Government monitoring fiscal deficit carefully: Nirmala Sitharaman
By TIOL News Service
NEW DELHI, FEB 09, 2021: THE Central government is taking steps to carefully monitor the fiscal deficit and following the principle of "minimum government, maximum governance," said Finance Minister Ms Nirmala Sitharaman on Monday.
"The 'mool mantra' (essential teaching) now is that fiscal deficit is something that one cannot escape, but at the same time, it needs to be carefully tackled," said the FM in a virtual address to the PHD Chamber of Commerce and Industry.
As per the latest budget, India's fiscal deficit is estimated at to be 9.5 per cent of the Gross Domestic Product (GDP) in the current fiscal and is expected to come down to 6.8 per cent in the financial year beginning on April 1.
Increased government spending due to the pandemic's impact on the economy and a moderation in tax collection led to higher borrowing of Rs. 12.8 lakh crore from the market.
Ms Sitharaman mentioned that the government can give stimulus packages to revive the economy, however, funding the long-term infrastructure financing is the job of the Development Finance Institutions (DFIs).
She said the government is spending big on those areas of activity which have a big multiplier effect, such as public infrastructure and healthcare.
Emphasising that the government has made the budget "transparent," she said there was nothing kept under wraps.
"Whatever the government is borrowing or spending is open for everyone to see," said the FM.
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