Sitharaman said petroleum products can be included in the Goods and Services Tax (GST) framework once an agreement has been reached with states.
“Consistently for the last three-four years, the emphasis has been given on public capital expenditure. We have kept that up in this budget…capital expenditure, clearly can be said as a real focus of this budget,” she said at a post-budget interaction organised by industry body PHDCCI.
The capex outlay has been hiked sharply for FY24 even on an elevated base, as the government wants to harness its large multiplier effect to stir growth, she said.
The Centre has raised capex allocation for FY24 by 37.4% to a record Rs 10 lakh crore.
The government has retained its focus on prudent spending by completely aligning its budgetary plans with its fiscal consolidation road map, Sitharaman said.
The Centre aims to trim its fiscal deficit to 5.9% of the GDP in FY24 and 4.5% by FY26, from 6.4% in the ongoing fiscal year, in order to reduce its elevated debt and interest burden.On bringing petroleum products under the GST, Sitharaman indicated that the ball was in states’ court.
“The provision is already available for petroleum products to be brought under the GST…. Once states agree, we will have the petroleum products covered under the GST,” she said.
Five petroleum products – petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel – have temporarily been kept out and the GST Council will decide the date from which they shall be included.
“Once the states agree, we will have the petroleum products also covered under the GST. So, that’s not so much of us not wanting it,” she said. “What they (states) have to do is to determine the (GST) rates and once they tell me the rates, we will get it into the GST.”
Cose watch on surge in Imports
Speaking at a separate interaction organised by industry body Assocham, the finance minister said India cannot really be inward looking if it has to be Atmanirbhar (self-reliant).
“There are several MSMEs and also large manufacturers who still need those critical components which come from somewhere else,” she said, pointing out that the government had examined the customs duty structure item-wise to see where it was possible to reduce without hurting any section of industry.
However, she said, the government was keeping a very close watch on flooding or surge in any kind of imported goods. “There is a very keen eye being kept on what is happening at our borders in terms of exports and in terms of imports,” she said, adding that the government was not taking a blanket position.