Economic Challenges


Economic Challenges

The Budget is a political statement. It is therefore, writes Political analyst Parsa Venkateshwar Rao Jr “left to the RBI and to its Monetary Policy Committee (MPC) to look at the actual numbers. So, here are the numbers.

Growth: “Growth in 2022-23 is expected to be seven per cent and inflation for the same period will be at 6.5 per cent, and that is not a pretty picture. And the growth for 2023-24 is estimated to be 6.4 per cent, while the inflation rate will be at 5.3 per cent. The numbers are positive but not rosy and bright.

Revenue buoyancy: “The revenue buoyancy of the government, especially from the Goods and Services Tax (GST) front, seems to be under stress, if not actual trouble, though the monthly collections have been much above the slated Rs 1 lakh crore….”

investments: Indian investments abroad and foreign investments in India, writes Rao Jr “seem to be at relatively low levels. The net inward FDI for April-December 2022 is at $22.3 billion, compared to $24.8 billion a year earlier. And foreign direct investment by India for April-December 2022-23 is at $10.15 billion, compared to $14.16 billion in April-December 2021-22.”

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