Economy News

Empowering the infrastructure is the key to generate employment: Sitharaman

Finance Minister Nirmala Sitharaman in an interview with Economic Times said that she opted for an infrastructure spending route as it kicks off the cycle of instant jobs and demand.

She further added that there is a directional shift in the financial plan which determines that the government alone cannot trigger off the economy.

Hence there was the inclusion of the private sector in every critical announcement that was made in the budget.

The government is looking into the recommendations with respect to the Finance Commission’s recommendation of merging 12% and 18% rates under GST.

Infrastructure development is imperative to revive economic activity, create employment and infuse more liquidity into the system.

Sectors like hospitals, power transmission & distribution, water, railways, roads, renewable energy and defence are expected to show greater traction.

Sitharaman also noted that the government will reach out to the stakeholders of the state-owned enterprises.

This is in order to reassure them that their pensions and other interests are protected.

Moreover, the priority for the government was to bring a budget that would supplement the stimulus.

Increasing public spending on roads, railways, infrastructure, healthcare and educational facilities will help create jobs and thereby revive the economy.

Commenting on the privatisation of two PSU banks announced in the budget, the Finance Minister noted that the size and scope will be determined.

Also, the government will be reviewing the 2-6% target inflation band under the monetary policy framework which is due for a review.

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