Nirmala Sitharaman increased capital expenditure by 35.4 per cent for the fiscal year 2022-23.
New Delhi:
Finance Minister Nirmala Sitharaman on Friday said India’s long-term growth prospects are embedded in public capital expenditure programmes.
Participating in the 3rd G20 Finance Ministers and Central Bank Governors (FMCBG) meeting organized by Indonesia in Bali, Sitharaman also said evidence-based policy making is important for resilient economic systems.
The government has emphasized on capital expenditure to fuel economic growth hit by the pandemic. It is expected that increased public spending will crowd out private investment.
Sitharaman raised capital expenditure (capex) by 35.4 per cent to Rs 7.5 lakh crore for the financial year 2022-23 to continue the public investment-led recovery of the pandemic-battered economy. Last year the capex was Rs 5.5 lakh crore.
In a tweet, the Finance Ministry said, “Reflecting on India’s growth story, the FM shared that India’s long-term growth prospects are embedded in public #CapitalExpenditure programmes, and #EvidenceBased #PolicyMaking is key to resilient economic systems. “
The Finance Minister also highlighted that sustainable global recovery should be focused on climate action and there is a need to focus on enhancing climate finance and promoting the green transition.
Participating in the second session of the ongoing G20 FMCBG, Sitharaman shared views on the health agenda of the G20, including pandemic preparedness and response mechanisms.
He also highlighted the need for immediate mobilization and deployment of resources for health emergencies.
Another tweet said, “FM Mrs @nsitharaman calls for a global coordination mechanism with @WHO at its centre.