Nirmala Sitharaman on Budget 2021: 'Govt did not hesitate in spending'
Union Finance Minister Nirmala Sitharaman on Monday said that the government did not hesitate in spending big. Presenting Budget 2021-22, Sitharaman said the government estimates fiscal deficit of 6.8 per cent of the gross domestic product (GDP) in the next financial year beginning April 1. However, the fiscal deficit in 2020-21 is estimated to soar up to 9.5 per cent due to rise in expenditure on account of the outbreak of COVID-19 and moderation in revenue during the fiscal year.
"We were told to print currency, not worry about fiscal deficit, rating agency and spend. Now who are these people talking about fiscal deficit. Two months back, I had said that we need to spend huge amount and if I don't, I postpone growth which we need right now," Sitharaman said in response to a question on India TV's Aaj Ki Baat.
"We did not hesitate in spending. We are constantly in discussions with the RBI. Borrowings will happen. Borrow in a limit and then lower the fiscal deficit gradually so that there's no obstacle in economic growth," she further said.
For the current fiscal year, the government had earlier pegged the fiscal deficit of 3.5 per cent. While unveiling the Budget 2021-22 in the Lok Sabha, the Finance Minister said, the government proposes to bring down the fiscal deficit below 4.5 per cent of GDP by 2025-26.
Fiscal deficit is an indication of the government's borrowing to meet the shortfall between expenditure and receipts from taxes and other sources. The deficit had soared to a high of 4.6 per cent of the GDP in 2019-20, mainly due to poor revenue realisation.
The Finance Minister said the government plans to borrow Rs 80,000 crore during the residual two months of the current fiscal year.
