Finance Minister Nirmala Sitharaman emphasized the government's focus on quality capital expenditure while maintaining its commitment to fiscal consolidation during a session in the Lok Sabha on Tuesday. Addressing questions from the Opposition INDIA bloc, she stated that capital expenditure has been the backbone of India's growth.Â
"We are adopting a national approach to address people's needs. Government spending has surged to Rs 48 lakh crore in FY25," said Sitharaman. She underscored that the Budget prioritizes social and geographical inclusivity, aiming to build on previous achievements and tackle ongoing challenges. Expressing gratitude to Prime Minister Narendra Modi for his support, she highlighted the government's dedication to inclusive growth.
Sitharaman also discussed the government's aim to reduce the fiscal deficit to 4.9% of GDP in the current fiscal year. While targeting this deficit is crucial, she emphasized that it is not the only goal. "Borrowings have decreased due to improved fiscal management, lowering the fiscal deficit from 5.1% in the interim to 4.9% in the full 2024 budget. This reflects PM Modi's longstanding commitment to fiscal prudence, a trait he demonstrated during his time as Gujarat CM, while still prioritizing welfare," she stated.
She pointed out that while reducing debt can help manage the fiscal deficit, it also has its limitations. The Finance Minister stressed that quality capital expenditure is essential for sustained economic growth, and the government's fiscal strategy aims to balance spending and debt reduction.
Sitharaman also responded to allegations from the Opposition that the Union Budget favored BJP's allies, the JD(U) in Bihar and the TDP in Andhra Pradesh. She accused the opposition of conducting a "misleading campaign" regarding the budget allocations.
Furthermore, she noted a significant improvement in the unemployment rate for those aged 15-59, which dropped to 4.7% in 2022-23 from 6.4% in 2020-21. Sitharaman contrasted this with the inflation rates during the UPA administration, where domestic inflation was higher than the global average, with annual inflation climbing to over 8% in 2013-14 from just 3% in 2003-04. She highlighted that under the NDA government, India's inflation rates have been significantly lower, indicating better economic management.
Overall, Sitharaman's remarks in the Lok Sabha focused on the government's efforts to ensure quality capital expenditure, fiscal prudence, and inclusive growth, while addressing and countering the opposition's criticisms.
Â
