No question of country slipping into recession or stagflation: FM Nirmala Sitharaman

Tribune News Service

Vibha Sharma

New Delhi, August 1

Finance Minister Nirmala Sitharaman today told the Lok Sabha that there was “no question of India getting into recession or stagflation as macroeconomic fundamentals of the country are strong”.

There is “zero probability of India slipping into recession even as major economies (of the world) are facing the risk. We are the fastest-growing economy,” Sitharaman said, replying to a discussion under Rule 193 in the House amid heated disruptions and walkout, first by the Congress and then the DMK.

Sitharaman trashed arguments about GST on items such as milk, curd, lassi and rice

The FM said the GST collection and Purchasing Managers’ Index (PMI) indicated that the Indian economy was getting more robust. “This morning we announced the GST collection for July, which was at the second highest level since the introduction of GST at Rs 1.49 lakh crore,” she said.

As tempers ran high, Sitharaman said the debate was “more on political aspects than data-driven concerns,” therefore her reply was also on similar lines. Countering the Opposition attack on GST on items like milk, curd, lassi and rice, the minister said only branded items were being taxed. She also condemned the Opposition for raising the issue when everyone, including representatives of Opposition-ruled states, were involved in the GST Council’s decisions.

“Any GST decision is the decision of all members of the GST Council, which includes state officials and ministers,” she said, adding that discussions are held at “three levels” and there was representation from all states, including Opposition-ruled Rajasthan and West Bengal. “There was no difference of opinion. You all (Opposition parties) sat at various stages. It was a decision of the GST Council, and not the Centre,” she said.

Congress’ Manish Tiwari, who had initiated the debate, later described the FM’s reply as “disappointing”.

Tiwari told mediapersons: “The Finance Minister’s reply was disappointing. The attitude of the government is that there is no inflation in the country, people are not suffering and everything is hunky-dory. If that is the response to concerns of the Opposition articulating the voice of 140 crore people of the country, why listen? As per the government, no inflation exists, just like no one killed Jessica.”

After two weeks of washout, the Lok Sabha discussed price rise after the revocation of the suspension of four Congress members.

Members of Congress, DMK, TMC, SP, NCP and others took on the government on issues ranging from inflation to fuel and LPG prices to GST to the falling rupee and demonetisation.

Even during adversity, India was able to stand up and be recognised as the fastest-growing economy, she said, adding that 4,000 banks in China were “reportedly on the verge of going bankrupt whereas NPAs of Indian banks are improving”.

“India is in a far better position in the debt to GDP ratio, which is in triple digits in several top economies. Gross NPAs of scheduled commercial banks have reached a six-year low of 5.9 per cent,” she said, adding that the government debt to GDP ratio has come down to 56.29 per cent in FY22.

Initiating the debate, Tiwari said: “Consumer food price index is skyrocketing. The GST has been increased on daily items like rice, curd, paneer and, unfortunately, even the children have not been spared as stationery prices have also gone up.”

Commercial LPG rates cut by Rs 36, ATF 12%

• The Centre has reduced the price of commercial LPG cylinder by Rs 36.50
• Jet fuel price has been cut by 12% to Rs 1.21 lakh per kilolitre

Taking steps to control prices

Inflation is at 7%. We are trying to keep it below 7%. During UPA rule, it was 9% for several months...even went in double digits nine times. — Nirmala Sitharaman, Finance Minister

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