NEW DELHI: TV Finance Secretary Somanathan said on Saturday that the Center will ensure that the fiscal position remains stable despite high spending on food and fertilizer subsidies and repayment of arrears related to export incentives. “We want to ensure that India remains in an area of ​​fiscal and macroeconomic stability, while also taking into account the needs of the poor and the vulnerable,” he told TOI.
The finance secretary also downplayed concerns about the taper tantrum, or the impact of withdrawing excess liquidity from developed markets, saying the country’s overall financial situation was much better. “We don’t know the exact timeline or the details. Due to the high reserves, we are not in a vulnerable situation like 2012-13. Compared to others, we have been very tax cautious, we are now a positive outlier. In addition, the growth outlook is much higher, ”Somanathan said, adding that the country will see growth of at least 6-7% next year beyond double-digit growth projections over the past year. current exercise.
Earlier this week, Finance Minister Nirmala Sitharaman said the government and the RBI were closely monitoring the situation, but most countries had learned from the latest tantrum. The senior finance ministry official said government revenue figures looked better, but there were risks on the non-tax revenue front, which could indicate a possible shortfall in funds from the telecommunications sector.
A day after the government announced the sale of Air India to Tata Sons, Somanathan told TOI that the government would push the domestic asset monetization pipeline during the current fiscal year. This decision is seen as crucial as it will not only generate resources for the Center and public sector companies, but funds will be redeployed to create new assets.