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

News Snippets

  • Supreme Court allows a raped minor to end her 30-week pregnancy
  • Mamata Banerjee calls Calcutta HC order in teacher appointment "illegal" and "one-sided", state government to file appeal in Supreme Court
  • Calcutta HC scraps TM|C government's 2016 process of appointing school teachers, 25757 teachers set to lose their jobs and asked to return their salaries
  • Congress tells EC to disqualify PM Modi for his speech saying Muslims will be the biggest beneficiaries of Congress' redistribution of wealth, alleges Modi trying to inflame passions and create enmity between communities
  • NCLT admits Indiabulls' plea against insolvency proceedins against Subhash Chnadra, the founder and chairman emeritus of Zee Enterprises
  • Vodafone FPO oversubscribed by 7 times, becomes the biggest such fund-raise
  • RBI tells payment companies to track dubious transactions that may be used to influence voters
  • RIL profit stood at Rs 21243cr in Q4 FY23 even as revenue rose by 11% to Rs 2.4 lakh cr
  • Stocks remain positive on Monday: Sensex gains 560 points to 73648 and Nifty 189 points to 22336
  • IPL: Rajasthan Royals on fire, beat Mumbai Indians by 9 wickets as Sandeep Sharma takes 5 for 18 and Yashasvi Jaiswal roares back to form with a brilliant century
  • IPL: Gujarat Titans beat Punjab Kings by 7 wickets
  • IPL: KKR beat RCB by 1 run in a last-ball thriller in the heat chamber of Kolkata's Eden Garden with temperatures soaring above 40 degrees
  • Candidates Chess: D Gukesh emerges winner. Draws last match with Hikaru Nakamura to end at 9 points. Former tournament leader Ian Nepomniachtchi also draws with Fabioano Caruana to leave Gukesh as the sole leader and winner to challenge Ding Liren
  • Supreme Court says all cases of mob violence and lynchings should not be given a communal angle
  • Supreme Court tells petitioners who want elections to be held with ballot papers as they fear EVM tampering to back their claims of tampering with data
Calcutta HC scraps 2016 teacher appointment process, 25757 teachers to lose their jobs, ordered to repay salaries withdrawn in 4 weeks
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.