Finance Minister Sitharaman said that she opted for an infrastructure spending route as it kicks off the cycle of instant jobs and demand, in an interview with Economic Times.
Finance Minister Sitharaman said "You spend on infrastructure, you create a capital asset, whose effect will be on the economy for the next couple of decades. It gives you instant jobs. It triggers demand for core industry products and, therefore, moves to trigger the virtuous cycle. So, I went on this route."Finance Minister also noted that there is a directional shift in the financial plan which determines that the government alone cannot trigger off the economy and hence there was the inclusion of the private sector in every critical announcement that was made in the budget.
Sitharaman also said that the priority for the government was to bring a budget that would supplement the stimulus.
Commenting on the Finance Commission's recommendation of merging 12% and 18% rates under GST and moving to a three-slab structure, Sitharaman said that the government looks into the recommendations.
Commenting on appealing the Cairn arbitration case, Sitharaman said that the government's right to tax cannot be questioned. She further noted that she has sanctioned the finance secretary to meet the Cairn chief executive officer.
Nirmala Sitharaman also said that the government will be reviewing the 2-6% target inflation band under the monetary policy framework which is due for a review.