The Union Finance Minister Nirmala Sitharaman Tuesday said in the Lok Sabha the economy was moving in the right direction and India has become the fastest-growing major economy in the world.
Replying to a debate on Supplementary Demands for Grants, Sitharaman said fiscal prudence is the top priority without compromising on social welfare. “Our economy is moving in the right direction… Macroeconomic fundamentals are fine. We have become the fastest-growing economy. Q2 growth of 7.6% 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 would be the cash outgo in the current fiscal and remaining Rs 70,968 crore will be matched by savings and receipts.
Responding to issues raised by the Opposition on BSNL, she said the government has earmarked Rs 11,850-crore capital infusion in the state-owned telecom firm. She blamed the 10-year UPA rule for the company’s current situation.
On MNREGA, she said it was a demand-driven programme, and the government allocated funds accordingly. So far this fiscal, Rs 80,000 crore has been allocated.
The additional expenditure includes Rs 13,351 crore towards fertiliser subsidy and about Rs 7,000 crore towards spending by the Department of Food and Public Distribution. The House also approved an additional outgo of Rs 9,200 crore spending by the Ministry of Petroleum and Natural Gas and Rs 14,524 crore by the Ministry of Rural Development towards MGNREGA.
Total supplementary demands for spending by MEA were Rs 20,000 crore, which would be adjusted against the reduction of expenditure of over Rs 9,000 crore. The April-October fiscal deficit was 45.6% of the full-year Budget Estimate of the last fiscal.
