Budget laid foundation to make India $5 trillion economy, says FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Sunday said the government has enlisted the various provisions in Union Budget 2020 to make India a $5 trillion economy. In the Budget, the Centre has laid the foundation of reviving consumption while ensuring that the government's investment is deployed to build infrastructure leading to a $ 5 trillion economy by 2024-25, Sitharaman said while interacting with trade and industry representatives in Kolkata today.

"I think we have laid the foundation for increasing consumption, ensuring that capex (capital expenditure) and government's investments will go towards spending on building of assets in infrastructure which should have cascading effects both in the short term and in the long term," news agency PTI quoted Sitharaman as saying.

The minister said that the government will continue to engage with stakeholders and industry to fulfill Prime Minister Narendra Modi's vision of 'New India'. She said that the vision of New India will be successful with initiatives in entrepreneurial and 'Digital India' arena.

She was interacting with the members of trade and industries in Kolkata, a week after presenting the Union Budget for 2020-21 in Parliament on February 1.

"The broad message which is apparent is that the government wants continuous engagement with industry and business. And my presence here is not in response to what is happening inside (country) and outside," Sitharaman said.

Also Read: Govt seeks to engage itself with businesses, industries: FM Niramala Sitharaman

"In order to address rural distress, 16 focused action points have been announced in the budget. So I expect all this will lead to a five trillion dollar economy," she added.

Speaking on the issues relating to GST, the finance minister pitched for rationalisation of tax rates once a year and not every three months as was the trend so far.

Sitharaman also asserted on importance and utilisation of technology for industry solutions with the government acting as a facilitator. She said the government has introduced some features in the budget like "faceless appeals and sorting out of problems while imparting tax administration". This will be made possible only with the help of new technology, she said.

Also Read: Govt plans to sell 5% stake in SAIL via OFS, may fetch about Rs 1,000 crore

The minister said that the government will continue to take steps for effective governance with ease of doing business.

FM Sitharaman also explained the logic and the approach of government for growth and development in the long run, via initiative driven primarily by simplification of taxes and encouraging investment.

Asked about what West Bengal has received from the budget, she said that the announcements were made about various projects which are happening in different states. "I do not know how I answer this question of kisko keya mila (which state gets what). I am looking at the point of macroeconomic stability, building assets in the country, money directly going to hands of individuals because of reduced tax rates and so on," she said.