TV Somanathan Finance Minister, TV Somanathan Finance Minister said:
New Delhi:
Finance Minister TV Somanathan said the Government’s major capital expenditure program outlined in the 2022-23 budget will help attract private investment by boosting economic activity and creating out demand.
Finance Minister Nirmala Sitharaman increased capital expenditure (investment) by 35.4% for the fiscal year 2022-23 to Rs 7.5 lakh to continue the recovery driven by public investment led by the pandemic economy. Translate. This year’s investment is pegged at Rs 5.5 lakh crore.
Investment in construction of multimodal logistics parks, metro, highway and train systems is expected to generate demand for the private sector as all projects are realized. through contractors.
Mr. Somanathan said that over the past two years physical constraints due to the Covid pandemic have dampened demand and delayed private investment.
“The hope is that due to the massive capital spending program later this financial year, it is expected that private equity investments will start to pick up in a big way. That is our hope,” said the finance secretary..
Low private investment is a non-economic problem that cannot be solved by economic measures, he said, adding that it will be solved when activities start and demand increases.
The Economic Survey has identified India’s economic growth in the range of 8-8.5% in the current fiscal, while the Budget estimates nominal GDP growth at 11.1%.
During a budget interaction with industry leaders, finance minister Nirmala Sitharaman on Saturday encouraged India Inc to take advantage of the announcements made in the Budget and “rapidly” increase spending.
Saying that the government increased investment capital into the Budget with two goals of supporting sustainable growth and attracting private investment, the Minister affirmed that this is the right time to invest and industries should not. to lose this opportunity.
