No cut in capital expenditure in current fiscal as it is necessary for growth: Arun Jaitley

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Finance minister Arun Jaitley today said that the government will end the current fiscal year without any cuts in the budgeted expenditure as it is extremely necessary for economic growth.

He said that the government has spent 44 per cent of the budgeted expenditure till August 31 and will end the year without any cuts.

The finance minister was addressing the press after Prime Minister Narendra Modi today chaired an internal meeting of the finance ministry where he took a review of the various departments and expressed satisfaction with respect to the broad parameters in relation to the economy and the macroeconomic data that has emerged so far this year.

The finance minister assured that the government will strictly meet the 3.3 per cent fiscal deficit target for the current fiscal.

With inflation broadly under control, the government is confident that we will have a growth rate higher than projected, Jaitley added.

On the tax collection front, Jaitley said that the direct tax collection is moving ahead of schedule as the impact of the anti-black money measures by the government and demonetisation has had a positive impact.

“There is a phenomenal increase in the assessee base, the base of people filing returns and the quantum of advance tax which has been paid and the CBDT is clear we will be able to collect in excess of the budgeted target,” the finance minister said.

The finance minister said that the GST is settling down and the pickup in consumption will have a positive impact on collection. With the direct tax collection and indirect tax collection, the government will comfortably meet the target.

On divestment, Jaitley expressed confidence that the just as last year, the government is confident of not only meeting but may exceed the target of divestment.

Source: Economic Times