SRINAGAR: Maintaining that the fiscal disciplining is required to put the Indian economy on pedestal back, India’s Finance Minister Arun Jaitley Sunday said “initial amount of fiscal disciplining will enable India and its people to enjoy fruits of sounder economy at a subsequent stage.”
Addressing a press conference at SKICC here Jaitley said the economic situation India is challenging with less than five per cent growth in two consecutive years.
“We had two continuous years of less than 5 per cent growth. You had higher level of inflation. Your tax buoyancy has come down,” he said.
“I have repeatedly stated that the situation of economic front is challenging. We have two continuous years with less than five percent growth and have a higher level of inflation. Your tax buoyancies have come down,” he told reporters here when asked about the Prime Minister Modi’s warning of tough measures on economic front.
“Therefore, at this time, you will require to take some decisions to make sure that the economy is put back on the track,” Jaitley, who was on a two-day visit to the state for security review meetings for being the Defence Minister, said.
He also cautioned that any fiscal indiscipline at the current stage can put them in further doldrums.
“But any kind of fiscal indiscipline at this stage will put us in further doldrums,” he said.
On Saturday newly elected Prime Minister of India, Narendra Modi had warned of some “tough decisions” over the next couple of years to improve the country’s financial health, which he said may not go down well with some sections, and attacked the way the previous UPA government had handled the economy.