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Advancing Budget helped boost spending by 30%: PM Narendra Modi : 17-07-2017


NEW DELHI: Prime Minister Narendra Modi on Sunday said advancing the Budget by a month had helped increase overall expenditure by nearly 30%, with a 48% rise in spending on infrastructure development.

While thanking lawmakers for their support for historic economic reforms such as bringing the Budget session of Parliament forward and introduction of the goods and services tax (GST), Modi said higher spending was a huge achievement and would bring fiscal prudence in capital expenditure in future.

“A major impact of advancing the budgetary process by a month has been that the funds allotted to several departments for various schemes reached before the monsoon season. Earlier, it used to take two to three months for the funds allocated to the schemes to reach up to the departments. The implementation was delayed due to the monsoon. It did not happen this time and there has not been any lag period after March. It has also provided three months additional time for the completion of infrastrue development.

While thanking lawmakers for their support for historic economic reforms such as bringing the Budget session of Parliament forward and introduction of the goods and services tax (GST), Modi said higher spending was a huge achievement and would bring fiscal prudence in capital expenditure in future.

“A major impact of advancing the budgetary process by a month has been that the funds allotted to several departments for various schemes reached before the monsoon season. Earlier, it used to take two to three months for the funds allocated to the schemes to reach up to the departments. The implementation was delayed due to the monsoon. It did not happen this time and there has not been any lag period after March. It has also provided three months additional time for the completion of  infrastructure projects,“ he said during the allparty meeting. 

He said the trend of expenditure in schemes reflected that funds would be spent in a balanced manner throughout the year. “Earlier, the expenditure used to begin after the monsoon and unnecessary pressure was there to spend the money before March. It was one of the reasons for the faults in the system,“ he said.

Similarly ,introduction of the GST regime, with the support of all parties, had strengthened the federal structure and brought about economic solidarity in the country , the PM added. During the first fortnight of the new regime, the results had been positive with the removal of check posts for commercial taxes making the movement of trucks easier at state borders.

Several economic legislations are listed for discussion during the Parliament session, including amendments to the Companies Act, which have been pending.While the bill had been introduced, the revised legislation incorporating the suggestions of the standing committee will be debated in both the Houses.

The government also intends to introduce the Financial Resolution and Deposit Insurance (FRDI) Bill for dealing with stressed banks and financial institutions, while also strengthening the functioning of state-run banks by amending the Banking Regulation Act and the law governing SBI.

Source : Times Of India