LOK SABHA ___

SYNOPSIS OF DEBATES (Proceedings other than Questions & Answers) ______

Tuesday, March 21, 2017/Phalguna 30, 1938 (Saka) ______

SUBMISSION BY MEMBERS

Re: Need to direct NAFED to purchase more amount of tur pulse

THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC

DISTRIBUTION (SHRI RAMVILAS PASWAN) responding to the issue raised by several hon. Members, said: The hon. Members had demanded that three lakh tonnes extra tur pulse be purchased from Gulbarga. Regarding NAFED, it comes under the Ministry of Agriculture. All this involves expenditure and it concerns the Ministry of Finance, yet I immediately ordered for the purchase of 50,000 tonnes of tur pulse. As far as MSP and bonus are concerned, MSP is decided by the Government and bonus by the state governments. Last year the price of tur dal reached upto Rs.200 per kg. and we decided to create a buffer stock of 20 lakh tonnes of pulses for the first time. Out of this about 15 lakh tonnes has already been purchased from all sources. Our earlier stand was to import 10 lakh tonnes dal and purchase of remaining 10 lakh tonnes from domestic sources, but more than about 14 lakh tonnes have already been purchased from domestic sources. I agree with the member's view that the produce of the farmers should be purchased at the maximum MSP.

*MATTERS UNDER RULE 377

(i) SHRI SATISH CHANDRA DUBEY laid a statement regarding need to

expedite gauge conversion of railway lines from Raxual to Narkatiaganj

and Narkatiaganj to Bhiknathori in Valmikinagar parliamentary

Constituency, Bihar.

(ii) SHRI MUKESH RAJPUT laid a statement regarding need to take

measures for welfare of potato growers.

(iii) SHRIMATI NEELAM SONKER laid a statement regarding need to

provide interest-free loan to unemployed persons for setting up small

scale industries under 'Stand up India' scheme in Lalganj Parliamentary

Constituency, Uttar Pradesh.

(iv) SHRI GANESH SINGH laid a statement regarding need to provide

LPG connections to all the eligible BPL households under Pradhan

Mantri Ujjwala Yojana.

* Laid on the Table as directed by the Speaker. (v) SHRI RATTAN LAL KATARIA laid a statement regarding need to

provide all the necessary facilities in Ambala having tremendous

potential of becoming the economic hub of the country.

(vi) SHRI DEVUSINH CHAUHAN laid a statement regarding registration

of Hybrid/Electronic Cars.

(vii) SHRI RODMAL NAGAR laid a statement regarding need to ensure

proper implementation of Pradhan Mantri Fasal Bima Yojana.

(viii) SHRI BIRENDRA KUMAR CHOUDHARY laid a statement

regarding need to develop Raja Bali Garh and Nau Lakha Temple in

Madhubani district, Bihar as a tourist place.

(ix) SHRIMATI MEENAKASHI LEKHI laid a statement regarding

effective implementation of Mid-Day-Meal Scheme.

(x) SHRI NIHAL CHAND laid a statement regarding need to provide full

share of water due to Rajasthan from Punjab and nominate a member

from Rajasthan in Bhakra Beas Management Board.

(xi) SHRI RAJENDRA AGRAWAL laid a statement regarding need to set

up a Water Testing Laboratory and Environmental Information System in

Meerut, Uttar Pradesh. (xii) SHRI RAVINDRA KUMAR RAY laid a statement regarding need to

provide wages to journalists as per the recommendations of Majithia

Wage Board.

(xiii) PROF. K.V. THOMAS laid a statement regarding need to constitute a

new Wage Board for Media after modifying its terms of reference.

(xiv) SHRI M.I. SHANAVAS laid a statement regarding need to extend

repayment period of loans by farmers.

(xv) SHRI S.P. MUDDAHANUME GOWDA laid a statement regarding

need to monitor the residential schools in the country.

(xvi) SHRI S. R. VIJAYA KUMAR laid a statement regarding need to make

amendments in the MoU regarding Chennai Metro Rail Project.

(xvii) SHRI G. HARI laid a statement regarding need to provide financial

assistance to Tamil Nadu affected by heavy rains and cyclone.

(xviii) SHRIMATI PRATIMA MONDAL laid a statement regarding need to

undertake dredging of river Matla River and its tributaries in West

Bengal.

(xix) PROF. SAUGATA ROY laid a statement regarding rise in encounters

against militants in Jammu & Kashmir.

(xx) SHRI ARKA KESHARI DEO laid a statement regarding need to

construct railway line between Kantabanji & Khariar, Odisha. (xxi) SHRI GAJANAN KIRTIKAR laid a statement regarding need to grant

Rs.3 crore annually to each Member of Parliament for construction of

toilets in city area of his/her constituency.

(xxii) SHRI RAM MOHAN NAIDU KINJARAPU laid a statement regarding

need to revamp healthcare and education facilities in rural India.

(xxiii) SHRI KOTHA PRABHAKAR REDDY laid a statement regarding

need to extend Mid-Day-Meal Scheme to students of 10+2 course.

(xxiv) SHRI P. K. BIJU laid a statement regarding fuel surcharge or

transaction fee levied by banks on customers.

