Budget’s objective was to keep the growth momentum alive: Nirmala Sitharaman

“We need to sustain the growth momentum, otherwise it is not possible for India which like many other countries is facing the global challenges to reach and sustain the fastest growing economy level,” says Nirmala Sitharaman, Finance Minister.

Navika Kumar: Ms Nirmala Sitharaman, Honorable Union Finance Minister who is the first woman finance minister to have presented five consecutive Budgets and possibly the third finance minister to present five consecutive Budgets and the sixth finance minister to do five in total. Do you think that is a feather in your cap?

Well, it was an opportunity given and I am very grateful to the honourable prime minister and also to my party for having that kind of a faith and their guidance has really helped me to at least serve the party this much.

Navika Kumar: You say guidance. When the Budget is presented, how much involvement is there in the vision that needs to be shown to the people of the country especially because this was called the election year Budget. So how much involvement is there in this of the prime minister and other senior ministers?
The prime minister has a lot of involvement every year in every Budget and the planning that is done by the finance ministry is interacted with the PM at least three-four times. Intensive interaction is done to explain as to what will be the impact, of that in India’s economy. All these topics are discussed in detail.

Navika Kumar: When you went to talk to the Prime Minister that this will be the last full Budget before the election, next year the vote on account will be done, did he say anything that was in his mind that he wanted to give the message to the people of the country?
No, this was looked at as more a Budget which was also going to be primarily working to keep the growth momentum alive because when we are coming out of the pandemic and when growth is got to be sustained and having sustained it in the last two years, this is a very delicate moment. If you loosen up and it comes down, it is going to have a big impact and things will get even more difficult.

We need to sustain the growth momentum, otherwise it is not possible for India which like many other countries is facing the global challenges to reach the fastest growing economy level.

Even though the challenges globally are still continuing, many countries are reeling under it. So for India to have reached that position, it is not for want of right kind of approach, it is not because we gave emphasis in one and not another but we kept looking at every sector.

So having given that kind of intensive review, care, response this Budget cannot be undermining that growth which we are so carefully building up. So Prime Minister’s guidance was to sustain the growth momentum but of course make sure that you are inclusive and reach out to communities which have not been touched.

Navika Kumar: This time, after the Budget, maybe less discussion has been done and the rest of the market which is seeing volatility, the ups and downs which are going on, maybe it has overshadowed the Budget. What happened to the Adani stocks after the Hindenburg report, many people say that this is a conspiracy, how do you see this?
This is not the first time that after the Budget due to some reason or the other there is not much discussion about Budget at the main level. Because I remember the 2020 Budget, the 2021 Budget which was presented on 1st February 2020, immediately after that, COVID came and all the discussions, in fact, we rushed to clear the appropriations in the parliament and closed the parliament.

So that was the first time when there was no discussion about the Budget, both inside and outside the parliament. Second 2021 Budget which was for 2021-22, at that time also, second wave so we brought a lot of such issues in the 2021 Budget, reform, revival package etc. Atmanirbhar Bharat had 4-5 announcements, after that Budget. In that also, it was taken, hijacked by the pandemic second wave which came. And the 2022-23 Budget it was Omicron. And Russia war had begun.

But this time the Budget has begun. Budget discussions have commenced and lots of things are happening. Unfortunately for me it is not the first time, each one of the time there is some thing or the other going on.

Navika Kumar: But those were not conspiracies. What you are telling us earlier whether it was a war, whether it was a pandemic, first wave, second wave, third wave, those were not conspiracies. This Hindenburg’s report, one section believes that transparency is less and Congress party and all opposition parties have raised questions that Adani has got special dispensation. And on the other hand, one section says that it is conspiracy. Do you consider it as a conspiracy or do you think that it was market activity or because of some report if this has happened, then it has happened on one stock?
I do not want to have any view on it except that the regulator should act, act in time and act to keep the markets stable, act to keep India regulatory functions at its best. So whether it is the Reserve Bank or it is the SEBI, my view would be that the regulator should be always on their toes. And that is where I would comment about what has got to be done.

Navika Kumar: But if for six days, literally if there is no statement like this, that Rs 12500 crores of Adani stocks have been eroded and in that common small investors have also has his money. No statement has been made on that money yet, neither from the regulator, nor from the RBI, nor from the Finance Ministry’s financial services department. In between, there is a fear in the mind of the common investor and of course, opposition parties have logjam the Parliament for two days and their demand is of JPC, so questions will arise.
Questions will arise, I am not objecting to questions being raised. I am repeatedly underlining the fact, you are asking questions while keeping in mind the common investor. I repeatedly want to underline that when it comes to Department of Financial Services, which you have preferred on the exposure of banks, on the insurance companies’ exposure, they themselves are coming out and speaking. And coming out and speaking fairly covering every aspect of what is worrying the minds of people and about their exposure and about how even after the valuation continued to fall where their levels of profit is and so on, and that their exposure is this much, they are not overexposed to any one company. These are from the horse’s mouth you are hearing it, from the bank, from the insurance sector. RBI, as the regulator, has come up with a very clear statement yesterday.

I want to explain this that banks’ exposure, banks dealing with clients, almost on an everyday basis, in fact hourly basis, through the acrylic data which the RBI is accessing, they know where, what is happening, and they keep an eye on it on an almost daily basis. So RBI has given a statement as well about the bank’s health. As ministry, I will definitely draw your attention to the health of India’s banks now. Only yesterday, probably,

came up with its quarterly report their health, their profit levels, the asset quality that they have are all explained by them. So that is about RBI, the banks, the insurance companies, where ministry is looking at both the RBI and the banks themselves and the insurance themselves to see how their levels of exposure is and what levels of profitability are they in so that is all very well explained by themselves.

Now, SEBI too looks at these things almost regularly. So I think I am looking at the regulators, who as I said India and its markets are very well managed by our regulators. Yes, there are occasional blips in the market, which may be small or big but they do address issues like that and I strongly believe that our regulators are definitely ceased of this matter.

Navika Kumar: But do you think when it comes to investors with such huge volatility, there has not been a statement from SEBI. Now, are you saying there is nothing to worry and therefore there is no statement?
I am saying that one of the regulators have given a statement. I am saying that regulators in India are well ceased of such things on almost on a daily basis. So it is very clear that they are watching or even commenting like the way RBI did yesterday on the developments in the market. And they will definitely explain things out, whichever way it is, I am not commenting on the merit of any issue here whichever way it is, they would definitely speak about it and RBI has spoken about it.



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