"Some of our states have to introspect and get their act together"

Finance Minister Nirmala Sitharaman on the measures announced in the recent Budget, India's growth prospects, global uncertainty and more

- BY TEAM BT

Soon after she presented a record eighth consecutive Budget on February 1, Finance Minister Nirmala Sitharaman was interviewed by Rahul Kanwal, News Director of India Today and Aaj Tak, and Executive Director of Business Today: Siddharth Zarabi, Editor, Business Today; Sahil Joshi, Executive Editor, India Today; and Sakshi Batra, Senior Associate Editor, BTTV. Edited excerpts:

Q: Are the tax sops an admission that urban consumption has not grown fast and, therefore, a masterstroke was needed?

A: In the last three or four years, we have continuously engaged [with income tax payers]... and to ensure that their trust in the government is intact, we have taken several steps. In every Budget clear steps have been taken towards giving the sense that we respect taxpayers. And this is a continuation of that effort. I don't deny that this is going to have a collateral [impact] in terms of consumption, in savings. Taxpayers are all over the country, not just in urban areas, and this is a continuation of Prime Minister Modi's effort to respect the service that taxpayers are doing in nation building.

Q: Beyond direct tax, does the onus now shift to the GST (Goods and Services Tax) Council to reform and give us a GST 3.0 that addresses some of the anomalies?