Sitharaman also said that the priority for the government was to bring a budget that would supplement the stimulus.
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.”
Commenting on the privatisation of two PSU banks announced in the budget, Sitharaman noted that the size and scope will be determined. Sithraman also noted that the government will reach out to the stakeholders of the state-owned enterprises in order to reassure them that their pensions and other interests are protected.
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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.
This directional shift in the budget in terms of policy was in line with Prime Minister Narendra Modi’s approach to the economy and in line with the Jan Sangh and Bharatiya Janata Party’s belief that “Indian entrepreneurs should be given the maximum opportunity”.
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.
“We will definitely be talking about it whenever the council finds it fit, sooner I suppose. Whether it will be the next meeting itself, I can’t speak for the council as yet. We’ll have to see, said Sitharaman.
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.
