The Union Finance Minister, Mr Pranab Mukherjee, on Thursday said that the State-level differences regarding Goods and Services Tax continue to exist even after the meeting of the Empowered Group of State Finance Ministers. Speaking at an event, organised by the Federation of Indian Chamber of Commerce and Industry, Mr Mukherjee said, “At the national level, there is a certain amount of convergence but this is yet to be reflected at the State-level. Even after the meeting with the Empowered Group of State Finance Ministers, we are yet to reach consensus. However, we are working hard towards sticking to the target date of April 2010 to implement the GST.”

OPTIMISTIC

He added that the Direct Tax Bill will be introduced in Parliament during the Winter Session and hopes to implement the Direct Tax Code in its full form by 2011. The Minister was also confident that despite the deficient monsoons, the economy will register a reasonable growth of six per cent plus for 2009-10. Responding to a question from the floor, Mr Mukherjee said that for the year 2010-11, the economy can register a growth of eight per cent if there are no “further adverse situations” such as the drought this year. “India is still an attractive destination for foreign investment. Based on the FDI and FII figures even during this period of depression, I would say that achieving the target of eight per cent growth in 2010-11 is possible,” he added.

FISCAL DEFICIT

The Minister also stressed upon his plans to bring down fiscal deficit to four per cent of the GDP from its current levels of 6.8 per cent by 2011. “The current level of fiscal deficit is not sustainable. The global meltdown made it necessary for a temporary deviation from the path of fiscal consolidation in order to provide fiscal stimulus. But we have to come back to the path of fiscal consolidation,” said Mr Mukherjee. Speaking about the impact of drought, Mr Mukherjee urged people not to push the panic button as yet. He said that as of April 2010, the wheat stock in the country would be 17.7 million tonnes while rice stocks in October 2009 would be 13.7 million tonnes. The Minister also said that incentives have been given by the Government for short duration crops and early sowing for rabi crops in order to mitigate the 15-20 per cent shortfall in kharif crop output this year.