Union Finance Minister says State borrowing justified if spent on capex

Union Finance Minister Nirmala Sitharaman said State governments must channel their borrowed funds into long-term capital expenditure such as schools and hospitals rather than relying heavily on revenue expenditure such as cash distributions, particularly when financial resources are constrained.

“Borrowing is not the issue. What matters is how the borrowed money is used. Is it creating assets, improving education, promoting industries, or generating employment? That should be the focus. States are permitted to borrow up to 3% of their Gross State Domestic Product,” she said.

Ms. Sitharaman, who was in Kancheepuram to launch the book Daughters of Kanchi at the SSKV College of Arts and Science for Women, said: “Standing here in Kancheepuram, the first thing that comes to my mind is even in ancient times, this city was renowned for education.” The book was released in the presence of Shankara Vijayendra Saraswathi Swami of Kanchi Kamakoti Peetam.

The Finance Minister also pointed out how people from across the world came to Kancheepuram to learn. “They could be Chinese, they could have come from Tibet, or …I say this with a bit of hesitation….they could even come from the northern part of India. Even those in the northern direction of Bharat can come here and learn, and people from here can go there as well. That is why I say this without any political angle; when it comes to education, you can go from here to the north, from the north to the east, or from the east to the west,” she said.

C.K. Raman, Secretary of Conjeevaram Hindu Educational Society and SSKV Institutions, said the SSKV Group is now home to 10,000 children. Nandita Krishna, president of Conjeevaram Hindu Educational Society and SSKV Group of Institutions, said, “In 1904, two gentleman of Kanchi – Diwan Bahadur Sri Somasundara Sastriar and Sri Ramanatha Sarma decided to establish a school for girls. Parvathammai, the first headmistress, would go from house to house requesting parents to send their daughters to be educated.” She added that the book recalls the people who have contributed in various ways to the story of the growth of the Conjeevaram Hindu Education Society and SSKV Group. The book titled Daughters of Kanchi talks about trends in women’s education, the of Kancheepuram and how the SSKV Group was established.