Core inflation has actually declined from 5.1%: FM

New Delhi, Feb 7: Finance Minister Nirmala Sitharaman, while addressing the Parliament during the discussion on the Interim Union Budget for 2024-25, emphasized key financial indicators and government initiatives aimed at bolstering economic growth and fiscal stability.

Sitharaman's remarks shed light on various aspects of the budget, including inflation, capital expenditure, and allocations for Jammu and Kashmir. Addressing concerns regarding inflation, Sitharaman highlighted a decline in retail inflation, which dropped from an average of 6.8 percent in April-December 2022 to 5.5 percent during the corresponding period in 2023. She noted that retail inflation had stabilized within the notified tolerance band of 2-6 percent, indicating a positive trend in economic indicators.

Sitharaman said, "Talking about inflation, retail Inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 per cent in the corresponding period of 2023. The retail inflation is now stable and within the notified tolerance band of 2-6 per cent. The core inflation has actually declined from 5.1 per cent in April 2023 to 3.8 per cent in December 2023".

Furthermore, Sitharaman underscored a reduction in core inflation, which decreased from 5.1 percent in April 2023 to 3.8 percent in December 2023, signaling improved economic resilience. Discussing financial allocations for Karnataka, Sitharaman compared funding received under various finance commissions, emphasizing the significant increase in allocations under the 14th Finance Commission.

She highlighted that Karnataka had received 1,29,854 crores under the current finance commission, surpassing previous allocations, indicative of the government's commitment to equitable distribution of funds across states. Sitharaman said, "In the case of Karnataka, 13th Finance commisiion, peiod is 2010-11 and 2014-15, Karnataka received 61,691 crores.

Sitharaman said, “For capital expenditure for 2024-25 we have kept and outlay of 11,11,111 crores which is about 17 per cent higher than the RE of 2023-24 and this outlay is higher than the projected GDP growth rate of 10.5 per cent. So even faster and higher than the GDP growth rate we have accommodated for capital expenditure”.

The Minister added, “The fiscal deficit glide path which we had submitted before the house and got approved, 5.8 per cent is what we have provided for this year, and in the forthcoming year we are predicting that it will be 5.1 per cent, actually 5.9 is what we have expected to reach and 5.2 is what we have expected to reach the next year but we have been fairly a lot more prudent”.