Mumbai: Ministry of Finance and Reserve Bank of India (reserve Bank of India) are on the same page on the issue of continuing the pandemic-era stimulus.
Finance Minister Nirmala Sitharaman said in an interview to Bloomberg in New York that the stimulus would continue. “The emphasis will continue on building health infrastructure” and so will capital expenditure and government spending on infrastructure, she said. in between, state of the economy Under the leadership of Deputy Governor, RBI staff prepared the report Michael Petra Called for continued policy support for a longer period to ensure sustained and inclusive reform.
The statements taken together indicate that even as the stock market touches new highs every week, neither the government nor the central bank is keen to pull off the punch bowl. While there are concerns over inflation globally, the central bank is of the view that the outlook on prices has improved and the central bank is not keen to act too quickly and damage the economy.
“Premature tightening can bring the impasse that all fear, halt growth as the economy recovers. In an influential view, history is thick with examples of central banks – underestimating the need to continue,” the state of the economy said in the report.
However, one issue where the government has ignored the central bank is to reduce fuel prices through reduction in taxes. “The challenge I will face, and the teams are also looking at the ministry, is the way fuel prices are headed towards a bigger peak,” Sitharaman said. “This uncertainty is a big element for me,” Sitharaman said.
The report published by the RBI said, “On inflation, the MPC’s call has proven to be correct, with food prices lower than expected provided impetus for further disincentives heading for a closer alignment with the target. Secondly. On the other hand, the economy may be recovering, but it is still digging into one of the deepest contractions to affect any major economy.”
Last month, in his policy statement, the RBI Governor Shaktikanta Das Demand to reduce tax on petrol and diesel. “Efforts to contain cost-push pressures through a calibrated reversal of indirect taxes on fuel may contribute to a more sustained moderation of inflation and strengthen inflation expectations,” Das said.
On the disinvestment programme, Sitharaman said the government is looking to get the Life Insurance Corporation’s initial public offering by next March and there will be no delay due to lack of political will. Sitharaman said, ‘We are emphasizing on completing this. “The problem isn’t that we don’t want it or that we’re completely reining in it now, it’s a question of due process,” he said.
Finance Minister Nirmala Sitharaman said in an interview to Bloomberg in New York that the stimulus would continue. “The emphasis will continue on building health infrastructure” and so will capital expenditure and government spending on infrastructure, she said. in between, state of the economy Under the leadership of Deputy Governor, RBI staff prepared the report Michael Petra Called for continued policy support for a longer period to ensure sustained and inclusive reform.
The statements taken together indicate that even as the stock market touches new highs every week, neither the government nor the central bank is keen to pull off the punch bowl. While there are concerns over inflation globally, the central bank is of the view that the outlook on prices has improved and the central bank is not keen to act too quickly and damage the economy.
“Premature tightening can bring the impasse that all fear, halt growth as the economy recovers. In an influential view, history is thick with examples of central banks – underestimating the need to continue,” the state of the economy said in the report.
However, one issue where the government has ignored the central bank is to reduce fuel prices through reduction in taxes. “The challenge I will face, and the teams are also looking at the ministry, is the way fuel prices are headed towards a bigger peak,” Sitharaman said. “This uncertainty is a big element for me,” Sitharaman said.
The report published by the RBI said, “On inflation, the MPC’s call has proven to be correct, with food prices lower than expected provided impetus for further disincentives heading for a closer alignment with the target. Secondly. On the other hand, the economy may be recovering, but it is still digging into one of the deepest contractions to affect any major economy.”
Last month, in his policy statement, the RBI Governor Shaktikanta Das Demand to reduce tax on petrol and diesel. “Efforts to contain cost-push pressures through a calibrated reversal of indirect taxes on fuel may contribute to a more sustained moderation of inflation and strengthen inflation expectations,” Das said.
On the disinvestment programme, Sitharaman said the government is looking to get the Life Insurance Corporation’s initial public offering by next March and there will be no delay due to lack of political will. Sitharaman said, ‘We are emphasizing on completing this. “The problem isn’t that we don’t want it or that we’re completely reining in it now, it’s a question of due process,” he said.
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