Government: Global headwinds pressurising finances
NEW DELHI: The government on Thursday told a parliamentary panel that global headwinds are exerting pressure on overall fiscal management, but it remained committed to balancing developmental needs with fiscal prudence.The comments came amid soaring fertiliser and fuel bills due to the West Asia crisis. Subsidies will push up expenditure, especially revenue spend. During a presentation to the standing committee on finance headed by BJP MP Bhartruhari Mahtab, the department of economic affairs noted that committed and sticky revenue expenditure, such as salaries, subsidies and interest payments, of the Centre and states leaves limited scope for productive investments.While noting that stagnant capex levels may impact future growth prospects, govt underlined the need to invest in infrastructure and other asset creating initiatives. Officials also reiterated that the Centre was committed to maintaining the fiscal glide path.
