Govt keeping tabs on debt

New Delhi: To bring down the debt burden, the government has taken various measures like increasing the tax revenue buoyancy, enhancing the public expenditure effectiveness, commitment to reducing fiscal deficit and augmenting the productive efficiency, Finance Minister Nirmala Sitharaman said on Monday.

In addition to strengthening the financial system, the government has more than doubled its effective capital expenditure from Rs6.57 lakh crore in 2020-21 to Rs13.71 lakh crore and Rs14.97 lakh crore in 2023-24 (BE) and 2024-25 (BE), respectively, to crowd in private investments, she said in the Lok Sabha. The government’s emphasis on increasing capital expenditure will not only boost the investments, but also return a higher GDP growth to lower the debt burden, she said.

Simultaneously, she said, the State governments have been incentivised to increase their capital spending through measures like 50-year interest-free capex loans and front-loading of tax devolution installments.

Various other measures like reduction of the corporate tax rate, liberalisation of foreign direct investment, and enhancement of ease of doing business (EoDB) have created supportive conditions for sustained growth in private investment, she said.