Prime Minister Narendra Modi on March 7 addressed stakeholders in the financial services sector in a post-budget webinar in which he said the tax burden has been coming down due to the rational tax system in place.

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Modi said the tax burden has come down significantly in India due to the goods and services tax (GST), reduction in income tax and corporate tax. This, he said, has resulted in better tax collection.

This, the PM said, has resulted in better tax collection. In 2013-14 gross tax revenue was about Rs 11 lakh crore which can rise to Rs 33 lakh crore in 2023-24, an increase of 200 percent. The number of individual tax returns filed increased from 3.5 crores to 6.5 crores from 2013-14 to 2020-21.

“Paying tax is such a duty, which is directly related to nation building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for public good”, the Prime Minister said.

Modi stressed that Indian talent, infrastructure and innovators can take the Indian financial system to the top. “In the era of ‘Industry 4.0’ platforms developed by India are becoming models for the world”, he said citing the examples of GeM and Digital transactions.

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“RuPay and UPI are not just a low cost and highly secure technology, but it is our identity in the world. There is immense scope for innovation. UPI should become a means of financial inclusion and empowerment for the whole world,” he said. The Prime Minister suggested that the country’s financial institutions should also have maximum partnership with fintechs to increase their reach.

The PM pointed out that his government's policies related to financial inclusion have made crores of people part of the formal financial system. He noted that the government has been giving Mudra loans of more than 20 lakh crore rupees without a bank guarantee.

He added that for the first time, more than 40 lakh street vendors and small shopkeepers received help from banks through PM Swanidhi Yojana. He called upon the stakeholders to re-engineer all the processes to reduce the cost and increase the speed of credit so that it reaches the small entrepreneurs quickly.

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The banking system must continue handholding MSMEs and providing them with adequate finance, he added.

Reflecting on ‘Vocal for Local’, Modi said this is not a matter of choice but a vision of self-reliance, which is a national responsibility. “Our exports have been at an all-time high, whether in goods or services. This indicates growing possibilities for India”, he said and asked the stakeholders like organisations and Chambers of Industry and Commerce to take up the responsibility to promote local artisans and entrepreneurs up to the district level.