The entire country is expected to be covered by direct Benefits Transfer scheme by the end of the current financial year. Stating this, Finance Minister Chidambaram told a press conference in New Delhi this evening, through this massive reengineering process, government wants to distribute the money to the beneficiaries directly in to their accounts. He said the scheme had already been rolled out from 1st of January this year for 26 schemes in 43 districts and 78 more will be covered from the 1st of July this year.
On transfer of LPG subsidy through the scheme, Chidambaram said that he will take up the matter with the Petroleum Minister Veerappa Moily to incorporate it in the scheme. The process will help eliminating duplicate connections and ease the subsidy burden.
On sugar de control, the Finance Minister said, it is a major step which will benefit farmer and industry. He said due to the move, annual subsidy bill will go up by 2,500 or 2,600 crore rupees. He said the government will bear cost of subsidy for two years with this current financial year and the next one.
Chidambaram said the GDP will grow by little over 6 per cent in 2013-14 and fiscal deficit will be better than 5.2 for the current fiscal. Tax target of over 10 lakh 38 thousand crore rupees for 2012-13 has been achieved. He said revenue growth of 16.7 per cent is commendable and expressed hope that the targets will be achieved. He also said government is trying to impress upon industry and investors to attract investments. He hoped that Current Account Deficit for 2012-13 will be at tolerable level.
Asked about passing of Insurance Amendment Bill in the 2nd phase of the Budget session, Chidambaram said government is trying to reach a consensus on the bill and hoped the Bill may be passed.
The Finance Minister added that Centre will come out with amendments to Income Tax Act once the tax dispute with Vodafone is resolved. He said Cabinet Committee on Investment, CCI, will take a decision to clear 31 Oil and Gas sector projects in its forth meeting this month.
On a question, he ruled out early general elections in the country and said elections will take place on time.
On the sting operations carried out by Cobra post alleging money laundering by some officials of ICICI Bank, Axis Bank and HDFC Bank, Chidambaram said the Reserve Bank is seriously looking into the issue and stern action will be taken by the government if any violation of tax law was found.
