Union Finance Minister Arun Jaitley said in the Parliament today that Indian economy is facing many challenges. Jaitley stressed on the fact that global slowdown is the main reason for weakness in the economy. He targeted the UPA government on fiscal slippages saying that India under UPA had started losing credibility with large fiscal slippages whereas the current government has brought down the 4.6 percent fiscal deficit inherited from the UPA. He added that currently, the economy is facing only marginal fiscal slippages. The finance Minister hailed PM Narendra Modi’s statutory support to the Aadhaar system.
Arun Jaitley also said that the subsidies payout via Direct Benefit Transfer helped the economy a great deal. Although the Goods and Services Tax (GST) have been criticised by the opposition, Jaitley defended it saying that government took structural reforms despite global weakness and back to back droughts. He said that Aadhaar, DBT and GST are the reforms that the opposition started but could not execute. Talking about bank recapitalisation, Jaitley said that the goverment has given highest possible recap to support PSU banks. He also pointed out that reckless lending adversely affected PSU banks.