Govt contained retail inflation at 6.2 pc despite biggest contraction in economy: FM Sitharaman

New Delhi, Feb 11: Finance Minister Nirmala Sitharaman on Friday said the government has been able to contain retail inflation at 6.2 per cent despite the Indian economy suffering the biggest contraction due to the Covid-19 pandemic.

Replying to a general discussion on the Union Budget in Rajya Sabha, she said, the Budget for the 2022-23 fiscal year, stands for continuity, brings stability to the economy along with predictability of taxation. She claimed that the budget aims to bring stability and sustainable recovery to the economy.

She highlighted that retail inflation during the UPA government was 9.1 per cent during the financial crisis of 2008-09, while it is at 6.2 per cent during the COVID-19 pandemic that has a bigger impact on the economy.

The minister said that the Indian economy suffered the biggest contraction because of the pandemic.

She explained that the Indian economy suffered Rs 9.57 lakh crore loss due to the pandemic, compared to a loss of Rs 2.12 lakh cr during the global meltdown in 2008-09.

She also told the House that capital spending gives much more multiplier than revenue route and therefore the government has increased public capital spending to boost the economy.

The FM also stated that the Centre also was encouraging startups which resulted in the creation of many unicorns during the pandemic.