There should be no politics over public finance, say FM Nirmala

New Delhi: Finance Minister 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.

Launching the 'NITI NCAER States Economic Forum' portal, she said borrowing should be done in a fiscally prudent manner and not become a debt burden going forward.

"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.

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.

"There can not be politics governing it when it comes to finances of the country when it comes to the finance of the central government or of the states." Citing the example of deliberation at the GST Council, Sitharaman said finance ministers of states across party lines do make decisions on augmenting revenue keeping in mind that the common man is not burdened.

"So, if for the larger costs, when you talk of revenues, there is a sense which is we have to be responsible," she said.

Mentioning data with respect to per capita income, she said the top 14 states are doing heavy lifting but some of them also have huge debt.

She further said the portal will be beneficial in the availability of authentic data and help states to make more meaningful interventions, raise revenues, manage debts and learn from peer experiences.

This forum is a much-needed step in present times, which will help in greater engagement with states, she added.

The finance minister pointed out that a few years ago data by the Ministry of Statistics and Programme Implementation (MOSPI) was not officially accepted or taken up, particularly when it came to the states.

"And I think, now MOSPI has reached a stage where today people do not question it (data). They would rather have more of it," she said.

Also speaking at the event, Niti Aayog CEO BVR Subrahmanyam said 12 states have prepared their 'Vision Document' so far.

Subrahamanyam emphasised that this forum will not only provide information for public knowledge but will also create awareness and fiscal learning across States. He further opined that this forum will play a pivotal role in human service and a permanent asset for the nation as a whole.

Niti Aayog Vice Chairman Suman K Bery observed that the NITI NCAER State Economic Forum is a key step in data-driven research, especially on public finances.

National Council of Applied Economic Research (NCAER) Director General Poonam Gupta while making a presentation on the portal highlighted the diverse nature of the fiscal path of the States.

She underlined the need for a portal which has comprehensive data of all states, thereby, providing an opportunity to appreciate the position of other states while making informed policy decisions.

'The NITI NCAER States Economic Forum' portal provides access to a comprehensive repository of data on social, economic, and fiscal parameters of states spanning over three decades till the financial year 2022-23.

Besides, the portal will provide a macro and fiscal landscape of 28 Indian states, structured around indicators on demography, economic structure, and socio-economic and fiscal indicators.