Govt has to balance both fiscal and economic growth
When asked about the reports about government bringing back LTCG tax, he said any gain be it long term capital gain etc are part of income and a tax can be applied. Moreover, if the economy is doing well and FII inflows are coming then the government can decide on LTCG tax.
replica Purse Speaking about other issues like incentives to farmers, he said at all cost the farmers have to be supported provide help to them in terms of investments, fertilisers etc. Along with this the government can also look at boosting infrastructure, he said. replica Purse
aaa replica designer handbags Talking about financial resolution and deposit insurance bill, FRDI (which says deposits will be bailed in if bank fail), he said it would not be right to use depositors’ money as means of financing something by public sector or government, adding that it is much better to do it at aggregate level of government expenditure. aaa replica designer handbags
Fake Handbags He said the government has already taken strong action for recapitalizing the banks for the benefit of the banks. Fake Handbags
replica handbags online Below is the verbatim transcript of the interview. replica handbags online
high quality replica handbags Latha: One of the things which I believe economists have Wholesale Replica Bags advised the Prime Minister (PM) is that time has come to impose a long term capital gains on shares. You have been there, done that, saw it being rolled back in 2004, what is Replica Bags Wholesale your sense, is it time to impose that tax? high quality replica handbags
A: What I wanted KnockOff Handbags to say to you is that so far as the replica handbags china specifics of this is concerned, on the long term capital gains tax and all that, I cannot comment on it. Let us see what happens.
purse replica handbags Latha: I am not asking you to outguess the Finance Minister at all. As a concept only, as a principle, do you think this asset class should be taxed; we anyway tax short term capital gains, 15 percent, we have excused long term capital gains on equities as a concept and as an principle is that something that the country should bother about? purse replica handbags
replica handbags china A: As a principle any gain, long term capital aaa replica designer handbags gain, etc. they are part of the income and income tax can be applied. There are exemptions and there are taxes and rates of taxes differ, but if you want to include long term capital gains as part of the income, there Designer Replica Bags cannot be two views on Replica Handbags that; that is up to us. replica handbags china
Handbags Replica Similarly, you can exempt. We have a lot of exemptions on different items and you can see how the economy is doing. If the economy is doing well, and if FII inflows are coming and that way as you have seen, the stock markets have boosted and so on, mutual funds are also advancing very fast. aaa replica designer handbags So the government can decide. However, it is an issue of at what point of time and when and this is wholesale replica designer handbags for the government to decide. Handbags Replica
Latha: The other dilemma or principle that perhaps the parliament and the executive will discuss will be which sector to boost. We have only that much money so is it infrastructure or is it farm focused. You have seen the government at close quarters for over four decades, where is the government best placed to boost, is it farm focus or is it infrastructure, Replica Designer Handbags where is the government expenditure effective?
A: The replica handbags online government infrastructure, I mean what you are saying about, so far as the farm loans are concerned, there can be no two questions or two answers to it. Yes, the farm loans have to be expanded, and the farmers have to be supported. They are the largest number of people in our country on the farms and if you have small farms and you can provide help to them in terms of investment or in terms of fertiliser, in terms of buying goods and services, then that is very good. Plus you can also do the infrastructure. Designer Replica Bags What I am saying, the conflict between the two goals is not all that much; maximum you are talking about 0.1 0.2 percent.
Latha: But where is the government multiplier effect best? In your three or four decades of administration in government, where is replica handbags china the multiplier working well when government invests?
Replica Designer Handbags A: Replica Designer Handbags Naturally so far as the multiplier part is concerned, in the short run, loans to farmers and so aaa replica designer handbags on, they have to plant Designer Replica Bags and they have to used that and the money and increase the agricultural Replica Bags Wholesale production which wholesale replica designer handbags also depends on rains and so on and so forth. So, if you want high quality replica handbags to say that from the government’s point of view, in terms of outcomes and so on, what you can guarantee or what you can call multiplier part, you talked about multiplier part, then obviously in urban areas the multiplier will be much higher than in rural areas. Replica Designer Handbags
Replica Handbags What is the multiplier, multiplier is you invest and then somebody else you buy things, who buys things from somebody else, so that is the multiplier. So investment, urban areas, and Designer Fake Bags the consumption part, etc. they are much more from that point of view it is much higher. We should not neglect the farming sector from the poverty point of cheap replica handbags view for example. That is also very important. All the growth things that we talk about, the outcomes you talk about, are a means to an Designer Replica Bags end. They are not an end in itself. Replica Handbags
Fake Designer Bags Latha: One of the points that the farmers have been asking is the implementation of the Swaminathan Committee’s one recommendation on minimum support prices (MSP). Here the Budget only allocate of course but raising MSP to cover over 50 percent of cost is what the famers have been asking. You think MSP needs to be jacked up? Fake Designer Bags
