The Ministry of Finance has prepared a plan to reduce financial losses andhas also highlighted significant economic risks for the country. TheMinistry of Finance has issued a report on current financial risks,expressing concerns about further inflation due to rising energy prices.
According to the report, macroeconomic imbalances, loans, and naturaldisasters pose significant risks to the national economy. The essentialplan is to increase tax net for reducing financial losses and reducesubsidies.
The report also states that there are over 59 trillion rupees inoutstanding loans, with 3.46 trillion rupees of government guarantees beingnon-performing.
There is also concern about further inflation due to rising energy prices,with one significant reason being the depreciation of the rupee andexpensive food.
Read Top Stories
The report from the Ministry of Finance also mentions that a decrease inprices of essential commodities is dependent on the stability of the rupeeand improvements in food supply. Inflation is at 21% this year, and itcould potentially decrease to 7.5% in the coming year.
According to the report, the pace of the national economy is slow butexpected to gradually improve. Economic growth is projected to be 3.5% in2024, increasing to 5% in 2025. According to the Ministry of Finance’sreport, GDP growth is expected to reach 5.5% by 2026.