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Why India will remember Narendra Modi for writing new economic history, Arun Jaitley explains five reasons

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New Delhi | Published: January 5, 2018 2:36:07 PM

Arun Jaitley responded sharply to the accusations made against the government's economic policies and said the country’s future generations will remember this government for writing a “new economic history”.

Arun Jaitley thinks India will remember Narendra Modi for writing new economic history

Union Finance Minister Arun Jaitley was targetted by opposition parties on economic decisions taken by the government on Thursday. Senior Congress leader Anand Sharma slammed the government’s policies, saying they have crippled the state of the economy, the investment climate and caused rising unemployment. The Left parties, during the discussion, criticised the government’s recapitalisation plan of over Rs 2.12 lakh crore for public sector banks. Opposition parties said the GST had crippled small-scale industries. Arun Jaitley responded sharply to the accusations made against the government’s economic policies and said the country’s future generations will remember this government for writing a “new economic history”. Here are five reasons why the incumbent NDA government will be remembered for its economic reforms, as per Jaitley:

GST rollout- To the criticism of the way GST was rolled out, Jaitley shot back at the Opposition, saying outside the Parliament, the opposition criticises the government and demands decrease in tax rate and on the other hand, inside Parliament, blames the Centre for falling tax revenue. He added that the businesses with turnover of less than Rs 1 crore were being charged 1 per cent tax, which is the lowest in the world.

Demonetisation- Defending the demonetisation of Rs 1,000 and Rs 500 notes, he said, “Is it okay for our economy to remain largely driven by cash transactions? Should there be no attempt to increase the base of taxpayers?”

Market Recapitalisation- Responding to criticism of recapitalisation, Jaitley said, “This bailout which we are doing is not a very ideal situation but because public sector banks are the property of the government, it is our legal as well as moral responsibility to keep them alive… The idea is to keep the public sector banks alive so that the banks’ ability to support growth is not weakened.”

Insolvency and Bankruptcy Code – The scheme which provides for easy liquidation of a bankrupt company has been under the scanner for some of its clauses. On Tuesday (January 2), while passing the amendments to the bill in the Rajya Sabha, Jaitley said the ordinance route was taken to include the ineligibility conditions, which was not there in the IBC. Reiterating that the bad loans situation in India was one of biggest lessons for the banking system, he said, “Did banks think at that time (while giving loans), that without any security like in case of trading companies, how much haircut they would have to cut if those companies went to insolvency?”

Amending Benami Transactions Prohibition Law- Jaitley said that an example needs to be set to create a deterrent against the use of anonymous people to hide ill-gotten wealth, amid some politicians and their family members coming under the scanner for alleged benami deals. He said, “These days we are finding political leaders also resorted to (benami dealings). Therefore (we are) unearthing them.”

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