New Delhi:

Countering the Opposition’s charge that the Centre has extended big Budget gifts to Bihar with an eye on the upcoming Assembly polls, Finance Minister Nirmala Sitharaman has questioned if a state with such a high population density and rich history does not deserve a good international airport.

The Finance Minister spoke to NDTV’s Editor-in-Chief Sanjay Pugalia in an exclusive interview today.

In her Budget speech yesterday, Ms Sitharaman announced big offerings to Bihar, which goes to polls later this year. Besides the election, the Budget bonanza was also seen against the backdrop of the crucial support of Nitish Kumar’s JDU to the BJP after the latter fell short of the majority mark in the general election last year. JDU and the BJP are allies in Bihar and are prepping hard for the polls.

The Finance Minister has announced the establishment of a board to support the production of Makhana in north Bihar. She also said greenfield airports will be developed in the state. The Budget also announced financial help for the Western Kosi Canal project in Mithilanchal, which aims to boost irrigation. It also announced a plan for IIT Patna’s expansion and the establishment of a National Institute of Food Technology in Bihar.

Responding to a question on the Opposition’s charge that this Budget was prepared with an eye on the Bihar and Delhi elections, Ms Sitharaman said this was a budget for the people. She then quoted the timeless phrase of former US President Abraham Lincoln and said this was a budget “of the people, by the people, for the people”. “The characteristic changes in this Budget are based on people’s voices. The Opposition parties always feel the Budget is for the election. I disagree. Are their elections in Assam too?” she asked, pointing to the announcement for a urea plant in Assam.

Ms Sitharaman said Bihar is densely populated and has cultural centres such as Nalanda and Rajgir. “Despite this, there is no good international airport. Aren’t we all responsible for this? Shouldn’t we give it to them? Someone asked, ‘can you only see Bihar?’. Isn’t Bihar a part of India? Bihar’s workers are found across the country. Shouldn’t there be work in their villages?” she asked.

Chief Minister Nitish Kumar has welcomed the Budget announcements for Bihar. “The budget is progressive and futuristic. It will help accelerate the state’s growth. I thank Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman,” he said in a statement.

“Greenfield airports would address the state’s future needs. These will improve air connectivity in the state which shall now look forward to having a greater number of international flights,” he said.

RJD, the main opposition in Bihar, was not impressed. Tejashwi Yadav, Leader of the Opposition in the Assembly, said the Budget did not mention a special package for Bihar. “I am not sure if they will even give Bihar the status of a special state. Today’s budget was unfair to Bihar. Whatever was given in the last budget has just been repeated this time. They have talked about Greenfield airport, but no details of where and when it will be built. No budget allocation was mentioned. I think all this is just ‘jumla’.”

New Delhi:

For a growing economy to meet its needs and aspirations, borrowing is a must, but the focus of the finance ministry under her is to ensure that debt is reduced without affecting growth, Nirmala Sitharaman has told NDTV. 

In an exclusive interview with NDTV’s Editor-In-Chief Sanjay Pugalia on Friday, Ms Sitharaman said fixing a number for the eventual fiscal deficit and working towards it with temporary solutions every year can be one way of going about things, but it is not the right way from a macroeconomic perspective. 

Ms Sitharaman, who became the first finance minister in India’s history to present seven Union Budgets in a row this year, said, “We have chosen a healthy option for getting the fiscal deficit closer to the number. Instead of looking at the number alone, it is also about the way you decide to get there. An obvious method for every country is to reduce debt, but borrowing is a must for a growing economy. The question is how much are you borrowing and where it is being used.”

“Are you using it for asset creation or to service or reduce the existing debt? If the growth in the debt is to be reduced, borrowing more to reduce debt is not the right thing to do. So you borrow and create assets. We have studied the NK Singh Committee report (on fiscal responsibility) and held discussions and decided that we won’t look at the number alone but choose the right path to reduce debt without affecting your growth, desires and aspirations,” she explained.