Finance Minister Nirmala Sitharaman said that in 2014 India was one of the countries with five fragile economies and now it has become a fast growing country.
Nirmala Sitharaman. (File photo)
Finance Minister Nirmala Sitharaman expressed confidence on Wednesday that despite the increase in fiscal deficit (increase in spending rather than the government’s income), there is no danger of the country’s financial credibility declining. Responding to the discussion in the Rajya Sabha on Finance Bill 2021, he criticized the former Congress government for the poor economy and said that ‘Modi government is managing the economy in a better way. The Modi government has fixed the economic problems that we got from the previous UPA government in 2014.
After the reply of the Finance Minister, the Rajya Sabha returned the Finance Bill 2021 to the Lok Sabha without any amendment, suggestion. With this, the process of approving the general budget from the Parliament has been completed. The Finance Bill 2021 has been approved in the Budget on Tuesday, with some amendments introduced by the Lok Sabha government for the next financial year starting from the first April.
‘Financial credibility will not decrease due to good investment’
The bill was discussed in the Rajya Sabha and after that it was sent to the Lok Sabha without any suggestion about the change. The finance minister cited low inflation, high GDP, record foreign investment and low fiscal deficit. Responding to the discussion, Sitharaman said that even after the increased fiscal deficit due to increased expenditure, there is no danger of a reduction in the country’s financial credibility to further the economy. He said that India has an investment grade rating and due to good investment, they do not think it will fall. The Finance Minister said that the reason for the high deficit is high expenditure and increase in debt.
Need to spend to move the economy forward
Sitharaman said that economists and rating agencies are of the opinion that the government needs to spend to get the economy affected by the Corona epidemic back on track and the country has accepted that advice. However, Sitharaman could not read his entire speech due to the noises with the members of the Trinamool Congress (TMC) over the implementation of the central government’s schemes in West Bengal.
Talking about TMC member Dola Sen, in his reply in Bangla, the Finance Minister said that the West Bengal government did not give the names of the farmers, due to which they did not get the benefit of PM Kisan Samman Nidhi Yojana (PM Kisan Samman Nidhi Yojana). The state government also did not allow the people there to take advantage of the health plan of the center.
Members of the Trinamool Congress protested this thing about him. “We have never denied it … she is misleading,” said Dola Sen. “In the upcoming assembly elections in West Bengal, Sen raised the shortcomings in the budget proposals and loudly amid the ongoing war between the TMC and the BJP.” Shouted slogans of ‘Lajja’, ‘Lajja’.
“Bengal government is not allowing any central plan to be implemented”
To this, Sitharaman said, “The central government wants to give Rs 10,000 crore to poor farmers in Bengal, but the state government is not allowing it.” He said using the same language, “Sen used the word Lajja, Lajja But I want to say that is it right to not give cash to the farmers? Shame. Shame. “
The Finance Minister said, “The central government also wants to implement the Ayushman Bharat scheme so that the poor people of Bengal get its benefits but the state government is not allowing it. Is this right for poor people? Shame, shame. ” Members of the Trinamool Congress opposed this. On this, Deputy Chairman of Rajya Sabha Harivansh asked the minister to end his talk and put the Finance Bill for voting.
Finance bill and government amendments approved by voice vote
Finance Bill (Finance Bill) And government amendments were approved by voice vote and returned. Finance Bill, Money Bill (Money Bill) Belongs to the category. Under the Constitution, the Money Bill can be introduced only in the Lok Sabha. The Lok Sabha can pass it with a simple majority of the members present, after which it is sent to the Rajya Sabha for consideration. The Rajya Sabha can recommend reforms in this, but the Lok Sabha has the right to reject it.
If the recommendations are not given within 14 days, the Bill is deemed to have been passed by the Parliament. Earlier, both the houses had approved the Appropriation Bill for certain necessary expenses. The process of approving the General Budget from Parliament has been completed with the return of the Rajya Sabha’s Finance Bill 2021 to the Lok Sabha after discussion.
“Inflation increased due to steps taken by UPA government”
He said, “The Modi government corrected the mistakes of the earlier Congress government. The steps taken by the UPA government regarding the Global Financial Crisis of 2008, led to the rise in inflation and large scale withdrawals. ” Sitharaman said that the average GDP growth rate during 2014 to 2019 was 7.5 percent, which was 6.7 percent during 2009 to 2014 under the UPA regime.
The Finance Minister said that the fiscal deficit was also 3.65 percent of GDP during 2014-19, which was 5.3 percent in the last five years.
“You created a crisis and the Modi government handled it”
He said that foreign exchange reserves increased from $ 303 billion in 2014 to $ 411.9 billion. Trapped debt or NPA came down to 8.99 percent in March 2020. He said, “When Arun Jaitley (the first finance minister of the Modi government) came in 2014, India was one of the countries with five fragile economies. Now it has become a fast growing country. You created a crisis and Jaitleyji and Prime Minister Modi handled it. ” The finance minister also said that the financial crisis of 2008 cannot be compared to the corona crisis of last year.
(With language input)
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