FM Sitharaman: No cut in funds to states, release now tied to delivery

NEW DELHI: Union finance minister Nirmala Sitharaman said Thursday that the Centre's fund is not a "free pool of cash that can be used at will", asserting that every rupee of the taxpayer is accounted for and that there is no denial or stoppage of funds to any state or any scheme. Dismissing opposition charges that funds have been slashed, she said their release is linked to delivery on the ground.

Replying to the discussion on the Budget in RS, the FM said India is on a robust growth trajectory with low unemployment and an expanding middle class. Sitharaman said India is witnessing a rare macro-economic phase of elevated growth and low inflation, enabled by sustained efforts, planning, timely interventions and reforms. She said Budget steps show the resolve to build a resilient and self-reliant India.




On criticism over welfare funding, Sitharaman said, "Earlier, success was measured by how much money was pushed out without ensuring spending. It created a huge float. We now have absolute transparency. We do not blindly release funds to book expenditure; we release them only when required at the ground level. There is no denial or stoppage of funds to any state or scheme. Every rupee of the taxpayer is accounted for. Centre's funds are not a free pool of cash. They are hard-earned contributions of every Indian."

Lashing out at Congress for shedding "crocodile tears about rising debt", she said the opposition wants govt to borrow more and release funds to states. "The govt cannot borrow excessively. That principle guides us. Congress is obsessed with outlays, but we give money only for outcomes. We want results," she added.

Sitharaman rejected charges of high inflation, saying inflation is at a historic low and there is no inflation crisis today. "Inflation has been tamed due to stability and steps taken by the govt. Growth without jobs was a UPA-era story," she said.

She attacked the TMC-led Bengal govt, alleging it does not implement welfare schemes financed by Centre, depriving people of benefits. She also countered DMK claims that no big-ticket announcement was made for poll-bound Tamil Nadu, listing Budget proposals for the state.

Responding to former finance minister P Chidambaram's remark calling the Budget "forgettable", Sitharaman said, "Budget is never forgetful of the past. Cherish a glorious past, but learn from a tarnished one and avoid repeating mistakes." The remarks were made amid continued political sparring in Parliament.
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