Government on Saturday said the Budget
2014-15 has brought about clarity in tax policies and it will
walk the difficult path to bring growth impulses back into the
economy amidst fiscal constraints.
"Both on direct and indirect tax side, the main focus of
the government was to revive growth, to revive manufacturing
sector, to take steps that will result in creation of jobs, go
in for tax rationalisation, reduce tax litigations and
ambiguity in policies," Revenue Secretary Shaktikanta Das
At the post-budget interaction with industry chamber
Ficci, Das said the Budget has sought to bring in greater
clarity in taxation policy.
In his maiden Budget presented in Parliament on July 10,
Finance Minister Arun Jaitley has tried to provide relief to
the middle class by increasing tax exemption limit by Rs
50,000 to Rs 2.50 lakh. It also hiked deduction limit for
investments in financial instruments under 80C by Rs 50,000 to
Rs 1.50 lakh.
The Budget contains several proposals to boost the
manufacturing sector apart from assurance that government will
not "ordinarily" bring about any change retrospectively which
creates a fresh "liability" or tax demand
Finance Secretary Arvind Mayaram, who along with other
secretaries of the Finance Ministry was interacting with
industry leaders, said government was open to discussing ideas
with them and addressing their concerns.
"My own perspective is that this is a growth oriented
Budget. It will bring the growth impulses back into the
economy...we will have to move a very difficult path ahead,
but there is a determination that the government would walk
that path," Mayaram said.
India's economic growth slumped to sub 5 per cent in the
past two fiscals leading slowdown in revenue generation and
high fiscal deficit.
The government has pledged to bring the fiscal deficit
down to 4.1 per cent of GDP in the current fiscal from 4.5 per
cent in the last year.