The government has spent big on areas of activity which will have a big multiplier effect, finance minister Nirmala Sitharaman said at a post-budget interaction with PHD Chamber of Commerce & Industry on Monday.
“The government has spent big on those areas of activity which gives a big multiplier effect…multiplier was the key where the money was going,” she said.
Sitharaman said careful monitoring and tackling of fiscal deficit was the “mool mantra” of the budget.
“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… The government is also taking steps to carefully monitor the fiscal deficit,” she said.
The government has projected fiscal deficit of 6.8% for 2021-22 in the Union budget presented last week. It has also set a glide path to reduce the
deficit to 4.5% by 2025-26.
The finance minister said the government could give stimulus package to revive the economy, but funding the long term infrastructure financing was the responsibility of development finance NSE 4.66 % institutions (DFIs).
“It is an opportunity for private DFIs to come into play. With many private DFIs competing, the entire process would become competitive,” she said.
Sitharaman said the government has managed to make the Union budget transparent. “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.
News source : Economic Times