(xxv) KUNWAR HARIBANSH SINGH laid a statement regarding need to

provide funds for construction of an auditorium in Pratapgarh

Parliamentary Constituency, Uttar Pradesh.

(xxvi) SHRI RAJU SHETTY laid a statement regarding need to enact a law

legitimizing bull race in rural areas of the country.

THE FINANCE BILL, 2017

THE MINISTER OF FINANCE, MINISTER OF CORPORATE

AFFAIRS AND MINISTER OF DEFENCE(SHRI ARUN JAITLEY) moved that the Bill to give effect to the financial proposals of the Central Government for the financial year 2017-18 be taken into consideration. SHRI N.K. PREMACHANDRAN: My serious objection to the

Finance Bill, 2017 is under Article 110, and 117 and rule 219(1) of the Rules of

Procedure and Conduct of Business in Lok Sabha. Once we have agitated this matter in detail during the introduction of the Finance Bill, 2015. I am forced to repeat the arguments once again. Rule 219(1) is distinct and separate and it is only to give effect to the finance proposals for the year or for the following year, that is, for a particular period, and not of a permanent nature. Article 110(1) of the

Constitution of India also elaborately discusses. For the purposes of this Chapter, a

Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters Clauses (a) to (f), which deals with taxation proposals, recovery of money, regulation of the borrowing of money, custody with the Consolidated Fund and the Contingency Fund of India, and appropriation of money under the Consolidated Fund of India and so on. How an issuance of the electoral rolls fall within the taxation proposals over matters incidental to the taxation proposal? That is the question which I would like to know. Just now we have received the list of amendments. 40 existing Acts are proposed to be amended by means of this Finance Bill. When the original Bill was presented on 1st

February, 2017, only 8 to 10 Acts were proposed to be amended. These amendments are pushed through this House by suspending Rule 80(i) of the Rules of Procedure and Conduct of Business in Lok Sabha. I would like to know whether it is right because Rule 80(i) is very specific and says that an amendment should be related to the matter which is connected with the facts of the original

Bill. Unfortunately these things are not connected with the original Bill and these amendments are now being pushed through or they are being bulldozed just a few minutes before. There is the ruling which was given in the year 1956 and in 1970 also the same ruling was given. Madam you also gave ruling on 30.4.2015. This was the ruling, which you had given when the Finance Bill of 2015 was brought in this House when a point of order had been raised by myself and Prof. Saugata Roy.

My point is that it is absolutely a backdoor legislation. It cannot be allowed under the pretext of a Finance Bill. I strongly oppose the move to suspend the Rules of

Procedure so as to bring very cardinal structural amendments to the existing 30

Acts. It is the legitimate, democratic and supreme right of the Parliament, which is being taken away. So, I strongly oppose moving of this Bill for consideration and passing. I am seeking a ruling from you once again on this aspect.

SHRI ARUN JAITLEY: Hon. Member's objection is predominantly borne out of the language of Article 110(1). The critical word, according to an hon.

Member is the word 'only'; and that is how, another hon. Member supports him that it is only the taxation proposals and nothing else, which is incidental, really can find a place as far as the Money Bill is concerned. With regard to this word 'only', right from the inception of this House, as to what is the width that this word 'only' permits has been a subject matter of debate. Mr. Mavalankar, in his first Ruling on this subject gave the thrust on the point that you cannot have a Bill which says that the Government shall spend Rs.100 thousand. How that is to be spent, the incidental provisions will have to be contained. The fact is that these incidental provisions to the Principal provision exist do not render a Bill to be a Non-Money

Bill. That is what Mr. Mavalankar said. Therefore, the word 'only' has to be read in the context of the spirit of Article 110. It is much ado about nothing that you say 40 laws are being amended. What is the amendment? The amendments are incidental to the Acts. In fact these amendments relates to minor changes in the original Acts. The hon. Members also say how is electoral bonds a money Bill? In the Budget announcement, we came out with a proposal that there will be an income tax incentive involved in four different ways. These are all amendments under the Income Tax Act and the specific provision of the Income Tax Act which deals with this is Section 13A. In the Finance Bill, this is clause 11. These are all incidental announcements to that entire scheme which has been made under the

Income Tax Act itself. So, my respectful submission is that it is squarely in the language of Article.

Thereafter, the Speaker made the following observation:

HON. SPEAKER: Hon. Members would recall that during the last year when similar objections were raised at the time of consideration of the Finance Bill, 2016, I had observed that as per rule 219, the primary object of a Finance Bill is to give effect to the financial proposals of the Government. There is no doubt about it. At the same time, this Rule does not rule out the possibility of inclusion of non-taxation proposals. Therefore, I have accepted this. The Finance Bill may contain non-taxation proposals also. Now another thing is no doubt every effort should be made to separate taxation measures from other matters. It should be done. But as has been very widely explained by the Finance Minister I did not say the thing again and again. So incidental provisions can be made that is why keeping in view that rule 219 does not specifically bar inclusion of non-taxation proposals in a Finance Bill, I rule out the Point of Order.

