Finance Minister Nirmala Sitharaman on Friday (February 11) said that 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.
Replying to a general discussion on the Union Budget in Rajya Sabha, the minister said that the Budget for 2022-23 fiscal year “stands for continuity, brings stability to the economy along with predictability of taxation.”
Sitharaman stated that the objective of the budget is a stable and sustainable recovery in the economy.
Compared to the performance of the UPA government during the global financial crisis in 2008-09, Sitharaman pointed out that retail inflation was 9.1 per cent during the financial crisis of 2008-09, while it is at 6.2 per cent during the COVID-19 pandemic, that has a bigger impact on the economy.
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The minister said that the Indian economy suffered the biggest contraction because of the pandemic.
She said that the Indian economy suffered ₹9.57 lakh crore loss due to the pandemic, compared to a loss of ₹2.12 lakh crore during the global meltdown in 2008-09.
Sitharaman also told the House that capital spending gives much more multiplier than revenue route and therefore the government has increased public capital spending to boost the economy.
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Sitharaman said that the government is also encouraging startups which resulted in creation of many unicorns during the pandemic.
(With inputs from agencies)