Centre Committed To Cutting Fiscal Deficit, Targets Debt Reduction To 50% Of GDP By 2030: Nirmala Sitharaman

Chennai: Union Finance Minister Nirmala Sitharaman on Monday said in Tiruchi that the Centre was committed to reducing the fiscal deficit and bringing down government debt, reiterating its target of limiting the debt-to-GDP ratio to 50% by 2030.

Addressing journalists on the sidelines of a college event, the Minister said countries across the world had faced debt-related challenges since the COVID-19 pandemic. India, however, had consistently taken steps to manage its debt, she said.

“We are committed to reducing the fiscal deficit, as evidenced by our annual budgets. We have openly stated our goal that by 2030, the national debt will be limited to 50 per cent of the GDP,” Nirmala Sitharaman said.

She added that the Centre was continuing to take measures to reduce the Union government’s debt and that international organisations had acknowledged India’s approach to debt management.

Government Focuses On Inflation Control

On inflation, the Minister said a dedicated group of ministers had been working since 2014 to maintain price stability through better supply chain management.

Citing restrictions on rice exports as an example, she said the Centre had intervened to protect domestic consumers from price increases while ensuring that farmers received the Minimum Support Price (MSP).

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Centre Pursues Higher Per Capita Income

The Finance Minister also spoke about efforts to raise per capita income, saying the government was implementing various measures towards that goal.

She noted that the economy had faced several challenges, including the COVID-19 pandemic, the subsequent recovery, wars and fluctuations in fuel and crude oil prices. Despite these pressures, the Centre had worked to ensure that the burden did not fall heavily on the public.

“We are definitely continuing our efforts in this direction,” she said, referring to the push to increase per capita income.