Nirmala Sitharaman interview: ‘Important to back asset creation’

Hours after presenting the Union Budget 2021-22, finance minister Nirmala Sitharaman spoke to HT’s R Sukumar and Doordarshan’s Ajay Mishra, on some of its key highlights. She discussed the increase in health allocation in the times of the coronavirus disease; said that the privatisation of banks was on the agenda since the government was keen to operate only healthy public sector banks that could scale up; pointed out that the Initial Public Offering of LIC — expected within this fiscal — would be over and above the announced disinvestment target of ₹1.75 lakh crore; and that the new Agricultural Infrastructure and Development Cess on fuel and liquor will not increase the burden on the consumer, but create a dedicate fund of an estimated ₹30,000 crore for agricultural infrastructure. Therefore, the kind of money going into the hands of the people directly, without looking at what it’s going to create — it will create short-term demand, yes — but when it goes through this route, it also gives encouragement for sectors that will help create better roads, ports, other infrastructure facilities. As far as tax is concerned, I have been clear from the beginning, when the Atmanirbhar announcements were being made, and many country’s examples were quoted to me, I would quote back an example of a country — and I’m not taking the name here — which spent more than 15% of its GDP as a stimulus package but, in December, said that they may consider a comprehensive tax increase across the board.