Centre to take measures to further ease inflation: FM

For the sake of the common people, the inflation rate will be brought down further, though it fell to an 11-month low of 5.8% in November, below the RBI’s upper tolerance level of 6%, said Ms. Sitharaman

December 14, 2022 04:19 pm | Updated 08:17 pm IST - New Delhi

Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during Winter Session of Parliament, in New Delhi, on Dec. 14, 2022.

Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during Winter Session of Parliament, in New Delhi, on Dec. 14, 2022. | Photo Credit: PTI

Finance Minister Nirmala Sitharaman on Wednesday assured the Lok Sabha that the central government would be taking measures to further ease inflation, which has dipped below the Reserve Bank of India’s upper tolerance level of 6%. Retail inflation had moderated to an 11-month low of 5.8% in November from 6.77% in the previous month.

“We will bring [it] down further for the sake of common people,” the Finance Minister said, while replying to a discussion on the first batch of Supplementary Demands for Grants 2022-23 in the Lok Sabha. Later, the House passed the Supplementary Demands for Grants, authorising the government to spend an additional ₹3.25 lakh crore in the financial year 2022-23.

The government is constantly watching the price situation of essential commodities, she said. Ms. Sitharaman made it clear that there was no fear of stagflation, as India is one of the fastest-growing economies with low inflation levels.

MGNREGA demand falling

She also said that the government was noticing a trend of decline in demand for employment under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. “In rural areas, the demand for MGNREGA in the recent past is coming down,” she said. “MGNREGA is a demand-driven programme ... (and) there is a declining trend,” she added.

With regard to the fiscal deficit, the Finance Minister said that the government would be able to meet the fiscal deficit target of 6.4% of Gross Domestic Product (GDP) for the current financial year. The government is committed to the path of fiscal consolidation, she added. On non-performing assets (NPAs), Ms. Sitharaman said that it had come down drastically to 7.28% at the end of March 2022 due to various measures taken by the Central government.

With regard to the declining value of the rupee against the U.S. dollar, she said that the domestic unit was appreciating against all other currencies, adding that the rupee’s fall against the greenback is low in comparison to the fall of other currencies. Quoting a World Bank report, she said that India’s forex reserves were among the highest in the world and that this would provide a cushion against any global spillover.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.