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Union Finance Minister Nirmala Sitharaman has said that the government has been proactive in responding to the challenges caused by COVID-19 and is also taking up substantial reforms despite the pandemic. She said ‘from a stage when we did not even manufacture PPE, had not enough ventilators or sufficient centres to test virology samples, we have walked a long course. From March 2020 to June 2021, the support that needs to be given to the poorest of the poor is being extended, other than that providing stimulus for the economy is happening. Simultaneously, the Reserve Bank is also monitoring and extending credit support, but above all this, the opportunity to continue with the reforms is there.’

The minister said ‘whether it was in the last tenure when you had GST and IBC (Insolvency and Bankruptcy Code) passed, or this tenure when you have agriculture Bills which have now become Acts, labour codes, mining sector reforms, reforms to financial sector, reform to distribution network of power, are all being undertaken even during the pandemic’. Talking about increasing fuel prices, and whether the government was considering reducing excise duty on petrol with prices crossing Rs 100 per litre in several cities, she said the duties on petrol are levied both by the Centre and the State and both would have to work together on this.

Talking on bringing petroleum products under GST, Sitharaman said there are no hurdles from the Centre's part, and the GST council would have to take a call. Regarding pending GST compensation to States, she said, as per the discussions held in October 2020 with all the States on loss of revenue, and as a result of lack of money to pay the compensation, a formula was arrived at and based on that formula for the year 2020-21 whatever was agreed to be given through back-to-back borrowing has already been given.