The government had originally planned to roll out GST from 1st April last year but a consensus could not be reached on the introduction of the Bill. In its latest GST constitution amendment draft the Centre has proposed to give powers to Parliament for constituting the GST council
New Delhi: Finance minister Pranab Mukherjee today said the government proposes to introduce the Constitution Amendment Bill in the current session to pave the way for introduction of the long-awaited Goods and Services Tax (GST) regime, reports PTI.
"I propose to introduce the constitution amendment bill in this session of Parliament," Mr Mukherjee said in his Budget speech 2011-12.
The government had originally planned to roll out GST from 1st April last year but a consensus could not be reached on the introduction of the Bill, which needs to be passed by two-third majority in both the Houses of Parliament.
In its latest GST constitution amendment draft-the third of so far-the Centre has proposed to give powers to Parliament for constituting the GST council.
The earlier two drafts had to be changed because of opposition by some states to them, who said the Bill would curb their fiscal autonomy.
GST would subsume most of the central and state taxes like excise and sales tax, making rules easier for the industry and other tax payers.
According to the data released by the government today, the farm sector recorded a growth rate of 8.9% during the third quarter ending December, while the services sector, including financing, insurance, real estate and business services recorded a growth rate of 11.2%
New Delhi: Driven by good performance of agriculture and services sector, the Indian economy grew by 8.2% in the third quarter of the current fiscal, up from 7.3% in the corresponding period a year ago, reports PTI.
According to the data released by the government today, the farm sector recorded a growth rate of 8.9% during the third quarter ending December, up from a decline of 1.6% in the corresponding period a year ago.
The services sector, including financing, insurance, real estate and business services during the same period recorded a growth rate of 11.2% as compared to 8.5% during the same period last year.
Electricity, gas and water supply is another sector that has done well as it grew at the rate of 6.4% in third quarter compared to 4.5% in the same period last fiscal.
Mining and quarrying growth jumped to 6% per cent in third quarter from 5.2% in the same three-month period last fiscal.
Manufacturing and construction activity has slowed down, growing at pace of 5.6% and 8%, respectively, in the three- month period as against 11.4% and 8.3% respectively in the corresponding quarter.
The government expects the growth to top 8.5% in the current fiscal. The growth rate for the first and second quarters was unchanged at 8.9% each.
Finance minister Pranab Mukherjee in his Budget speech said that inflation, especially high food prices, continue to worry and also called for improvement of distribution and marketing systems to bridge the gap between wholesale and retail prices
New Delhi: The government today said inflation continues to remain a concern, but exuded confidence that the Reserve Bank of India's (RBI) monetary policy will lead to moderation in inflation numbers in the coming months, reports PTI.
"But it (inflation) clearly remains a concern... I expect the policy taken by RBI to further moderate inflation in coming months... Average inflation to be lower next year," finance minister Pranab Mukherjee said while presenting the Budget for 2011-12.
He, however, said that inflation, especially high food prices, continue to worry and also called for improvement of distribution and marketing systems to bridge the gap between wholesale and retail prices.
"... Difference in wholesale and retail prices is not acceptable," Mr Mukherjee said.
Regarding food inflation, he said: "The total food inflation declined from 20.4% in February 2010, to less than half, at 9.3% in January, 2011."
Mr Mukherjee also put emphasis on increasing agricultural productivity to curb food inflation.
The government and the RBI have been under pressure due to inflationary pressure, particularly of food products.
The RBI has hiked short-term lending and borrowing rates six times during the current fiscal, including a hike of 25 basis points in its third quarterly review in January.
The government had earlier said it expects inflation to fall to around 7% by March-end and dip to around 5%-6% by the middle of the year.
However, the Economic Survey released last week said the high growth rate would also affect inflation, which would be 1.5% more than what it, would have been otherwise.
The survey had also said that high global commodity prices, particularly crude prices, are going to be affected due to the turmoil in the Middle East and this may affect the domestic trend also.
Headline inflation has been above 8% since February 2010. It was 8.23% in January this year.
Food inflation has been in double digits for the most of the current fiscal. According to the latest data, food inflation stood at 11.49% for the week ended 12th February.
Skyrocketing prices of vegetables found in every Indian's kitchen, particularly onions, even forced the government to go for an export ban for some period earlier in the fiscal.