Union finance minister Nirmala Sitharaman is hopeful that the higher allocation of capital expenditure in Budget 2022 will help maintain the momentum in reviving the economy. In an exclusive interview with Rahul Joshi, Group Editor-in-Chief, Network18, Sitharaman said she was hopeful of capex firing up the economy.
The central government in the Union Budget on Tuesday announced a sharp increase of 35.4 per cent in the capital expenditure to Rs 7.50 lakh crore in the financial year 2022-2023, around 2.9 per cent of the GDP.
“We wanted to continue the momentum of growth. There is no doubt in the Prime Minister’s mind that growth has to be ensured," the finance minister said.
Explaining the growth trajectory of the country, Sitharaman said that exports are growing. “Export potential is there for private sector investment. Newer capacities are definitely going to come in," she said.
Despite naysayers, foreign direct investment (FDI) is still coming into the country in a big way, said the minister. “Therefore, companies are happy to be partnering with FDI and they are increasing capacities. PLI scheme also indicates that," she mentioned.
The Budget announcements came just days ahead of polls in five states, including Uttar Pradesh. “The upcoming assembly elections were not on our mind when we were preparing the Union Budget," the finance minister, however, said.
A day ahead of the Budget, the Economic Survey 2022 projected an 8 per cent to 8.5 per cent growth rate for the Indian economy in the 2022-23 fiscal year. “All the indicators suggested the Indian economy is well-placed to take on the challenges of 2022-23," it said.
If things go as they are going now, and all sectors revive with support from the government or system, 8 per cent growth is achievable, the finance minister said in the interview.
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