Private investment will not be affected by the government’s market borrowing program: Secretary Economic Affairs

The government plans to raise a total of Rs 11.6 lakh crore from the market in the financial year 2022-23, with the help of which the government will be able to give impetus to the economy.

‘Government’s market borrowing does not affect private investment’

Economic Affairs Secretary Ajay Seth has said that the government will borrow from the market in the next financial year.government borrowing) will conduct the mobilization program in a non-disruptive manner and this private investment ,private investment) will not have any adverse effect. Seth told PTI-language that the government has to raise a net borrowing of Rs 6.6 lakh crore in the financial year 2022-23 and the government will stick to this figure. “The lending program will be carried out in a non-disruptive manner and the private sector will not be affected by it,” he said.small savings schemeMarket borrowings can also be deducted in case the collections from ) are more than expected.

Government plans to raise a total of Rs 11.6 lakh crore in 2022-23

Seth said, ‘This year we hope to raise Rs 6 lakh crore. Next year this figure is estimated to be Rs 4.25 lakh crore. But if small savings schemes remain as attractive as the current year, then the collections from them will also remain at the level of 2021-22 and then the borrowing from the market will also come down. The government plans to raise a total of Rs 11.6 lakh crore from the market in the financial year 2022-23. The government is going to increase its expenditure to give impetus to the economy which is suffering from the Kovid-19 epidemic. He said that the government is committed to move on the path of fiscal consolidation and the budget has proposed to bring down the fiscal deficit to 6.4 per cent. In the year 2021-22, the fiscal deficit has been estimated to be 6.9 percent. Regarding retail inflation, Seth said that the government expects it to be four per cent in the next financial year with a variation of two per cent.

Demand will increase due to increase in public investment, employment will be created

Earlier, terming the decision to increase spending as the right step, the Secretary had said that the budget announcement to increase public investment to give a boost to the economy will create demand for cement, steel and capital products and will also create new employment opportunities. In the budget presented on Tuesday, Finance Minister Nirmala Sitharaman announced a 35.4 percent increase in public expenditure and announced it to be Rs 7.5 lakh crore, which will be 2.9 percent of GDP. Estimating the direct support measures to have only a limited multiplier effect, Seth said measures with medium to long term impact are needed to sustainably strengthen the economy. In an interview to PTI, he said, “Economic management is not a one-year affair. It should be viewed in the short term, medium or long term. Necessary steps have been taken in the short term.

Read also: Direct tax collection may reach record levels, target of 12.5 lakh crore possible: Chairman CBDT

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