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.
Nirmala Sitharaman Interview LIVE Updates |
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.
Nirmala Sitharaman Interview LIVE Updates |
"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.
Nirmala Sitharaman Interview LIVE Updates |
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.
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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.
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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.
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"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.
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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."
Nirmala Sitharaman Interview LIVE Updates |
"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.
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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.
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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.
"There are always elements of surprises when you are dealing with country's finances.Urea prices for example when very high.Petrol is now in hands of OMCs," Sitharaman added.
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On digital currency, Sitharaman said it will be "sooner rather than later".
"Once it goes through Parliament, RBI will move forward to take cabinet approval and issuing digital rupee.Don't know yet what digital rupee will be called," she said.
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"Not necessary for me to list out but my commitment (towards disinvestment)remains.Air India was complex subject.To be compliant with all diligence required took a lot of work.My commitment remains and continues.LIC IPO plans are going fine . It should happen this year itself.Money from LIC IPO will come this year itself," she said.
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"I'm glad to know I'm called a risk taker.I'm not saying I've delivered but making sure that Indian economy rises out of trouble.It's good if I'm called a risk taker," she said.
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"The RBI has been keenly watching the situation to see how Fed moves will play out.Lessons learnt from taper tantrum fresh in our mind.Making sure that none of that will happen.We are watchful and will make necessary steps leading toward it," Sitharaman noted.
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"I think globally all economies are worried about inflation.It does affect planning," Sitharaman said.
"Yes we are conscious of inflation.Within India essential goods, pulses and edible oils still depend on a imports. (We are) not producing enough pulses and oil seeds," she added.
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"On taxation, Sitharaman said it is possible to provide stability and predictability in tax regime. "We didn't want to bring in elements of uncertainty.If you look at tax stability and predictability, you are at least making sure that people who have planned are making sure that it remaining unaffected," Sitharaman said.
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"65-68 percent of capex utilised from last year allocation. Omicron staggered first quarter expenditure into second and third.Reaching 68 percent despite second wave and Omicron, for us to catch up with intended capex did have lag effect.It shouldn't be the case this year as Omicron is showing signs of withdrawing," the finance minister said.
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"Exports are growing.Export potential is there for private sector investment.Newer capacities are definitely going to come in.Despite naysayers, FDI into this country is still coming in a big way.Therefore companies happy to be partnering with FDI and they are increasing capacities.PLI scheme also indicates that," Sitharaman said.
Nirmala Sitharaman Interview LIVE Updates | Hopeful of capex firing up economy: FM
"Hopeful of capex firing up economy. There is no doubt in the prime minister's mind that growth has to be ensured," the finance minister said.
Nirmala Sitharaman Interview Live Updates | Only by public investment in infra will there be a virtuous cycle and crowding in: FM
"Only by public investment in infra will there be a virtuous cycle and crowding in.We thought if economy does well, the multiplier effect of spending on infra is higher as opposed to giving money. We wanted to have maximum multiplier effect that would have impact on the economy.Economy at this juncture requires strong support," Sitharaman said.
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"No doubt we should give help so revival is sustainable and strong," Sitharaman said, adding, "We wanted to continue that momentum and wanted to take as much as is required to help states to move forward with their infra spending.So from the beginning there was clarity in mind of PM that growth has to be ensured and sustained."
Nirmala Sitharaman Interview Live Updates |
Finance Minister's interview with Network18's Rahul Joshi begins.
Nirmala Sitharaman Interview Live Updates |
The interview with Network18's Rahul Joshi comes a day after Finance Minister Nirmala Sitharaman presented the Union Budget for financial year 2022-23 in the Parliament.
Nirmala Sitharaman Interview Live Updates |
Finance Minister Nirmala Sitharaman will speak exclusively to Network18's editor-in-chief Rahul Joshi at 5:30 pm. Stay tuned here for the live updates.
