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Speaking about the hike in fuel prices, the Finance Minister stated that Petrol and diesel could be taxed under GST (Goods and Services Tax) rather than VAT (Value Added Tax) if state governments agree to the proposal and fix a suitable rate.(PTI File Photo)
Opposition leaders had criticised that the Finance Minister’s speech earlier this week mentioned only two states – Andhra Pradesh and Bihar, both ruled by key BJP allies
Union Finance Minister Nirmala Sitharaman on Friday responded to the Opposition’s criticism of budget 2024 and stressed that no state has been denied anything. Opposition leaders had criticised that the Finance Minister’s speech earlier this week mentioned only two states – Andhra Pradesh and Bihar, both ruled by key BJP allies.
In an interview with NDTV, Sitharaman said, “States are receiving allocations as they have in the past… no state has been denied anything. The Act (Andhra Pradesh Reorganisation Act) requires the centre to support (the state) in building its capital city and developing backward regions.”
Finance Minister Nirmala Sitharaman On Fuel Prices
Speaking about the hike in fuel prices, the Finance Minister stated that Petrol and diesel could be taxed under GST (Goods and Services Tax) rather than VAT (Value Added Tax) if state governments agree to the proposal and fix a suitable rate.
“If they fix the rate and all come together… and decide that GST will include petroleum products, then we can implement it immediately,” Sitharaman said.
At present, petrol and diesel prices vary from state to state because each has a different tax.
Finance Minister Nirmala Sitharaman On Debt
Sitharaman said fixing a number for the eventual fiscal deficit and working towards it with temporary solutions every year can be a step towards reducing debt, but it is not the “right way from a macroeconomic perspective”.
“We have chosen a healthy option for getting the fiscal deficit closer to the number. Instead of looking at the number alone, it is also about the way you decide to get there. An obvious method for every country is to reduce debt, but borrowing is a must for a growing economy. The question is how much are you borrowing and where it is being used,” the Finance Minister noted.