Indian Economy: Finance Minister Nirmala Sitharaman said that despite a fall of Rs 9.57 lakh crore in the Indian economy during the Kovid-19 epidemic, the government has been successful in keeping retail inflation under control at 6.2 percent. The Finance Minister, while replying to the discussion on the General Budget in the Rajya Sabha, said that the budget for the financial year 2022-23 is to bring stability, continuity and confidence in the matter of taxation in the economy. The objective of the budget is to achieve sustainable economic revival.
Retail inflation rate 9.1 percent
Comparing the performance of the government, the Finance Minister said that during the global financial crisis of 2008-09, the rate of retail inflation was 9.1 per cent, while it was 6.2 per cent during the Kovid epidemic. However, the Kovid-19 pandemic has had a far more adverse effect on the economy.
damage to the economy
He said that the Indian economy suffered a loss of Rs 9.57 lakh crore due to the pandemic as against a loss of Rs 2.12 lakh crore in 2008-09 at the time of global slowdown. Sitharaman also said that the impact of capital expenditure is wider as compared to revenue expenditure and hence the government has emphasized on increasing public capital expenditure to boost the economy.
Many startups become ‘unicorns’
He said that the government is also promoting startups, which has resulted in many ‘unicorns’ (startups with a valuation of more than one billion dollars) during the pandemic. Sitharaman also said that the difference between the GDP growth rate estimates in the Economic Survey and the Budget is not a matter of concern. The reason for this difference is the data taken from different sources.
Rs 73,000 crore allocated for MGNREGA
Regarding public expenditure, the Finance Minister said that with the expenditure of Rs 7.5 lakh crore, employment will be created on a large scale. He said that MNREGA is a demand based programme. For this, an allocation of Rs 73,000 crore has been made and if the demand increases, the amount will be increased. Sitharaman said that a provision of Rs 79,530 crore was made in the budget for 2021-22 for fertilizer subsidy, which increased to Rs 1.4 lakh crore in the revised estimate. It tells that the government takes care of the need and takes steps according to the need.
MSME closed due to lockdown
On the allegation of closure of small industries by opposition parties, he said that 67 percent of MSMEs were temporarily closed due to ‘lockdown’. Sitharaman said inflation has gone above the satisfactory limit of 6 per cent only six times since the NDA came to power in 2014. This suggests that inflation management is sound.
GDP estimated to be 9.2 percent
It is noteworthy that the government has given the responsibility to the Reserve Bank to maintain the inflation based on the Consumer Price Index at four percent with two percent fluctuations. He said that there is no question of slowdown or slowdown as the GDP growth rate is estimated to be 9.2 per cent in the current financial year.
Will cryptocurrencies be banned?
Regarding cryptocurrencies, the Finance Minister said that whether it will be banned or not, it will be decided after the ongoing deliberations. He said, “Whether it is legal or not is a different question but I have proposed to tax the profit derived from it as it is our sovereign right.” Referring to the use of drones in the agriculture sector, the Finance Minister said. That it will prove to be effective in making Indian agriculture better and modern.
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