Zee Media Bureau
New Delhi: Finance Minister Arun Jaitley on Saturday called for cutting down subsidy outgo.
Addressing a BJP function here, Jaitley said that the major challenge before the government is to eradicate poverty and have faster pace of development.
FM further said the current situation of high inflation and low growth has to be reversed to achieve sustainable GDP expansion along with improvement in price situation.
H also blamed the high inflation for the low savings rate.
"Last year, during the UPA regime, the savings rate declined to 30 percent from 33 percent. There is a need to incentivise savings which get converted into higher investments," he said without offering specifics.
Stating the government should not be doling out pre-poll populist measures that increases the subsidy bill, FM said, "If we waive off loans, empty the government treasury, and destroy economic discipline, then I feel this would not help the economy or the country."
With agency inputs
