I think it is the fact that the Modi government has merged governance and economy into economic governance and has created credibility. When the government came to power it was at such a time that India was breaking in terms of power in front of the whole world. We were even considered a part of the fragile five. (There was talk of) policy paralysis; we were called a highly corrupt society. Some even said that we as a country were incapable of taking decisions. A reporter had asked, if ‘I’ (India) will fall off from BRICS. This is why the government decided to take bold decisions and we had a growth of around 8-9%. When there is a boom, anyone can progress, but we managed to do it despite that.
People used to worry about how the tax base would increase in the country. We showed them how it’s done. We are undergoing transformation from a cash economy. People used to wonder what if subsidies would be rationalised and if it would be for the poor… by using Aadhaar we showed them that it is possible.
People say that when policy rates are decided, inflation targets are in double digits, so 4% plus minus targets were decided, with law in mind. By making a monetary policy committee, by creating a union between the RBI and the government we made it possible. Earlier, banks were being looted, today we have given the creditor-lender relationship an IBC (Insolvency and Bankruptcy) code and changed the whole game. If you run companies like this then the day is not far where you get thrown out of the company and someone who can do better takes over you. This is the country’s asset. We did not just bring in the laws, we also made them functional. I think to suppress the country’s cash economy and to head towards digitisation is a challenge within itself.
Today, in the whole tax department, assessments have been made online, which I legalised during this budget. No one has to go and file the tax return… your assessment will be sent to you via mail, your refunds will be sent to home. We merged 17 taxes and 23 cesses into 1 tax (GST). One needs to only file the returns through the internet and assessment will come to them by the year end… there will be no different tax rates or assessments.