New Delhi: Complete detachment of economics from politics may never happen, Union Finance Minister Nirmala Sitharaman said in an interview, adding that economics is likely to be on people's minds during the elections.
Saying that 'inclusive development' is on the minds of the people, the Finance Minister expressed hope and confidence that voters would support the Narendra Modi-led National Democratic Alliance (NDA) government in the upcoming general elections 'bless' with a new term of office.
“Complete detachment from economics and politics may not work because I think just as we would like it to work when it's all good, people will remember that when it doesn't work,” Sitharaman said. Mint.
Her comments follow her presentation of the interim budget, which was notable for the absence of any populist proposal with major consequences. Analysts noted that this showed the government's confidence in winning the next general election.
In the interview, Sitharaman said public opinion about the government depends on factors such as economy, governance, performance, understanding the importance of inclusive growth and government services to meet basic needs.
Exuding confidence that the Bharatiya Janata Party-led government is well placed to return for the third consecutive year, the Finance Minister said: “Economy, if all goes well, will people's minds are playing. Like the way inclusive development is now on people's minds, and that's why they are ready to bless us again. I strongly believe they would bless us again.”
The statement on the correlation between elections and politics also gains significance in view of the government's decision to withdraw the new farm laws in 2021 following a months-long protest by farmers in the national capital and other parts of the country.
The interim budget avoided too many big announcements and showed the government's commitment to fiscal consolidation combined with infrastructure-supported growth, even as the country goes to the polls in the coming months.
Presenting the interim budget for FY25, Sitharaman mentioned the government's focus on four priority sectors – women, farmers, youth and poor – but did not make any populist announcement.
The budget deficit for the current financial year has been adjusted downwards by 10 basis points to 5.8% of GDP. The Finance Minister assured that the government will continue the momentum and bring the fiscal deficit below 4.5% of Gross Domestic Product (GDP) by FY26.
Building on the capital expenditure pressure for financial year 25, the Union budget has targeted a capital investment of €25 ₹11.11 trillion, an increase of 17%.
On the social welfare front, the Union Budget proposed to build an additional 20 million houses in the next five years under Prime Minister Awas Yojana (Grameen). The finance minister also promised a new housing program for the urban poor and middle class.
She also said that the new rooftop solar scheme recently announced by Prime Minister Narendra Modi would enable 10 million beneficiary households to get up to 300 units of free power every month.
The budget also proposed bringing in another 10 million women under the Lakhpati Didi programme, which currently supports 20 million women, to get financial assistance through self-help groups.
Here's your comprehensive three-minute summary of everything Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
View all political news and updates on DailyExertNews. View the latest Budget 2024 promotions here. Download the Mint News app for daily market updates and live business news.
. or less
Published: Feb 5, 2024 09:00 IST