He said the government was only taking action that was doable.
“We have done whatever was doable on diesel and LPG prices. A correction was also overdue on the under-recoveries on petrol prices,” he said.
The Cabinet Committee on Political Affairs last Thursday approved a Rs. 5 hike in the price of diesel. This excluded value added tax.
The minister also ruled out any threat to the government, saying that allies and outside supporters will continue supporting the UPA.
The price of diesel, which is partially deregulated product, had last been hiked by Rs. 3 in July last year.
The Rs. 5 increase does not include value added tax. Diesel now costs Rs. 46.32 per litre in the Capital, and Rs. 51.25 in Mumbai.
Speaking about 51 per cent foreign direct investment in multi-brand retail, which the Cabinet Committee on Economic Affairs cleared last Friday, the Finance Minister said the final decision rested at the state level. “A state which wants it will implement it. A state which does not want it will not implement it."
Here are the highlights of what he said:
On retrospective tax
- Decision will be taken after the Shome committee gives its report
- Reversing decisions should not hastily done…I think they are going about their job in a business-like way
- What we are questioning is some processes that have risk implications
- I fully support UIDAI but it should not have any security risks
- UIDI will work
- No one from the government will give that impression and it will not happen
- FDI in retail is a state-level decision
- A state which wants it will implement it
- A state which does not want it will not implement it
- We do not make policies to get better credit ratings
- The policies are made after decision making and noisy discussions and broad considerations
- Too early to comment
- Government will borrow according to the situation
- We will borrow according to the current plan
- On divestment, we still have six months
- What method we will adopt will depend on the empowered committee report
- We want to complete the divestment in the next six months
- If we can have a meet before 15 October and then we can finalize the decision