Nagpur: Economic Advisory Council’s Chairman C Rangarajan hoped that inflation will come down to 6% within three months due to sufficient procurement of food grains particularly wheat and prospects of good monsoon this year.
“The Centre has initiated some measures to contain inflation and some favourable conditions combined together will help control inflation. Procurement of wheat was to the tune of 15 million tons this year, which was good enough,” he told reporters on the sidelines of Valediction Ceremony conducted by the National Academy of Direct Taxes.
Inflation rose to 7.57% for the week ended 19 April mainly due to rise in prices of vegetable and food items.
Inflation was somewhat uncomfortable but if the country gets good rains, it will go down, he said, adding ideally it should be 4%.
Addressing the officer-trainees of the 60th batch of Indian Revenue Service (IRS), Rangarajan said: “Agriculture production was the prime challenge before us. We need to grow more food grains, improve better yield and provide irrigation facilities”.
On fiscal consolidation, Rangarajan stated: “Our fiscal deficit should be brought down to three per cent of the GDP by the end of current financial year”.
P V Bhide, Secretary of Revenue Department at the Centre, and N B Singh, Member of Central Board of Direct Taxes, were also present on the occasion.