Aware of pressures of middle class; metros, smart cities make life easier: Sitharaman

Just days before the Union Budget, Finance Minister Nirmala Sitharaman said on Sunday that she is aware of the pressures of the middle class and that the government has not imposed any fresh taxes on citizens.

“I too belong to the middle class, so I can understand the pressures of the middle class. I identify myself with the middle class, so I know,” the minister said while speaking at a function organised by RSS-associated weekly magazine Panchjanya.

The Union Budget for 2023-24 will be presented by the finance minister in the Lok Sabha on February 1 and there are expectations that the government will raise the income tax limit and provide relief to the middle-class taxpayers.

Also read: Note in circulation grew by 8% annually to Rs 32 lakh crore: Sitharaman

Middle class pressures

The minister said that although the government had not put money in middle-class pockets, it gave them metros and smart cities that made their life easier.

To a question on what the middle class could expect out of the Budget, she said, “I can understand the pressures of middle class. …But tell me… Is there any new tax on middle class till date. Till Rs 5 lakh salary, there is no tax. We have brought metros to 27 cities. Isn’t it for middle class? Middle class today migrates from villages to cities for jobs and business. We have given funds to make 100 smart cities. Isn’t it for middle class to make their life easy? I haven’t put money directly in the pocket of every middle-class person. But these facilities come with 100 smart cities,” Sitharaman said.

What is a freebie?

On the issue of freebies, she said that there was no point in getting into the debate of what is a freebie and what is not. “The core issue is, if you have the money, make promises and give what you want and eventually make the payment,” Sitharaman said during an interview by Panchjanya Editor Hitesh Shankar.

“The issue is not what item is a freebie and what is not. You make some promise ahead of elections. For example, you promise free electricity. When you come to power only then you know the state’s financial strength. Suppose, the financial health is good and you can give free electricity. Then you must show it in the Budget. And at the end of the year your balance sheet is fine. Then that is not a freebie,” Sitharaman said.

“What we are seeing is that in most states this is not happening. Promises are being made, deliveries also happening, but when it comes to payment, (they say) Modiji, you make the payment. You make the promise, you earn the votes, but when it comes to payment, you direct towards someone else. Or this pending payment keeps accumulating and no one knows who will pay,” she said.

Questionable data

On some international indices such as the Hunger Index rating India poorly, Sitharaman urged people to question their data and quality of research and also suggested that there were people in India on the payroll of international elements indulging in anti-India propaganda.

“All these index-making institutions are not government run. But there is a class in the country that uses those indices to beat its own government. People are writing about how these indices are wrong. Sanjeev Sanyal, who is part of PM’s economic advisory group, has been writing about it for a year,” Sitharaman said.

Also read: India’s poor GHI score: What is Global Hunger Index and how is it calculated?

When asked if the takers of international propaganda against India are sitting in the country and if there are “sleeper cells” in the media and academia, Sitharaman said, “It is possible. There are people in India on the payroll of such elements.”

On employment generation, she said, “We have a full system of supporting start-ups from the stage of idea to scaling up manufacturing. There are provisions for loans and tax benefits. MSME are being given interest subvention. Emergency liquidity credit guarantee scheme helped many MSMEs from shutting down during Covid.”