Even as the government announced schemes to boost employment and assistance to some states in Union Budget 2024-25, it reiterated its intent to stick to the fiscal consolidation roadmap and announced a lower fiscal deficit target. In what could be a signal to rating agencies, the government cut the fiscal deficit target to 4.9 per cent of the Gross Domestic Product (GDP) for financial year 2024-25 from 5.1 per cent in the interim Budget, while underlining that the central government debt will be on a declining path as a percentage…
Tag: GDP
The stubborn food inflation problem
Monetary policy in India has been navigating diverging economic trends. While GDP growth continues to surprise on the upside, core inflation seems set on a downward trajectory. However, food inflation — typically considered idiosyncratic — has stayed stubbornly elevated, restricting the fall in the consumer price index (CPI) and restraining the Monetary Policy Committee of the Reserve Bank of India. Mint Road wants to rein in inflation at 4 per cent on a durable basis from 4.8 per cent now. But is this possible without falling food inflation? Food commands…
RBI retains FY23 GDP growth forecast at 7.2%
[ad_1] reserve Bank of India (reserve Bank of India) on Wednesday kept its FY23 real economic growth forecast for the country unchanged at 7.2%, indicating that the risks are more or less evenly balanced since the April forecast. It now projects real GDP growth in Q1 at 16.2%; Q2 at 6.2%; Q3 at 4.1%; And Q4 at 4%. The forecast appears to be in a decreasing favorable base effect with the passing quarter of this financial year. The central bank refrained from revising its GDP growth forecast or inflation forecast…