SHRI DEEPENDER SINGH HOODA initiating said: Before I dwell on this Bill, I would like to put on record my opposition to your ruling in relation to the Finance Bill though under Article 110, the final authority rests with you and this has to be accepted by all. Our hon. Finance Minister while presenting the budget tried to paint a rosy picture of our economy and also a sense of satisfaction was distinct in his speech. In fact, in his speech he tried to convey that our economy was performing well and was ready to take off. We do not agree with it.

We understand that our economy has been underperforming and in the prevailing circumstances, our economy could not reach where it should have reached. The

Government has not been able to give impetus to our economy in these three years. Our GDP growth rate stands at 7 per cent even after demonetization, the country should be satisfied about it. However, it should be compared with the growth rate of 10 years period during the UPA Government. During UPA's 10 years rule, the average growth rate stood at 7.8 per cent and thereafter promise of exalted achchhe din was made and naturally the growth rate should have improved. We do not have any exact data based on the new series as of now, but taking into the account the new series formula introduced by the new Government, our growth rate during the 10 years period works out to be 11.3 per cent instead of 7.8 per cent. Many apprehensions are being expressed on the 7 per cent growth of our GDP based on the new series. The Government should give convincing reply to it so that the credibility of our economy remains intact. Seven per cent growth rate of our GDP is primarily consumption driven. We all know that in the last quarter of the year consumption growth has risen. It was due to good rainfall and implementation of the 7th Pay Commission. Likewise, the Government is getting the windfall of steep reduction in the prices of oil. If the benefit of 7th Pay Commission and fall in oil prices is taken away then the actual growth rate of our GDP will come down to 6 per cent only. However, the youths of our country need jobs. In the year 2010 the investment proposals relating to large, medium and small industries were to the tune of Rs.17 lakh 36 thousand crore and also in the year 2011 the investment proposals received were to the tune of Rs.15 lakh 39 thousand crore and in the year 2016 the investment proposal have come down to Rs.3 lakh 93 thousand crore only. In fact when investments are made, factories get set up and jobs are created.

The capacity utilization in the industry was 80 per cent in the year 2011 which has come down to 70 per cent now. The health of our corporate sector is a concern for all of us. One more startling fact I would like to place before this august House as to how much the non-food credit off-take and the loan amount is being obtained for setting up factories? The industry has taken the least loan from banks in the last quarter during the last 60 years and still the Government says that our economy is in good shape in the country. As far as exports are concerned, when this Government was formed in the year 2013-14, our Government had left a trail of $26.2 billion exports per month. After three years of this Government, the exports stand at $21.2 billion. We should have taken advantage of the prevailing situation in the world which is being reflected in low prices of oil and commodities and we should have taken advantage of the stagnating Chinese economy as well.

However, we have failed to take advantage of these developments. India should have become the factory of the world replacing China but this place is being taken by the countries like Vietnam and Bangladesh. There are several sectors like garment, apparel and footwear etc. which are job intensive sectors which means that these sectors create disproportionately larger amount of jobs for every one lakh investment as compared to the other sectors. If we employ our finite resources as investments in these sectors then we can not only replace China among the major exporters in the world but also provide employment to the millions of youth keeping in tune with the promise made by your government for creating 20 million employment opportunities every year. The data on job creation which is coming out is worrisome. The International Labour Organisation has estimated that India is the only emerging economy in the world where unemployment is going to grow for the next two years i.e. in the year 2017 and

2018. The formulation of Taxation Policy of a country should be directed towards addressing the problems like jobless growth. Therefore, when corporate tax was cut we had hoped that some sectors would be provided package. However, what the government has done is that it has reduced the corporate tax rate from 30 per cent to 25 per cent across the board in respective of those companies whose turnover is less than 50 crore. This is not the right policy. I would like to urge the

Government that keeping in mind the prevailing state of economy and the kind of gloomy forecast about the job creation being made by the world agencies the government should provide sector specific breaks otherwise we will not be able to face the situation. Taxation policy has an important role to play in addressing the gap between the poor and the rich. Today, as far as taxation is concerned the tilt is very much in favour of indirect taxes which are to be shared by all equally. The direct taxes have been decreasing while the indirect taxes have been increasing during the last three years. The direction of economic policy is a matter of concern and it is causing and will continue to wider the gap between the poor and the rich.

We have to ponder over the policy framework which does not allow this gap to increase. The Tax on petroleum is considered one of the most regressive and retrograde in nature. The Excise duty during our government was Rs. 1.10 per litre of petrol and Rs. 1.35 of one litre diesel which has been increased upto Rs. 8.95 and 7.96 respectively. I would like to demand that the government should reduce the duty on diesel and petrol by atleast Rs. 5 so that this message could be sent across the country that while the government is inclined towards cutting the rate of corporate tax it is also considerate towards reducing the duty on diesel and petrol.

The credit off take of the banks has come down at the lowest level during the last

58 years and the advance tax mop up of the government until March has increased at a rate of only 6 per cent. These are alarming signs. I would like the government to pay attention towards the policies which may strengthen the economy of the country. The Government has also been trying to impose a very draconian measure on the people of the country through this Finance Bill. There is a proposal of vesting more power into the hands of income tax authorities with regard to search and seizure. Through this measure there is a preparation for unleashing the tax terrorism in the country. Under the sub-section of the 1 A of the

Section 130 of Income Tax Act it is clearly stated that the Income Tax Officials are obliged to give the reason before they carry out search and seizure operation.

