Rate hike not surprising: FM

MINISTER SAYS RBI STEP WON'T STYMIE GOVT'S CAPEX PLAN

Speaks about the necessity for revenue-neutral GST rate

FINANCE MINISTER NIRMALA Sitharaman on Saturday asserted that the rising interest rate scenario is unlikely to derail the government's plans for a record budgetary CAPEX of ₹7.5 trillion in FY23 to spur economic growth.

The Goods and Services Tax (GST) Council, the minister said, is unlikely to consider rate rationalisation in its next meeting, as a report of a group of ministers (GoM), led by Karnataka's chief minister Basavaraj Bommai, on this issue is yet to be submitted. Once it's presented, the report will be circulated among states for input, Sitharaman said. The government and the GOM are looking at how to, at least, "achieve the revenue-neutral (RNR) rate at which the GST was brought in”, she said.

TALK THE TALK

"When we prepared the Budget, there was no clue about the (Ukraine) war. But (high) prices of commodities, including crude oil, and disruption in global supply chains were before us." - NIRMALA SITHARAMAN, FINANCE MINISTER

The rise in food and fertiliser subsidies in the current fiscal was somewhat accounted for when the Budget was being prepared, the minister said. Global commodity prices, especially of crude oil, were on the rise, and supply chains were disrupted (at the time of Budget preparation), although we didn't have any clue about the (Russia-Ukraine) war", Sitharaman said.