Nirmala Sitharaman: Budget delicately balanced to cater to all sections

New Delhi, February 10

Union Finance Minister Nirmala Sitharaman on Friday said the Union Budget for 2023-24 was “delicately balanced’’ to cater on one hand to the needs of the middle class, employment generation, MSME, agriculture sector and health. On the other hand, it balances the requirement for India’s development imperatives within the limit of fiscal prudence, she said while replying to a discussion on the Budget in both the Houses of Parliament.

Recovery must be resilient, sustained

At a time when India’s recovery from pandemic has to be resilient, sustained growth is the only sure way to remove disparity. Nirmala Sitharaman, Union Finance Minister

She said the new tax regime announced in the Budget was “very attractive” as the tax exemption limit had been hiked by Rs 50,000 to Rs 3 lakh and a standard deduction of Rs 50,000 too had been allowed under the scheme. Moreover, the rebate provided on income of up to Rs 7 lakh would leave higher disposable income in the hands of people, she said.

“At a time when India’s recovery from pandemic has to be resilient, sustained growth is the only sure way to remove disparity and build greater strength,” she said in the Rajya Sabha while dismissing the methodology of an Oxfam report on poverty alleviation in India as “unacceptable” and “totally wrong”. “ Disparity in income can only be bridged if development goals are achieved,” she added.

In the Lok Sabha earlier in the day, she said, the Budget astutely balanced the requirement for India’s development imperatives within the limit of fiscal prudence. “That is a very difficult balance, it is a very delicately balanced act.’’

“Since the pandemic our efforts to recover the economy have been through the capex route from the government’s side. This is because it has a great multiplier effect,” she explained.

The minister dismissed complaints about GST compensation to states not having been completely paid. Taking up the case of West Bengal, she said it had not sent the claim with due authorisation by the Accountant General for four fiscal years.

Sitharaman also said there had been no cut in food and fertiliser subsidy nor have MNREGA funds been reduced, even as she ticked off the Congress over corruption. “You should wash your mouth with Dettol for corruption,” she said.

Questioned by Congress leader Adhir Ranjan Choudhury over food subsidy cuts, Sitharaman said, “There has been no reduction in the food subsidy. The charge that we maintained fiscal discipline at the cost of food subsidy is wrong.” When Adhir accused the FM of reducing monthly foodgrain allocation to the poor to Rs 5 kg under PM Anna Yojana, Sitharaman said, “What about Congress-ruled states which also gave only 5 kg under the food security act? Food subsidy is projected at Rs 1.97 lakh crore. There are no cuts.”