New Delhi: Finance Minister Nirmala Sitharaman on Friday said the retail inflation was contained at just 6.2 per cent despite the Indian economy suffering the biggest contraction of Rs 9.57 lakh crore.
Replying to a general discussion on the Union Budget in Rajya Sabha, the minister said the Budget for 2022-23 stands for continuity, brings stability to the economy and predictability of taxation.
She stated that the objective of the Budget is a stable and sustainable recovery in the economy.
Compared to the performance of the UPA government, she pointed out that retail inflation was 9.1 per cent during the financial crisis of 2008-09, while it is at 6.2 per cent during the COVID-19 pandemic that has a bigger impact on the economy.
The minister said the Indian economy suffered the biggest contraction because of the pandemic.
She explained that the Indian economy suffered Rs 9.57 lakh crore loss due to the pandemic, compared to a Rs 2.12 lakh crore contraction during the global meltdown in 2008-09.
She also told the House that capital spending gives much more multiplier than revenue route, and therefore, the government has increased public capital spending to boost the economy.
Sitharaman said the government is also encouraging startups and that resulted in the creation of many unicorns during the pandemic.
She also said that there is no cause to worry because of different numbers of GDP in the Economic Survey and Budget documents, as it was a result of sources of data being different.