New Delhi, Feb 11 () Finance Minister NirmalaSitharaman on Tuesday said the economy is not in trouble andgreen shoots are visible with the country moving towards a USD5 trillion economy.
Listing initiatives taken by the government, she said,increasing Foreign Direct Investment (FDI), rise in factoryoutput and over Rs 1 lakh crore GST collection in the pastthree months are indications of green shoots in the economy.
"There are seven important indicators which show thatthere are green shoots in the economy...economy is not introuble," she said while replying to a debate on the UnionBudget in Lok Sabha.
Referring to visible indicators of green shoots, theFinance Minister said the forex reserve is at an all time highand the stock market is upbeat.
"Global sentiment is in favour of India. Foreigninvestors continue to show confidence in India and that is whythe country has attracted a net FDI of USD 24.4 billion inApril-November 2019-20 as against USD 21.2 billion in the sameperiod the previous year," she said.
Net Foreign Portfolio Investment (FPI) in April-November2019-20 was positive at USD 12.6 billion as against USD 8.7billion in the same period last fiscal.
She further said the gross GST (Goods and Services Tax)revenue collected in January 2020 grew at 12 per cent while inNovember 2019, it was 6 per cent.
"So there is a steady growth and therefore negativegrowth, which it showed in September and October, has beencorrected and we are on a positive growth trajectory and thiswill obviously bring in greater and newer investments to theeconomy and it will also reduce the business cost," she added
There are seven green shoots based on which the economynow very clearly moving forward, she added.
The Finance Minister said the government's focus is onfour engines of growth which include private investment,private consumption, public investment and exports.
With regard to public investment, she said, thegovernment in December announced a National InfrastructurePipeline.
It envisages investment of Rs 103 lakh crore forinfrastructure development across the country in the next fouryears (till 2024-25), she said.
To boost consumption, the government has increased theMinimum Support Price of all mandated Rabi and Kharif cropsfor 2019-20.
The Minister also took a dig at Congress leader PChidambaram while referring to the fiscal deficit numbersduring the UPA regime.
The fiscal deficit was higher "when the economy wasmanaged by competent doctors," she quipped.
Chidambaram on Monday said in the Rajya Sabha that the"economy was perilously close to collapse and was beingattended by incompetent doctors."
Sitharaman in Budget raised fiscal deficit target to 3.8per cent of the GDP from 3.3 per cent pegged earlier for 2019-20 due to revenue shortage.
The government has used 'escape clause' under the FiscalResponsibility and Budget Management (FRBM) Act which providesit leeway for relaxation of fiscal deficit roadmap during timeof stress.
Replying to the opposition charge of the governmentovershooting fiscal deficit target prescribed in FiscalResponsibility and Budget Management (FRBM) Act, she said theNarendra Modi government has always respected FRBM Act everyyear and kept the discipline of FRBM Act.Referring to various initiatives to boost consumption,she said government has increased Minimum Support Price,introduced pension scheme for traders, lowered GST ratesabolished Dividend Distribution Tax and corporate tax. RRJTR DP CSDV DV
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