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It expects inflation to average at 6.8% in FY23, a tad above the RBI’s 6.7% estimate, and cool down to 5.3% in FY24. On the fiscal consolidation front, it said expenditure cuts would be necessary to meet the 6.4% fiscal deficit target for FY23 and added that it is “circumspect” about a sub-6% target for FY24.
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