Govt will work for common man to bring down inflation: FM

Union Finance Minister Nirmala Sitharaman told Parliament on Wednesday (December 14) that the government will work for the common man to further bring down inflation.

“Inflation management or control… Prime Minister Modi and his group of ministers and officers are (making) periodic interventions and taking measures as a result of which we find the results coming in,” Sitharaman said while replying to supplementary demands for grants for 2022-23 fiscal in the Lok Sabha. She also hinted at one more Supplementary Demands for Grants for FY23 in the Budget session of Parliament.

Also read: Retail inflation eases in Nov; here’s why relief may be short lived

Reacting to Opposition criticism of the government’s handling of the economy, the Finance Minister said “some people in Parliament are jealous of the country’s increasing economy”. India has the fastest-growing economy, but the Opposition has a problem with it, she added. “Everyone should be proud of India’s growth but some people take it as a joke,” she said. 

The government is constantly watching the price situation of essential commodities, Sitharaman said. She emphasised that there is no fear of stagflation as India is one of the fastest-growing economies with low inflation levels. 

Fiscal deficit target

Further, Sitharaman said the government would be able to meet the fiscal deficit target of 6.4 per cent of the GDP for the current financial year. The government is committed to the path of fiscal consolidation, she added. 

On non-performing assets (NPAs), she said it has come down drastically to 7.28 per cent at the end of March 2022 due to various measures taken by the Modi government. With regard to the declining value of the rupee against the US dollar, she said, the domestic unit is appreciating against all other currencies, and the fall against the greenback is lower as compared to other currencies. 

Quoting the World Bank report, she said India’s forex reserves is one of the highest in the world and this provides a cushion against global spillover. Later, the House passed Supplementary Demands for Grants, authorising the government to spend additional ₹3.25 lakh-crore in FY23.

Speaking on rural job demand, Sitharaman said demand for work under Mahatma Gandhi National Rural Employment Generation Scheme (MGNREGA) is falling.

WPI inflation falls in Nov

Earlier in the day,  the Commerce and Industry Ministry said the wholesale price-based (WPI) inflation fell to a 21-month low of 5.85 per cent in November as prices of food, fuel and manufactured items softened. The WPI based inflation has been on a declining trend since May and came down to single digit in October at 8.39 per cent.

Experts said a high base of last year and some easing in food prices also worked in favour of the November 2022 WPI coming in at its lowest level since February 2021 when it was 4.83 per cent.