Govt's focus on fertiliser self-sufficiency, demand for MGNREGA down in rural areas: FM Sitharaman in Lok Sabha

Finance Minister Nirmala Sitharaman on Wednesday replied to the discussion on the demands for grants for the current fiscal and demands for excess grants for 2019-20 in the Lok Sabha.

FM said country needs to work on self-sufficiency with regards to fertiliser production.

"Funds from supplementary demand for grants is going to oil marketing companies to an extent because domestic LPG operations and also for compensating for several of the losses which the OMCs have made," said Sitharaman.

She also said that funds from supplementary demand for grants also going for Ujjwala LPG scheme. She said the Centre is considering additional Rs 10,000 crore for railway capex.

Country is seeing a fall in demand for jobs under MGNREGA, Sitharaman said on Wednesday.

"In rural areas, the demand for MGNREGA in the recent past is coming down," said Nirmala Sitharaman, referring to the Mahatma Gandhi National Rural Employment Guarantee Act.

"MGNREGA is a demand driven programme ... (and) there is a declining trend."

India's forex reserves are one of the largest and provide adequate buffer against global spillovers, said FM in Lok Sabha, quoting World Bank report.

Sitharaman on Wednesday assured the Lok Sabha that the government will take measures to further ease inflation, which has dipped below the RBI's upper tolerance level of 6 per cent.

Retail inflation has moderated to an 11-month low of 5.8 per cent in November from 6.77 per cent in the previous month.

''We will bring down further for the sake of common people,'' she said while replying to a discussion on the first batch of Supplementary Demands for Grants 2022-23 in the Lok Sabha.

The government is constantly watching the price situation of essential commodities, she said. The finance minister made it clear that there is no fear of stagflation as India is one of the fastest-growing economies with low inflation levels.

With regard to fiscal deficit, the finance minister said the government would be able to meet the fiscal deficit target of 6.4 per cent of the GDP for the current financial year.

The government is committed to the path of fiscal consolidation, she added.

On non-performing assets (NPAs), Sitharaman said it has come down drastically to 7.28 per cent at the end of March 2022 due to various measures taken by the Modi government.

With regard to the declining value of the rupee against the US dollar, she said, the domestic unit is appreciating against all other currencies, and the fall against the greenback is lower as compared to other currencies.

Later, the House passed Supplementary Demands for Grants, authorising the government to spend additional Rs 3.25 lakh crore in FY23.