However, now the government propose an amendment in this section and this requirement has been dropped under it. Earlier the power of making a subjective decision lied with the Income Tax officials but some objective material was required for it. Now, it is being said that there is no requirement for any such material and it has been completely deleted. This is wrong and against the tenets of natural justice and such provision does not exist anywhere in the world. Not only this, the government propose to implement the proposal retrospectively from

1962. I would like the government to pay attention towards this provision. I would also demand that the government should also fulfill the promise it had made for raising the exemption limit of personal income tax upto Rs. 5 lakhs. The

Government had also promised to implement of the Swaminathan Commission.

Our Government during its ten years tenure had continuously increased the MSP of wheat, bazra and paddy etc. However, this government has only effected an increase of 4 per cent per annum during the last three years in place of an increase of 15 per cent. And still the government talks about the doubling of the income of the farmers. Therefore, it is our demand that the government should implement the recommendations of the Swaminathan Commission. I also demand that all our suggestions related to the Finance Bill should be accepted to give the necessary fillip to the slow moving economy and to create necessary employment opportunities for the government to fulfill its promise of creating 20 million jobs.

SHRI RAKESH SINGH: Once upon a time, our country was known as the golden bird in the world. As per Prof. Angus Meddison the GDP of our country in the year 1000 AD contributed 32 per cent of the GDP of the world and we were the top trading nation in the world. Now the crux of the matter is as to how we can revert back to those golden times and how can we become the top trading nation in the world again. For it to happen we have to analyze both our strengths and weaknesses and we have to frame our policies keeping our country as their focal point in order to move ahead. This budget is historical in the sense that it is completely in sync with the economic requirements of our country. This is a complete paradigm shift and it is by pursuing these policies that we are going to attain the pole position in the world. Very recently, we have approved four complementary GST legislations. It is through GST that the country is going to get rid of the plethora of taxes which is likely to spread the tax net and augment the revenue of both the centre as well states. Farmers constitute 70 per cent of our population and we have witnessed a record production in our country. The budget has been one of the regular features of our polity. However, what is novel about this budget is that we have prioritized it keeping in view the 70 per cent population of the country. The top most priority has been given to the agriculture and rural sectors.

Irrigation capacity has to be augmented to increase the income of farmer.

Irrigation facilities are not available for 65 per cent of land out of total 14.2 crore hectare agricultural land. For the first time in the country, a provision of Rs.

50,000 crore has been made for irrigation facilities from the year 2015-16 to 2019-

20. The government has tried to simplify the income tax procedure. The government has started e-submission of income tax returns and e-refund has also been started. This year's finance bill provides for affordable housing to the people.

There is a target of constructing two crore housing units in the country in urban areas by the years 2022. A target of constructing one crore housing units under

Pradhan Mantri Grameen Awas Yojana has been fixed for the next three years.

Earlier, base year for calculating capital gain was 1981. Now, the government is considering 2001 to fix as base year for this purpose. Presently, India is one of the fastest growing economies in the world. The government has deviated from the tradition and preponed the presentation of budget by one month. This will facilitate timely release of funds to the states. The revenue receipts of the government through direct and indirect taxes are a record Rs. 13.9 lakh crore.

Devolution to states has also increased. Earlier, this amount was Rs. 9.9 lakh crore which has now increased to Rs. 10.8 lakh crore. The data released by CSO expressly said that GDP of the country remained above 7 per cent even during demonetisation period. The report by the Moody's also says that the decisions taken by the government of India will have long term effects on Indian economy.

Report of IMF also expects Indian GDP to remain 6.6 per cent. The government has issued 20 crore RuPay cards to take the country forward in the direction of

Digital India and 26 crore people have been brought into the banking system through Jan Dhan accounts. Digital transactions will increase the GDP and tax collection. Indian postal payment bank has been started. The government is concentrating on ease of doing business. There are more than 2.53 lakh chartered accountants in the country. The government has taken them into confidence in its fight against black money. The chartered accountants who earlier used to suggest ways of saving tax, are now advising the people to pay taxes. An allocation Rs.

12,000 crore has been made for Skill Development Scheme. Natural calamities in the country always put the farmers in distress. The government has introduced

Fasal Bima Yojana to help them. Till now, 66 lakh farmers have been benefitted from the Fasal Bima Yojana. An allocation of Rs. 41 thousand crore has been made for agriculture credit through NABARD. Soil Health Card Scheme has been introduced. Neem coating of Urea will stop its black marketing. This finance bill tries to put in place a better tax regime. Deen Dayal Upadhyay Gram Jyoti Yojana and Ujala Yojana have been introduced. A target has been fixed to provide gas connections to five crore BPL households under Ujjawala Yojana. Earlier, cost of stents used for cardiac patients was Rs. 2.4 lakh. These stents will now be available for Rs. 35,000 in the country. Jan Aushadhi Kendras are being set up.

