Jaitley said that the deficit in revenue collection targets of states under the GST came down to 13 per cent till August this year compared to 16 per cent last year.

"A money bill can only be brought as a money bill. The finance bill cannot be brought as anything other than a money bill," Jaitley said.

While upholding the Constitutional validity of Aadhaar, the Supreme Court struck down some of its provisions including its linking with bank accounts and mobile phones.

Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business.

Jaitley said the new insolvency law, indirect tax regime and demonetization will help drive India's growth rate and sustain it at 8 per cent.

Jaitely alleged that there could be a linkage between Congress President Rahul Gandhi's charges on the NDA government and Hollande's statement on Rafale deal.

Jaitley further said that in mature democracies those who rely on falsehood are considered unfit for public life.

"Government is confident that it will have a growth rate higher than what we had projected earlier this year in the budget. The inflation is broadly under control," the finance minister said.

Jaitley pointed out that while India’s growth rate is higher than many other countries, the inflation in the country is lower than many other nations of the world.

The prime minister will hold another economic review meeting with key policy makers on Saturday to discuss possible interventions by the government to address the macroeconomic challenges arising out of the depreciating rupee and steep rise in fuel prices.

 It is also a fact that Mallya's companies did not get a single rupee as bank loan after Prime Minister Narendra Modi took over in 2014.

Addressing a press conference at the party headquarters in New Delhi, Rahul Gandhi questioned why Arun Jaitley didn't mention about his meeting Mallya earlier.

Responding to Congress president Rahul Gandhi's demand for a probe over Mallya's claims, BJP spokesperson Sambit Patra said those people who are out on bail should not be questioning people who are innocent.

Claims made by Vijay Mallya were however refuted by the finance minister, who referred to it as “factually false.”

“Since 2014, I have never given him any appointment to meet me and the question of his having met me does not arise,” Finance Minister Jaitley said in a Facebook post.

The finance minister argued that Indian Rupee was not the only currency to be hit in the current global economy and if anything, INR strengthened vis-a-vis other international currencies in last four-to- five years.

"India's GDP for the first quarter this year growing at 8.2 per cent in an otherwise environment of global turmoil represents the potential of New India," Jaitley said in a tweet.  

“Dear Mr. Jaitley, I guess your boss refused to hold a Joint Parliamentary Committee on the GREAT RAFALE ROBBERY? Too much to hide, too scared to face the people, I suppose...,” Gandhi scion tweeted on Thursday.

Giving account of several feats achieved by the government on the back of demonetisations, the FinMin claimed that the note ban helped in the formalisation of the economy, brought more money in the system, resulted in higher tax revenue, higher expenditure and higher growth after the first two quarters.

"This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy)," Jaitley said.