Venkaiah hints at lower interest rate regime

Terming demonetisation of high value bills as a “historic decision” by Narendra Modi, Union minister M Venkaiah Naidu on Friday said the Prime Minister’s focus is to help the poor even as he indicated lower interest rate regime in future.

“The focus is...PM is very keen to help the poor that’s why interest rates also will come down,” the Information and Broadcasting Minister said here.

“Health, education, housing and agriculture are going to be the priorities for whatever savings we are going to get.

That is the priority of the Prime Minister. It’s a pro-poor and pro-farmer move aimed at uplifting the poorer sections of the country, and also by wiping out corruption the life will become comfortable for the people,” Venkaiah said.

The BJP leader said he expects interest rates to come down. “Definitely interest rates will come down. Once the tax net increases, the revenue will increase and once revenue increases, the tax rate will come down...crop insurance rate might also come down...That’s my expectation,” he said.

Venkaiah reiterated that demonetisation exercise would cause some problem in the short-term but it will be useful for the country in long-term.

“It’s a short term pain for long term gain and it’s a bitter pill for long-term ill. Those people have 

created a parallel economy in the country and that’s why Prime Minister has taken a historic decision (by banning high-value currency notes),” he said.

The minister said the Central government has already taken several measures for the development of farmers and there is a chance to decrease the premium rate of crop insurance in near future and there is a possibility to decrease interest rates on housing and education loans.