FM : Growth Top Priority, That Requires Carefully Structured Budget

Finance Minister Nirmala Sitharaman: Growth Top Priority, That Requires Carefully Structured Budget

October 14, 2022: The FY24 budget is expected to be presented on February 1, 2023, and the Treasury will normally begin its regular pre-budget meetings with stakeholders beginning in November.

Finance Minister Nirmala Sitharaman said the government would keep growth concerns “absolutely top priority” while fleshing out its next budget proposal, also taking into account the need to address inflation risks.

In a conference call with economist Eshwar Prasad of the Brookings Institution in Washington, D.C., in response to questions about the 2024 budget, the minister also said rising oil prices were one of the economy’s biggest concerns. clarified.

“Specifications [of the FY24 budget] may be difficult at this point as they are a bit early. But overall, growth priorities remain absolutely paramount… Inflation concerns also need to be addressed.

But how to manage that growth is a natural question,” she said. The FY24 budget is due to be presented on her February 1, 2023, and the Treasury will typically begin its regular pre-budget meetings with stakeholders beginning in November. Several independent bodies have cut their FY23 growth forecasts for India in recent weeks after the economy recorded a better-than-expected 13.5% growth in the June quarter.

The International Monetary Fund cut her 23-year growth forecast for the country by 60 basis points to her 6.8%, while the World Bank pegged it at 6.5%.

The minister also said India is in talks with various countries to ensure that Rupay is accepted outside the country.

Responding to questions about start-ups considering moving abroad, Sitharaman said the government was ready to talk to them and address their issues to help them stay in the country.

The minister said the budget will be key to how India balances the “two” of “growth and inflation” and ensures the economy grows at a healthy pace.

It pointed out. Even the multilateral body that recently downgraded its growth projections said “India cannot be undermined,” she added. “So it has to be a very carefully structured budget to maintain the growth momentum,” she said.

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