Govt push to 49% FDI in insurance
He also said that he wanted corporates to help him in pursuing the government's economic reforms agenda. "I can do more, when I have the space to do more. You have to do your bit to create that space for me," Mukherjee said.
On this year's Budget proposals, Mukherjee said that he had the option to roll back the central excise duty to levels prevailing in November 2008. At that time, duties were cut as a corrective measure in response to the financial crisis, with the aim of arresting the then deteriorating economic situation. "I have chosen not to do so and retain the rates at 10% for two reasons. I would like to see improved business margins translated into higher investment rates. I would also like to stay my course towards GST," he added.
Earlier, delivering the Sir Sorabji Pochkhanawala Memorial Lecture 2011, the finance minister said that although public sector banks have done a good job in their outreach, the cost of intermediation remained high. "The cost of banking intermediaries in India is high and bank penetration is limited to only a few customer segments and geographies. We are trying to address this in collaboration with the Reserve Bank of India and with the active participation of the banking and non-banking financial entities."
He said that financial inclusion is a key determinant of sustainable and inclusive growth which, in turn, is essential for building an equitable society.
Mukherjee said that for fiscal year 2010-11, the Indian economy was expected to record a GDP growth of 8.6%, which will take it back on the high-growth path that the economy was traversing on in the years prior to the crisis.
Finance minister Pranab Mukherjee, who was in Mumbai on Sunday, said that the government is talking to other political parties to garner support required to push through a bill that allows 49% FDI in the insurance sector. He also said that all the tax proposals in this year's Budget were aimed at aligning them with the Goods & Services Tax (GST) , a new and simplified indirect tax code that the government is trying to introduce next year. The FM also said that the GST has to align with the tax rates in different states that are in force now.
Speaking on the sidelines of an event to commemorate the centenary celebrations of Central Bank of India, Mukherjee said: "We have started talking to various stakeholders which, in this case, are political parties because we do not have 272 Congress MPs. Therefore, we would require support of other political parties. I have started talking to them and I hope there will be a broad consensus in the matter."
On this year's Budget proposals, Mukherjee said that he had the option to roll back the central excise duty to levels prevailing in November 2008. At that time, duties were cut as a corrective measure in response to the financial crisis, with the aim of arresting the then deteriorating economic situation. "I have chosen not to do so and retain the rates at 10% for two reasons. I would like to see improved business margins translated into higher investment rates. I would also like to stay my course towards GST," he added.
Earlier, delivering the Sir Sorabji Pochkhanawala Memorial Lecture 2011, the finance minister said that although public sector banks have done a good job in their outreach, the cost of intermediation remained high. "The cost of banking intermediaries in India is high and bank penetration is limited to only a few customer segments and geographies. We are trying to address this in collaboration with the Reserve Bank of India and with the active participation of the banking and non-banking financial entities."
He said that financial inclusion is a key determinant of sustainable and inclusive growth which, in turn, is essential for building an equitable society.
Mukherjee said that for fiscal year 2010-11, the Indian economy was expected to record a GDP growth of 8.6%, which will take it back on the high-growth path that the economy was traversing on in the years prior to the crisis.
Finance minister Pranab Mukherjee, who was in Mumbai on Sunday, said that the government is talking to other political parties to garner support required to push through a bill that allows 49% FDI in the insurance sector. He also said that all the tax proposals in this year's Budget were aimed at aligning them with the Goods & Services Tax (GST) , a new and simplified indirect tax code that the government is trying to introduce next year. The FM also said that the GST has to align with the tax rates in different states that are in force now.
Speaking on the sidelines of an event to commemorate the centenary celebrations of Central Bank of India, Mukherjee said: "We have started talking to various stakeholders which, in this case, are political parties because we do not have 272 Congress MPs. Therefore, we would require support of other political parties. I have started talking to them and I hope there will be a broad consensus in the matter."
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