Finance Minister Nirmala Sitharaman on Thursday assured that the government will continue to take measures to check inflation. Retail inflation based on Consumer Price Index (CPI) eased to a five-month low of 4.3 per cent in January.
Replying to a general discussion on the Union Budget in the Rajya Sabha, the Finance Minister listed out the steps proposed in the Budget to boost agricultural production in the country. “It is clear that government’s attempt to remove the stress of price rise is actually being received in the ground. The efforts will continue. We shall make sure that price should not be a burden on the ordinary citizens,” she said.
According to the Minister, data showed steep correction in prices of tomato, onion and potato, and even pulses. “Food inflation, which gets triggered when you have an adverse weather condition, and supply chain disruptions are being managed by a group of ministers who are ensuring that timely import happens if there is a shortfall in supply,” she said.
On Budget proposals, she said they seek to “accelerate growth, secure inclusive development and invigorate private sector investments”, and there has been no decrease in capital expenditure for the next fiscal year.
- Also read: New IT Bill streamlines tax laws, not a mere amendment: FM Sitharaman
Challenging time
Sitharaman told the House that the Budget was prepared during a challenging time, with serious external challenges beyond estimates or forecasts, and there has been reduction in sectoral allocations. Despite this, the government has tried to keep the assessment as accurate as possible, keeping India‘s interests paramount, she said.
“There are no models that you can build and understand how the trends will be because they are very dynamic. Despite that, we have tried keeping the assessments as close as possible, keeping India‘s interests as topmost,” she said. She added that the first advance estimates from National Statistics Office (NSO) has projected that India‘s economy will grow at 6.4 per cent in real terms and 9.7 per cent in nominal terms.
So for the Budget, “we have kept our goals such that we are able to accelerate growth, secure inclusive development, invigorate private sector investments,” she said. The government steered the economy very well during the Covid crisis, and the country emerged as the 5th largest major economy in the world, she pointed out.
She also rebutted Opposition parties’ assertions that income tax incentives would only benefit rich people. She said income-tax liability of the middle will significantly come down.
The House was adjourned for a recess and will meet again on March 10 to continue the Budget session.