Revenue expenditure does not provide required multipliers and which is why the capital expenditure route was taken to build infrastructure, Finance Minister Nirmala Sitharaman said on Friday, replying to the discussion of the Union budget.
He said the Indian economy experienced the biggest contraction due to Covid-19 pandemic, but the government had been able to contain retail inflation at 6.2 percent.
Compared to the performance of the UPA government during the global financial crisis in 2008-09, he showed that retail inflation was 9.1 percent during the 2008-09 financial crisis.
It was at 6.2 percent during the Covid-19 pandemic (which had a greater impact on the economy.) The economy suffered from Rs 9.57 lakh crore losses due to a pandemic, compared to the loss of Rs 2.12 Lakh Crore during the global crisis in 2008-09, according to him .
In a recent worker survey, unemployment declined to the pre-pandemic level, he said.
Sitharaman said that the government also pushed startup because where many unicorns emerged from our India.
He also said that some schemes were introduced to encourage the growth of MSMEs.
Loans have been upgraded and a large amount of disbursement has been made for MSMEs.
(With input from the agency)
The government contains retail inflation even though contractions in the economy: FM Sitharaman
