Minister of Finance dissipates fears about fiscal landslides
NEW DELHI: The finance minister on Wednesday allayed the fears of opposition members about fiscal delays due to the slowdown in the economy, saying the government has taken steps to verify prices and has managed to eliminate the gaps through its direct benefit transfer (DBT) scheme that has only saved more than Rs 1.41 lakh crore in the last five years.
Responding to a debate in Lok Sabha about supplementary claims for subsidies, the FM rejected comments from Congressman Shashi Tharoor and denied ever saying there would be tax breaks.
The Chamber approved the complementary demands that include additional funds for J&K and Ladakh for Rs 8,820 million rupees and Rs 4,557 million rupees for the recapitalization of IDBI Bank and Rs 2,500 million rupees for state insurance companies.
Sitharaman said the government had taken steps to control the increase in onion prices, including the prohibition of its exports and the imposition of various stock limits.
Previously, the opposition attacked the government for the economic slowdown with the second quarter, registering a six-year low growth of 4.5% and expressed concern about landslides in the fiscal front.
Congressman Shashi Tharoor said manufacturing growth was reduced to an average of 3% with the car as one of the most affected segments. We have seen a decrease in consumption ... including essential foods, he said.
BJP's former ally Shiv Sena joined other opposition parties in attacking the government on rural distress and rising unemployment in the country. of Shiv Sena said the Mudra scheme to provide loans to marginal sections of the society has the maximum number of non-performing assets. DMK’s DNV Senthilkumar sought increase in funds allocation in the MP Local Area Development Scheme (MPLADS) to provide relief to people.
BJP's Rajiv Pratap Rudy said the supplementary demands for J&K are the result of the government's greater focus on the newly created Union Territory. He said that non-productive assets in banks are inherited problems that his government is trying to address. He said he has not met a single person in rural areas in the past five years, who spoke of job losses. It all depends on how you see it: a glass half full or half empty, Rudy said.
Bhartruhari Mahtab de BJD said that sadness about the economy worries everyone, something that economists have also been saying. In the media and also in different circles, the idea that is going around for a few weeks is that there are growing fiscal fears and that a thorough review is needed, he said. Mahtab suggested that the government take action and develop a project to revive demand and growth by boosting manufacturing and sending signals to the investor.