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DEA secy Ajay Seth: Growth projection in Union Budget 2023 conservation, scope for upside

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Annesha Barua
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DEA secy Ajay Seth: Growth projection in Union Budget 2023 conservation, scope for upside
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New Delhi, February 3: The Economic affairs secretary Ajay Seth on Friday said that in the Union Budget 2023, Nirmala Sitharaman is her fifth straight Budget and has projected a nominal GDP growth of 10.5 per cent the next financial year.

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"We feel that that is a conservative number with some scope for an upside, but not very significant upside. For example, in the current financial year we assumed 11 per cent and the actual are 15 per cent plus. So that kind of thing we don't expect next year. However, with 10.5 per cent we don't see any downside from that number," he said.



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Seth said that with regard to the real GDP, there is somewhere upward of 6.5 per cent perhaps may be the number to make assumptions for the coming year. The Economic Survey which was released in 2022-23 earlier this week too projected India's economy to grow at slower pace at 6.5 per cent in the fiscal year starting April, it will remain one of the fastest growing major economy in the world. Ot has come to notice that the it fared better in dealing with the extraordinary set of challenges the globe has faced.

Currently, India's gross domestic product (GDP) growth of 6.5 per cent in 2023-24 compares with an estimated 7 pc expansion in current fiscal year (April 2022 to March 2023) and 8.7 per cent in the last year.

On the latest Union Budget 2023 he further said that, "if you would have assumed 11 per cent-plus that would have been in the realm of optimism rather than being conservative. Nominal GDP growth of 10.5 per cent seems doable for the next year."

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As far as inflation is a major concern for the economy in terms of oil and gas and other major metals.

"We feel that imported inflation to our economy, especially in terms oil, gas, major metals, etc. should see a downward trend. However, there are few imponderables there that is direction of war and hopefully there should not be any economic accident. If that were to happen, then it becomes difficult to predict this direction the price movement. All other thing being equal we do expect some amount of moderation to come but not a sharp moderation," he said.

With regard to the record borrowing planned for the next fiscal, Seth said, what is significant is the net borrowing not the gross borrowing and the net borrowing is of same order for the next financial year as well.

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"We don't see any issue on raising those net borrowing of Rs 11.8 lakh crore from the market," he said.

The government plans to borrow a record Rs 15.4 lakh crore from dated securities in FY24 to meet its expenditure requirement to prop up the economy.

On Wednesaday the Finance minister Nirmala Sitharaman while presenting the Budget  said that the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore to finance the fiscal deficit in 2023-24.

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- With inputs from agencies
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