Our endeavour is to ensure that the farmers, the poor, the youth and the women of the country progress hand-in-hand. With the efforts of Department of Electronics,

72 new mobile factories have come in the country in the last two years which have manufactured 11 crore mobile phones in the country providing employment to approximately two lakh people, directly or indirectly. India is likely to become a manufacturing hub of electronic industry.

SHRI M. CHANDRAKASI: This is a good Budget. My request to the hon.

Minister is that the Education Cess collected through various States should be given back to the concerned States for the development of education and educational infrastructure in those States. The Government should reduce the rate of income tax for the elderly people of above 60 years in the country to a flat 10 per cent. There is a need to promote affordable housing and real estate sector in

Tier II and Tier III cities in the country, particularly in Tamil Nadu. In order to provide cashless economy and transparency, it is proposed to amend Section 80G so as to provide that no deduction shall be allowed under Section 80G in respect of donation of any sum exceeding Rs. 2,000 unless such sum is paid by any mode other than cash. This will be a landmark decision. The GST's effect on the entire Indian economy will have to be scrutinized in totality to reach a widely accepted conclusion. Until then manufacturing States like Tamil Nadu should be adequately compensated and their losses for accepting and implementing GST should be repaid then and there till the moment of break even is reached. The large drop in

Tamil Nadu's share in the Divisible Pool is barely compensated. In the last two

Union Budgets, many new cesses and surcharges have been levied which reduces the shareable pool of Central Tax receipts and thereby the devolution to States.

Many schemes have been de-linked from Central Assistance.

PROF. SAUGATA ROY: This Finance Bill, when it was presented on 1st

February, 2017, had 150 Clauses and seven Schedules. But strangely enough, the

Finance Minister, in his series of amendments added 33 new Clauses and two

Schedules. I do not understand why in a Finance Bill, which is supposed to detail the taxation proposals of the Government, they have brought in the abolition or uniformisation of the tribunals, which have no relation to taxation proposals directly. There has been no significant effort to lower the taxation rates so that collections could be improved. In case of Income Tax, the Government is giving up Rs.15,000 crore with small income tax payers getting Rs.12,500 and it is gaining Rs.2,700 crore by taxing the bracket between Rs.50 lakh and Rs.1 crore.

With regard to the Corporate Tax, for companies having turnover up to Rs.50 crore, the tax has been reduced to 25 per cent. Due to this, the total tax given up is Rs.7,200 crore. The total reduction in taxes to the Government comes to

Rs.20,000 crore. There are, otherwise, no major changes in the tax rates in the

Budget. Government has given tax concession with regard to affordable housing having carpet area of 30 to 60 square meters. Completion period of housing has also been extended from three to five years. The other thing is that there is tax relief in partial withdrawal from the National Pension System. This is a welcome step in the sense that those who are saving through National Pension Scheme will get this benefit. Another good step is that the Chief Minister's relief fund has been exempted from taxes. The Government has given a long list of concessions on customs duty. Some concessions relate to proposals involving change in customs duty for incentivizing value addition 'Make in India'. The Government has formed this Budget with the expectation that the GST would give rise to better collection.

The Government has increased the money for infrastructure, etc. Now, where will the money come from? The funding of such expenditure seems to be left to the mercy of implementation of the GST which is likely to bring in more taxes to the

Centre and States as also transfer of resources from the tax evaders to the

Government through demonetization. However, GST is likely to have contractionary effects in the short-term, particularly in the year of imposition.

Thus, the tax revenue is likely to fall this year. The people's expectation was that the income tax exemption limit would be raised to Rs.5 lakh, but only a small concession has been given on income tax. The Government has not given farm loan waiver. Demonetization did not turn out to be a bonanza as roughly Rs.15 lakh crore was demonetized and almost Rs.15 lakh crore has been deposited. For re-monetization the cost is as per my estimate Rs.20,000 crore. Rs.6,500 crore extra tax was generated through demonetization. So, demonetization has been a total loss. Demonetization crushed the small farmer, the artisan, the daily labourer and one day the Government will have to pay the price. The GST is to be implemented from 1st July, 2017. If the initial year of GST is poor in revenue accruals, then where will the Government get the money from? The Budget has a long list of give-aways and Government programmes in the context of demonetization hurting the economy, but little in the way of job-creating reform.

India needs reforms to create jobs by opening itself up to global supply chains, to incentivize firms to grow so that they can compete globally and work harder to teach skills to young people. One million people are joining the job market in

India every year. In 2015, only 1,35,000 new jobs were created in this country.

Every year we are creating an army of the unemployed. The Budget encourages companies to remain small because they are giving concessions to smaller companies but not to bigger companies. The Budget India needed to do something to revise investment since private investment showed no signs of recovery. The

Government is going for privatization. Today, the Finance Minister announced that he is going to disinvest Bridge and Roof, Kolkata, Bharat Pumps, Scooters

India, Hindustan Newsprints and eight more companies. They are destroying the basis of the public sector. I totally oppose these disinvestment proposals of the

Government. This Budget does not tell us how much black money Government has recovered so far. This Finance Bill does not show a way. The Finance

Minister has not laid down a roadmap by which he will be able to mop up more resources from the rich and give more relief to the poor so that the economy improves.

