Will alter policies to push growth: PM
Assuring the industry of two ambitious tax reforms, the DTC and GST, Singh said that corporates must also own up their responsibility in supporting affirmative action designed to provide employment opportunities for under-privileged sections.
The Prime Minister also reiterated the government’s commitment to bring down the high fiscal deficit to 5.3 per cent of GDP this year and lowering it to 3 per cent of GDP by 2016-17.
Maintaining that the level of inflation has been “unacceptably high” in the last two years, he said the government will work towards bringing it down to “no more than 5-6 per cent per annum”.
On the ballooning subsidy bill, Singh said the government plans to provide direct cash transfer into bank accounts of beneficiaries of 34 centrally-sponsored schemes in 51 districts from January 1 and expand it to the whole country by end of 2013.
“The subsidies on oil alone are more than what the government spends on health and education put together,” he said.
Over the last couple of months, besides raising diesel prices and capping subsidised LPG cylinders, the government has allowed FDI in multi-brand retail and permitted foreign airlines to pick up stake in domestic carriers, along with forming a Cabinet Committee on Investment to expedite clearances of mega projects.
The government also intends to get Parliament’s approval for raising FDI cap in the insurance sector to 49 per cent from 26 per cent, besides amendment to the banking laws to hike voting rights
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