GG News Bureau
New Delhi, 11th Feb. Union Finance Minister Nirmala Sitharaman on Tuesday asserted that India will continue to be the world’s fastest-growing economy, driven by increased capital expenditure in the 2025-26 Budget and rising rural consumption.
Replying to the Union Budget debate in the Lok Sabha, she stated that the effective capital expenditure stands at 4.3% of GDP, while the fiscal deficit is 4.4%. She dismissed opposition claims of reduced capital outlay, highlighting that capex allocation has risen to ₹1.21 lakh crore.
Inflation Under Control, Focus on Food Security
Sitharaman emphasized that inflation management is a top priority, with overall retail inflation within the 2-6% tolerance band. She took a dig at the Congress, saying “Double-digit inflation under UPA is a thing of the past.” Food inflation, which peaked at 11% during UPA-II, has now been contained at 5.3% from 2014 to 2024, thanks to supply chain improvements and agricultural reforms.
Debt and Unemployment in Check
Addressing concerns over rising debt, the Finance Minister clarified that India’s debt-to-GDP ratio has declined, with a target to reduce it to 50% by 2030-31. She also highlighted that only 3.4% of government debt is external, reducing risks.
On employment, she noted that the unemployment rate has fallen from 6% in 2017-18 to 3.2% in 2023-24, attributing it to economic growth and government initiatives.
State Funding and Currency Stability
Rejecting allegations of fund cuts to states, Sitharaman pointed out that ₹1 lakh crore remains unspent in state accounts under various schemes. She also noted that the rupee’s depreciation aligns with global currency trends, citing the dollar’s strength against Asian and European currencies.
Additionally, she revealed that the government is repaying oil, fertilizer, and FCI bonds from the UPA era, with ₹40,464 crore in principal and ₹3,524 crore in interest due in FY26.
With India’s economic trajectory set for continued growth, the Finance Minister reinforced confidence in fiscal stability and policy direction.
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