oppn parties Now The RBI And The Private Sector Will Have To Pitch In

News Snippets

  • PM Modi says that if Congress is voted to power in Haryana, the state will face the same financial problems that Himachal is facing under the party's rule
  • Competition Commission of India has said that smartphone majors are colluding with e-commerce firms to exclusively launch products on their platforms in alleged breach of anti-trust laws
  • Supreme Court rules that delay in claiming compensation for land acquisition by the government is no excuse to deny it as it is the duty of the government to pay the compensation.
  • PM Modi said that terrorism was breathing its last in J&K
  • Conbgress has alleged that Sebi chief Madhabi Buch traded in listed securities and invested in China-focused funds during her tnure at the agency
  • India to sing $4bn Predator drone deal with US
  • Union Minister Nitin Gadkari has disclosed that the opposition parties backed him as Prime Minister in place of Narendra Modi but he refused.
  • Noted economist Ajit Ranade removed as VC of Gokhale Institute of Politics & Economics in Pune due to not fulfilling eligibility criteria related to teaching experience
  • Chess Olympiad: Arjun Erigaisi wins his fourth consecutive game
  • Asian Champions Trophy hockey- India beat Pakistan 2-1 in a tough match to remain unbeaten in the group stage. They will meet Korea in the semifinals
  • Davis Cup: S Balaji and R Ramanathan lose, India 0-2 down on first day
  • Delhi Police arrested Sangram Dass, said to be the kingpin of an inter-state new-born baby tafficking racket, from Kolkata after a 1500-km chase
  • NC leader Omar Abdullah alleged that the B|JP was forging secret deals with some regional parties and independents to form the government in J&K
  • Rajasthan Police has devised a Standard Operating Procedure (SOP), as directed by the Rajasthan HC, to help married and live-in couples facing threats from families and others. It icludes helplines and safe houses
  • A 3-storey building collapsed in the busy Transport Nager area in Lucknow killing 8 and injuring 28 others
Junior doctors do not agree to meet Bengal CM Mamata Banerjee without live-streaming of meeting /////// CBI arrests ex-principal of R G Kar College Sandip Ghosh and OC of Tala PS in Kolkata, Abhijit Mondal' for destrcution of evidence in the rape-murder case
oppn parties
Now The RBI And The Private Sector Will Have To Pitch In

By Linus Garg
First publised on 2024-02-02 07:25:14

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Finance minister Nirmala Sitharaman has given clear indications to the RBI and the private sector by managing the finances well. She has managed to keep fiscal deficit in check at 5.8% which is lower than what was projected in last year’s budget. Going forward, she has pledged to reduce it further to 5.1%. That means that the government will be borrowing at least Rs 1 lakh cr less. Simultaneously, instead of burning money by announcing new welfare schemes, increasing the handout in existing schemes or increasing subsidies in an election year, she has increased allotment for capital expenditure and infrastructure projects.

The message to the RBI is that with reduced pressure on inflation due to prudent government policies, it must now usher in a lower interest regime and boost liquidity. The message to the private sector is clear. The government will do its bit in pushing big infrastructure projects and invest in building assets for the nation. It will not borrow indiscriminately to reduce the pool of funds from which the private sector borrows. It will do all to nudge the RBI to lower interest rates. It will create opportunities for the private sector - mainly the core sector and downstream units associated with it - to expand capacities and set up new units.

This is good for long term development of the nation. The government knows that there are limitations on public sector job creation. The real driver of the economy is the private sector and it is not really firing at the moment. But by encouraging the sector to invest, the government is taking steps for inclusive development which will create jobs and boost demand. This is welcome.