Responding to the debate on the need for additional subsidies, Sitharaman said fiscal prudence is the top priority without compromising on social protection.
Union Finance Minister Nirmala Sitharaman on Tuesday told Lok Sabha that the economy is on the right track and India has become the fastest growing major economy in the world.
Responding to the debate on the need for additional subsidies, Sitharaman said fiscal prudence is the top priority without compromising on social protection.
“Our economy is moving in the right direction…Macroeconomic fundamentals are very good. We have become the fastest growing economy. The growth rate of 7.6% in the second quarter is the highest in the world,” she said. The House approved the supplementary grants, allowing the government to spend an additional Rs 1.29 lakh crore, of which Rs 58,378 crore will constitute the current financial year’s outflow and the remaining Rs 70,968 crore will be offset through savings and revenue.
Replying to questions raised by the opposition on BSNL, she said the government has earmarked a capital of Rs 11,850 crore for the state-run telecom company. She blamed the company’s current situation on the 10-year UPA rule.
On MNREGA, she said it is a need-based scheme and the government has allocated funds accordingly. So far this financial year, Rs 80,000 crore has been allocated.
The additional expenditure includes Rs 13,351 crore on fertilizer subsidy and about Rs 7,000 crore on expenditure by the Ministry of Food and Public Distribution. The House also approved additional expenditure of Rs 9,200 crore by the Ministry of Petroleum and Natural Gas and Rs 14,524 crore by the Ministry of Rural Development for MGNREGA.
MEA’s total additional expenditure requirement is Rs 20,000 crore, which will be revised based on a reduction in expenditure of over Rs 9,000 crore. The budget deficit from April to October accounted for 45.6% of the budget estimate for the entire previous fiscal year.
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