Foreign Investors Chamber of Commerce and Industry (FICCI) on Thursday commend the government’s efforts in crafting a comprehensive fiscal plan that addresses critical economic challenges while fostering a conducive environment for business growth. With a keen focus on containing inflation, reducing aggregate demand, and nurturing the supply side of the market, this budget lays a strong foundation for stabilizing the economy.
The budget outlines several measures to control inflation and stabilize the economy, including tightening monetary policy by raising interest rates to 8.5%. The Standing Lending Facility (SLF) and Standing Deposit Facility (SDF) rates have been set at 10% and 7%, respectively, to curb inflation by reducing money supply and encouraging savings. Additionally, substantial investments aim to boost agricultural productivity by 20% and industrial output by 15% through technological advancements and infrastructural improvements. This is expected to balance demand and supply, thereby stabilizing the economy.