FM stresses fiscal discipline as capital expenditure drive persists

“India must to talk with optimism and there needs to be reduction in cynicism says Ms. Sitaraman

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01India will continue to prioritize capital expenditure to drive economic growth.
02The government has maintained fiscal prudence and monetary stability.
03Public capital expenditure has been significantly stepped up to support growth.
04Fiscal consolidation is a key economic priority for the government.
05Infrastructure development creates a multiplier effect, generating employment for 50-60 years.
06The government aims to advance welfare initiatives for long-term national development.
07India's economic growth path is being sustained through capital expenditure and fiscal prudence.

Trap alerts

Most people think that fiscal prudence is a new concept in Indian economic policy, but actually it has been a key priority for several years.
Most people think that capital expenditure is being increased at the expense of revenue expenditure, but actually the government has maintained a balance between the two.
Most people think that the government's focus on capital expenditure is solely for short-term economic growth, but actually it is also aimed at long-term national development.

Current-affairs link

The government has launched the 'PM Gati Shakti' program to boost infrastructure development and economic growth, which includes initiatives such as the creation of a national master plan for infrastructure development and the establishment of a digital platform for project monitoring and tracking.

Prelims Practice MCQs

Single facteasy

Which of the following is a priority of the government?

A.Fiscal prudence
B.Economic growth
C.Reducing cynicism
D.Increasing revenue

Fiscal prudence is a priority of the government to ensure economic stability.

Multiple statementsmedium

Consider the following statements regarding Fiscal Prudence and Capex: 1. The Finance Minister has emphasized the need for fiscal prudence. 2. The government will allocate 20% of its budget for Capex. 3. The Finance Minister has stated that India must talk with optimism and there needs to be a reduction in cynicism. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

Statement 1 is correct because the Finance Minister has emphasized the need for fiscal prudence. Statement 2 is false because there is no information about the percentage allocation for Capex in the fact list. Statement 3 is correct because the Finance Minister has stated that India must talk with optimism and there needs to be a reduction in cynicism.

← All current affairs