As Minister of Finance, Corporate Affairs and Information and Broadcasting, and the government's troubleshooter-in-chief in Parliament, Arun Jaitley has emerged perhaps the most important minister in the Narendra Modi's Cabinet, after the prime minister himself.
Here is a look at Jaitley's successes and failures in his first year as the man tasked with reviving the economy:
One year of Modi sarkar: Complete coverage
HITS HANDLING THE FISCAL BEAT:
Initial estimates say the fiscal deficit for FY15 came in at 4% of GDP against Budgeted estimates of 4.1%; perhaps the most fiscally astute move Jaitley made was delaying the fiscal deficit road map and projecting 3.9% for FY16 instead of the advised 3.6%
PUBLIC SPENDING PUSH:
Better fiscal situation helped free up Rs 70,000 cr or Rs 700 billion for increased public sector spending in infrastructure; With weak corporate results lowering private sector expenditure, the Centre's spending surge will give to push to Smart Cities, infra corridors and other projects
COMPETITIVE CORPORATE TAX RATES:
Proposal to reduce corporate tax rates to 25% from 30% over four years would make India's corporate tax rates more attractive to investors than those of other emerging economies'
BLACK MONEY ACT:
A new stringent law promises to come down hard on those with unaccounted wealth abroad
JAN DHAN:
One year of Modi sarkar: Complete coverage
By May 13, more than 150 mn new accounts were opened; shortfalls remain but the Direct Benefits Transfer programme expected to fill the gaps
INCREASED DEVOLUTION TO STATES:
The government approved the recommendations of the Fourteenth Finance Commission to give states a greater share of money; Jaitley said in Parliament states have got Rs 1.8 lakh crore extra after the increase in devolution
MUDRA BANK AND UNIVERSAL SOCIAL SECURITY SCHEMES:
Micro Units Development and Refinance Agency (Mudra) Bank set up to finance small businesses in unorganised sector; Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojna launched on May 9
MISSES MAT:
Jaitley said in the Budget that foreign institutional investors would be exempted from MAT from 2015; immediately afterwards, the I-T dept started sending minimum alternate tax (MAT) notices to 68 foreign institutional investors (FIIs) for previous years, leading to confusion
TAX FORMS:
The 14-page income-tax return form sought details such as bank accounts and foreign trip details; Jaitley later clarified the form would be simplified GST: With just 11 months left for the Goods and Service Tax (GST) roll-out date, Jaitley had to admit that they were cutting it 'too fine'; the opposition forced the Constitution amendment Bill to a select panel; states haven't agreed on a revenue-neutral rate and there are demands to increase the additional levy
PDMA:
Provisions were included in the Finance Bill-2015 to take away the Reserve Bank's power to issue government bonds and regulate money markets; but provisions removed and officials said more deliberations required on setting up a public debt management agency, indicating a lack of cohesion between the government and the central bank
UNREALISTIC DISINVESTMENT TARGETS:
The combined stake sale target in FY15 was Rs 58,425 cr or Rs 584.25 billion, which was revised to Rs 26,353 cr or Rs 263.53 billion; FY16 target at Rs 69,500 cr or Rs 695 billion is the highest
LACK OF MAJOR CAPITAL MARKET REFORMS:
The Centre hasn't accepted the Sahoo panel recommendations on revamping external commercial borrowings; no clarity on the promised opening up of currency derivatives market
NPA AND RECAPITALISATION OF BANKS:
Jaitley has budgeted bank recapitalisation of Rs 7,940 cr for FY16; From budgeted Rs 11,200 cr or Rs 112 billion in FY15 only Rs 6,990 cr or Rs 69.90 billion given to nine state-owned banks based on certain parameters, which were criticised by experts; though non-performing assets reduced slightly in the last quarter, it was more due to banks' cautiousness.
Photograph: PTI
