India is not on verge of recession: Nirmala Sitharaman

Hyderabad: Union Finance Minister Nirmala Sitharaman has said that as per economic reports India is not on verge of recession.

Talking to the reporters at BJP state headquarters here on Saturday to a question that the India’s Gross domestic product (GDP) growth was reported 13.5 per cent during the first quarter of this financial year will expect similar double digit growth in the coming quarter, Sitharaman expressed her hope and said that we will work for it.

She said, “Economies which are far more developed than India. Economies compare India and other emerging markets and I am not dividing anybody, at a time when multilateral institutions, whether the World Bank, IMF and others looking at the global economy reported that many countries are in a verge of recession if they are not in it. And there are economies which are at high risk of recession, some of them 85 per cent, some of the 15-16 per cent and the report also clearly says that India is not on the verge of recession at all”, Sitharaman said.

While quoting Bloomberg report on getting recession probability , she said that Sri Lanka (85 per cent), New Zealand (33 per cent), Japan (25 per cent), South Korea (25 per cent) China (20 per cent), Hangkong (20 per cent), Australia (20 per cent), Taiwan (20 per cent), Pakistan (20 per cent), Maleasia (13 per cent), Viyatham (10 per cent), Ireland (10 per cent) Philippines (8 per cent), Indonesia (3 per cent), India (Zero).

So if we are not on the verge of recession, Sitharaman said it gives me confidence that the same growth will continue in the coming quarter.
Speaking on FRBM limit raised by the Telangana Government, the Union Finance Minister Sitharaman who is here on a three day visit as part of BJP’s Lok Sabha Prawas Yojana, said that the Centre has allowed the states beyond the limit of FRBM during the Covid pandemic and other economic situations.

She said that the Centre allows the states to borrow as per their budgets. But the states borrow more outside which does not come into the budget. It is outside of the budget. Now both put together, beyond their capacity and burden for it. Overall, Telangana is concerned, every child born in the state now has Rs 1.25 lakh debt on their head.

While quoting RTI report on Kaleshwaram Project of Telangana, she said that the state government borrowed funds with the interest ranging from 8.25 per cent to 10.9 per cent. Is it sustainable, she questioned.

She also clarified that there was no scope to allocate more funds to particular states. The department would act as per the directions of the Finance Commission. She also clarified that the Cess which was collected in the name of Education, Health, Building and among others by the Centre to allocate it to the states in respective sectors.

Reacting on Telangana Minister’s remark on questioning Kamareddy district Collector during her visit on Friday, she said that as a people’s representative I have a right to question and seek an answer. “ I have not crossed my limits and not used any unparliamentary words during my conversation”, she added.

Reacting on free schemes, the Union Minister said that the Centre does not have any objection to free schemes if necessary funds allocation in the budget for free schemes otherwise the next government will affect the debts which were borrowed to the free schemes.

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