'Taxes Are Imperative To Revive Economy': NITI Aayog CEO On Fuel Price Surge

The focus has to be on creation of really top-class infrastructure, for which the government will need to raise resources to be able to invest said NITI Aayog CEO

Niti Aayog CEO Amitabh Kant (File Photo)

New Delhi: The surge in fuel prices has worsened the financial situation of people already reeling under inflation. There have been protests across the country demanding cut in fuel prices and a major component of fuel price remains taxes which make it costlier.

At a stage where India is aiming at growth and investing into top quality infrastructure, it is a difficult choice to make if resources are scarce, said the Chief Executive of the government think tank NITI Aayog, Amitabh Kant to channel NDTV.

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On asked about rationalising the tax structure on such essentials to offer some relief to the common man, Kant explained that an ideal pace of tax collection is critical to ensure the availability of resources to be pumped into reviving the economy amid the pandemic.

Kant went on to pose questions saying that the government faces immense challenges and one of them remains “how to accelerate the pace of infrastructure, how do you spend more and more if you really want to revive India's economy.

"And to my mind, the revival of India's economy will be through putting more and more resources into good quality infrastructure and the focus has to be on the creation of really top-class infrastructure, which will lead to job creation and that will lead to construction getting revived," said NITI Aayog CEO.

For all this, the government will need to raise resources to be able to invest in infrastructure. "That is a choice the government will have to make in due course," Kant said.

There was some relief in June as wholesale price-based inflation eased marginally and crude oil and food items also witnessed softening in prices. However, double-digit inflation for the third consecutive month in June remains a cause of worry. The rising price of fuel is a matter of concern.

So far, the government has succeeded in providing food supply to 800 million people, and during this period, it also ensured that the MGNREGA programme goes on effectively in rural areas.

In the last monetary policy, the Reserve Bank of India kept interest rates unchanged at record lows and committed to maintaining an accommodative policy stance to support growth. Retail inflation remained above the RBI's comfort level of 6 per cent for two straight months at 6.26 per cent in June, data released earlier this week showed.