The Finance minister on Thursday made clear that the government is willing to allocate more funds for the Mahatma Gandhi National Rural Employment Guarantee Scheme.
In FY23 than the budgeted amount that Rs 73,000 crore, should demand the program so warrant.
Replying to the general discussion on the Budget for FY23 in the Lok Sabha that the finance minister also asserted that the government has not reduced outlays for key welfare or social-sector programs in sectors ranging from education, health to tribal and minority affairs.
Commenting on the reduced outlay for the rural job scheme minister’s opinion that NREGS is a demand-driven program.
When there is demand and through the supplementary demand for grants and we give the additional required amount.
The NREGA outlay was raised to a record Rs 1, 11,500 crores in FY21 from the budget estimate of Rs 64,000 crore, as demand for such work picked up sharply in the wake of the Covid outbreak.
The minister explained the improved quality of expenditure in recent years and given the high-multiplier effect of capital spending, the Centre has raised it to a record Rs 7.5 lakh crore for FY23; in fact, it has doubled from the pre-pandemic level.
Based on the RBI study, the finance minister explained that the rupee spent on CAPEX has a multiplier of 2.45 in the first year itself, against that of just 0.45 on revenue spending.
Importantly, the government has succeeded in curbing wasteful expenditure and the revenue deficit is estimated to fall to just 3.8% in FY23 from as much as 7.3% in FY21all explained that the minister.
Minister listed out a raft of initiatives to suggest that the government not just helped protect lives and livelihood in the aftermath of the pandemic but also steered the economy efficiently out of the crisis.
While the economy and hit by the unprecedented crisis and witnessed a record contraction of 6.6% in FY21, the government was successful in reining in inflation at 6.2%, she said.
Given the high-multiplier effect of capital spending, the Centre has raised it to a record Rs 7.5 lakh crore for FY23; in fact, it has doubled from the pre-pandemic level.
RBI study, the minister said that rupee spent on CAPEX has a multiplier of 2.45 in the first year itself, against that of just 0.45 on revenue spending.
Importantly, the government has succeeded in curbing wasteful expenditure and the revenue deficit is estimated to fall to just 3.8% in FY23 (BE) from as much as 7.3% in FY21.
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