Why no tax concessions?
THE Woes:
- Rs. 16.8 lakh crore actual expenditure in FY 15; actual revenue collection of Rs. 11.7 lakh crore;
- Printing of notes to run the government - Rs. 5.1 lakh crores or 44% of revenue collection;
- Interest payments Rs. 4.1 lakh crore, representing 37% of revenue collection;
- India's Tax-GDP ratio, fiscal deficit and debt levels among the worst in developing world;
- Inflation running at 8-12% and only came down because of lower oil prices and MSP management;
- 14th Finance Commission reduced Plan Expenditure by further Rs. 1.1 lakh crore; and
- Fiscal deficit had to be brought down to 3.9% of GDP and more money had to be devolved to the States.
The result:
There was little ability to provide tax concessions - said the Minister of State for Finance Jayant Sinha, at a meeting of FICCI yesterday.