Budget 2017: Sanjay Pugalia in Conversation with Arun Jaitley

Sanjay Pugalia talks to Union Finance Minister Arun Jaitley about Budget 2017. (Photo: The Quint)

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Finance Minister Arun Jaitley shares his thoughts on the Union Budget 2017-18 with Sanjay Pugalia, Editorial Director of The Quint.

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Updated at:1st Feb, 2017 at 2:26 PM

'Universal Basic Income is an Idea Whose Time Should Come'

Commenting on the Universal Basic Income, an idea expounded by Arvind Subramanian in his Economic Survey, Arun Jaitley said that UBI could only be implemented if Indian politics matures. He said,

The Universal Basic Income is an alternative to the current structure of subsidies. If Indian politics can mature then it can be implemented. As long as other subsidies exist, the UBI can’t exist alongside.

Updated at:1st Feb, 2017 at 4:01 PM

Updated at:1st Feb, 2017 at 3:07 PM

'Reducing Corporate Tax Gradually by Phasing Exemptions'

On being asked about his promise to India Inc to bring down corporate tax to 29%, Arun Jaitley argued that reduction in tax is linked to a gradual phasing of tax exemptions. He said,

As my ability in phasing out of tax exemptions to corporates improves, tax deductions will come into play. In accordance with my ability, I have followed my promise and extended deductions to a large part of corporates. The big boys in India Inc are big enough to take care of themselves.

Updated at:1st Feb, 2017 at 4:01 PM

'MSMEs Create Most Jobs in India, And Were Worst Affected by Demonetisation'

Commenting on the importance of the MSMEs in the Indian economy, Arun Jaitley said that the small and medium corporates are responsible for job creation, which is why they have been provided a tax relief in the 2017 Budget.

Updated at:1st Feb, 2017 at 3:17 PM

Updated at:1st Feb, 2017 at 3:08 PM

'We Have Changed Cash as a Way of Life in India'

Emphasising that demonetisation has brought benefits to the people in India, Arun Jaitley argued that ‘demonetisation in India occurred in a model manner.’ He said,

The suffering caused by demonetisation was limited to the first few days, after more currency started coming in, things are becoming better. Remonetisation hasn’t occurred completely yet, but daily life is going on without any problems. In fact, VAT collection of nearly all states has increased which indicates that due to digitisation the formal economy in India has expanded.

Updated at:1st Feb, 2017 at 3:17 PM

Updated at:1st Feb, 2017 at 2:58 PM

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One Political Party, One Account: Jaitley on Reforms in Political Funding

Commenting on reforms in funding of political parties, Arun Jaitley explained the political bond scheme while giving an example of how Barack Obama funded his political campaign. He said,

According to the electoral bonds scheme, a bank will be notified. Anyone can buy the donor bond from this bank, which will be encashed within a time limit. These bonds are then redeemable in an account which is owned by one party. One political party will have one account. There will be some anonymity on where the bonds are distributed.

Updated at:1st Feb, 2017 at 3:17 PM

Updated at:1st Feb, 2017 at 2:58 PM

'Demonetisation Will Expand, People Are Going to Disclose More Money'

Stressing on the benefits of demonetisation, Jaitley assured that over time, more and more people would come forward to disclose money. He also predicted benefits in personal income tax.

The Finance Minister also said that while excise tax will become obsolete in the middle of the year with the introduction of the Goods and Services Tax (GST), indirect tax collection will increase.

Updated at:1st Feb, 2017 at 3:17 PM

Updated at:1st Feb, 2017 at 2:47 PM

'Strength of Indian Economy is Government Spending'

After announcing the Union Budget 2017, Arun Jaitley said that public spending was the strength of the Indian economy.

Our strength is Foreign Direct Investment and our weakness is private sector. The banks are still struggling, so I had to increase government spending. On merit, the sector which needs most spending is rural agriculture area.

Updated at:1st Feb, 2017 at 3:17 PM

Updated at:1st Feb, 2017 at 2:47 PM

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Updated at:1st Feb, 2017 at 2:27 PM