NEW DELHI: Union Budget’s emphasis on capital expenditure is expected to encourage private investment, strengthen job creation and raise the country’s potential growth, the Reserve Bank of India said in its monthly bulletin released on Friday.
“The Union Budget 2023-24’s emphasis on capital expenditure is expected to crowd-in private investment, strengthen job creation and demand, and raise India’s potential growth,” said RBI in its monthly bulletin released on Friday.
Union Budget’s focus on capital expenditure is expected push the GDP growth rate close to 7% in the next financial year. The economy is unlikely to witness any significant relief from inflation in 2023. “Over the year ahead, the retreat of inflation is expected to be stubborn and beset by supply shocks.
Almost every other component of the consumer price index- statistical and exclusion-based measures- is showing a hardening of price pressures,” noted the monthly bulletin. In 2023-24, capital expenditure is budgeted at `10 lakh crore which will constitute 3.3 per cent of GDP.
“We believe that India will decouple from macroeconomic projections of current vintage and also from the rest of the world. In our view, the instrument of decoupling will be the Union Budget by raising India’s growth prospects over the period 2023-27; and raising India’s potential growth,” said the bulletin.
Inflation likely to be stubborn: RBI bulletin
Over the year ahead, the retreat of inflation is expected to be stubborn and beset by supply shocks. Almost every other component of the consumer price index- statistical and exclusion - based measures - is showing a hardening of price pressures, noted the monthly bulletin