FM Calls for Fiscal Consolidation to Bring Down Fiscal Deficit to 4.1 - Percent by 2012-13; Stakeholders Concern Redressed to Large Extent as Far as Draft Tax Code is Concerned

Union Finance Minister Pranab Mukherjee has said that the government has discussed the different provisions of Draft Tax Code (DTC) with concerned stakeholders and have redressed their concerns to large extent. Mr Mukherjee was addressing the 55th Meeting of National Development Council (NDC) in Vigyan Bhawan in Delhi today.The Finance Minister solicited the support of political leaders of different political parties who are heading different State Governments and present in the meeting for evolving a larger consensus on various issues concerning with Goods and Services Tax(GST) proposals.Mr Mukherjee said that government alone can't get it implemented as it requires the constitutional amendment for which a large political consensus is required among major political parties.He assured that a large distance in this regard has already been covered and his talks with Empowered Group of Finance Ministers consituted on this matter has been quite fruitful.He assured that no State would be allowed to suffer any loss and would be fully compensated by the central government.

Regarding inflation, the Finance Minister said that it is a matter of concern for us but it is a economic issue which is to be tackled economically without attaching any political emotions or passion to it. He said that government is taking adequate steps to contain it and is hopeful that by end iof year, it will come to single digit.He said that impact of inflation can be further reduced by having good public distribution system in place and effective disbursement of essential commodities through it to public especially to people below poverty line.

Mr Mukherjee said that now time has come to revert to the course of fiscal consolidation as path of fiscal expansion can't be sustained for long time. In this regard, he referred to roadmap given by 13th Finance Commission according to which fiscal deficit has to be brought down to 4.1percent by 2012-13.