New Delhi: Union Finance Minister Nirmala Sitharaman told Lok Sabha Friday that the government chose the “capex route” to revive the economy as it had “a great multiplier effect”.
In the 2023-24 Budget, Sitharaman raised long-term capital expenditure by 33% to Rs 10 trillion, continuing this government’s trend since 2014 to ramp up capital spending on infrastructure. The record outlay also boosted the strategy to revive growth in the aftermath of the Covid pandemic.
“India is still the fastest growing major economy and will continue to be so,” Sitharaman said during a general discussion on Budget 2023-24.
She said the new tax regime has been made “very attractive”, emphasising on the moderation in personal taxes for the middle classes.
Mentioning other highpoints of the recent Budget – like enhanced agriculture credit and fertiliser subsidy – Sitharaman said the government had insulated farmers from rising global prices.
She also countered the Opposition’s allegations that food subsidies had been cut. “I has almost doubled to Rs 1.97 lakh crore,” she said.
“In simple words, Budget 2023-24 astutely balances the requirement for India’s development imperatives within the limit of fiscal prudence. That is a very difficult balance, it is a very delicately balanced act,” she added.
Sitharaman also said total resources were being transferred to states, adding that the Centre’s share from taxes and releases under centrally-sponsored schemes put together would be Rs 17.98 lakh crore. “This is higher by Rs 1.55 lakh crore compared to last year,” she said.
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