Despite the Indian economy suffering the largest decline of Rs 9.57 lakh crore, Finance Minister Nirmala Sitharaman declared on Friday that retail inflation was only 6.2 percent.
In response to a general discussion on the Union Budget in the Rajya Sabha, the minister stated that the Budget for 2022-23 represents continuity, economic stability, and tax predictability. She stated that the Budget’s goal is to achieve a stable and long-term economic recovery.
In comparison to the UPA government’s performance, she said that retail inflation was 9.1% during the financial crisis of 2008-09, but only 6.2 percent during the COVID-19 pandemic, which has had a greater impact on the economy.
According to the minister, the epidemic had the greatest impact on the Indian economy.
She noted that the epidemic cost the Indian economy Rs 9.57 lakh crore, compared to a Rs 2.12 lakh crore contraction during the global financial crisis in 2008-09.
She also informed the House that capital spending generates a significantly higher multiplier than revenue, hence the government has expanded public capital spending to stimulate the economy.
According to Sitharaman, the government encourages entrepreneurs, which resulted in the birth of several unicorns during the pandemic.
She also stated that there is no need to be concerned about the differing GDP figures in the Economic Survey and Budget documents because the sources of data are different.
The minister stated that public spending of Rs 7.5 lakh crore will create jobs, adding that the creation of jobs from the productivity- linked incentive plan for 14 industries is not restricted to 60 lakh jobs.
She pointed out that the MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) was riddled with ghost accounts, with people who were not even born getting funds.
The MNREGA is a demand-driven program that provides jobs to the unemployed in rural areas during the lean season, and it is funded whenever demand arises, according to the minister.
She stated that Rs 73,000 crore has been set aside for the MNREGA rural job guarantee plan and that more will be granted if the need arises.
Fertilizer subsidies increased from Rs 79,530 crore in the planned FY22 to Rs 1.4 lakh crore in the revised estimates, demonstrating that the government is responsive to the needs, she said.
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