Union Finance Minister Arun Jaitley is meeting stake-holders before finalizing the budget, a tradition being followed from the past by all the governments. On Friday it was the turn of the state finance ministers.
NCUI Chief executive Dr Dinesh informed Indian Cooperative that the apex cooperative body has been invited for pre-budget consultations on 7th January. “I will try to put forth the issues concerning cooperative”, said Dr Dinesh. The name of Bijender Singh, Ex-Chairman of Nafed who is invited every year and who gives it a miss unfailingly, has been omitted this time, Indian Cooperative has learnt.
Meanwhile, some of the state finance ministers have batted well for the cooperative sector. The Odisha finance minister Pradip Amat and Punjab finance minister Dhindsa deserve a special mention.
Mr Amat has called for creation of a special fund of Rs 1000 crore with Nabard to provide timely support to central and state cooperative banks struggling with flailing finances. According to the Odisha minister, such an arrangement would ease immediate financial difficulties faced by cooperative banks and go a long way in strengthening the cooperative movement in the country.
Elaborating on his idea, the minister said the special fund could create immense possibilities for development of cooperatives for women, jobless youth, landless rural population, and the weaker sections of society.
The Finance Minister of Punjab Parminder Singh Dhindsa requested Government of India that NABARD should reduce the rate of interest on re-finance of short term loans from 4.5% to 2.5%.Finance Minister said that there was no income tax on the Cooperative Banks till 2005-06.
However these banks are required to pay income tax w.e.f. 2006-07. The Cooperative Banks limit their activities to agricultural loans especially to small and marginal farmers and therefore these should be exempted from the payment of income tax.
The District Central Cooperative Banks from their own resources give loans at 5% rate of interest to Primary Agricultural Cooperative Societies which in turn advance short term loans at 7% interest. Government of India provides interest subvention on the loans advanced by Co-Operative Banks out of their own resources which has come down from 3% in the year 2008-09 to 2% in the year 2010-11.
In the pre-budget consultation with the state finance ministers Union Finance Minister Arun Jaitley on Friday said that the economy will grow in the range of 6-6.5% during 2015-16, adding it has a potential to grow at a much higher rate.
“We will take all these suggestions into consideration while formulating policies for Budget,” Jaitley said after a four-hour long brain storming session with the state finance ministers.
