Taking fiscally prudent route, won't repeat past mistakes of splurging: FM

In an attempt to shut down critics post Union Budget 2020, Finance Minister Nirmala Sitharaman that the government will not repeat its past mistakes of splurging and its spending will be targeted at asset creation.

While speaking at an event organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi on Monday (February 3), Sitharaman said “The attempt is to show that we have had complete thinking-through and are taking the most fiscally prudent route. In today’s situation, people may want the government to ‘pump-prime’ the economy,” Ms Sitharaman said.

“We are putting money where assets will be created. The money garnered from the divestment target would not go into a revenue expenditure item, but would create infrastructure for the economy and this would have a multiplier effect”, she added.

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Talking about the disappointment of Sensex on Budget day, Sitharaman said, ” I see them being happy today. Monday is the true working mood, and today’s mood is that they are happy. Aren’t they? Not exuberant but happy somewhat.”

Market benchmark Sensex plunged over 450 points after the Union Budget 2020-21 projected widening of fiscal deficit for the current financial year.

The Budget has given a macro picture of the economy, she said.

“Although Budget has not given anything sector specific, it gives blueprint of how we want to take economy forward. The Budget was also about whether we are being fiscally responsible or not,” Ms Sitharman said.

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(With inputs from agencies)