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Finance Minister Nirmala Sitharaman expects inflation to remain in the prescribed range during the current fiscal (FY22) and the government is regularly monitoring the price movement of essential items. The RBI has been mandated to keep inflation at 4 per cent, with a tolerance level of 2 per cent on either side. She said the Group of Ministers is actively monitoring price movement of essential items like edible oil, pulses, fruits and vegetables, meat etc.

The minister appreciated that states have been very cooperative in terms of going after hoarders and black marketeers. She also said various efforts taken by the government are expected to keep inflation benign and it is expected to remain within the target. She expressed confidence that the revenue would be buoyant in the coming months. Both Goods and Services Tax (GST) and direct taxes have improved in the past few months.

Sitharaman has said that the GST collection this year has improved substantially and as a result there are chances that the government may be able to pay compensation to states from revenue collected. About extending compensation beyond July 2022, she said the GST Council will decide about the issue.