Bjp handled financial crisis better than Congress in 2008: Nirmala Sitharaman

Responding to the 2022 Union Budget debate in Lok Sabha, Union Finance Minister Nirmala Sitharaman said on Thursday that the Narendra Modi-led government has handled the financial crisis better than the United Progressive Alliance (UPA) in 2008.

“In the financial crisis of 2008, Indian GDP took a hit of Rs 2.21 lakh crore in reduced gains. In the recent crisis, Indian GDP lost Rs 9.57 lakh crore. Despite the disruption supply chain inflation in 2020-21 was 6.2 percent, while in 2008-09 it was 9.1 percent,” Sitharaman said.

“This means that despite the contraction in GDP and a much larger loss of GDP, we managed to keep inflation lower than when India suffered a lesser crisis in 2008,” Sitharaman said.

“The Indian economy has grown faster than the US economy”

Talking about the Indian economy, she said Sitharaman grew faster than the US economy in the previous fiscal year.

“The Indian economy is expected to grow by 9% in the next financial year. The United States is expected to grow by 4%,” she said.

“Excess current account”

She noted that the BJP government managed to keep the current account in surplus despite such a massive crisis, whereas in 2008, during a much smaller crisis, the Indian economy was in current account deficit.

“44 unicorns show India’s talent and innovation”

Sitharaman said 44 unicorns have been identified in this country. “They created wealth. They showcase India’s talent and innovation. This happened between 2020 and 2021,” she said.

‘Andhkaal under Congress rule’

The Finance Minister noted that all villages have been electrified in India. She said that “andhkaal” (the time of darkness) prevailed during their (Congress) rule, whereas now every house has electricity in every village.

She also said that Prime Minister Mudra Yojana had created 1.2 crore more jobs since his launch in 2015. On employment, she said, urban unemployment has returned to levels of before the pandemic through the various efforts of the government.

“ECLGS system for MSMEs extended”

Furthermore, Sitharaman said banks had sanctioned loans worth Rs 3.1 lakh crore under the Emergency Line of Credit Guarantee Scheme (ECLGS) for the affected MSME sector. by the disruptions caused by the coronavirus pandemic. The program has been extended until March 2023.

“MSMEs who still wish to benefit from it are welcome to use it…the loan amount sanctioned by the ECLGS is Rs 3.1 lakh crore and the collateral space is still Rs 1.4 lakh crore,” said she said in her 100 Minutes. response to the discussion on the Union budget 2022-2023. As much as Rs 2.36 lakh crore has been disbursed to MSMEs, she said.

(Edited by : Jomy Jos Pullokaran)

First post: STI

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