New Delhi, Feb 8 (IANS) Finance Minister Nirmala Sitharaman on Monday said that the government has managed to make the Union Budget transparent and there is nothing under wraps or swept under the carpet.
“Whatever the government is borrowing or spending is open for everyone to see,” she said during a virtual event ‘Demystifying Union Budget 2021-22’, organised by the PHD Chamber of Commerce and Industry.
She further said that the central government is governed by the principle of ‘minimum government, maximum governance’ and the Union Budget 2021-22 was presented with the same philosophy.
Sitharaman sid that the government has spent big on those areas of activity which gives a big multiplier effect.
She said that the multiplier was the key where the money was going. While acknowledging that the industry has appreciated the steps, Sitharaman said that the government believes that welfare is when one empowers people.
According to the Finance Minister, the government is also taking steps to carefully monitor the fiscal deficit. She mentioned that the “Mool Mantra” now is that fiscal deficit is something that one cannot escape, but at the same time, it needs to be carefully tackled.
She mentioned that the government can give stimulus package to revive the economy, however, funding the long term infrastructure financing is the job of the Development Finance Institutions (DFI).
The minister said that it is not the job of just one DFI, but it is an opportunity for private DFIs to come into play. With many private DFIs competing, the entire process would become competitive.
Sanjay Aggarwal, president, PHD Chamber of Commerce and Industry, said that the calibrated fiscal policy adopted by the government to rejuvenate the economic growth and development in the country with an increased fiscal deficit for the year 2021-22 at 6.8 per cent is highly appreciable.
He said these measures will help increase the funds for infrastructural investment in the country and will, in turn, provide a multiplier effect for growth.