To generate employment, we have brought in production linked schemes and given incentives to manufacturing companies, she says.
After presenting the Budget, finance minister Nirmala Sitharaman interacted with a group of media persons where she highlighted the government’s resolve to generate more jobs by giving thrust to startups, MSMEs, manufacturing firms and defence equipment producers. She also highlighted that taxing of virtual assets does not automatically bring legitimacy to cryptocurrencies, while the regulatory framework in the works will decide it. Edited excerpts:
The Centre has scaled up 50-year interest free loans to Rs 1 lakh crore for states to undertake capex in the next financial year. Will these be subject to any conditions to be met by states?
We will accept any project. But, more so, if they are within the broad framework of Gati Shakti (multi-modal connectivity project). States’ projects will also be accepted based on their priorities. Every states requirement won’t be same, there will be state-specific projects. There will also be a lot (of projects) related to climate change and green-energy. States have good capacity to execute these.
How is the budget is going to promote job creation?
To generate employment, we have brought in production-linked schemes and given incentives to manufacturing companies. We are giving additional Rs 50,000 crore sovereign guarantee under ECLGS, meant mainly for MSMEs. The hospitality industry and contact-intenisive sectors will also benefit from the scheme. Reservation of 68% defence capital budget for domestic manufacturing will also generate jobs.
Isn’t tax on virtual assets giving legitimacy to cryptocurrencies?
I haven’t got into that. We put a document out for consultation. Once that process is over, we will know what is to be done in terms of regulations. This expression ‘cryptocurrency’ has become generic for anything using block-chain technology. Every individual cannot be mining currency. Is it not illicit? It has to be driven by the central bank. The RBI will come up with a digital currency. Outside of it, buying and selling is happening and profits are being made, nothing stops me from taxing them. Taxing that does not automatically bring legitimacy.
Why haven’t you tweaked the new personal income tax regime as it has got fewer takers compared to the old regime?
We have given two parallel systems. Let them run. We will see these going on. Broadly, people with very high income have moved over to the new tax regime.
Why disinvestment receipts have been scaled down for next financial year? Are bank privatisation not happening?
People kept asking about whether Air India is happening or not, but we have completed it. Disinvestment will go on.
Are disinvestment receipts underestimated to keep some headroom for more revenues?
Budgets are made with realistic numbers. We have brought on board certain expenditure which were kept outside of the budget. It is a speaking budget. The estimates are not unrealistic. They may look conservative but they are realistic.
Will high government borrowing crowd out private investment?
There is enough money in the system. I don’t think government’s borrowing will crowd out private borrowing.
Is rolling out of core banking solution at post offices a precursor to universalisation of postal banking network?
It is a ease of living/ease of doing business, particularly in rural areas. Sending and receiving money becomes easier in places where banks don’t find it viable to operate.
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