Last Updated: 5/21/2025 11:39:00 PM
Mr Arun Jaitley, Finance Minister, has some reason to cheer, with green shoots emerging after Q1, GDP figures showed a pick-up in economic growth at 5.7% against 4.7% in the same quarter last year. Mr Jaitley said that the Q1 growth rate was “encouraging” and with the long-term impact of all the new initiatives taken by the Government setting in, he was “sure that the impact in the coming quarter would be much larger.” However, inflation continues to be a cause for concern, despite some moderation, he said that more sectors were indicating a positive trend. He said that “Left to myself, I would say, very soon. I hope that those who decide are also listening.” He added that the fiscal deficit figures in the Q1 (56.1% of the Budget target) do not represent the pattern of the whole year. Tax collection, particularly advance taxes, have not yet started coming in, adding that the first quarter was also burdened with the refund of the last quarter of the last fiscal. A combination of these factors does not represent a proper state of the fiscal deficit. Mr Jaitley said that “I gave a target of fiscal deficit of 4.1% in the Budget. I, at that stage, said that the figure given by my predecessor in the vote of account appears a daunting task, but I accepted the challenge and it would be my endeavour to meet that. So what was I accepting as a challenge, today I feel with Q1 GDP numbers, as something which is certainly achievable.” He said that too many items cannot be kept out of it as the larger objective would get defeated. He added that “I have already discussed the issue with the Finance Minister of Gujarat and intend to meet other States that have some issues.” Source – Business Line
Mr Arun Jaitley, Finance Minister, has some reason to cheer, with green shoots emerging after Q1, GDP figures showed a pick-up in economic growth at 5.7% against 4.7% in the same quarter last year.
Mr Jaitley said that the Q1 growth rate was “encouraging” and with the long-term impact of all the new initiatives taken by the Government setting in, he was “sure that the impact in the coming quarter would be much larger.” However, inflation continues to be a cause for concern, despite some moderation, he said that more sectors were indicating a positive trend.
He said that “Left to myself, I would say, very soon. I hope that those who decide are also listening.”
He added that the fiscal deficit figures in the Q1 (56.1% of the Budget target) do not represent the pattern of the whole year. Tax collection, particularly advance taxes, have not yet started coming in, adding that the first quarter was also burdened with the refund of the last quarter of the last fiscal. A combination of these factors does not represent a proper state of the fiscal deficit.
Mr Jaitley said that “I gave a target of fiscal deficit of 4.1% in the Budget. I, at that stage, said that the figure given by my predecessor in the vote of account appears a daunting task, but I accepted the challenge and it would be my endeavour to meet that. So what was I accepting as a challenge, today I feel with Q1 GDP numbers, as something which is certainly achievable.”
He said that too many items cannot be kept out of it as the larger objective would get defeated.
He added that “I have already discussed the issue with the Finance Minister of Gujarat and intend to meet other States that have some issues.”
Source – Business Line
