Economy
"Absolutely Not!": Nirmala Sitharaman Denies Charge That Centre Is Being Fiscally Conservative At A Time Of Covid Crisis
- Swarajya Editorial Director R Jagannathan mentioned to Union Finance Minister Nirmala Sitharaman that there is an impression that the Modi government is being conservative at a time when the country is facing a pandemic and a slowing economy.
- Here is her response.
Finance Minister Nirmala Sitharaman
I would like to say, no, not at all, in a humble and unemotional way, but I will say, Absolutely not! We have been doing that (opening the fiscal tap), and we will keep doing that.
There is a feeling that most of the package is about easing lending norms, not putting money in people’s pockets. How will demand improve? When can we expect a more direct demand stimulus package?
While I appreciate the fact that more can be done, I do not think that the government has confined itself to help only one side of the story. We expect the flow from one to the other. I can clearly see that happening. For example, through Nabard and regional rural banks, more rural credit is being pushed. A sum of Rs 90,000 crore has been pumped into the system and is making a difference to the rural economy. Hence a clear-cut division of supply and demand side (stimulus) is not necessarily valid.
