Ahead of the 2015-16 Budget, Finance Minister Arun Jaitley has stated that the government will take special steps to boost public spending on infrastructure and initiate measures to rationalise subsidies. The Minister added that whole PPP model is still under stress and there is a need for stepping up public investments in infrastructure sector to boost economic growth. Public spending on infrastructure will be used to rejuvenate investments into the sector and instill confidence in public-private partnerships. With a consistent and clear policy, the Centre is confident of attracting global investments.
On rationalizing subsidies, Arun Jaitley asserted that it has become imperative to gradually rationalise all possible subsidies and from January 1, LPG subsidy is paying through banks. Underlining the need for stability in tax and other policies to make India an attractive place for investment, Finance Minister added that the implementation of the Goods and Services Tax (GST) will help in improving the business climate in the country.
Finance Ministry is expected to incorporate the suggestions of the Expenditure Finance Commission headed by former RBI Governor Bimal Jalan in the budget proposals for 2015-16, which will be presented by Jaitley next month. Bimal Jalan is also reported to have submitted interim recommendations to the Finance Ministry suggesting various steps to rationalise subsidies and public expenditure.