Finance Minister Arun Jaitley today said there will be no cut in budgeted public expenditure this year as revenue collections, especially indirect taxes, are buoyant.
“So far, the indirect revenue till the month of October has significantly improved. Therefore, our ability to enhance public investment has improved…Our expenditure is going on planned lines and we don’t see any cut being made in the proposed expenditure this year,” he said.
Indirect tax collections have registered an increase of almost 36 per cent in the first seven months of the current fiscal at Rs 3.83 lakh crore on the back of a spurt in economic activity.
With this, it has met 59.2 per cent of indirect tax target for the full fiscal.
As per the Budget Estimate 2015-16, the government aims to collect Rs 6.46 crore from indirect taxes — central excise, customs and service tax.
Excise collection particularly indicates manufacturing is moving up and that would restore some cycle as far as private investment is concerned, he said.
Observing that growth in India is driven by public investment and some private investment and an increased foreign direct investment, the Minister said, the government need large resource for new initiatives like Start up India, Skill India, Make in India.
He emphasised that the top priority of the government is to ease the doing of business in India.
As a result of which a turn around in India’s rating has come about, he said, adding, “last month two important international agencies, the World Bank and World Economic Forum, from the declining position in the ease of doing business have reversed the trend.”