New Delhi:
Describing the growth rate of 5.4 percent of Gross Domestic Product (GDP) in the second quarter of the current financial year as not as expected, Finance Minister Nirmala Sitharaman on Tuesday said that this is a temporary situation in the economy and the economy will grow at a better pace in the coming quarters. Will increase. While replying to the discussion in the Lok Sabha on the first batch of supplementary demands for grants for the year 2024-25, Sitharaman said, “In the last three years, the country’s average GDP rate has been 8.3 percent and in only two quarters it has been 5.4 percent.” ”
Describing the GDP growth rate of the second quarter of the financial year 2024-25 as lower than expected, he said that whenever Lok Sabha elections are held, the resource and land expenditure is more and after this the growth rate also increases. The Finance Minister said that the second quarter of this year has been challenging for India and many countries of the world.
Sitharaman said, “The government believes that this level of GDP rate in the second quarter is temporary and the economy will grow at a faster pace in the next quarter.”
After the Finance Minister’s reply, the House passed the first batch of Supplementary Demands for Grants for 2024-25 and the related Appropriation (No. 3) Bill, 2024 for a gross additional expenditure of Rs 87,762.56 crore by voice vote.
Sitharaman said that if we look at the average GDP rate of 8.3 percent in the last three years, it cannot be compared with the GDP of many countries of the world and India’s growth rate has been excellent on global standards. He said that India is a fast growing economy in which the two wheels of public contribution and government policies are driving it together.
He said that the government is making capital expenditure of Rs 15.02 lakh crore in areas like regional connectivity, digital infrastructure, infrastructure etc. to boost the economy, which is the highest in the history of India. He said that out of 23 manufacturing sectors, almost half are strong in terms of industrial production index. Sitharaman said, “I am very optimistic about the progress of the economy.”
In the discussion, he rejected the claims of some members about increasing inflation and said that retail inflation has come down and is at the lowest level after Covid.
“We are committed to better management of food inflation, for which weather is also a factor,” he said.
The Finance Minister said that other food products including Bharat brand flour and pulses can be purchased at subsidized rates from special shops in the country where pulses are available at Rs 60 per kg, flour at Rs 30 per kg and rice at Rs 34 per kg. Are.
He said that if we look at the pattern of retail inflation in the last 25 years, it has remained controlled in the National Democratic Alliance (NDA) governments, whereas in the non-NDA or United Progressive (UPA) governments, it had reached double digits.
He said the same pattern can be seen in food inflation, while fuel inflation declined from 8.9 percent during the UPA-II government to 4.4 percent in 2014-2024.
Sitharaman claimed that while the price of LPG cylinder is Rs 1,000 higher in India’s neighboring countries Nepal, Pakistan and Bangladesh, the price of a kitchen cylinder in the country is Rs 503 for Ujjwala beneficiaries and Rs 503 for non-Ujjwala consumers (in Delhi). Its effective price is Rs 803.
Dismissing opposition members’ concerns over unemployment, the Finance Minister said that according to the payroll data of the Employees’ Provident Fund Organization (EPFO), the number of EPFO subscribers has increased by 91.9 lakh in the first half this year, of which two-thirds are in the age group of 18 to 28 years. Are of age.
On the allegations of Trinamool Congress members that the Center has not given the pending funds to West Bengal for MNREGA and PM Awas-Rural Yojana, the Finance Minister said that the misuse of MNREGA funds in the state has been proved.
He said that if corruption in MNREGA is stopped in the state, the entire amount will be given.
He also enumerated several steps taken by the government to curb black money and said that action has been taken in 120 cases and undisclosed assets worth Rs 33,393 crore have been detected.
He said that the Enforcement Directorate faces many types of allegations, but it has seized assets worth Rs 22,280 crore in big cases.
