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Last Updated : Feb 04, 2020 08:06 PM IST | Source: Moneycontrol.com

Maintaining macroeconomic stability was the priority: FM Nirmala Sitharaman

Speaking on the fiscal deficit target, Sitharaman said: "We have used only that much of window escape clause that was permitted to us."

(Image: PTI)
(Image: PTI)

Finance Minister Nirmala Sitharaman on February 4 said that the biggest priority of the government was that macoreconomic stability should be maintained or improved.

Speaking at an event hosted by the Confederation of Indian Industry (CII), she acknowledged that while the government would have to intervene through spending, the Fiscal Responsibility and Budget Management (FRBM) has to be well within the targets, and they can't play around with it.

Speaking on the fiscal deficit target, Sitharaman said: "We have used only that much of window escape clause that was permitted to us. We have also clearly laid out the glidepath, and aim to not splurge. We are conscious of ensuring that the money spent will have the maximum impact."

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Sitharman gave the example of the global financial crisis of 2008 where she stated that the previous government carried out a massive public spending exercise, which led to the twin balance sheet problem.

"Between 2014-15, we had to sort that mess out which led to the twin balance sheet problem. By giving my next fiscal deficit number, I am also clearly indicating that I am laying a glidepath that the treatment to the economy will be given with a clear end," she said.

Speaking on the topic of raising duties on medical devices, she said: "The additional import and revenue generated will be used for medical infrastructure generation in those aspirational districts where it is not available," said Sitharaman.

Commenting on the push towards assembling in India, Sitharaman also clarified that there is no shift from the Make in India policy.

"Assembling in India has a purpose. It has its place in electronics, and building on manpower capacity. We are using this to build capacity towards Make in India," said Sitharaman.

Sitharaman also said that the government is addressing the problem of slowdown rural consumption by looking at capacity creation and storage creation for grains and horticultural produce.

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First Published on Feb 4, 2020 08:04 pm
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