Budget 2023: Fiscal growth will pull down inflation – mssewb.org

This time: Union Finance Minister Nirmala Sitharaman is going to present the budget for the financial year 2023-24 in the Parliament today. Before that, he presented the financial survey report (Economic Survey) on Tuesday. From which the Center gives an idea of ​​what the Indian economy’s dynamics, growth direction, rate will be like in the next financial year. Judging by the numbers, India’s national growth rate in 2023-24 is ‘back-bencher’ compared to 21-22 and 22-23. As a reminder, the economy will grow at around 6.5 percent next year.

Estimates by several world-renowned expert organizations, including the International Monetary Fund (IMF), World Bank, and ADB, however, say that even if this rate is reached, it will lag behind the overall growth forecast of the advanced economies of the world (including the United States, Europe, Great Britain, and Japan) by fractions of a tenth. Because in 2023, the economy of the developed world is directly in Bengal because of the possible recession in the United States, the protracted conflict between Russia and Ukraine, and the uncertainty about the situation in China. Among developing countries, China is a distant second, with a potential growth of 5.2%. The figures for the rest are much less.

On this day, Nirmala admitted that the Indian economy will see much less growth in the next financial year. There is no doubt that the effects of the slowdown in overall economic growth can be felt in various areas. Although the Indian economy has largely recovered from the damage caused by the coronavirus pandemic and the subsequent global economic downturn, the Union Finance Minister said in the financial survey report. However, he made it clear that the price increase pressure will continue in the coming days. That is, our people are not getting rid of the price increase right now.

The Indian currency exchange rate is still facing challenges as the US central bank Federal Reserve continues to raise interest rates, the financial survey claimed. The report of the day also expressed concern that the interest rate on long-term loans may remain upward. India is now the world’s third largest economy in terms of purchasing power despite a slight slowdown in economic growth over the past three years. Our country ranks fifth in terms of exchange rate. Therefore, even if there is a price increase, it is expected in the financial survey that it will not create an obstacle in the way of foreign investment.

The Indian economy has been hit by one after the other shocks of the coronavirus epidemic. However, its decline started from the 2019-20 financial year itself. India’s services and manufacturing sectors are yet to overcome that impact, the Center clarified in the survey report. Chief Financial Advisor to Chief Minister Mamata Banerjee Amit Mitra said that there is a wide gap between hope and performance in today’s financial survey. He highlighted the statistics showing the gap between India’s national growth rate in the fiscal year 2022-23 and the budget estimate for the financial year 2022-23.

Citing data from economic research firm Center for Monitoring Indian Economy (CMII), Amit said the country’s unemployment rate stood at a 16-month high of 8.3 percent in December 2022. It was 4.2 percent in FY 2020-21. He claimed that the increase in unemployment rate has a big negative impact on our people. Amit said today that the open call for investment by the Union Finance Ministry to the industrial sector proves that private investment is not coming as expected by the government.

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