Revenue expenditure does not give the required multiplier and that is why the capital expenditure route was taken to build infrastructure, finance minister Nirmala Sitharaman said on Friday, replying to a discussion on the Union Budget.
She said the Indian economy suffered the biggest contraction due to Covid-19 pandemic, but the government has been able to contain retail inflation at 6.2 per cent.
Compared to the performance of the UPA government during the global financial crisis in 2008-09, she pointed out that retail inflation was 9.1 per cent during the financial crisis of 2008-09. It is at 6.2 per cent during the Covid-19 pandemic (that has a bigger impact on the economy.)
The economy suffered Rs 9.57 lakh crore loss due to the pandemic, compared to a loss of Rs 2.12 lakh crore during the global meltdown in 2008-09, according to her.
In a recent labor survey, unemployment declined to pre-pandemic levels, she said.
Sitharaman said that the government is also encouraging startups because of which many unicorns have emerged our of India. She also said that several schemes have been introduced for encouraging growth of MSMEs. Loans have been enhanced and large amounts of disbursements have been made for MSMEs.
(With inputs from agencies)
She said the Indian economy suffered the biggest contraction due to Covid-19 pandemic, but the government has been able to contain retail inflation at 6.2 per cent.
Compared to the performance of the UPA government during the global financial crisis in 2008-09, she pointed out that retail inflation was 9.1 per cent during the financial crisis of 2008-09. It is at 6.2 per cent during the Covid-19 pandemic (that has a bigger impact on the economy.)
The economy suffered Rs 9.57 lakh crore loss due to the pandemic, compared to a loss of Rs 2.12 lakh crore during the global meltdown in 2008-09, according to her.
In a recent labor survey, unemployment declined to pre-pandemic levels, she said.
Sitharaman said that the government is also encouraging startups because of which many unicorns have emerged our of India. She also said that several schemes have been introduced for encouraging growth of MSMEs. Loans have been enhanced and large amounts of disbursements have been made for MSMEs.
(With inputs from agencies)
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