The live blog session has concluded. For more news, views and updates, stay tuned with Moneycontrol.com.
Nirmala Sitharaman Interview Highlights | Finance Minister Nirmala Sitharaman is speaking exclusively to Network18's Editor-in-Chief Rahul Joshi. The conversation comes a day after she presented the Union Budget 2022-23 in the Parliament.
Sitharaman's budget, which was the second to be tabled after the onset of COVID-19 pandemic, was projected as a "blueprint" for the next 25 years - the completion of which will mark 100 years since the country's independence.
“This budget seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years – from India at 75 to India at 100,” the finance minister said during her speech.
Sitharaman presented a budget of Rs 39.45 lakh crore for FY23 which focused on infrastructure investment to boost revival from the pandemic.
The amount allocated for capital expenditure, Rs 7.50 lakh crore, was 35 percent higher as compared to Rs 5.54 lakh crore allotted last year.
The fiscal deficit for the current financial year is expected at 6.9 percent of GDP, which is slightly more than the 6.8 percet targeted earlier. For the next fiscal year, a deficit of 6.4 percet is targeted, which is higher than expected and has stoked concerns.
The Centre has pegged the divestment target for FY23 at Rs 65,000 crore and lowered the aim for the current financial year to Rs 78,000 crore. The latter has sparked speculation that the initial public offering size of Life Insurance Corp could be smaller than expected. Also, the smaller target for next fiscal is seen as the government scaling back plans to sell state-run companies in the wake of political criticism and market turmoil.
Gross borrowing for 2022-23 was raised 40 percent to Rs 14.95 lakh crore as the budget went on an investment spree to boost revival, resulting in a bond selloff that saw the benchmark 10-year bond yield rise 15 basis points.
The live blog session has concluded. For more news, views and updates, stay tuned with Moneycontrol.com.
The interview has concluded. The finance ministerr spoke on an array of topics ranging from the government's $5 trillion economy target to the upcoming initial public offering of the state-run insurance giant LIC.
"Where were we 7-8 years ago...From now, if we are consistent, you are sure to reach the target in the same time frame," the finance minister said.
Responding to Congress leader P Chidambaram's "capitalist" jibe at the Budget 2022-23, Sitharaman said it is a "certificate" coming from the grand old party.
""For a party that claimed 1991 opened the world to say this was a capitalist speech is a certificate," she said.
Sitharaman said a digital university has been proposed. "Idea is to make sure that all these digital platforms talk to one another and bring in inter linkage.Eventually your digital stack will need to communicate with digital stacks of other countries.India stack shoud be able to communicate with compatriots elsewhere," she added.
"India is showing leadership.Already at high table of determining global policy on digital stack," the finance minister added.
On fintechs and digital payments, Sitharaman said,"Digital payments- during the pandemic look at how Indian citizens have accepted digital payments as a medium in which they can run daily lives.No difference between rural or urban, truly democratized digital environment.India has shown great strides in payment ecosystem in democratizing digital payments.This is a very big message that we have to leverage," she said.
"Trying to draw this distinction between privately generated crypto assets and digital currency. Private people using the blockchain create it but that cannot be the currency. Currency would be when the RBI issues it. That is why we have gone to Parliament to say we have put the proposal to say the central bank would issue a digital currency," the FM said.
On being asked about the legislation related to cryptocurrency, Sitharaman replied, "Will certainly be coming up with a bill post consultation.Don't know when it will come or whether it will regulate crypto."
"Don't know if there is an option (large borrowings).So it's for us to be careful on when we go our there and take it.Concern will have to be cost of borrowing. Still think there is improvement for tax revenues to improve," she said.
On farm laws, Sitharaman said"it was gracious of PM to pull back despite being passed in parliament".
"It was good that PM took a call PM farm laws.It is something we remember when we talk about reforms," she added.
Sitharaman said she does not believe that a conservative approach is wrong. "Being conservative is not wrong.Being conservative is also being responsible," she said.
