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Economists Recommend Cutting Budget Deficit to Control Inflation

Economic Tag: Inflation

Economists suggest that reducing the budget deficit would decrease government borrowing from the domestic sector, helping to control inflation. In discussions post-budget, concerns were raised about the feasibility of targets such as reducing inflation to 6.5% while aiming for a 6.75% GDP growth. Limited success in curbing inflation was attributed to coordination issues in decision implementation. Stabilizing the economy was deemed crucial, with emphasis on exchange rate stabilization. Concerns were expressed over the reliance on indirect taxes, potentially burdening taxpayers. Debate was sparked over proposed tax rates, with suggestions for thorough consideration during budget discussions. Increased social safety net allocations, particularly addressing subsidies on pensions and savings bonds, were emphasized. The effectiveness of ministries in utilizing allocated budgets was questioned, highlighting the need to minimize wastage across sectors for greater benefits.

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