Budget 2023-24: 'Realistic' 10-11% nominal growth target on the table

Finance ministry expects moderation in retail inflation in FY24

The finance ministry may set a “realistic” target of around 10-11 per cent nominal GDP growth for FY24 in the upcoming Budget, as it expects a high base and softening commodity prices to moderate inflation in the next fiscal year.

“We expect inflation to soften substantially next year. Nominal GDP growth next year may be assumed to be around 10-11 per cent, which will make it realistic, rather than conservative like in last Budget,” a government official said.

Nominal GDP (GDP that is calculated at current market prices) factors in the effect of inflation, and is used as the base