'Fears Based on Monsoon Predictions Misplaced,' Says Finance Minister Arun Jaitley

New Delhi: The Empowered Committee of State Finance Ministers met in New Delhi today to deliberate on the revenue neutral rate, besides other issues, for smooth roll out of Goods and Services Tax (GST).

Union Finance Minister Arun Jaitley, who chaired the meeting, later addressed the media. Here are the highlights:
 

• Monsoon has a significant impact on economy
• The slight inadequacy, if at all, is in the north west and a large part of North-West India have advance irrigation facilities
• Assuming advance predictions on monsoon are correct, the impact on foodgrain production will not be very significant
• What is relevant is the geographical distribution of monsoon
• I don't anticipate any distress situation even with the kind of predictions that have been made
• IMD's new predictions suggest monsoon will be close to normal
• Expect monsoon to be normal in south, centre, northeast of country
• The advanced predictions are somewhat better than last year
• The monsoon fear is far-fetched, don't see any such impact
• Foodgrain production will not to be impacted by poor monsoon; adequate stocks are available
• Last year's monsoon was delayed and defining but the government managed to control inflation
• Advance estimates suggest that monsoon will be weak in the northwest region
• But that region is well irrigated so we expect the situation to be better this year