Finance Minister P Chidambaram speaks during a session on the second day of the 44th World Economic Forum in Davos
NEW DELHI : Concerned at income inequality in the country, the government is in favour of taxing the rich “a little more”, Finance Minister P. Chidambaram said. “…we are concerned about income inequality. We would like to tax the rich a little more,” Chidambaram said at a session on ‘BRICS in Midlife Crisis’ at the World Economic Forum meet in Davos, Switzerland.
The Finance minister, in his annual budget for the current financial year, had put a surcharge of 10% on income over 10 mln rupees. He said the government is working towards bringing people below poverty line above it.
“Rural wages have grown in real terms about 7% a year over the last 5 or 6 years. It is one of the reasons why food inflation is high,” Chidambaram said. Chidambaram agreed that the government’s inability to take certain key decisions and external economic factors impacted India’s growth.
“…in the last year and a half, we acknowledged that we need to be more decisive, we need to move forward at a rapid pace and the results are there to see. The economy has
is back,” Chidambaram said. He believes that the Indian economy has stabilised and is on the path to recovery.
The International Monetary Fund on Tuesday projected India’s 2015-16 gross domestic product growth at 6.4%. India’s GDP grew at 4.4% and 4.8%, in Apr-Jun and Jul-Sep, respectively.
Chidambaram said there is nothing wrong in having state-run companies as long as they are competitive and run on commercial principles. -Cogencis