Focus is on creating jobs, giving a lift to small biz & middle class: Nirmala Sitharaman

Employment, skilling, small businesses and middle class are the primary focus of the budget, finance minister Nirmala Sitharaman said. In a post-budget media briefing, the minister spoke about the government's attempts to simplify the tax regime and spur job creation. Edited excerpts:

Revenue mobilisation
It is not just this budget, India's tax net has to be widened, whether it is direct or indirect taxation. The dividends of PSUs are improving because their valuations have gone up really high, their performance has also now substantially improved.


Revenue mobilisation is not just tax based, non-tax revenue mobilisation is also coming up. For almost three years, we have been talking of asset monetisation-not selling of assets but optimum use of the assets that are lying unutilised. We are also looking at generating resources from newer areas.

Angel tax
It was introduced in 2012, two years after we came in and as a principle of good governance, the government being a continuum, the tax continued. We tried making it simpler... and today, we have removed it.

Income-tax law review
We are moving towards a simplified taxation regime, and also to bring down the incidents of tax evasion. Whether or not sunset clauses (for the old tax regime) will come into play, we will be able to say that after the review.

First-timers scheme
The first-timers scheme is a very innovative initiative. We are providing first timers with one whole month's salary as subsidy, and this will be put into their accounts as direct benefit transfers. When an employer picks up a first timer, you will get to know it through the EPFO data.

Subsidy will have to be refunded in case the employer removes the person from work within 12 months. This will cover 10 million persons per annum, and the scheme will run for two years.

Withdrawal of equalisation levy
In the interest of moving towards the Pillar 1 and Pillar 2 solutions, it was necessary for us to take steps to ensure that we are getting into that scheme of things without this equalisation levy hanging on us. (Only the 2% levy has been withdrawn, the 6% levy imposed earlier continues.)

MSMEs
When MSMEs get to the first stage of the Special Mention Account, they are under stress, as banks stop lending to them. So, their accounts are at an increased risk of turning into non-performing assets. We have decided to set up a fund, which will give the banks some government guarantee to lend to the MSMEs and keep them going. Through this budget, we have announced eight steps for MSMEs, each one addressing a particular problem that they face.