New Delhi, Feb 11 (NationPress) The Union Finance Minister Nirmala Sitharaman stated on Tuesday that India is poised to remain the fastest-growing economy globally, supported by an uptick in the government’s capital expenditure outlined in the Budget for 2025-26, alongside increasing consumption in rural areas.

During her address in the Lok Sabha regarding the Union Budget debate, the Finance Minister indicated that the effective capital expenditure is projected at 4.3 percent of GDP for the 2025-26 budget, while the fiscal deficit stands at 4.4 percent.

“This reflects that the government is utilizing all borrowed resources to fund effective capital expenditure and create capital assets,” she emphasized.

She provided budgetary figures indicating that the capital expenditure allocation has risen to Rs 1.21 lakh crore, countering opposition claims that the budget had been slashed.

The Finance Minister also highlighted that managing inflation is the government's top priority, with overall retail inflation maintained within a tolerance band of 2 percent to 6 percent. She noted that food inflation, affected by adverse weather, has been addressed by the government.

In a critique of the Congress party, she remarked, “Double-digit inflation rates from the previous UPA government are a thing of the past.”

Referring to the UPA's second term, FM Sitharaman noted that food inflation soared to an alarming 11 percent, causing significant difficulties for citizens.

She credited the NDA government’s focus on improving supply chains and advancing agriculture for reducing food inflation to 5.3 percent from 2014 to 2024.

FM Sitharaman pointed out that the government is taking measures such as monitoring groundwater levels to ensure proper irrigation for both Rabi and Kharif crops, thereby controlling food inflation.

Additionally, she mentioned the government’s investment in strengthening the Food Corporation of India (FCI), which procures agricultural products from farmers at the Minimum Support Price (MSP).

The Finance Minister dismissed allegations regarding the rising debt burden, explaining that the debt-to-GDP ratio has decreased under the Modi government, with ambitions to further lower it to 50 percent by 2030-31. She also pointed out that only 3.4 percent of government debt is external, with the remainder sourced domestically, minimizing risk.

FM Sitharaman further noted that the unemployment rate has fallen from 6 percent in 2017-18 to 3.2 percent in 2023-24.

She mentioned that India is not alone in facing currency devaluation, as the dollar has strengthened against various Asian currencies, including Indonesia, Japan, and South Korea, along with European currencies.

She also criticized the previous UPA government, asserting that UPA-era oil, fertilizer, and FCI bonds are being repaid this year and next, with interest amounting to Rs 3524 crore in FY26 and principal dues of Rs 40,464 crore.

The Finance Minister emphasized that allocations to states have not diminished; however, states have been unable to utilize Rs 2,000 crore earmarked under the health mission.

She mentioned that unspent balances totaling 1 lakh crore rupees as of December 31, 2024, are still held in SNA or escrow accounts for various schemes, while states continue to request additional funds despite these balances.

FM Sitharaman also indicated that Rs 1395.45 crore is available in SNA, treasury, and escrow accounts in states, alongside Rs 4636.55 crore for food security and urban rejuvenation, and Rs 12377 crore for the AMRUT scheme.

Regarding MGNREGA, she revealed that Rs 4351 crore remains with the states.