Finance Minister Arun Jaitley on Tuesday said that the CSR spend of corporates, which has become functional in the last 3-4 years after the Company Law was amended, can significantly support the public expenditure of the government.
“Governments at centre and states spend money. If this (corporate social responsibility spend) comes as supportive expenditure, it can add significantly,” Jaitley said at the Axis Bank CSR programme here.
He said that in 2013 when the Company Law was amended and CSR was made mandatory out of profits, it was thought to be an additional tax by a section of the industry.
“But in these 3-4 years, we have seen it function,” Jaitley said.
Elsewhere in developed economies corporate charity was always a very important instrument of service, he said.
“Conventionally that didn’t exist in India. Charity in India was always identified with communities,” he added.