New Delhi, July 26: Finance Minister Nirmala Sitharman said on Friday that just like in the past, all states have been allocated funds in the Union Budget 2024-25, and no state has been denied anything.
In an exclusive interview with Sanjay Pugalia, CEO and Editor-in-Chief of NDTV Network, the Finance Minister rejected the opposition’s claim that her Budget speech mentioned only two states — Andhra Pradesh and Bihar, both ruled by the BJP’s key allies.
She pointed out that the Centre was required by law to support Andhra Pradesh after its bifurcation in 2014. “States are receiving allocations as they did in the past… no state has been denied anything. The Act (Andhra Pradesh Reorganisation Act) requires the Centre to support (the state) in building its capital city and developing the backward regions,” she explained.
“Several steps have been taken in the last 10 years and many other steps, as per the Act, which had to be taken have been taken. Yes, we will support the building of the new capital at Amaravati and the Polavaram irrigation project … Polavaram should have been completed by now but there were some technical issues. The state government is seized of the matter,” Sitharaman said.
Responding particularly to the criticism by Congress President Mallikarjun Kharge, the Finance Minister said, “To the point he raised – that I have not named many states and spoke only about two states… The Congress was in power for a long time. They presented many Budgets and should know that in every Budget, you don’t get an opportunity to name every state of the country.”
Sitharaman also said the Budget reflected Prime Minister Narendra Modi’s wish to keep things simple, so that everyone, and not just subject experts, could understand India’s finances. “We present everything upfront. There is no fine print… We ensure that any changes made are communicated openly, based on feedback and transparent processes,” she pointed out.
The Finance Minister also said that borrowing is a must for a growing economy to meet its needs and aspirations, but the focus of the Finance Ministry under her is to ensure that debt is reduced without affecting growth. She added that fixing a number for the eventual fiscal deficit and working towards it with temporary solutions every year can be one way of going about things, but it is not the right way from a macroeconomic perspective.
“We have chosen a healthy option for getting the fiscal deficit closer to the number. Instead of looking at the number alone, it is also about the way you decide to get there. An obvious method for every country is to reduce debt, but borrowing is a must for a growing economy. The question is how much are you borrowing and where it is being used,” the Finance Minister said.
IANS