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RBI Governor Malhotra Highlights Budget's Positive Impact on Price Stability
The Business Guardian
|February 22, 2025
Budget 2025 prioritises non-inflationary growth through careful fiscal
The budget proposals on agriculture and the commitment to fiscal consolidation, among others, are positive for price stability and would help to anchor inflation expectations over the medium term, RBI Governor Sanjay Malhotra said on Friday, as per the minutes of the latest monetary policy review meeting.
Presenting the Union Budget, Finance Minister Nirmala Sitharaman on February 1 pegged the fiscal deficit target at 4.4 per cent of GDP for the financial year 2025-26. The government has been constantly focusing on reducing fiscal deficit glide path.
The difference between total revenue and total expenditure of the government is termed the fiscal deficit. It is an indication of the total borrowings that the government may need. Budget 2025 prioritises non-inflationary growth through careful fiscal management, with the government's entire borrowing to be channelled exclusively into capital expenditure.
This story is from the February 22, 2025 edition of The Business Guardian.
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