Planning Commission deputy chairman Montek Singh Alhuwalia doesn't believe that the government should bear the burden arising from the difference between input and output prices of gas.
Also read: Petrol price up by Rs 1.82/L; to cost Rs 76.90/L in MumbaiSpeaking to CNBC-TV18 at the sidelines of Network-18's Think India Dialogue, he said, "I am personally not in favour of any increase in the subsidy burden as subsidy is not a part of planned expenditure. So, it is for the finance ministry to decide that. However, I don't think there has been any specific proposal. If there is a proposal, the government will definitely take a look at it."
Clarifying that there was no regression of policy during the UPA regime, Montek Singh commented that government funds were not to be deployed for purposes for which private investment was suitable.
"The UPA's performance since 2004 has been outstanding and the government will soon announce a Rangarajan Poverty Line. Per capita rural consumption has increased significantly and it is possible to achieve a growth rate of 8 percent with good policies in place. The growth rate of 5 percent is not the new normal growth rate," Singh told CNBC-TV18.
On the status of the Goods and Services Tax (GST), Singh confirmed that the tax would not be rolled out before the general elections but highlighted that there was political consensus.
Regarding the opening up of the retail sector to FDI, Montek Singh said that he did not favour micro management of FDI in the retail sector and emphasised that the policies should apply to foreign and domestic retailers.
"The government will soon announce reforms on capital account convertibility and I do not prefer FII over FDI investment," he added.
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