NEW DELHI: FM Nirmala Sitharaman on Tuesday said there should not be any politics on public finance, as it has a long-term impact on the Centre and states.
“Raising money is important, as much as managing your debt. There is no good if I am being very good in terms of giving projects or schemes to the public…but have no resources for it. Equally, it is also very tempting to keep borrowing,” she said at an event to launch States Economic Forum, a portal put together by Nitit Aayog and the National Council for Applied Economic Research. While borrowing all the realities have to be kept in mind, she said, adding that there is a temptation for borrowing to push growth all over the world.
“If there is a struggle to become a faster-growing economy, equally, there is a big struggle to contain your borrowing. Countries have become so debt-ridden, and it is going to take a generation even to come to acceptable levels, leave alone ideal levels,” she said.
She cited the example of deliberation in the GST Council and said that state finance ministers, cutting across party lines, discuss proposals while maintaining a focus on generating revenue, without burdening the public. NCAER director general Poonam Gupta said that between 2013 and 2023, debt levels increased in all but four of the 28 states. The minister was all praise for the ministry of statistics, complimenting the recent initiatives on data, which, she said, had reinforced confidence in official statistics.