Need Coordinated Action From Centre, States to Reduce Taxes on Fuel Prices: RBI Governor
Shaktikanta Das said there is also an impact on inflation because petrol and diesel prices affect the cost of manufacturing and production.
Shaktikanta Das. Photo: PTI
Government25/Feb/2021
Mumbai:Â Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday said there is a need for coordinated action between the Centre and state governments to reduce taxes on petrol and diesel prices.
There is a need for coordinated action between the Centre and states because there are inherent taxes levied by both, the governor said, adding that calibrated reduction of taxes was important.
The Reserve Bank of India (RBI) did not compromise on its balance sheet while providing liquidity to the bond market through asset purchases, governor Shaktikanta Das said on Thursday. The central bank, so far, this fiscal, has purchased over Rs 3 trillion of central and state government bonds from the secondary market to provide liquidity to the system. Unlike many central banks, though, the RBI’s asset purchases “did not dilute its balance sheet and hence, did not compromise on core principles of central banking.” The purchases were risk-free government bonds only, he said. The focus was to foster congenial financing conditions without jeopardising financial stability,” Das said in his keynote address at the foundation day of the Bombay Chamber of Commerce.
Updated Feb 25, 2021 · 08:57 pm Representational image. | AFP/Stringer
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Social security for economic resilience February 25, 2021, 11:15 PM IST
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In his address to the Bombay Chamber of Commerce and Industry, Shaktikanta Das expressed confidence that the economy is poised for a take-off, and that the central bank would support the recovery process, while maintaining financial stability. This is reassuring. He touched upon many sectors of the economy, apart from some macroeconomic concerns. What did not receive the attention it deserved was a social safety net. What the pandemic has revealed is that resilience of the economy depends not just on financial stability, macroeconomic management and corporate flexibility but also on a functional social safety net, besides effective healthcare.