NITI meet: PM Narendra Modi to seek Chief Ministers' views on Budget, infra development

PM will seek views of CMs on Budget, flagship schemes and infrastructure projects like rail and roads to put the economy on high growth trajectory.

NITI meet: PM Narendra Modi to seek Chief Ministers' views on Budget, infra development
NEW DELHI: At the first meeting of Governing Council of NITI Aayog tomorrow, Prime Minister Narendra Modi will seek views of Chief Ministers and Lt Governors on Budget 2015-16, flagship schemes and infrastructure projects like rail and roads to put the economy on high growth trajectory.

"The Prime Minister will interact with the Chief Ministers tomorrow to know their views about the first full year budget of the Centre to be presented on February 28. Besides, he will seek their view on improving efficiency of the flagship schemes and processes to put India on high growth path," a source said.

The meeting is expected to provide suggestions on setting up efficient processes and mechanisms for interaction between the Centre and states as also between NITI and other stakeholders to ensure synergy between different levels of government for a shared national development framework.

Government set up NITI Aayog (National Institution for Transforming India) on January 1 to replace 65-year old socialist-era Planning Commission.

The meeting is also expected deliberate on the stalled infrastructure projects, especially rail and highways, for the development of the hinterland.

The states have also been requested to give suggestion to make a success of the new central initiatives like Swachh Mission, Make in India campaign, Beti Bachao Beti Padhao, Smart Cities, Housing for All by 2022, Digital India, Skill India, Pradhan Mantri Krishi Sinchayee Yojana.
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Yesterday, Modi along with Finance Minister Arun Jaitley had met economists at NITI Aayog to seek their suggestion on Budget and other policies to bring economy back on track.

The economists had asked the government to work towards high growth, predictable tax regime, fiscal prudence and rapid infrastructure development.

Setting the tone for the discussion, Modi had emphasised on the need for cooperative federalism and added that he favoured healthy competition for development amongst states.

During the meeting Aayog's vice-chairman Arvind Panagariya is likely to brief the council about the role to be played by the newly created body.
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Besides two full-time members of Aayog, Bibek Debroy and V K Saraswat, the ex-officio members and special invitee to the body will attend the meeting.

The ex-officio members are Jaitley, Home Minister Rajnath Singh, Railway Minister Suresh Prabhu and Agriculture Minister Radha Mohan Singh.
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The Aayog's special invitees are Road Transport and Highways Minister Nitin Gadkari, Social Justice and Empowerment Minister Thawar Chand Gehlot and Human Resource Development Minister Smriti Irani.
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8 Things Budget 2015 could do – Cues from FM Arun Jaitley
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Text: ET Bureau

ET looks at the recent speeches of finance minister Arun Jaitley for clues to the budget for FY16. The budget is widely expected to lay down the agenda for the remaining four years of the Narendra Modi government.

In Pic: Jaitley arrives at the Pre-Budget Consultation with the representatives of Trade Union, in New Delhi.
Text: ET Bureau

ET looks at the recent speeches of finance minister Arun Jaitley for clues to the budget for FY16. The budget is widely expected to lay down the agenda for the remaining..
Read More
Target 4.1% of GDP is expected to be met. The fiscal deficit touched 99% of the budget estimate at the end of Nov.

“Even though the revenues have been challenging due to low manufacturing, now it is turning around & it looks like we will be."

- at a customs function in New Delhi on January 27

In Pic: Jaitley speaks at an event organised by the Central Board of Excise and Customs (CBEC) on International Customs Day 2015, in New Delhi on January 27.
Target 4.1% of GDP is expected to be met. The fiscal deficit touched 99% of the budget estimate at the end of Nov.

“Even though the revenues have been challenging due to low manufacturing, now..
Read More
There is a small chance that this could be rolled back, given that it continues to worry investors. If not rolled back, there could be more assurances that its provisions would not be invoked.

“Stability of policy is important...which is why retrospective taxation, because of absence of stability of policy, became a defining moment against India globally.”

- at the ETNow India Economic Conclave on December 8

In Pic: Jaitley at the India Economic Conclave in New Delhi on December 6, 2014.
There is a small chance that this could be rolled back, given that it continues to worry investors. If not rolled back, there could be more assurances that its provisions would not be invoked.
Read More
The under recovery on cooking gas was Rs 46,458 cr in 2013-14. The government could deny subsidy benefit to some sections – for instance, taxpayers in the highest bracket.

“We have given enough indication—some sections which don’t need the LPG subsidy will have to forgo that.”

- at the Vibrant Gujarat Summit on Jan 11
The under recovery on cooking gas was Rs 46,458 cr in 2013-14. The government could deny subsidy benefit to some sections – for instance, taxpayers in the highest bracket.

“We have given enoug..
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The govt is keen to make domestic manufacturing cost competitive. A short-term solution would be to offer tax incentives while the entire ecosystem is improved.

“So unless our taxation regime is internationally compatible, the cost of our product is going to be more…So am I going to provide them with a tax regime which is compatible to what they get across the world”

- at the government’s Make in India programme in December

In Pic: Jaitley addressing at the National Workshop on 'Make in India'.
The govt is keen to make domestic manufacturing cost competitive. A short-term solution would be to offer tax incentives while the entire ecosystem is improved.

“So unless our taxation regime ..
Read More
Fiscal consolidation has to continue. The govt needs resources to step up public spending.

““For any finance minister to withdraw this tax or withdraw that tax is not so easily possible” until the govt is in a position to balance its accounts.”

- at the World Economic Forum in Davos on Jan 22, when asked if the minimum alternate tax could be lowered or removed

In Pic: Arun Jaitley, Chanda Kochhar and Hari S. Bhartia during a session at the Annual Meeting 2015 of the World Economic Forum in Davos.
Fiscal consolidation has to continue. The govt needs resources to step up public spending.

““For any finance minister to withdraw this tax or withdraw that tax is not so easily possible” until..
Read More
NRI investments through FDI in India since April 2000 stood at $4.7billion, or 1.98% of the total. The govt could provide an easier regime that puts NRI investment on par with domestic investment.

“Suggestion with regard to attracting more NRI investment is an issue which is actively under consideration.”

- at the World Economic Forum in Davos on January 22

In Pic: Arun Jaitley during the session 'The BRICS Agenda' at the Annual Meeting 2015 of the World Economic Forum in Davos.
NRI investments through FDI in India since April 2000 stood at $4.7billion, or 1.98% of the total. The govt could provide an easier regime that puts NRI investment on par with domestic investment.Read More
Chief economic advisor has called for greater public spending to revive investments. Idea has found greater support since then.

“A lot more endeavour by the govt in making our manufactu- ring more competitive, investment also including public investment in infrastructure.”

- at the Economic Times Global Business Summit on January 16

In Pic: Jaitley speaks at the Economic Times' Global Business Summit in New Delhi.
Chief economic advisor has called for greater public spending to revive investments. Idea has found greater support since then.

“A lot more endeavour by the govt in making our manufactu- ring ..
Read More
Inverted duty refers to the taxation of inputs at higher rates than finished products. This discourages domestic manufacturing.

“We are correcting the inverted duty structure, which can hurt certain sections of the industry.”

- at the World Economic Forum in Davos on January 22

In Pic: Jaitley gestures as he speaks during the session 'India's Next Decade' at the Annual Meeting 2015 of the World Economic Forum at the congress centre in Davos.
Inverted duty refers to the taxation of inputs at higher rates than finished products. This discourages domestic manufacturing.

“We are correcting the inverted duty structure, which can hurt c..
Read More
READ MORE
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