SHRI TATHAGATA SATPATHY: I express my utter disappointment about the direction in which this Government intends to take or has started taking this country. People ask as to why when the prices of petroleum products are falling drastically in the Arab countries, it is not happening in our country. Let us allow the poor Indian to build up some reserves in their families with which they can survive the vagaries of economic ups and downs that the whole world is seeing today. Very surreptitiously this Government has taken upon itself the task of imposing Income Tax on agriculture. Hardworking farmers earn some money through house rent or by having a taxi. That makes some income which is now being clubbed as 'income from other sources'. Just because 40,000-50,000 farmers are cheating on income tax, let us not punish the two to three crores of farmers who are genuine toilers, who are not rich and who are working for survival. The second point is 'Political funding through electoral bonds'. Finance Minister also in his budget speech mentioned that political parties reportedly get about 70 per cent of donations through cash and a mere 30 per cent through cheques. So, this 30 per cent was what was taxable. Now, they will be allowed to buy electoral bonds and that too incognito- secretly. They are helping them hide that little amount also.

All of us know how the FCRA rules had been changed in the last 2015-16 Finance

Bill. Now that shows that foreign funding can come to political parties in India very, very secretively and in that process, you are allowing people, foreign companies, to lobby here. You should legalize this lobbying or make it in such a manner that people can pay up in white and that should be acceptable. The draconian search and seizure provision in the income tax is my next point. In clause 50 of this Bill, the Government has proposed a curious amendment to allow

IT officials not to disclose their reasons for conducting search and seizure. Finally, my last point is that the NPA problem is getting worse. This year's Economic

Survey points out that bad loans have doubled since last year. Again I would like to ask that how can the economy grow when the bank lending growth has declined to a 60 year low of a mere five per cent? That is a 60 year low. We are in a partial state of recession. Since there are reports of massive job cuts across sectors - from

IT, Real Estate and everywhere - if the Government claims that the seven per cent figure is true, it has to be living in denial, it is not accepting the reality. SHRI GAJANAN KIRTIKAR: The Union Government has sanctioned

347.16 crore rupees for rural drinking water scheme to Maharashtra in the budget

2016-17 but only 150.59 crore rupees have been provided in this regard which is a gross injustice to the Maharashtra State. So, I would like to demand of Rs. 500 crore for the Maharashtra. Similarly, there is a need to provide 40 crore rupees for blue revolution project under fisheries department. Besides, there is also a need of

500 crore rupees under information scheme for modernisation and strengthening of the policing system in Maharashtra State. With regard to post offices in Mumbai city, I would like to submit that post office could not be constructed due to the paucity of funds. Union Government should provide 300 crore rupees keeping in view the 720 km long coastal line in Maharashtra. Apart from that, Union

Government should also provide 500 crore rupees for educational development in

Maharashtra. Under the urban sports infrastructure scheme Maharashtra should be provided 50 crore rupees in the current financial year. Apart from that, Union

Government should accord permission by issuing NOC with regard to the land for developing marine waterways in Maharashtra.

SHRI RAM MOHAN NAIDU KINJARAPU: First of all, I would like to start with the problems of Andhra Pradesh. However, the Government has shown full commitment and support to the State of Andhra Pradesh. And there will be

100 per cent funding for the Polavaram project. There will also be special assistance measure for Andhra Pradesh by way of repayment of loan and interest of externally added projects signed between 2015-16 to 2019-20. According to the special package, Andhra Pradesh will get the benefit of this 30 per cent. But what

I want to bring to the notice of the Central Government is that according to the special status, certain benefit is also supposed to be in the ratio of 90:10. In the

Budget the government granted capital gains tax exemption to the farmers for a period of two years. We request that the capital gains tax exemption be granted for the first sale without any time limit. There is another issue which is regarding the

FRBM limit for the State of Andhra Pradesh. The FRBM limit for the State of

Andhra Pradesh therefore has to be enhanced to 3.5 per cent. It is a long pending request. Coming to demonetisation, we are now promoting cashless economy and digital economy. But maximum benefit is accruing to the banks rather than the common man. The transaction charges which are being levied by the banks have to be curtailed. According to GST, there is one constraint from the State of Andhra

Pradesh, which is the off shore oil and gas reserves. We want that even where the oil and gas reserves are sitting off shore royalty should be paid to the landing

States also. I would also request to look after our demand and fulfil the request of building a world class Capital in the State of Andhra Pradesh. With regard to tax incentives, we request that other than the seven districts, out of the 13 districts, the district of Prakasham also be added to the list of backward districts. I would also like to raise two important issues. We should give the confidence to the farmers saying that this House is committed to their benefits. So, there should be

Agriculture Budget every year separately. Central Government need to take certain measures so that NRIs prefer India, come back and help in the growth and development of this country.

YOGI ADITYANATH: I express my gratitude that you have given me an opportunity to express my views on Finance Bill. When this government came into power, the country was facing adverse situation, the economy was in doledrums, growth rate was constantly declining and there was an atmosphere of mistrust. But the manner in which this government has succeeded in putting in place good governance and a welfare government in this county by giving impetus to the growth rate of our country during the last three years, it has become an ideal government for all the countries across the world. In 2014, adverse financial situation was prevailing in the country. Fiscal deficit was 8.9 per cent of the GDP and revenue deficit was 2.8 per cent. The rate of inflation was 11.2 per cent.

