Budget for the next fiscal needs to provide Rs 1.10 lakh crore for implementing the OROP and 7th Pay Commission award, besides a higher allocation for the farm sector, Finance Minister Arun Jaitley said on Friday.
“During the financial year 2016-17, the central government has to make provision for about Rs 1.10 lakh crore in order to meet the liabilities on account of implementation of 7th Pay Commission recommendations and One Rank One Pension (OROP) Scheme,” Jaitley said.
The finance minister added that even though the expenditure has been more than the Budget estimate this year, the government will manage its fiscal deficit targets.
“We will be able to contain the fiscal deficit as per the target fixed for the current financial year 2015-16…this was also the first time that the real expenditure amount was higher than the Budget proposal…this year we have spent more but still, we will very well manage our deficit targets,” a finance ministry statement said.
Concerns of a slippage from fiscal consolidation road map have surfaced due to a likely shortfall in direct tax collections and disinvestment proceeds this year.
According to a Finance Ministry statement, Jaitley said this year was the first time that the real expenditure amount was higher than the Budget proposal.
During the meeting, the members suggested that tax exemption limit for middle and salaried class be raised from existing Rs 2.5 lakh to Rs 4 lakh as well as more stress be given on widening of tax base, while there should be severe punishment for those evading taxes.
Commenting on India’s declining exports, Jaitley said the country’s economy has been affected due to “uncertain and fragile situation” of the world economy. But, India continues to be “one of the fastest growing economies in the world” and there is still potential to grow at a “much faster pace.”
He added, “silver lining is low international commodities and oil prices which in turn has helped in better macroeconomic situation of the country.”
This year we have spent more but will very well manage our deficit targets,” the ministry quoted him as telling the MPs.
Source: The Indian Express
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