Mumbai, November 2 — Finance Minister Nirmala Sitharaman on Monday said the government will continue to prioritise capital expenditure to sustain India's growth momentum while keeping fiscal discipline, as she addressed HSBC India's financial inclusion gathering in Mumbai.

Source: IANS

Speaking in a fireside chat with HSBC India CEO Hitendra Dave at the bank's Third Annual Financial Inclusion Gathering, Sitharaman said capital expenditure has delivered good results over the past four to five years through its multiplier effect and will remain an important part of the government's growth strategy.

"Capex is a very important component of our growth strategy because till such time the private sector is also going to come in to expand capacities or establish newer capacities, it is important for the government to push through with the capital expenditure," she said.

At the same time, she stressed that public spending must stay responsible. "We need to be fiscally prudent. Otherwise, it is not a gains thing," Sitharaman said, adding that under Prime Minister Narendra Modi fiscal prudence will remain a top priority and the fiscal deficit will be watched closely.

Source: Devdiscourse

The Finance Minister said India's economic resilience is rooted in the aspirations of its people and the strength of its large domestic market, with the expansion of the middle class increasing purchasing power and supporting domestic demand, according to IANS.

She cited a World Bank report which, she said, showed India's poverty level had declined to 2 per cent by the end of financial year 2023 from around 25 per cent.

For the next phase of financial inclusion, Sitharaman identified credit access, insurance and pensions as priorities, reiterating the government's goal of insurance coverage for all by 2047. She also referred to a recently announced high-level committee that will consult industry and experts and recommend what India's banking system needs to support the Viksit Bharat vision.