Insta
RBI, Central Govt On The Same Page Over Continuance Of Pandemic-Era Stimulus
Finance Minister Nirmala Sitharaman with RBI Governor Shaktikanta Das
The Reserve Bank of India (RBI) and the Union Finance Ministry are in agreement over continuing with the pandemic-era stimulus.
“The emphasis on building health infrastructure will continue,” Union Finance Minister Nirmala Sitharaman was quoted by the Bloomberg recently. It indicated that the government will keep on spending on capital expenditure and infrastructure for the same.
Similarly, RBI deputy governor Michael Patra led the group that prepared the central bank’s state of the economy report that emphasised continuing on with the support on the policy front for a longer period of time to bring about a sustainable and inclusive recovery.
Reportedly, the RBI believes that the outlook concerning prices have improved and hence will withhold acting early and damaging the economy irrespective of global concerns over inflation.
“Premature tightening could bring about the stagflation that all fear, quashing growth just as the economy is recovering,” the RBI’s paper read, as reported by the Times of India.
It added, “In an influential view, history is thick with examples of central banks under-doing it — underestimating the need for continuing stimulus.”
On the other hand, Sitharaman explained that the central government is working towards executing the initial public offering (IPO) of the Life Insurance Corporation (LIC) by March 2022. She assured that any delay on the same won't be caused due to a lack of political will.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
