New Delhi: The finance ministry on Tuesday said it is difficult to “pinpoint” the impact of note ban on the economy and affirmed that there was no stagnation.
The overall growth of the economy is dependent on many factors, including the rate of capital formation and savings and utilisation of technology, among others, said minister of state for finance P. Radhakrishnan in a written reply to the Rajya Sabha. “It is difficult to pinpoint the impact of demonetisation,” the minister said.
The government was asked whether the economy was stagnant due to demonetisation, which was announced in November last year. “The economy is not facing stagnation,” he replied.
To support his argument, Mr Radhakrishnan said the growth in second quarter of the fiscal increased to 6.3 per cent, as compared to 5.7 per cent in April-June period.
In an another development, the Centre favours including petroleum products in the ambit of the GST but it would want a consensus with the states before taking such a step, finance minister Arun Jaitley said on Tuesday.
During the Question Hour in Rajya Sabha, Congress leader and former finance minister P. Chidambaram sought to know the government’s position on bringing petrol and diesel under the GST. He also sought to know why the prices of petrol and diesel did not decline with a fall in the global crude prices.
Mr Jaitley responded saying that a person familiar with the issue had asked the question. He said the UPA in its draft GST bill had kept petrol out of its ambit as it knew that the issue would be a deal-breaker between the Centre and the states.
“Now you are in the opposition and have a greater flexibility in changing your position,” he said.
He said the present government has persuaded the states to include petrol within the GST and the states reluctantly agreed to do so. Mr Jaitley said the Centre favoured bringing petrol with the ambit of the GST. However, it is only when the states demand it and a consensus is formed, it would be done.
