Union Budget 2024: Proactive management helps keep inflation at manageable levels: FM

She also said the government will take up next-generation reforms to facilitate growth and the next 5 years will see unprecedented development.


Published Feb 01, 2024 | 12:31 PMUpdatedFeb 01, 2024 | 12:49 PM

Budget session. (Screengrab)

Proactive inflation management has helped keep the country’s inflation within the manageable range, Finance Minister Nirmala Sitharaman said, while presenting the interim Budget on Thursday, 1 February.

She also said that the inflation has moderated.

Proactive inflation management 

The Reserve Bank of India has been mandated by the government to ensure retail inflation remains at 4 percent, with a margin of 2 percent on either side.

Retail inflation rose at the fastest pace in four months in December 2023 at 5.69 percent on account of an increase in prices of vegetables, pulses, and spices.

The annual inflation based on the Consumer Price Index (CPI) was at 5.55 percent in November and 5.72 percent in the year-ago month.

As per the data released by the National Statistical Office (NSO), the rate of price rise in the food basket, which constitutes nearly half of the CPI, increased to 9.53 per cent in December 2023 against 8.7 per cent in the preceding month and 4.19 per cent in December 2022.

In August 2023, inflation had touched a high of 6.83 per cent.

Also Read: Union Budget 2024: No change in rates for direct, indirect taxes; 2024-25 fiscal deficit estimate lower at 5.1%

Next-generation reforms

The government will take up next-generation reforms to facilitate growth and the next five years will be of unprecedented development and golden moments to realise the dream of developed India by 2047, Finance Minister Nirmala Sitharaman said on Thursday.

She outlined the strategy for ‘Amrit Kaal’ while presenting the interim Budget 2024-25.

The Finance Minister also said the recently announced India Middle East Europe Economic Corridor will be a game changer for India.

She noted that the International Financial Services Centres Authority (IFSCA) has created a robust gateway for flow of overseas capital.

(Disclaimer: The headline, subheads, and intro of this report along with the photos may have been reworked by South First. The rest of the content is from a syndicated feed, and has been edited for style.)