The government will keep growth concerns “absolutely on top” while firming up proposals for the next Budget and also take into account the need to tackle inflation risks, Finance Minister Nirmala Sitharaman has said.
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Responding to a question on the FY24 Budget during a chat with economist Eshwar Prasad at the Brookings Institute in Washington DC, the minister also flagged elevated oil prices as one of the biggest worries for the economy. “Specifics (of the Budget for FY24) 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… inflation concerns will also have to be addressed. But then how would you manage growth would be the natural question,” she said.
The Budget for FY24 is scheduled to be presented on February 1, 2023 and the Finance Ministry usually starts holding customary pre-Budget meetings with stakeholders from November.
Several independent agencies have scaled down their FY23 growth projections for India in recent weeks after the June quarter recorded lower-than-expected economic expansion of 13.5 per cent, even on a favourable base amid growing external headwinds and tightening interest rates across the globe.
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The International Monetary Fund has cut its FY23 growth prediction for the country by 60 basis points to 6.8 per cent, while the World Bank has pegged it at 6.5 per cent. The minister also said that India is talking to different countries to make Rupay acceptable outside the country also.
In response to a question on startups, which are contemplating moving overseas, Sitharaman said the government is ready to talk with them and address their issues to help them stay in the country.
The minister indicated that the Budget proposals will hold the clue as to how India is “going to be able to balance the two” (growth and inflation) and make sure the economy grows at a healthy pace. Even multilateral institutions, which have recently trimmed their growth forecast for the country, have observed that “India cannot be weakened,” she added. “So, it will have to again be a very carefully structured Budget in which growth momentum will have to be sustained,” she said.
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Yellen to visit India
According to a PTI report, Sitharaman on Tuesday, in a meeting with her American counterpart Treasury Secretary Janet Yellen, discussed a range of issues, including bilateral relationships, the global situation as well as India’s upcoming G-20 Presidency. Sitharaman, during the meeting, invited Yellen to India to attend the US-India Economic and Financial Partnership meeting in New Delhi on November 11.
Yellen later announced that she will travel to India next month, as she pitched for strong ties between the two nations. Sitharaman is on a five-day official visit to Washington DC to attend the annual meetings of the International Monetary Fund and the World Bank, on the sidelines of which she is holding a number of bilateral meetings. FE, PTI
