Guwahati: Finance Minister Nirmala Sitharaman has said that inflation has decreased who is optimistic that it would continue to fall.
Sitharaman stated that inflation is currently within the RBI’s tolerable band in response to the discussion of Supplementary Demands for Grants 2022–23 in the Lok Sabha on Wednesday.
“Members raised an issue about inflation. There are different points which I want to highlight here. We keep a very close watch. Prices of pulses, edible oils, and vegetables are monitored by an informal Group of Ministers, and we work together. There is an inter-ministerial Committee which meets every week on agri-commodities, and we closely monitor it,” she said.
“Inflation has now come down. It is now in the tolerable band of the RBI. Inflation has been declining since April, 2022 and it is declining further. CPI for November, 2022 came down to 5.88 per cent year-on-year from 6.77 per cent in October,” she said.
The minister also hit out Congress for criticising the administration over inflation, citing statistics from the UPA’s 2013 reign as evidence.
“It is a bit difficult when parties which saw double-digit inflation during their period raise a question on inflation. That is not something which I am imagining. I would just like to say that the inflation data in November of 2013 was at 19.93 per cent and in the earlier month, in October, it was 18.19 per cent. When the record was like this, to ask us, who have worked to bring inflation down from 6.77 per cent in October to 5.88 per cent in November…now if they are asking us to bring it down further, we will bring it down further for common people’s sake,” she said.
In reference to the fiscal deficit, she stated that it was anticipated to decrease from 6.9% of GDP in the current year’s budget predictions to 6.4% of GDP.
“This is very much in line with the Government’s commitment to achieve fiscal consolidation announced in the Budget of 2021- 22, that is to reduce the fiscal deficit to a reasonable level by 2025-26. On the fiscal deficit, I have given a commitment which was given earlier in the budget and I repeat that. The current situation also very clearly gives me that kind of a feeling that we will be able to comply with what we have said in the Budget,” the minister said.
The necessary appropriation legislation as well as the supplemental grant demands was adopted by the House.
She said the rupee has performed better than the majority of other emerging market and Asian currencies in response to members’ concerns about the rupee’s value falling versus the US dollar.
She said India’s foreign exchange reserves are among the greatest in the world and, when combined with net forward assets, “together with net forward assets, provide an adequate buffer against global spillovers”.
She stated that there are 75 demands, six appropriations, and a cash outgo totaling Rs. 3,25,756 crore in the Supplementary Demands for Grants. There will be a total increase in spending of Rs. 4,35,938 crore. Several members took part in the debate.