Budget: To get better prices, MSP flaws will have to be removed; inflation is a sensitive issue in terms of poverty

The GYANs announced earlier by Prime Minister Narendra Modi are for... poor, youth, food providers, and women. These four will definitely be discussed in the budget. Apart from this challenge of unemployment, inflation is directly related to these four, as the kitchen budget of the common man has deteriorated. Along with this, high food inflation has increased the concern of the government and RBI.

Retail inflation rose to its four-month high in June, which was otherwise soft during the past three months, prior to the sharp rise in vegetable and other food items; wholesale inflation reached the highest level in 16 months. This has also affected family savings.

Apart from the budget of the common man, inflation is also a very sensitive issue in terms of poverty. The government claims that in the last 10 years, 25 crore people have come out of the Multidimensional Poverty Index. Dr. Kohli says that these people have now come into the lower middle class. If they are hit even a little by inflation, they can go below the poverty line again. Therefore, the government will have to take some such steps in this budget, so that these 25 crore people do not accidentally reach the same situation again.