New Delhi: Finance minister Nirmala Sitharaman said on Fri-day the government would take steps to “heal” the economy as and when required but refused to make any predict when the economy would come out of the woods.
“The government has been working for the economy where it is needed,” Ms Sitharaman said, while highlighting the impact of recent financial measures on the economy.
The finance minister was speaking at an event organised to lay a preparatory framework for the next year’s Union Budget.
The Union Budget 2020-21 will be presented on February 1, which will be the second Budget of the current BJP-led NDA government after the general elections.
Asked when she expects the economy to revive, the finance minister said, “I am not engaging in any prediction-based thing. I am looking at the economy, where I need to intervene, I am intervening and I shall continue to address the problem of the industry as and when it rises.”
The Centre has recently announced several measures to bring the flagging economy back on track. The measures include some important ones such as a cut in the corporate tax rate, funding of stalled real estate projects, and faster GST-refund process etc.
She also declined to comment on the narrative of stagflation — high inflation coupled with declining growth. “No comment on that. I have heard it. Stagflation is a narrative which is going on. I am hearing it,” she said.
On Thursday, the government data revealed that retail inflation has surged to 5.51 per cent in November while the industry output shrunk for the third straight month in October.
On the onion price hike, Ms Sitharaman is hopeful that it would be resolved soon. “We have a group of ministers meeting which is reviewing the situation, and is deciding on how to take up the import related issues. I think gradually, the crop has also started replenishing. The government is doing its best to import the commodity and resolve the issue,” she said.
Ahead of the crucial meeting of the GST Council on December 18, Sitharaman did not rule out a hike in Goods and Services Tax (GST) rates, saying that her ministry is yet to apply its mind to it.
When asked about the buzz on the proposal of increasing GST rates in the Council meet, she said, “The buzz is everywhere else but not in my office (the ministry of finance). I am not attributing this to my team. There has been no discussion of changing the GST rate in the finance ministry so far.”
