The government is not planning to reduce excise duty, and is instead focusing on driving infrastructure investment.
New Delhi: The government expects vegetable prices to start coming down next month, as new crops will be available in the market. However, rising crude oil prices are a concern, even though they are still within the tolerable limit of $90 per barrel. The government is not planning to reduce excise duty, and is instead focusing on driving infrastructure investment. Private sector capital investment is yet to pick up, a report in news agency PTI said.
Government Not Planning To Reduce Excise Duty
The government is not planning to reduce excise duty, and is instead focusing on driving infrastructure investment. Private sector capital investment is still slow, but the government expects it to pick up by September. The Centre’s capital expenditure is expected to reach 50% of Budget estimates by September. The government has also taken steps to control inflation, including releasing wheat and rice stocks from reserves, putting restrictions on exports of rice and sugar, and allowing import of pulses and oilseeds, the report also said.
Government’s Flexible Trade Policy
“Flexible trade policy has been adopted to keep prices down. We must remember that global food prices are very high due to the Ukraine war and the supply of food grains has been affected and that is a global factor from which Indian cannot remain isolated. We have taken measures to isolate our population from that inflation and relative to others we are in a much better position,” the government official told news agency PTI.
“Rising crude oil price is a concern but they are still within a tolerable zone from the point of view of oil marketing companies. It doesn’t necessitate any policy adjustment right now. The budget calculations are on track. I think we are quite ok with oil at about USD 80-85, up to USD 90 we shouldn’t be worried. Beyond USD 90 it has an impact on inflation and other things,” the official added.
Retail Inflation On Record Levels
Retail inflation increased from 4.87 percent in June to 7.44 percent in July, a 15-month high. However, wholesale price-based inflation remained negative in July at (-)1.36%, marking the fourth consecutive month. Vegetables, spices, pulses, and goods all saw annual retail inflation in July of between 37.44% and 21.63%, 13.27% to 13%, and cereals and products at 13%.
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