On Monday, the Finance Ministry presented important figures in the Lok Sabha regarding the status of household savings in the country. In a written reply to a question, Minister of State for Finance Pankaj Chaudhary said that even though there has been a slight decline in domestic savings as a proportion of Gross Domestic Product (GDP), the total amount saved by people has increased.
MP Rao Rajendra Singh had asked a question to the Finance Minister, to which Minister of State for Finance Pankaj Chaudhary answered in the House. He had expressed concern about declining domestic savings and its impact on the economy. National Account Statistics 2025 data shows that domestic savings have increased.
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What do the statistics say?
According to the data of National Account Statistics 2025, domestic savings were Rs 50.1 lakh crore in the financial year 2022-23, which has increased to Rs 54.61 lakh crore in the financial year 2023-24. That means people have saved more money than before. This saving is not per person, but per family.
If the data of National Account Statistics is compared with the total GDP of the country, then there is a decline in it. Domestic savings were around 18.6 percent in the financial year 2022-23, which has come down to 18.1 percent in the year 2023-2024.
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What is the government doing to increase savings?
Minister of State for Finance Pankaj Chaudhary said that the government is continuously working to increase the income and savings of the people. The government has given relief to the common people in tax, an attempt has also been made to increase savings through policy changes in Goods and Services Tax (GST).
- Tax relief: New income tax exemption has been given on annual income up to Rs 12 lakh, which will leave more money in the hands of the middle class for spending and saving.
- Reforms in GST: Recently, GST rates have been rationalized, which is expected to boost domestic consumption and investment.
- Employment and Infrastructure: The government is emphasizing on ‘ease of doing business’, skill development and infrastructure. The government says that this can increase employment opportunities and increase people’s income.
What could be the impact on the economy?
The immediate impact of such decisions is less visible. The government has expressed confidence that the foundation of the Indian economy is strong and if inflation increases, new savings policies will also emerge. The Minister of State for Finance said that domestic demand remains good, inflation is coming down and the balance sheets of companies have also improved. The government is trying to maintain economic stability.
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