Demands presented to the Union Finance Minister by India Inc: Fiscal consolidation without compromising on the quality of adjustment. Lowering of taxes. Raising tax exemption limit to Rs. 5 lakh from the existing Rs. 2 lakh. Easing curbs on gold imports. Clarity on retrospective amendment laws. Amendments to the Income Tax Act for simple, prospective taxation. Early … [Read more...] about India Inc Demand For Conducive Tax Reforms
Fiscal policy
The Rupee, Dollar And Election Results
The now-stable rupee’s once volatile situation, especially its steep plunge during the time of increasing Current Account Deficits (CAD) was a major cause of concern. The stock market, which commands more attention than the rupee has reflected overseas’ confidence with the large inflow of capital from foreign institutional investors (FII) causing exponential rise in stock … [Read more...] about The Rupee, Dollar And Election Results
RBI’s Bi-Monthly Policy Statement Delivers Big News
RBI’s bi-monthly statement released in March contained developmental and regulatory issues critical for the financial sector. These were otherwise only discussed in annual and half-yearly policy statements. The question that arises is whether the RBI had any scope to change the repo rate during the time of elections when the govt is prevented from making any policy … [Read more...] about RBI’s Bi-Monthly Policy Statement Delivers Big News
Monetary Policy and Fiscal Policy Issues – Relationship between RBI and Finance Ministry
RBI and Ministry of Finance Monetary policy and Fiscal policy should in sync to review the economic growth of the country, but recent increase of key policy rates by RBI has been a bone of contention between RBI and Finance ministry. Ministry of finance argues increase of key rates would impact investments and growth in general but RBI says it’s(increasing key rates) the … [Read more...] about Monetary Policy and Fiscal Policy Issues – Relationship between RBI and Finance Ministry