Centre's GDP deflator forecast for FY23 is 3-3.5%: FM Nirmala Sitharaman

Based on Sitharaman's statement, the finance ministry's own real GDP projection is closer to that of the Reserve Bank of India

Finance Minister Nirmala Sitharaman said on Thursday that the Centre’s gross domestic product (GDP) deflator projection for 2022-23 is 3 to 3.5 per cent. This means that the government’s own real GDP growth projection for the coming fiscal year is in the range of 7.6-8.1 per cent, given that the Union Budget assumes a nominal GDP growth rate of 11.1 per cent for FY23.

GDP deflator, or implicit price deflator, is a measure of inflation and is the difference between nominal GDP and real GDP.

“Our GDP projection in the Budget is based on the advance estimates of the National Statistical Office.