Measures to revive private investment to be announced soon: Jaitley

Sanjeev Sharma

Tribune News Service

New Delhi, September 21

The government will soon announce measures to revive private investments, which have been weak to boost growth in the economy. 

Finance Minister Arun Jiatley said on Thursday that there was problem of private investment and the government was aware of the issue. 

"Very soon you will hear from us,” Jiatley said speaking at the investor summit organised by JP Morgan. 

Investments by companies has slowed down considerably in the last few years and while public spending is keeping the economy afloat, till there is new private sector investment into manufacturing and creation of jobs, the growth rate will remain a challenge. 

Capacity utilisation has been low in the private sector leading to corporates being wary of fresh infusion and to compound the problem, a large number of companies are saddled with excessive debt, which has to be brought down. 

The measures to revive private investment may come as part of the stimulus package that the government was likely to announce soon to revive growth. 

Jaitley said that from day one, this was a proactive government. "We are analysing the economic indicators and appropriate action will be taken at right time", he said. 

The FINANCE MINISTER has held meetings with the Railways and Commerce Ministers and other government officials on the economic situation amid calls for a stimulus to boost growth, which has been going down for last few quarters. 

Signalling that real estate may be brought under GST, the Finance Minister said: "As far as bringing more items under GST is concerned, I think real estate is most easy to bring in.”

Jaitley added that so far, the government has been able to contain inflation impact post GST. He said assessees should file their GST return four-days days in advance before the due date to avoid last minute glitches.

On the issue of Universal Basic Income (UBI) proposed in this year's Economic Survey, Jaitley said he is personally in favour of it. 

But the only fear is level of political maturity. It was flagged in the Economic Survey that if the UBI or a fixed sum in cash is to be given to a targeted population, then to make it sustainable, the other subsidies have to be done away with. As far as farm loan waiver by states is concerned, the Finance Minister said they have to find their own resources for this purpose.