Have Told Taxmen Not to Be Obsessive With Tax Targets, Says Sitharaman Day After Union Budget

New Delhi: Finance Minister Nirmala Sitharaman on Monday said tax authorities have been asked to be more objective and taxmen should not be "obsessive" with tax targets.

Speaking at CNBC-TV18's Budget Townhall 2020, she said, "We have told taxmen to achieve targets without any overreach. We have also told taxmen not to be obsessive with tax targets. We trust the assessee. Tax authorities are going to be a lot more objective."

Sitharaman's statement came a day after she presented her second Union Budget under Modi 2.0 government. The finance minister had on Saturday said the government respects wealth creators and will not tolerate any kind of tax harassment.

Even in the Economic Survey 2020 tabled in Parliament on Friday, she had emphasised on the importance of old and new, with wealth creation as the focus.

Sitharaman said that divestment receipts will go towards infrastructure spending. The Centre has set itself a lofty disinvestment target of Rs 2.10 lakh crore for the financial year starting April 1, 2020. Budget documents revealed that the government missed its previous target by a huge margin. With a target of Rs 1.05 lakh crore for the 2019-20 financial year, the government could only manage to sell assets worth Rs 65,000.

Sitharaman added that the government will not splurge like the previous dispensations and the Budget shows they are maintaining fiscal prudence.

"The Budget may not have given anything sector-specific, but it was a macro blueprint. It shows that the government is putting money where it is needed with fiscal prudence," she said. "We are putting money into creating infrastructure for the country, which will have a multiplier effect for the economy."

Sitharaman stressed on her government's slogan of "maximum governance and minimum government", saying the government wants to be a facilitator for businesses.

Talking about the process of preparing the Budget, Sitharaman said the government's actions are drawn from ground reports and on-ground experiences.

"Budget proposals are not de-linked from ground realities, not theoretical," she said. "This government is transparent, showing you where the money comes from and where it will go."

On delivering the longest Budget speech in Parliament's history, Sitharaman said, "I take the longest time to prepare for the Budget."