KnockOff Handbags A: I think the MSP has to be in association with purse replica handbags what the inflation rate is in the agricultural sector or anywhere else. That part is important to take into account when we are talking about MSP and what the prospects are in terms of output of agricultural product. So, I would leave it in the sense that all these factors have to be taken into account. As of now, if you look at it, things are under control, inflation is not very high, and we have the resources to be able to finance any amount of agricultural products or agricultural inputs that we need for consumption or for investment. KnockOff Handbags
wholesale replica designer handbags Latha: The other question aaa replica designer handbags and I know you are traditional bias has been that growth in investment is more important than fiscal numbers or targets. However, we are just coming to this Budget on the back of yields having risen almost 100 basis points, probably more like 70 80 basis points in the last 12 months. Given that, would you still wholesale replica designer handbags say that the Finance Minister should give capex more importance than Replica Bags deficit; that was your answer last time? wholesale replica designer handbags
Replica Bags A: It is not a bias. What I want to emphasize to you is it is not a bias. I do not believe in a target by the way; that is important. We both want fiscal stability, we want financial stability, we do not fiscal deficit to be too replica bags high, but at the same time we want investments and growth. So the two sides of the coin, you have to balance them. The government would decide what to do and how to do it, in what way, emphasize at the moment to my mind that we should be able to aaa replica designer handbags do what we want to do both in terms of fiscal deficit as well as in terms of increasing outflows for investment. Replica Bags
The reason is simply this that this is a personal view again that the https://www.bagstradeol.com second Designer Replica Bags digit to a fiscal deficit is not of that great importance at the moment. Supposing that inflation, if you look at inflation and if you look at everything else, it does not matter all that much. Expenditure matters, there is money multiplier, that matters, yes, but 0.1 or 0.2 percent of fiscal deficit is not of great consequence. So let the government decide.
Designer Fake Bags Prashant: We had the Niti Aayog Chief recently saying that heavens will not fall if the fiscal deficit is up by a few basis points and I think you are in agreement with that point of view. Are you replica Purse saying that aggregate demand needs to be given a boost by government spending, is that what you are saying and the government needs to do that? Designer Fake Bags
Replica Bags Wholesale A: You have to high quality replica handbags start with the basics. Why is it that a country like ours needs a fiscal deficit target of the second digit? All of us want low fiscal deficit, all of us want that there should not be money supply or money multiplier should not increase very much, but in the Fiscal Responsibility and Budget Management (FRBM) Act we have laid down for three years a fiscal deficit target. So, that target has to be met or has to be given sufficient importance, that is true, but let us hope that after 2018 2019 all this would fade out and that we will be able to spend as the country desires to be spent consistent with inflation being under control, consistent with our need for investment and jobs to increase and therefore I don’t believe in fiscal deficit target, my personal view. However, now that we have a target under the act and passed by a legislation, we have to abide by it as far as we can and the government is doing precisely that. Replica Bags Wholesale
Wholesale Replica Bags Latha: Yes we have a target on fiscal deficit and on inflation, so, I guess both sides are in a sense tied up with their timelines. Wholesale Replica Bags
Designer Replica Bags A: From an economic point this is very important issue that why do we need a target for both inflation, fiscal Fake Handbags deficit, growth rate, everything else. We want high growth but if you have a target of high growth rate to 7.67 percent, do you need that? 7.7 percent is fine, 7.5 percent is fine. Designer Replica Bags
cheap replica handbags Latha: A final question on banking. There has been a lot of angst that taxpayer money is getting pumped into public sector banks and in large amounts. Your thought on this aaa replica designer handbags recapitalisation bond itself and do you think the time has come to question public ownership itself, whether some of it needs to be shed? cheap replica handbags
A: On public ownership here, I mean for example, public ownership of banks over a period of time you can decrease it and disinvestment process is started. However, public ownership of public sector banks in areas which are, for example if you have a public Fake Handbags sector bank lending very high amounts to build roads, say, or to do things where the rates of return are not as high as they could be if they were lucrative, if they were short term investments, so you have to distinguish that part. In our country we need replica handbags china some banks which can take our deposit which are absolutely safe. You know you, I, and everybody else can go to public sector banks and we are not, in the sense that they are safe deposits so far as you are concerned or I am concerned.
Then the amount of money that can be spent on priority sector that also be specified already. However, if some things have to be done where the rate of return is going to be low but Wholesale Replica Bags for the benefit of the people of India, for the benefit of the poor of India, then I think we have replica handbags china to accept that point of view that this is also our aaa replica designer handbags responsibility. I am emphasizing that point because don’t draw a quantitative line, two to purse replica handbags three decimal points or two decimal points, yes, we high quality replica handbags want no fiscal deficit, we want high growth, we want very good investment.
Latha: Since you said safe deposits, where our deposits are safe, there is lately been this Financial Resolution and Deposit Insurance Bill purse replica handbags which says that deposits may be pulled in if a bank fails, ‘bailed in’ is the word. Your thoughts on this provision of the bill.