During the last three years this government has succeeded in increasing the country's growth rate to 8.5 per cent from 8 per cent. Our government is committed towards welfare of the poor of this country and there will be no discrimination based on caste, faith and religion and it will work with a complete dedication towards the welfare of the common people. Government's motive is exhibited by the Jan Dhan Yojana under which 25 crore accounts have been open for the poor people of this country. This government has launched various schemes like Digital India, Start up India. Stand up India and similarly Pradhan

Mantri Mudra Bank Yojana have been launched for the youth of this country self- reliant. Besides, dedicated Pradhan Mantri Ujjawala Yojana has been launched for the women of this country. Again, eastern part of our country was always left behind and has been neglected. Since 1998 I have been representing the eastern part of the Uttar Pradesh and have been raising the issues with regard to it. Since last 26 years, fertilizer unit in Gorakhpur has been facing closure. Now, I would like to thank this government that with the initiative taken by this government, work has been started in that fertilizer unit and by 2019, fertilizer units are likely to be set up in Gorakhpur, Barauni and Sindri and production of fertilizer is also likely to be started by then. Similarly, various districts of Uttar Pradesh wer affected withe encephalitis which caused death of many innocent children and 90 per cent of the children died from encephalitis were from dalit and minority community. Now this government has proposed for setting up of AIIMS in

Gorakhpur and work is being started on it. The manner in which this country is marching ahead I feel that it will play an important role in establishing India as global superpower. I am very grateful that in this august House, since 1988 until now I have been given opportunity to learn and acquaint myself with the Parliamentary System. The mandate given by the people of Uttar Pradesh in the recent election is a slap on the face of those who have always been trying to impede the development and welfare schemes. The new government will create a new infrastructure for the development on the lines of 'Sabka Saath Sabka Vikas' under the guidance of our hon. Leader and Prime Minister Shri Narendra Modiji.

We all are committed towards working for the development of all the people of

Uttar Pradesh and for the development of all the areas of Uttar Pradesh cutting across the caste and class lines. We can vehemently say that we will succeed in creating such a situation in Uttar Pradesh where neither a businessman nor a doctor will be kidnapped and no one will allowed to create chaos. In fact, I have learnt from the Parliament about what constitute comportment. I was a little bit apprehensive of how I will be dealt with when I was elected for the first time to the

Parliament. But, no sooner did I enter the Parliament Complex than each and every employee of Parliament behaved very nicely with me. That was very commendable. Uttar Pradesh will be the state of the dream of our hon. Prime

Minister. Uttar Pradesh will be free of corruption, riots and hooliganism in future.

We will develop Uttar Pradesh as model of development wherefrom the youth will not have to migrate. The mothers and sisters of Uttar Pradesh will not have to go somewhere else for protection. At last, I would like to invite all of you to come to

Uttar Pradesh. SHRIMATI KAVITHA KALVAKUNTLA: First of all, on behalf of the people of Telangana, I would like to congratulate Shri Yogi Aditya Nath for becoming the Chief Minister of Uttar Pradesh. The Union Government has not given much to our state Telangana. Of course advancing the budget by one month is a significant change enabling states to start their work right from the first week of April. I would like to appreciate the Budget where generous increase can be seen, particularly, the higher education sector has seen an increase of 12.2 per cent. It has been increased from Rs. 29,703 crore to Rs.33,300 crore. I would like to mention the National Nutrition Mission for which budgetary provision of Rs.

175 crore has been increased to Rs.1,500 crore. The Maternity Benefits

Programme which only used to get Rs.634 core now gets Rs.2,700 crore. Under

Pradhan Mantri Grameen Awas Yojana, the Central Government decided that it will build 3.6 million houses in this year whereas the State Governments have stated that they are going to build only 2.41 million houses this year. The

Government will have to think once again as to how it is going to meet this difference of the target. Moreover, there has been just Rs.300 crore increase in the allocation of the Mid-Day meal Scheme. I hope it will be revised soon. I would like to demand from the Government that the pension amount of Rs.200 for the widows should be increased to Rs.500 because there are a number of states like

Telangana who have to pay Rs.1000 as pension to widows and the old age persons and Rs.1500 to the differently abled persons. According to the information available on the website of the Reserve Bank of India the overall credit for priority sector lending has fallen by 10.6 per cent as compared to the last year. If priority sector lending is not increased we will not be able to create employment. The minimum target should be to give away Rs. 12 lakh crore to farmers as loans instead of Rs.10 lakh crore. The Finance Minister wants to take India from informal economy to a formal economy where he would like to encourage more and more digital transactions. But unless and until safety is there and the transaction becomes more viable and cheaper, I do not believe people will go for digital transaction. So, I request the hon. Finance Minister to look into this issue. I would like to make a point about my State. The installment of Rs.400 crore, which has been pending, should be released. The pending amount of Rs.450 crore for our backward districts should also be released. Moreover, the status of National

Project should be accorded to the Koleshwaram Project of our State.

