “If we can achieve such high rates of growth then fiscal problem can be manageable.”
On the new tax proposals announced by Mukherjee, the PM opined that one cannot please everybody but the finance minister has done a good job by increasing the exemption limit to provide relief to those lower on the ladder, adding that moderation of taxes is a ‘good thing’.
And, he also did not agree to the observation that there was not much for the corporate sector in the Budget.
The PM also touched upon the issue of black money. He said that the amnesty scheme has not worked in past so what is needed is to reform system to track black money.
“Systems reform in a permanent and holistic manner is needed,” he said.
PM also expressed confidence that the Direct Tax Code will become reality soon.
With regards to GST, the PM accepted that there are difficulties in its implementation as states are involved. “But we will pursue and succeed,” he said, while hailing the FM for maintaining customs and excise rates unchanged at 10%.
—PTI