Finance Minister Nirmala Sitharaman has said the Budget 2023 will be carefully structured to address the dual challenges of high inflation and slowing growth. She also said the Indian economy is expected to grow 7 per cent in the current financial year 2022-23.
“Specifics (of the next Budget) may be difficult at this stage because it’s a bit too early. But broadly, the growth priorities will be kept absolutely on the top. Even as I speak about the concerns that inflation brings before me. So, inflation concerns will have to be addressed. But then how would you manage growth would be the natural question,” according to the Times of India report quoting Sitharaman. She said this in Washington, where she is scheduled to attend the annual conferences of the World Bank and the International Monetary Fund (IMF).
The Budget is usually presented in Parliament on February 1 every year. Regarding this, preliminary discussions have started this week on spending by different departments.
According to the latest data, India’s retail inflation accelerated to 7.41 per cent in September, compared with 7 per cent in the previous month, according to official data. September has registered a five-month high level amid a surge in food prices. Inflation in rural areas in September 2022 rose to 7.56 per cent, while that in urban areas accelerated to 7.27 per cent. In September 2021, the retail inflation had stood at 4.35 per cent.
Meanwhile, the Index of Industrial Production (IIP) witnessed a fall of 0.8 per cent in August as compared with a growth of 2.4 per cent in July.
On Tuesday, the International Monetary Fund (IMF) slashed its estimate for India’s GDP growth in the current financial year started April by 60 basis points to 6.8 per cent from a previously expected 7.4 per cent, on account of lower-than-expected growth in April-June and weak external demand. The figure for FY24 was left unchanged at 6.1 per cent.
On India’s economic performance, Sitharaman on Thursday said pre-pandemic efforts included making the Indian economy robust with the infrastructure of not just roads but also digital infrastructure-ready and financial inclusion, so that everybody has access to a bank account. All this came in handy during the COVID-19 pandemic.
Sitharaman has also held bilateral meetings with her counterparts from Japan, Saudi Arabia, the Netherlands, and South Korea as part of the Indian efforts to strengthen its economic ties with major countries of the world.
Sitharaman and her US counterpart Treasury Secretary Janet Yellen have also discussed a range of issues, including bilateral relationships, the global situation as well as India’s upcoming G-20 Presidency. The two leaders discussed the current global macroeconomic situation among other issues of mutual interest.
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