Says NDA defeat in Bihar no setback to economy, development agenda to continue
A day after the Bharatiya Janata Party-led alliance’s massive defeat in the Bihar Assembly polls, Finance Minister Arun Jaitley said on Monday the Centre would move ahead with economic reforms, to be carried out through both executive and legislative routes.
He said investor confidence has not taken a hit due to the poll debacle.
The finance minister said he would speak to Bihar Chief Minister-designate Nitish Kumar to ensure the smooth passage of the Constitution amendment Bill on goods and services tax in the Rajya Sabha.
Jaitley said he hoped Bihar would support the Bill because it would benefit from the new indirect tax legislation as a consuming state.
The National Democratic Alliance does not have a majority in the Rajya Sabha, making it difficult for the central government to roll out uniform indirect tax regime from April 1, 2016, as scheduled.
GST Bill requires to be passed through two-thirds majority in the Upper House.
It has already been cleared by the Lok Sabha.
“Bihar and Janata Dal (United) had supported this in the Lower House.
If Nitish Kumar, as a responsible leader, has been elected on the plank of development, then certainly he wants more revenue for Bihar,” said Jaitley.
On what should be the rate of GST, Jaitley said, “the lower the better.” GST will subsume various levies such as excise, service tax, value-added tax, sales tax, and octroi, ensuring a single indirect tax regime for the entire country.
Jaitley further said the government was open to suggestions on improving the architecture of GST.
“I am for a GST with a proper architecture, not for a GST with a defective architecture,” he added.
Jaitley also countered a Moody’s Analytics report released last week warning India would lose credibility if Prime Minister Narendra Modi did not keep BJP members in check.
“India is the most tolerant society in the world. . . and I’ll reject any contention which says that a stray incident happening in any part of India makes it intolerant. India is tolerant. . . Some unfortunate incidents take place; that doesn’t make India an intolerant society. India is a liberal society, it will continue to remain one,” the minister said.
He said the government under Modi has changed the culture of governance in the country and the prime minister would go ahead with the development agenda.
Meanwhile, a day after the victory of the Grand Alliance in Bihar, the backroom players of the victorious alliance on Monday started deliberations on government formation.
“The talks have begun, but there is nothing important to report right now,” said a senior member the Janata Dal (United).
Parliament is scheduled to meet on November 26 and the winter session will continue till December 23.
Besides the Constitution amendment Bill on GST, the Bankruptcy Code is slated to come up in the session.
The image is used for representational purpose only. Photograph: Reuters
