RBI spells that “Given the still soft economy, the pressure to provide more stimulus will persist. While this may help in the near term, the sustainability of recovery requires returning to responsible fiscal consolidation,”
Challenge for RBI would be “The challenge for fiscal policy is to balance immediate support for the economy with a need to get back on track on the medium-term fiscal consolidation process,”
how will be 2009-10 ?
There is guarded optimism about the coming year in some quarters. The industrial and financial climate is expected to benefit from the huge tax concessions and high government spending. Reports indicate that the tax concessions for Rs. 60,000 crore in a full year and those announced after the interim budget have had a stimulating impact. The latest concessions will cost the Exchequer Rs. 23,000 crore in a full year and Rs. 3,000 crore in 2008-09.
The RBI believes that it has to “take calibrated monetary policy actions as necessary and at the appropriate time” to maintain the flow of credit to productive sectors.
RBI & Fiscal consolidation
What caused the global economic crisis?
Challenge for RBI would be “The challenge for fiscal policy is to balance immediate support for the economy with a need to get back on track on the medium-term fiscal consolidation process,”
how will be 2009-10 ?
There is guarded optimism about the coming year in some quarters. The industrial and financial climate is expected to benefit from the huge tax concessions and high government spending. Reports indicate that the tax concessions for Rs. 60,000 crore in a full year and those announced after the interim budget have had a stimulating impact. The latest concessions will cost the Exchequer Rs. 23,000 crore in a full year and Rs. 3,000 crore in 2008-09.
The RBI believes that it has to “take calibrated monetary policy actions as necessary and at the appropriate time” to maintain the flow of credit to productive sectors.
RBI & Fiscal consolidation
What caused the global economic crisis?
No comments:
Post a Comment