India has fiscal space to push capex: Nirmala

Finance Minister Nirmala Sitharaman on Monday said fiscal prudence has given the government enough room to push capital expenditure and support sectors impacted by the West Asia crisis.

- PTI

She also said the Reserve Bank of India can go in for further rate cuts to deal with the emerging situation.

Highlighting the importance of sound public finance policy in challenging times, Sitharaman said it improves counter-cyclical capacity, especially the ability to “lean against the wind” in economic downturns.

Speaking at an event organised by the National Institute of Public Finance and Policy, she said many countries with high debt and large deficits have no room to manoeuvre and face a grim choice between austerity and instability.