New Delhi: Finance Minister Nirmala Sitharaman on Friday said the Indian economy suffered the biggest contraction due to the COVID-19 pandemic, but the government has been able to contain retail inflation at 6.2 percent.

Replying to a general discussion on the Union Budget in Rajya Sabha, the minister said, the Budget for the 2022-23 fiscal year, stands for continuity, brings stability to the economy along with the predictability of taxation.

She stated that the objective of the budget is a stable and sustainable recovery in the economy.

Compared to the performance of the UPA government during the global financial crisis in 2008-09, she pointed out that retail inflation was 9.1 percent during the financial crisis of 2008-09, while it is at 6.2 percent during the COVID-19 pandemic that has a bigger impact on the economy.

The minister said that the Indian economy suffered the biggest contraction because of the pandemic.

She explained that the Indian economy suffered Rs 9.57 lakh crore loss due to the pandemic, compared to a loss of Rs 2.12 lakh cr during the global meltdown in 2008-09.

She also told the House that capital spending gives much more multiplier than revenue route and therefore the government has increased public capital spending to boost the economy.

Sitharaman said that the government is also encouraging startups which resulted in creation of many unicorns during the pandemic.