Ministry of Finance plan to reduce financial deficit
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The Ministry of Finance has prepared a plan to reduce financial losses and has also highlighted significant economic risks for the country. The Ministry 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 natural disasters pose significant risks to the national economy. The essential plan is to increase tax net for reducing financial losses and reduce subsidies.
The report also states that there are over 59 trillion rupees in outstanding loans, with 3.46 trillion rupees of government guarantees being non-performing.
There is also concern about further inflation due to rising energy prices, with one significant reason being the depreciation of the rupee and expensive food.
The report from the Ministry of Finance also mentions that a decrease in prices of essential commodities is dependent on the stability of the rupee and improvements in food supply. Inflation is at 21% this year, and it could potentially decrease to 7.5% in the coming year.
According to the report, the pace of the national economy is slow but expected to gradually improve. Economic growth is projected to be 3.5% in 2024, increasing to 5% in 2025. According to the Ministry of Finance's report, GDP growth is expected to reach 5.5% by 2026.
