Government is gradually managing fiscal deficit, says Nirmala Sitharaman

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Sunday said that the government was conscious of managing gradually, without interrupting the pace of recovery, the fiscal deficit, Gross Domestic Product, and other important indicators of the country’s economy.

“We funded the stimulus package with borrowed money. The package is largely aiming at sectors that provide the multiplier effect. Important indicators of the economy have to be carefully managed,” the Finance Minister told a gathering of industry captains at an interactive session organised by Bangalore Chamber of Commerce and Industry here on Sunday. “In a reasonable amount of time, the fiscal deficit will also be kept at a healthy level and [will] not be left unchecked,” she added.

She said that the government wanted the country’s growth to be uninterrupted and sustainable. “Yet, we will bring fiscal deficit to a reasonable level,” she said. Ms. Sitharaman also said that this year’s Budget aimed to bring about a directional change for the country since the Indian economy required a different kind of an approach and support in post-pandemic times.

“India’s growth and aspirations across various sectors, and needs and demands cannot be served by the governments. The private sector needs to be energised and the government needs to become a facilitator. Otherwise, India will lose a big opportunity to be a world leader,” the Union Minister said.