PC nudges Subbarao to ease key policy rates
4 March 2013 5:48 AM IST
Pitching for easy monetary policy in the upcoming review, Finance Minister P Chidambaram on Sunday said that if RBI cuts rates it will help economy to grow at a higher rate of 6.5 per cent in the next fiscal.
'Well I can't direct Reserve Bank to do this or to do that. All I can say is as statement of fact — if policy rates are reduced it will help us to get 6.5 per cent growth that we have targeted,' he said.
'I am sure that monetary policy advisory committee to the Governor will take note of all that we have done, all that we have promised to do and advise him appropriately and I am sure Governor will take the decision in his best judgement,' he said.On fiscal side, Government in the last few months have taken several steps including deregulation of fuel price, allowing FDI in multi-brand retail, raising FDI cap in sectors like aviation to boost investors confidence in economy.
Besides, the government also contained fiscal deficit below the targeted level of 5.3 per cent of GDP in the current fiscal.However, growth slipped to a decade low of 4.5 per cent in the third quarter of the current fiscal. As per the CSO estimates, the economy is expected to grow at 5 per cent for the entire fiscal, against 6.2 per cent in 2011-12 and 9.3 per cent a year before that.
FM TO ANNOUNCE SLEW OF NON-LEGISLATIVE DECISIONS
A number of non-legislative decisions covering customs, excise, service tax, insurance and banking to promote growth will be announced in Parliament before the passage of the Finance Bill.
Disclosing this here on Sunday, Finance Minister P Chidambaram said that the budget presented by him on 28 February focussed on the legislative areas and the broad agenda. The government was now working on non-legislative decisions.
These decisions would involve customs, excise, service tax, insurance and banking, he said, adding 'more announcements will be made and more decisions will be taken' during the reply to the debate in Parliament on the Finance Bill.
During a comprehensive post-budget interview, Chidambaram said that he was satisfied with what he had done in the budget with a view to restart the growth engine.'My party appears to be happy. The opposition, of course, would have to be critical. That is the role of the opposition to expose, oppose and depose as it is said.'I am not not perturbed by the criticism. The media, as usual, magnifies certain things and ignores certain other things. So that is part education, part entertainment. It has been a mixed bag of emotions to see the reactions,' he said.
Laughing off a question about the absence of any 'big bang' announcements in the budget, the Finance Minister said, 'big bang interests only the media. What the people want is small, critical steps that will restart the growth engine.'
'Well I can't direct Reserve Bank to do this or to do that. All I can say is as statement of fact — if policy rates are reduced it will help us to get 6.5 per cent growth that we have targeted,' he said.
'I am sure that monetary policy advisory committee to the Governor will take note of all that we have done, all that we have promised to do and advise him appropriately and I am sure Governor will take the decision in his best judgement,' he said.On fiscal side, Government in the last few months have taken several steps including deregulation of fuel price, allowing FDI in multi-brand retail, raising FDI cap in sectors like aviation to boost investors confidence in economy.
Besides, the government also contained fiscal deficit below the targeted level of 5.3 per cent of GDP in the current fiscal.However, growth slipped to a decade low of 4.5 per cent in the third quarter of the current fiscal. As per the CSO estimates, the economy is expected to grow at 5 per cent for the entire fiscal, against 6.2 per cent in 2011-12 and 9.3 per cent a year before that.
FM TO ANNOUNCE SLEW OF NON-LEGISLATIVE DECISIONS
A number of non-legislative decisions covering customs, excise, service tax, insurance and banking to promote growth will be announced in Parliament before the passage of the Finance Bill.
Disclosing this here on Sunday, Finance Minister P Chidambaram said that the budget presented by him on 28 February focussed on the legislative areas and the broad agenda. The government was now working on non-legislative decisions.
These decisions would involve customs, excise, service tax, insurance and banking, he said, adding 'more announcements will be made and more decisions will be taken' during the reply to the debate in Parliament on the Finance Bill.
During a comprehensive post-budget interview, Chidambaram said that he was satisfied with what he had done in the budget with a view to restart the growth engine.'My party appears to be happy. The opposition, of course, would have to be critical. That is the role of the opposition to expose, oppose and depose as it is said.'I am not not perturbed by the criticism. The media, as usual, magnifies certain things and ignores certain other things. So that is part education, part entertainment. It has been a mixed bag of emotions to see the reactions,' he said.
Laughing off a question about the absence of any 'big bang' announcements in the budget, the Finance Minister said, 'big bang interests only the media. What the people want is small, critical steps that will restart the growth engine.'
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