New Delhi: The Congress on Tuesday said the Economic Survey cautions about the challenge of the depreciating rupee persisting with the likelihood of further increases in policy rates by the US Fed.
“Global commodity prices remain elevated, Current Account Deficit (CAD) may continue to widen. Rupee may come under pressure in FY 24, if CAD widens, and there might be more pressure on fiscal deficit in FY 24,” party spokesperson Gourav Vallabh said.
“As per Economic Survey 2023, the nominal GDP growth is projected at 11 per cent for FY 24. With this nominal GDP, for FY 24, our Gross Tax Revenue growth will be expected to be around 8-8.5 per cent compared with 15.5 per cent in FY 23.
“This dip in the Gross Tax Revenue growth rate will put further pressure on the fiscal deficit for FY 24,” he added.
“Reduction of $36/bbl ($116 to $80) in crude oil prices (Indian Basket) in last 6 months. But no benefit to final consumers. As a result, 6.8 per cent inflation this FY (22-23), which is outside RBI’s upper limit of 6 per cent,” the Congress leader said.
He also noted that India’s Human Development Index ranking in 2021 was 132/191 countries – against 130 in 2020 – and its score was 14 per cent lower than the global average.