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BENGALURU: Emphasising on the importance of capital spending amid global uncertainty, Finance Minister Nirmala Sitharaman on Friday said that India's long-term growth prospects were embedded in public capex programmes. Speaking at the 3rd G20 Finance Ministers and Central Bank Governors Meeting hosted by Indonesia in Bali, Sitharaman outlined that evidence-based policy making was vital for resilient economic systems.

Her remarks come at a time when two years after the pandemic key economies across the globe are facing inflationary pressures and demand slowdown amid supply chain disruption led by Russia Ukraine war and monetary policy tightening.

The government has been focusing on increasing capital expenditure to push economic growth to revive economic demand post-pandemic as it acts as a multiplier for infrastructure creation. Government is of the view that higher public spending would crowd in private investment.

Sitharaman during the Union Budget in February raised capital expenditure (capex) by 35.4% for the financial year 2022-23 to 7.5 trillion to boost demand. The capex last year was 5.5 trillion.

“FM delivered her intervention on Global Economy, focusing on India’s economic development, global risks and policy responses", the ministry of finance said in a tweet on Friday. 

Reflecting on India's growth story, FM shared that India's long-term growth prospects are embedded in public Capital Expenditure programmes, and evidence-based policymaking is vital for resilient economic systems," said the ministry of finance in another tweet,

Participating in the second session of the ongoing G20 FMCBG, Sitharaman shared views on G20's Health Agenda, including pandemic preparedness and response mechanisms.

She also highlighted the need for immediate mobilisation and deployment of resources for health emergencies.

"FM Sitharaman 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.

The finance minister also highlighted that sustainable global recovery should be pivoted on climate actions and the focus needs to be on scaling up climate finance and propelling green transitions.

 

 

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