City: Express Web Desk | New Delhi |Published: November 11, 2018 10:12:35 pm Union Finance Minister Arun Jaitley was speaking…
Union Finance Minister Arun Jaitley was speaking at state-run Union Bank of India’s 100th anniversary celebrations event held in Mumbai over a video link. (File)
Union Finance Minister Arun Jaitley on Sunday defended the Goods and Services Tax (GST) as a “monumental reform”, a day after former Governor Raghuram Rajan criticized its implementation.
“You will always have critics and cynics who will come up and say it (GST) slowed down India’s growth,” said Jaitley while addressing the 100th anniversary celebrations of the Union Bank of India.
Defending the NDA government’s decision to roll out GST In July last year, Jaitley said that it was a smoothly implemented and even as it slowed down the economy for two quarters, the country witnessed a rise in growth after that.
Countering criticism on the implementation of the tax reform, Jaitley said, “GST slowed down growth for two quarters, but people overlook how growth rose after that.”
The finance minister said that the country’s growth increased to 7 percent then to 7.7 percent and went up to 8.2 per cent last quarter. He specifically pointed out that it was much above the 5-6 percent growth achieved between 2012-14.
Read | Raghuram Rajan: Demonetization, GST backs India’s economic growth, 7% not enough
On Saturday, former RBI governor Rajan said that the implementation of demonetization and subsequently the GST were the two major events that held back India’s economic growth in 2017. Rajan further said that the seven percent growth rate is not enough to meet the country’s needs. “De to successive shocks of demonetization and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up, “he said.
Addressing the issue of rising non-performing assets (NPAs) and the need to strengthen the banks, Jaitley said several steps have been taken to minimize the NPAs and they are bearing fruit. He also stressed the need to improve the strength of the banking system, so that liquidity in markets is maintained.
Rajan had commented on the rising Non-Performing Assets (NPA), saying the best thing to do in such a situation is two “clean up”. Det er vigtigt at “deal up with the bad stuff”, så med rentebalancer, banker kan komme tilbage på banen. “It has taken India far longer to clean up the banks, partly because the system did not have instruments to deal with bad debts,” Rajan said.
For all the latest Business News, download Indian Express App
© IE Online Media Services Pvt Ltd