India will continue to be fastest growing major economy in 2023-24: FM

Noting that Indian economy is still the fastest growing major economy and shall continue to be so in 2023-24, Finance Minister Niramala Sitharaman made a strong attack on Congress in Lok Sabha on Friday on the issue of corruption stating that it the party’s culture “to benefit jijas and bhatijas” and the party leaders should “wash faces with dettol”.

Replying to the debate in Lok Sabha on the general budget on Friday, the Finance Minister also talked about the new tax regime stating that it will leave higher disposable income in the hands of people.

“Since the enhanced rebate limit is unconditional, it leaves higher disposable income in the hands of people,” Sitharaman said.

In her Budget document presented on February 1, the Finance Minister made a few major announcements relating to the personal income tax.

The rebate limit in the new tax regime has been increased to Rs 7 lakh.

The tax structure in the new personal tax regime has been changed by reducing the number of slabs to five.

The new income tax regime has been made the default tax regime. However, the citizens will continue to have the option to avail the benefit of the old tax regime.

In her reply, she also said the Budget balances the requirement for India’s development imperatives.

“In simple words, budget 2023-24, astutely balances the requirement for India’s development imperatives within the limit of fiscal prudence. That is a very difficult balance, it is a very delicately balanced tact,” Sitharaman said.

“The Indian economy is still the fastest growing major economy and shall continue to be so even in 2023-24. During the pandemic when the economy was dipped by -23 per cent, our efforts to recover the economy has been through the capital expenditure route from the Government side.

“This is because it has a great multiplier effect. It also enables to have in situ job creation where the expenditure is being incurred on public projects and the projects are being made to rise. So, it immediately creates a lot of in situjobs. As a result, it triggers better income and better consumption,” she added.

Capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.

The capex allocation has grown four times since 2015-16, from Rs 2.5 lakh crore to Rs 10.0 lakh crore (budget estimate for 2023-24).

This increase in recent years, Sitharaman had said, is central to the government’s efforts to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.

The minister, who gave point-by-point answer to the questions raised by opposition members, referred to charges levelled by Congress and said such allegations will be “given back in the same language”.

With an opposition member referring to the budgetary provisions for clean energy alluding to Adani group’s forays in the sector, Sitharaman hit back.

“Taking my name, they said that Nirmala Sitharaman allotted a certain amount for green for someone. We don’t make policies keeping one person in mind unlike an opposition leader claimed. In PM Modi’s government, we make policies keeping everyone in mind. So, such statements are absolutely wrong. I have been repeatedly the target of such language by the leader. I am not taking anybody’s name because the leader is not around here now. Throw the allegation and go away,” she said in Lok Sabha.

“If phone calls and allocations were made, if relations were given benefit, if jeejas and bhatijas got the benefit, it might be their culture. Under PM Modi, none of us does any of that. And therefore any such allegation will be given back in the same language,” Sitharaman added.

In another dig at Congress, Sitharaman said its leaders should ‘wash’ their faces with ‘Dettol’ before they talk about corruption.

The Union Finance minister also hit out at states which did not reduce VAT on fuel even after the Centre decreased excise duty twice.

She asked Congress MP Gaurav Gogoi to ask his party, which is in power in Himachal Pradesh, why it hiked VAT on diesel after winning the Assembly elections.

“When the import price increased, Prime Minister Narendra Modi had reduced the excise duty on petroluem products twice — in November 2021 and June 2022 — so as to reduce the price burden on the public. While we reduced the duty on fuel, there were states which did just the opposite. I want to name them,” she said.

Replying to allegations about government’s lack of concern for minorities, Sitharaman said there were massacres during earlier Congress regimes and cited Nellie masssacre in Assam and the anti-Sikh riots in Delhi.

She accused Congress of vote-bank politics and said Modi government’s welfare programmes were for all eligible people irrespective of any divisions.

Sitharaman took potshots at Congress and Rajasthan Chief Minister Ashok Gehlot over his budget gaffe saying that last year’s budget was read in the state assembly.

“There is some problem with Rajasthan, they’re reading last year’s budget this year. I pray to God that nobody should make such a mistake but today it happened and so I have to mention it,” Sitharaman said.In a goof-up, Gehlot read parts from the previous budget at the beginning of his speech. BJP members protested in the Assembly leading to the adjournment. They asked if the budget had been leaked.

After the proceedings resumed, Gehlot apologised for the error.

“I feel sorry, what happened was by mistake. You (Opposition) can point out only if there’s a difference between what’s written in the budget in my hand and its copies were given to the House members. If a page was added to my budget copy by mistake, how does the matter of leaking of budget arise?” he asked.

Sitharaman said

“In 2023-24, the period for which this Budget is presented here, will be, with good policies such as the PM Gati Shakti, National Logistics Policy, and also the PLI scheme, and with cooperative federalisms in mind, empowering the States,” she said.

The minister, who also replied to the debate in the Rajya Sabha, referred to the oil bonds and accused the Congress-led UPA government of trickery.

“Oil bonds are trickery because if you want to give subsidy to relieve the burden, they [UPA] could’ve cut down excise duty as we did, but UPA didn’t do it. They shifted the burden to oil marketing companies, which constitutes revenue expenditure and doesn’t create assets,” Sitharaman said.

“UPA shifted the burden in the name of oil bonds which we’re repaying now. We had to also restore the health of the banks through the 4Rs strategy of Recognition, Resolution, Recapitalisation and Reforms. The fault is theirs, we are atoning now,”

She said capital infusion that the government has done in banks is aimed at promoting greater credit availability for common people to do their business.

It also helps banks to have better capital adequacy ratio, she added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)