FM Optimistic of 8.5 Percent Growth Working on GST, Indian Finance Minister Optimistic of Achieving Targeted Growth of 8.5 Percent, Indian Finance Minister Working on Proposed Goods and Service Tax

Union Finance Minister, Pranab Mukherjee addresses after laying the foundation stone of new office building of IT Department, in Ahmedabad.

Top Stories

»	49% Indian startups now from tier 2, 3 cities: Jitendra Singh
»	'India ranks 3rd in global startup ecosystem & number of unicorns'
»	Tripura exported over 9K tonnes of pineapples in 2 years
»	CPI inflation eases to 6.71% in July, IIP falls to 12.3%
»	Rupee depreciates 12 paise to close at 79.64 against US dollar

SME Times News Bureau | 17 Jun, 2010
Finance Minister Pranab Mukherjee on Wednesday said he was optimistic of achieving the targeted growth of 8.5 percent if a good monsoon this year supplements the improving Indian economy. He also said that he was working to evolve consensus on the proposed Goods and Service Tax (GST).

Addressing reporters after a meeting with Gujarat Chief Minister Narendra Modi in Ahmedabad, he said that industrial production had registered an increase of 17.6 percent in March and tax collections have also been encouraging.

The finance minister was, however, non-committal on the reduction of fiscal deficit from the present 5.5 percent, though he added that he was not worried since he had an additional cushion from the 3G and bandwidth auction (BWA) collections.

While commenting on the proposed Goods and Service Tax (GST) said that he was working to evolve consensus on the proposed GST as it's implementation was a collective responsibility of the central and state governments.

"I am meeting chief ministers and others to this end," Mukherjee told reporters after a meeting with Gujarat Chief Minister Narendra Modi.

Mukherjee said he had received a memorandum in this regard from Modi as well.

Modi also said that the GST could not succeed unless there was complete coordination between the manufacturing sector, the information technology sector and consumers.

"It is essential to simplify administrative structures to the benefit of the common man and take faster and pro-development steps," he said.

The chief minister said that it was a matter of concern and insecurity for the states that a change in the central government brings about a change in the tax revenue sharing formula, which impacts development.

Mukherjee parried questions on Dow Chemicals, saying that the empowered Group of Ministers (GOM) set up after last week's judgement on the Bhopal gas disaster was going into all aspects of the matter.

"I will not take any questions in this regard," he said.

Mukherjee on Wednesday laid the foundation stone of an Income Tax office building and inaugurated a housing project in Ahmedabad.