Government 'transparent' In Setting New Fiscal Deficit Target, Says FM Sitharaman

Economy

Finance Minister Nirmala Sitharaman opened up about the fiscal deficit target in the budget stating that unlike "previous regimes" they won't "fudge numbers".

Written By Ananya Varma | Mumbai | Updated On:
Nirmala

On Monday, Union Finance Minister Nirmala Sitharaman opened up about the fiscal deficit target in the new budget stating that unlike the "previous regimes", they would not "fudge deficit number" and will be absolutely "transparent". The Finance Minister had announced that the fiscal deficit has been targetted at 3.5 per cent for the next financial year beginning April 1 down from 3.8 percent in the current fiscal of 2019-20 with a deviation of 0.5 percent. She stated that this would be diverted towards "public asset creation", which was the need of the hour since some districts did not even have basic infrastructure. 

Read: Sensex, Nifty recover from budget despair as manufacturing data raise hopes

"There are a lot of speculations regarding the fiscal deficit. Earlier, there was a situation in the previous regime where fiscal deficit numbers were fudged. We are not going to fudge the data. We are putting money for public asset creation, connectivity to particular districts, which do not have basic infrastructure. We are very transparent in setting the new fiscal deficit target," said Sitharaman." 

Read: New tax regime to definitely benefit taxpayers in some brackets: Sitharaman

'Budget not sector-specific' 

Nirmala Sitharaman also stated that the budget this year was designed to allocate money on the basis of various targets and assets and was not 'sector-specific'. "We expect the industry to move the economy forward. The government is there to support the industry. We are putting money where assets have to be created. We have given the roadmap. The Budget is not sector-specific. The attempt is to take a prudent route to achieve the targets set," she stated.

Read: Union Budget 2020: Nirmala Sitharaman on criticism towards Air India, LIC disinvestment

'Sensex not exuberant but somewhat happy'

Sitharaman was also asked about why the Sensex did not show any confidence or did not go up the Budget day. The markets had suffered a major blow on Saturday as budget proposals failed to enthuse investors. Sensex dropped to a low of 39,563.07 while Nifty touched a low of 11,614.50. Responding to this Sitharaman said, "I see them being happy today. Monday is the true working mood, and today's mood is that they are happy. Aren't they? Not exuberant but happy somewhat."

Read: FM Sitharaman delivers a 160-minute comprehensive budget speech, cuts short feeling unwell

(With Agency Inputs) 

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