New Delhi: Emphasising on higher public spending that would crowd in private investment, finance minister Nirmala Sitharaman on Friday said that India's long-term growth prospects were embedded in public capital expenditure programmes. Besides, she also said that there is a need for immediate mobilisation and deployment of resources for health emergencies.
Sitharaman's statement comes at a time when the country is facing tremendous inflationary pressures and demand slowdown due to supply chain disruption led by Russia-Ukraine conflicts and monetary policy tightening. "There should be an evidence-based policy making which is vital for resilient economic systems," she said while speaking at the 3rd G20 Finance Ministers and Central Bank Governors Meeting hosted by Indonesia in Bali.
The government has been focusing on increasing capital expenditure to push economic growth to revive economic recovery, especially after the Covid 19 pandemic. "The government needs higher public spending that would crowd in private investment," she said.
During the last Union Budget in February, the finance minister raised capital expenditure by 35.4 per cent for the financial year 2022-23 to Rs 7.5 lakh crore to boost demand, while the capex last year was Rs 5.5 lakh crore.
India's growth story in the meeting, the finance ministry also tweeted, saying that India's long-term growth prospects are embedded in public capital expenditure programmes, and evidence-based policymaking is vital for resilient economic systems.
Sitharaman also highlighted health emergencies in the meeting. In the second session of the ongoing G20 FMCBG, the finance minister also shared views on G20's health agenda, including pandemic preparedness and response mechanisms. "There is a need for immediate mobilisation and deployment of resources for health emergencies," she said.
The finance minister also emphasised that sustainable global recovery should be pivoted on climate actions and the focus needs to be on scaling up climate finance and propelling green transitions.
