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

News Snippets

  • Sikh extremists attacked a cinema hall in London that was playing Kangana Ranaut's controversial film 'Emergency'
  • A Delhi court directed the investigating agencies to senstize officers to collect nail clippings, fingernail scrappings or finger swab in order to get DNA profile as direct evidence of sexual attack is often not present and might result in an offender going scot free
  • Uniform Civil Code rules cleared by state cabinet, likely to be implemented in the next 10 days
  • Supreme Court reiterates that there is no point in arresting the accused after the chargesheet has been filed and the investigation is complete
  • Kolkata court sentences Sanjoy Roy, the sole accused in the R G Kar rape-murder case, to life term. West Bengal government and CBI to appeal in HC for the death penalty
  • Supreme Court stays criminal defamation case against Rahul Gandhi for his remarks against home minister Amit Shah in Jharkhand during the AICC plenary session
  • Government reviews import basket to align it with the policies of the Trump administration
  • NCLT orders liquidation of GoAir airlines
  • Archery - Indian archers bagged 2 silver in Nimes Archery tournament in France
  • Stocks make impressive gain on Monday - Sensex adds 454 points to 77073 and Nifty 141 points to 23344
  • D Gukesh draws with Fabiano Caruana in the Tata Steel chess tournament in the Netherlands
  • Women's U-19 T20 WC - In a stunning game, debutants Nigeria beat New Zealand by 2 runs
  • Rohit Sharma to play under Ajinkye Rahane in Mumbai's Ranji match against J&K
  • Virat Kohli to play in Delhi's last group Ranji trophy match against Saurashtra. This will be his first Ranji match in 12 years
  • The toll in the Rajouri mystery illness case rose to 17 even as the Centre sent a team to study the situation
Calling the case not 'rarest of rare', a court in Kolkata sentenced Sanjay Roy, the only accused in the R G Kar rape-murder case to life in prison until death
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.