Finance Minister Nirmala Sitharaman on Monday said that to reduce the debt burden, the government has taken various measures such as increasing tax revenue, improving the effectiveness of public expenditure, working towards reducing fiscal deficit and improving productivity.
Besides strengthening the financial system, the government has more than doubled its effective capital expenditure from Rs 657 crore in 2020-21 to Rs 1,371 crore in 2023-24 (BE) and 2024-25 (BE). 1,497 crores. ) to attract private investment, she said in the Lok Sabha.
She said the government’s focus on increasing capital expenditure would not only increase investment but also lead to higher GDP growth to reduce the debt burden.
At the same time, the state government is encouraging increased capital expenditure through measures such as 50-year interest-free capital expenditure loans and tax devolution installments, she said.
She said that a series of measures such as lowering the corporate tax rate, opening up foreign direct investment, and improving the business environment have created supporting conditions for the continued growth of private investment.
Therefore, according to the National Bureau of Statistics’ advance estimate, the overall investment rate in the economy will account for 29.2% of GDP in 2022-23 and further increase to 29.8% in 2023-24, she said.
Due to the impact of COVID-19, the debt-to-GDP ratio increased to 89.6% at the end of 2020-21.
In 2020-21, government debt rose sharply due to revenue shortages and additional spending requirements brought about by the epidemic, while the ratio of government debt relative to GDP has gradually declined over the past two years, reaching around 81% at the end of March 2023 ( tentatively).
Rising revenue, a rebalancing of spending from revenue to capital spending and strong real GDP growth in the post-pandemic years have led to a decline in government debt relative to GDP, she added.
Replying to another question, Sitharaman said that as of January 26, 2024, more than Rs 4,615 crore worth of loans amounting to Rs 2,738 crore have been disbursed to borrowers under the Pradhan Mantri Mudra Yojana (PMYY).
Complaints regarding PMMY implementation will be resolved in consultation with each bank. Complaints received by the Central Public Grievance Redressal and Monitoring System (CPGRAMS) will also be forwarded to the banks for redressal within a stipulated time, she said.
In another reply, she said the Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully increased bank penetration to promote financial inclusion across the country.
The minister said that as of January 17, 2024, PMJDY had opened Jan-Dhan accounts totaling Rs 5,161 crore with a deposit balance of Rs 2,17,218 crore.
Of this, Rs 286 million (55.5%) of Jan-Dhan accounts belong to women and about Rs 344.1 million (66.8%) of PMJDY accounts were opened in rural and semi-urban areas.
(This story has not been edited by News18 staff and is published from associated news agency – PTI)
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
