Finance Minister Nirmala Sitharaman speaks in the Rajya Sabha during the Winter Session of Parliament in New Delhi on December 21, 2022. Photo Credit: PTI
Finance Minister Nirmala Sitharaman on Wednesday said that the country was not hit by an economic slowdown due to Prime Minister Narendra Modi’s targeted approach to provide relief to the people during the COVID-19 pandemic. She was replying to the debate on two appropriation bills seeking approval of the House for additional funds to be used during this financial year. After his reply, both the bills were returned by the Rajya Sabha.
Responding to former finance minister P. Chidambaram, who led the opposition by opening the debate on Monday, Ms. Sitharaman said countries that “borrow and spend and even spend money to rebuild the economy” print money”, he faced a recession. “Thankfully, the targeted manner in which the Prime Minister decided to provide relief and address concerns during COVID-19 – which were given in the form of inputs from various stakeholders – has helped us in revival and not in recession put on a safe way to come,” she said.
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He said that both the IMF and the World Bank have said on several occasions that India is the brightest spot in the global economy and an island of hope for global growth.
Asked about the additional expenditure of Rs 3.25 lakh crore in 2022-23, he said the Center has essentially come up with supplementary demand for grants to ensure food security and subsidy for fertilizers, which is vital for farmers . He said that the additional amount is to ensure that adequate support is given to the poor and farmers.
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On the revenue of this additional expenditure, he said, ‘In September itself, the Government of India had made it clear that we are not changing our borrowing programme.’ The minister said the Center would ensure that the revenue generated would be sufficient to pay for the additional care, asserting that there was a substantial buoyancy which gave him confidence.
On the cut in corporate tax, Ms Sitharaman recalled that in 1991 the then Finance Minister Manmohan Singh had reduced it from 45% to 40%. “Then in 1997, the then Finance Minister P. Chidambaram reduced the corporate tax from 40% to 35% after abolishing the surcharge as well. Then, from 2000 onwards, the surcharges returned, raising total corporate tax again to around 36–38%, which continued for another five years after that. But, then again, it was Mr Chidambaram who reduced corporate tax to 30% in 2005, though with a surcharge, the actual rate was around 33%. Were they also a boon for the corporates? Were they gifts then?” He asked.