Finance Minister Arun Jaitley today promised more concessions in income tax when the economy improves. He told a TV channel that the government does not want a high taxation regime. He said inflation rose was because of the high taxation regime of the previous government. He was of the view that there was never a Union Budget since 1947, which gave relief up to 50,000 rupees across all three classes of tax payers right from lower to the middle and higher income brackets. The Finance Minister said had the government more money in its coffers, he would have given more relief. He will raise if the government has more money tomorrow. He expected tax payers to spend more, save more which will lead to higher economic growth and give a boost to the manufacturing sector that had seen a negative growth in the last two years. Jaitley defended the government's decision to allow 49 per cent foreign direct investment in defence sector saying he will prefer companies headed by Indians with 49 per cent FDI manufacturing defence equipment in India rather than opting for imports. Jaitley also pointed out that 26 per cent FDI in defence was permitted during the NDA regime under Atal Bihari Vajpayee.