Union Finance Minister Nirmala Sitharaman told the Lok Sabha in New Delhi on Wednesday that the government would stick to fiscal consolidation without cutting back on public spending. She was replying to the general discussion on the Budget for 2019-20.

Deficit target and electric vehicles

Sitharaman said the government had fixed the fiscal deficit target for 2019-20 at 3.3% of Gross Domestic Product (GDP). She also told the House that the government would approach the GST Council to lower the tax on electric vehicles. “We will move GST Council to reduce the GST rate on e- vehicles from 12% to 5%,” she said.

Infrastructure and farmers

The minister said the government aimed to drive infrastructure development, with investment of more than Rs 100 lakh crore planned over the coming five years. She added that the Minimum Support Price had been raised for all 22 commodities.

She also said the government was taking a number of measures towards its goal of a USD 5 trillion economy by 2024-25.

Background

The Budget debate took place weeks after Narendra Modi was sworn in for a second term as Prime Minister on 30 May 2019, following a general election in which the BJP won 303 of the 543 Lok Sabha seats.

See also: Lok Sabha members and more election news.

Originally published on 10 July 2019. Rewritten on 9 October 2026.

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