NEW DELHI : Finance Minister Nirmala Sitharaman on Sunday during a post-Budget discussion said the government is keeping a close look at the global inflationary pressure and that it will not allow the Indian economy to suffer due to the lack of preparation.
Sitharaman’s comments come at a time when the global oil prices surged to a seven-year high with the global oil benchmark, the Brent, crossing $93 a barrel. Meanwhile, high food inflation had pushed India’s retail inflation to a five-month high of 5.59% in December.
Speaking at a FICCI event, Sitharaman said that post the 2008-09 financial crises, an opportunity was missed. “The liquidity taps were not shut at the proper time. And as a result, India became one of the fragile five nations,” she added.
“The taper tantrum was not addressed at all. We have learned from the last crises. We are keeping a close look at the global inflationary pressure and we will not allow the Indian economy to suffer from the want of preparation,” she further added.
Talking on revenue estimates, Sitharaman said, “The leakages are arrested and also the larger attempt to widen the tax base is also going on and therefore I can’t see the revenue falling, there can be ups and downs and we are ready to meet the contingency.”
On the disinvestment front, the Finance Minister said that selling something of value may require a lot of attention. Air India, Neelachal Ispat Nigam Limited (NINL) buyer has been found, LIC IPO is soon to happen, she added.
“I am answerable to the Parliament, to the Comptroller, Auditor General of India (CAG), and Central Vigilance Commission (CVC). There is a sense of caution that nothing should be later found wanting.
So they (bureaucrats) do take their extra precautionary care. I would rather go on that road than push them over to speedily conclude. Yes, I am interested in finishing the commitments given in last year’s budget,” she reiterated.
She further reiterated that the disinvestment target given this year is “more realistic” and the government would want to achieve it and it’s not an “underestimation”.
The government has set a target to get ₹65,000 crore from divestment in the financial year 2022-23. Finance minister Nirmala Sitharaman, in the Budget also lowered the divestment target for FY 21-22 to ₹78,000 crore from ₹1.75 lakh crore.
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