According to the Ministry of Finance, inflation in July 2023 is predicted to be lower than in June 2023.
The ministry stated in its July ‘Monthly Economic Update & Outlook’ that the recent fall in administered prices of petrol and diesel will be translated into lower domestic pricing of key products via impacting transportation costs.
It also stated that falling international commodity prices are projected to offset inflationary increases caused by domestic supply disruptions. According to the research, the benchmark index of worldwide food commodity prices fell again in June 2023, led by price drops for key grains and the majority of vegetable oils.
Read more : Weekly inflation remains more than 28%.
According to the research, the government’s timely actions to enhance the agriculture sector (Kissan Package) would result in a stronger crop outlook and smoother domestic supply; additionally, the predicted political stability and stable exchange rate would help to achieve price stability. Inflation is predicted to persist in the 25-27 percent range in 2023.
Deficit in the current account
The report observed that, notwithstanding the reduction in worker remittances, a considerable decrease in the trade deficit was reflected in the current account surplus for the last two quarters of FY23. Both exports and imports are predicted to progressively increase in the following months for FY24.
The fiscal imbalance
According to the study, the fiscal situation has improved dramatically, with the primary deficit falling from Rs. 945.3 billion last year to Rs. 112 billion during July-May FY23. It stated that the budget deficit is forecast to be lower than the previous year, owing largely to a 12% drop in non-markup spending.
Goal for expansion
According to the report, the government plans to achieve 3.5 percent growth in FY24 by different measures such as the Kissan package, industrial support, export promotion, IT sector encouragement, and resource mobilization.
