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Sitarman said that out of only two of the 12 quarters, India’s growth rate touched or remained below it. In the second quarter (July-September) GDP growth reduced by 7-fourths of 5.4 percent.
Speaking of GDP growth, Sitarman said that in three years before 2024–25, the country’s GDP growth rate was 8 percent on an average. (PTI file)
Finance Minister Nirmala Sitarman said on Tuesday that the Indian economy is looking at “rapid rebounds” due to an increase of 5.4 percent in the second quarter of the current financial year, and the government will take measures to ensure that India is the fastest growing economy in the world Stay ,
Responding to the discussion on the Union Budget for 2025-26 in the Lok Sabha, the Finance Minister said that the budget has taken various steps to increase the liquidity in the hands of the people, while in the financial year, to borrow 99 percent of the fiscal discretion to borrow 99 percent. Keep it to fund capital expenditure.
He also said that inflation management gets the top priority of this government with retail inflation within a 2-6 percent tolerance band. He said that the tendency of inflation, especially in food, appears to be moderating.
Speaking of GDP growth, Sitarman said that in three years before 2024–25, the country’s GDP growth rate was 8 percent on an average.
The Indian economy is estimated to increase by 6.4 percent in the current financial year – the lowest speed in four years. The Finance Ministry’s Economic Survey has estimated an increase in FY’26 next financial year, which is between 6.3–6.8 percent.
Sitarman said that out of only two of the 12 quarters, India’s growth rate touched or remained below it. In the second quarter (July-September), GDP growth slowed down by 7-fourths to 5.4 percent.
“… Due to the strong economic foundation, a quick rebound is happening, and we will take measures that will move forward, help our economy grow fastest over the years. We will remain the fastest growing economy, ”the minister said.
Sitarman said that a good rural demand is expected to increase private final consumption in the current financial year by 7.3 percent.
He said that private final consumption expenditure is estimated to be 61.8 percent of the nominal GDP, the highest since 2002-03.
Sitarman said that effective capital expenditure in FY’26 is Rs 15.48 lakh crore, which is 4.3 percent of GDP.
The government is targeting a fiscal deficit of Rs 15.68 lakh crore, which is 4.4 percent of the GDP in FY’26. The fiscal deficit is the difference between government revenue and expenditure and the difference is met by market borrowings.
“… The government is using almost entire lending resources for funding effective capital expenditure. Therefore borrowed revenue expenditure or committed expenditure, or are not going for any type of those types. It is only going to make capital property.
“Therefore, the government has intended to use about 99 percent of borrowing resources to finance effective capital expenditure in the coming year,” he said in the Lok Sabha.
Sitarman said that the budget has come in the time of immense uncertainties, the global macro-economic environment stabilizes global development, and sticky inflation.
In the last 10 years, the world’s scenario has become 180 degrees, and making budget is more challenging than ever, saying, combining the budget balance with fiscal priorities linking the requirements of national development.
When the rupee weakened against the US dollar, the minister said that various global and domestic factors are affecting the value of the rupee against the US dollar.
Between October 2024 and January 2025, the US rupee has reduced by 3.3 percent against the US dollar, but the decline has been lower than that of some of its Asian peers.
During this period, South Korean won and Indonesian Rupiah declined by 8.1 percent and 6.9 percent respectively.
In addition, all G -10 currencies also reduced the euro and British pounds by 6.7 percent and 7.2 percent respectively during this period.
Sitarman also said that there has been no cut in transfer to states and Rs 25.01 lakh crore will be transferred to FY’26.
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(This story has not been edited by News18 employees and a syndicated news agency has been published from feed – PTI,
