Economic Affairs Secretary,Tarun Bajaj, has said that monetization of debt is not currently on the government’s agenda. Along with this he also gave some positive signs on the revenue collection front. Bajaj gave this information while addressing a virtual conference organized by industry body FICCI on Thursday. He said, ‘I have some calculations right now. I have some plans in my mind. The Reserve Bank has supported us at this time. Monetization is not on the table at the moment. This has not been discussed with the central bank either.
The country’s revenue is increasing
He said that revenue is increasing. The government has also received some additional revenue from excise duty on petrol and diesel. The Secretary of Economic Affairs said that he would be in a better position to say something about this if the data is in hand after three to four months. Monetization of debt is directly related to the printing of currency by the central bank to bridge any emergency spending and fiscal deficit of the government.
This is the goal of the government
The government, which is facing financial pressure, has already increased its debt target by 50 percent from Rs 7.8 lakh crore to Rs 12 lakh crore in May. Bajaj said that to encourage manufacturing, the government has already announced production incentives on mobile and medical devices and pharma.
Agricultural sector does not contribute significantly to GDP
The government is working on expanding the scheme to four to six more regions with export potential. He said that agriculture is a shining area in times of crisis. Rabi crop production has been good and kharif production is also expected to be good. Bajaj said that the agriculture sector does not have a significant contribution to the gross domestic product (GDP). But it serves 40 percent of the country’s population.
The country will return to the path of growth again next year
The Economic Affairs Secretary said, “If we see some prosperity in rural areas, the reason is agriculture.” It will also have some impact on the growth of companies in manufacturing, services and FMCG sector. He hoped that the country would return to the path of growth from next year.
He said that on the lines of the self-sufficient India campaign package, the government will soon come up with a list of strategic areas. And public companies in non-strategic sectors will be privatized. Finance Minister Nirmala Sitharaman announced in May that there would be a maximum of four public sector companies in strategic sectors. Public companies in other sectors will eventually be privatized.