Govt taking multi-pronged approach to sustain eco growth amid uncertainties: MoS Finance
New Delhi: The government has been taking a multi-pronged approach to sustain economic growth amid global uncertainties, Minister of State for Finance Pankaj Chaudhary said Monday.
“The estimate of fiscal deficit for the year 2025-26, as presented in the Union Budget 2025-26, is at 4.4 per cent. There is no requirement felt for revision of fiscal deficit target at this stage, and neither is it considered appropriate,” he said in a written reply in the Lok Sabha.
The government has been taking various measures to boost economic growth in light of global challenges and uncertainties, he said.
India’s economic resilience is underpinned by strong macroeconomic fundamentals such as steady growth, price stability, credible fiscal consolidation, resilient external sector performance, robust foreign exchange reserves, a strong and well-capitalised banking sector, and robust physical and digital infrastructure, he said.
Additionally, he said, India’s well-regulated financial system, credible inflation-targeting regime, and flexible exchange rate contribute to the economy’s resilience to shocks.
In response to recent global challenges such as trade tensions, uncertain capital flows, and geopolitical risks, the government has been taking a multi-pronged approach to sustain economic growth, he said.
Spelling out some of the steps taken to propel growth, he said liberalisation of FDI, bilateral engagement with countries for the finalisation of various trade agreements, credit guarantee schemes, and increased public expenditures, particularly capex.
In the Union Budget 2025-26, an outlay of Rs 1.5 lakh crore has been proposed in this regard.
To strengthen power sector resilience, he said the Budget also proposed incentives for electricity distribution reforms and augmentation of intra-state transmission capacity, with an additional borrowing of 0.5 per cent of gross state domestic product (GSDP) allowed for states, contingent on undertaking these reforms.
Moreover, the Budget also proposed to launch a comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme in partnership with states, which aims to address under-employment in agriculture, he said.
Replying to another question, he said, the per capita net national income (NNI) at constant prices for 2024-25 stands at Rs 1,14,710 as per the provisional estimates of GDP released by National Statistical Office, Ministry of Statistics and Programme Implementation (MoSPI).
The per capita NNI at constant prices for 10 years ago — 2014-15 — was Rs 72,805, he said.
The differences in the increase in per capita income across states may be attributed to a range of factors such as varying levels of economic development, sectoral composition, structural disparities, and differences in governance mechanisms, among others, he said.
The government has been committed to the objective of inclusive growth, as reflected in its commitment to Sabka Saath, Sabka Vikas, and has initiated several targeted schemes aimed at reducing poverty and inequality, ensuring social security, promoting income generation and livelihood opportunities, and improving the quality of life of vulnerable sections across the country, he said.
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