Boosting consumption: Modi govt could front-load spending, says FM Nirmala Sitharaman

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Updated: August 30, 2019 7:18:43 AM

She said India remained the fastest growing economy despite the recent sluggishness, which was being addressed through measures based on feedback from the industry. 

Nirmala Sitharaman, Guwahati, infrastructure spending, auto industry, non-banking financial companies, Budget expenditureSitharaman said that the finance ministry would soon announce more measures to boost the economy.

Finance Minister Nirmala Sitharaman said on Thursday that the Centre could bring forward some expenditure milestones laid out in the budget to boost flagging consumption. She stressed that the momentum of infrastructure spending by the public-sector agencies would be maintained.

She said India remained the fastest growing economy despite the recent sluggishness, which was being addressed through measures based on feedback from the industry. The comments, made during an interactive session with the media in Guwahati after a meeting with the industry, come in the backdrop of the Centre getting Rs 58,000 crore over and above the budgeted Rs 90,000 crore from the RBI as surplus transfer for FY20.

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The minister is holding a series of such meetings with the industry and taxpayers in various tier-2 cities to elicit their views on how to address the issues confronting the economy.  As reported by FE earlier, the government’s budgetary spending is being stepped up to reach the recent years’ trend 53-54% of budget estimate for full-year by end-September. The Budget expenditure in Q1FY20 was 25.9% of the BE compared with about 30% in recent years.
For the full year, the government would try to stick to the expenditure BE of Rs 27.84 lakh crore, up 20.5% y-o-y. To contain fiscal deficit, it had pruned spending by Rs 1.3 lakh crore or 5.4% of BE in FY19.

Sitharaman said that the finance ministry would soon announce more measures to boost the economy. Last week, she had announced infusion of more liquidity in the hands of non-banking financial companies along with tax sops and regulatory relaxations for auto industry.

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