Public Capex Programs Include Long-Term Growth Prospects: FM Nirmala Sitharaman

Friday’s statement by Finance Minister Nirmala Sitharaman that public capital spending programmes are integral to India’s long-term growth prospects.

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Friday’s statement by Finance Minister Nirmala Sitharaman that public capital spending programmes are integral to India’s long-term growth prospects.

At the third G20 Finance Ministers and Central Bank Governors (FMCBG) summit, which Indonesia hosted in Bali, Sitharaman emphasised the importance of evidence-based policymaking for robust economic systems.

The government has placed a strong emphasis on capital spending to support the economy after the pandemic. It is anticipated that a rise in government spending will discourage private investment.

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To continue the public investment-led recovery of the pandemic-damaged economy, Sitharaman increased capital expenditure (capex) by 35.4% for the fiscal year 2022–23 to Rs7.5 lakh crore. Last year’s capex was Rs5.5 lakh crore.

“Reflecting on India’s #growthstory, FM shared that India’s long-term growth prospects are embedded in public #CapitalExpenditure programmes, & #EvidenceBased #PolicyMaking is vital for resilient economic systems,” the finance ministry said in a tweet.

The finance minister also emphasised the need to scale up climate finance and accelerate green transitions as the cornerstones of a sustainable global recovery.

Sitharaman offered her thoughts on the G20’s health agenda, particularly pandemic preparedness and response systems, during the second session of the ongoing G20 FMCBG.

She also emphasised the requirement for swift resource mobilisation and deployment in response to medical emergencies.

“FM Smt. @nsitharaman called for a global coordination mechanism with @WHO at its centre. FM also said that India is committed to supporting all efforts to #protect and #prepare against any future #pandemic,” another tweet said.