SHRI MD. BADARUDDOZA KHAN: The Income Tax has been reduced in case of the low income group people, who are the salaried persons. It is also true that it is only the salaried class who have little chance to hide their income. I would, therefore, suggest the hon. Finance Minister to give some more rebate on taxes of the salaried people of lower income group. In the last two years, there has been no expansion of employment in our country. We find that the revenue collection has increased this year. It is mainly due to increase in Excise Duty on petroleum products. The Government is lucky that since 2014, the price of crude oil in the international market has been coming down. But, in spite of that, the government has been imposing more and more Excise Duty on petroleum products. So, we demand reduction in the price of petroleum products in compliance with the international market. It must be reduced for the benefit of the common people of our country. Now, I would like to speak on NPAs of the banks.

Every year, the non-performing assets are increasing. Now, it is Rs.11 lakh crore.

But now, we find that the Government is advocating to recapitalize the public sector banks. Finally, I would like to say that the people at large did not get any benefit from the demonetization.

SHRI MEKAPATI RAJA MOHAN REDDY: The Government may kindly exempt the persons from income tax who are having an annual income up to

Rs. 5 lakh from income tax. The long-term capital gains tax on immovable property be reduced from two years to one year as in the case of stock market.

Since the NDA Government came to power in 2014, the cesses and surcharges are being routinely increased. They used to constitute just 12 per cent of Gross Tax

Revenue in 2014, presently, they constitute about 18 per cent which is very high.

In spite of great focus of 'Make in India' programme and despite global commodity prices falling by over 60 per cent in the last two years and the entire country becoming power surplus, the manufacturing sector in India is not picking up. The

Budget for Ministry of Agriculture and Farmer Welfare was increased from Rs.

48,072 crore in 2016-17 to Rs. 51,026 crore in 2017-18, an increase by six per cent for a sector on which more than 60 per cent of the population depends. In the

Finance Bill, 2015, certain tax concessions were extended to States like Andhra

Pradesh, Telangana, West Bengal and Bihar. But what Andhra Pradesh should be given are the tax concessions that were extended to Special Category states. We request to kindly grant the same to Andhra Pradesh to enable it to catch up with the other states because of division of the state.

SHRIMATI K. MARAGATHAM: MSMEs are the largest employment provider. This sector is not yet ready to adapt the GST and has fear that GST could add to their woes. The Government has a duty and responsibility to allay their fears. Credit flow towards the MSME sector has been thinning due to a surge in Non-Performing Assets (NPA) in banks. GST regime will not differentiate between luxury goods and normal goods. This will make it hard for the SMEs to compete against large enterprises. In essence, the GST's effect on the entire Indian economy will have to be examined in entirely to reach a widely accepted conclusion. Until then, manufacturing states like Tamil Nadu should be sufficiently compensated and their loss due to implementing GST should be repaid then and there. As a part of the roadmap for the implementation of GST, the Central Sales Tax rate was reduced from four per cent to two per cent with effect from 2008. The Government of India agreed to implement various non-revenue measures and direct release of funds to compensate the states for their revenue losses. The Government of Tamil Nadu has been submitting its compensation claims regularly but has not received the promised compensation in full. We are grateful that after a long delay of nearly four years, a sum of Rs.2,000 crore was finally released and Rs.2238.35 crore during 2015-16. However, even after these releases a sum of Rs.6,352.21 crore is yet to be reimbursed by the Government of

India. I request that the entire outstanding compensation claims of Tamil Nadu should be sanctioned and released at the earliest.

SHRI PREM SINGH CHANDUMAJRA: A sum of only Rs. 5000 crore has been provided for the Pradhan Mantri Sinchayee Yojana. This is a very important scheme. So, at least Rs. 25-30 crore should be provided for the Scheme every year to fulfill the slogan of 'One Drop More Crop'. The water has to be lifted in my area for irrigation . Therefore, separate funds should be provided for the purpose. The farmers of Punjab are badly debt ridden. I, therefore, request to sanction a special package for them to get them rid of their debt. The farmers of border districts of Punjab also undertake cultivation beyond the fencing erected around the border. There should be a provision in this Budget for providing them compensation. Wild animals are causing huge damage to the crops of farmers across the country now-a days. So, funds should also be provided to give compensation to farmers to make up their losses. Similarly, more funds should be given for the Skill India Programme. A comprehensive scheme should be formulated for rainwater harvesting. Today, farming is no more a profitable vocation for farmers so a separate fund should also be provided to promote dairy, fisheries, poultry and other ancillary avocations to supplement their income.

Besides, the farmers loans should be waived in the entire country. More labs should be set up for soil testing.

SHRI NISHIKANT DUBEY: The Government has changed the norms for

GDP calculation. Earlier, the base year used to be changed after every ten year now it changes after every five year. (Speech unfinished)

The discussion was not concluded.

ANOOP MISHRA Secretary General

© 2017 BY LOK SABHA SECRETARIAT NOTE: It is the verbatim Debates of the Lok Sabha and not the Synopsis that should be considered authoritative.

English and Hindi versions of Synopsis of Debates are also available at http://loksabha.nic.in.