6 per cent growth likely this year: Jesudasu Seelam

NEW DELHI: The finance ministry today said the worst is over and the country would register a growth of 6 per cent this financial year.

"We are trying to get away the ill effects of the slowdown. I am sure we have had the worst and we are going to be definitely 6 per cent growth. But we need to spend the money to generate the growth," Minister of State (Revenue) Jesudasu Seelam said today.

He said last year investments were restrained but this year there is a need for more spending to generate growth.

To attract foreign investment, the government earlier this week liberalised FDI limits in a dozen sectors, including allowing 100 per cent in telecom and higher limits in 'state-of-the-art' defence manufacturing, to boost the sagging economy.

Seelam said customs, service tax and central excise will have to contribute Rs 1.89 lakh crore each to reach the target of Rs 5.65 lakh crore.

The Finance Ministry has fixed the target of indirect tax collection at Rs 5.65 lakh crore for 2013-14.

"Professional competency needs to be upgraded and revisited. We are bringing in lots of reforms in the tax sector. We are working on the Goods and Services Tax and Direct Tax Code is on the anvil," he said.

He said the DTC will bring in lots of changes in the present tax environment in the country and there is a need to work more efficiently.

The DTC bill, which seeks to overhaul the over 50-year old income tax law, will be introduced towards the end of Monsoon session of Parliament.

The DTC bill was introduced in Lok Sabha in 2010 and Standing Committee on Finance has given a report after its scrutiny.

The DTC aims to rationalise tax rates to bring more people and companies under the tax net.