MOS (Finance): Macro-economic indicators have shown positive trend and structural reforms undertaken have started contributing to sustainable growth

The Minister for State for Finance, Shri Jayant Sinha said that the macro-economic indicators of late have shown positive trend and the structural reforms undertaken have started contributing to the sustainable growth through participation by States. He also stressed on the need to increase social sector spending and increase Capital expenditure and at the same time' strive to remain on path of fiscal consolidation. He dwelled upon the priorities for an inclusive growth wherein support for the poor people has to be kept in mind. Shri Sinha emphasized on access to financial services; Direct Benefit Transfers (DBTs); removing distress in agriculture by encouraging investment and solving credit issues and tackling the problem of unplanned urbanization among others.

It was felt that States need to be sensitized on implications of FFC; convergence of CSSs; increased tax devolution to States be used more for capital expenditure; Financial inclusion and control of unauthorised deposit taking, changing in accounts of classification and linking expenditure to outcomes.

 

Finance Secretary and Secretary (Expenditure), Government of India' Shri Ratan P. Watal said that the States views on these issues have been taken on board. He said that the deliberations would help the Government to understand States finances better; implementation and governance issues; inclusive and sustainable development; fiscal consolidation; gender budgeting etc. Shri Watal said that thee valuable inputs given by the State Finance Secretaries during the one day Conference would help the Ministry of Finance and State Governments to calibrate their policies further and help run the schemes in a manner which could lead to better expenditure management; fiscal consolidation and achieve true spirit of cooperative federalism. The Finance Secretary said that in future, such Meetings would be held in a much more structured and planned manner on a regular basis.

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