Finance secretary calls for alignment of fiscal and monetary policies to control inflation

Finance Secretary Tuhin Kanta Pandey stated that fiscal and monetary policies must align to control inflation and support sustainable growth. He emphasized the importance of a non-inflationary budget ahead of the Reserve Bank of India's Monetary Policy Committee meeting. Pandey noted that the government aims to reduce the fiscal deficit to 4.4% for 2025-26, down from 4.8%. He mentioned that the Monetary Policy Committee will decide on potential interest rate cuts to stimulate economic growth. Regarding the falling rupee, which hit a record low of 87.29 per dollar, Pandey said both the government and the Reserve Bank of India are monitoring the situation. He acknowledged that a weaker rupee could impact inflation but also enhance export competitiveness.