Finance Minister Nirmala Sitharaman on Wednesday underlined the commitment of the Government to deliver on the Budget 2023’s priority of the capital expenditure of Rs 10 lakh crore within the fiscal 2023-24 for keeping up India’s growth momentum and equipping the economy to deal with ‘’extraneous global shocks”. The Finance Minister also assured that the Centre was working to ensure that the expansion of public expenditure is directed towards a desired multiplier effect on all the sectors as per the directions set by Prime Minister Narendra Modi.
Speaking at an ASSOCHAM post-Budget interaction with industry, the Finance Minister said like the past two years, the emphasis would be on ensuring that the Budgetary allocations for the coming fiscal in terms of expenditure are absorbed in projects of the different ministries and the states which have showed very consistent appetite for receiving grants on capital expenditure. ‘’We have kept up the momentum through the very same route which we have undertaken in the last two Budgets, that is public spending in infrastructure. It is only such expenditure which will result in greater multiplier,” Sitharaman said reiterating the priority of the Budget to help sustain growth. ‘’There has been an annual incremental addition of 30-33 per cent on capital expenditure for the past two years,” she pointed out.
The Finance Minister indicated that an adequate elbow has been provided for any unforeseen global risks and called for being prepared even as the Government is ready to ensure critical inputs so that people who depend on it, like farmers do not suffer. She highlighted that the Government had continued to import fertiliser even when international prices had skyrocketed by 10 times and provided this cushion to the farmers maintaining fiscal prudence. “Government would ensure that the general consumers of petrol, diesel or natural gas are protected against any global volatility,” Sitharaman said and asserted India’s commitment towards energy transition through green hydrogen and renewables.
Addressing the PHD Chamber of Commerce & Industry, the Finance Minister identified the potential of capex to benefit a range of core industries as an effective way to ensure that money is directed to the right places to generate multiplier effects. “However, we must also ensure that we take care of those who need it most, continuing with the free food programme throughout this year so that no family is left without food,” Sitharaman said. In addition to inclusion, the Government’s major focus was on Micro, Small and Medium Enterprises (MSMEs), which are the backbone of the Indian economy and important job creators, she said. “The Central Government was collaborating with the states, as well as Tier III administrations, such as the panchayats or ward-level administrations, to ensure that MSME priorities remain at the top of the agenda,” Sitharaman said.
Sitharaman also drew attention to the importance of women’s empowerment as a significant portion of the self-help groups (SHGs) in the villages are actually women’s groups. The Government is adding branding and market finding activities to their portfolio to ensure that these groups have greater access to resources, professional assistance as well as market linkages which will allow them to scale up their activities.