In terms of economics, there is no place for politics, says Finance Minister Nirmala Sitharaman
In terms of economics, there is no place for politics, says Finance Minister Nirmala Sitharaman.
"Inflation is not far beyond the band that should be considering, yes, it continues to rise and fall, but it is approaching when we are taking action and we have to rebuild it there when it is lowered, then, the image there and the image here.
The Minister of Finance, Nirmala Sitharaman, says that a "deeper, broader and open" discussion is required in the compensation of GST, the States are ready to lose this year according to the law. "It simply is not that the center has stopped the GST compensation extension," he says to Deepshikha Sikarwar & Bodhisatva Ganguli in an interview. The Government will analyze taxes on fuels if the prices shoot, she says.
Some analysts feel that RBI may be behind the curve in rates lift. These are judgments that observers can do. Are you in a hurry to do this or if you are waiting for some time to assess whether the MPC decision (monetary policy committee) is right, or they (RBI) are behind?
I believe that, between the government and the RBI, there is an understanding that we have to be attentive to what is being done by the US. UU FED or ECB (European Central Bank). This full attention and surveillance of what is happening has been well understood between us and the RBI for almost 6-8 months. Therefore, the calls we are taking - MOF (Ministry of Finance) or the Bank of the Reservation on your own. The RBI will seize what is in the economy in terms of fluctuations of liquidity and exchange rate. I do not think I'll jump to a conclusion. Two of us are seized the matter and the lessons of the tapered tantrum have been more than once they are read. We will avoid errors of that kind.
If inflation is not about, there is a fear that the United States fed can aggressively press, and a similar situation can play here too.
I understand your observation that the United States fed are behind the curve, given that the economy of the United States is, or European economies are, having an inflation of nature that have never seen or supported in 2-3 decades. . In the case of the United States. , the last four decades. Its complexity is vitiated by the fact that they had interest rates in absolutely the lower part of the rock or even negative for a long time before the pandemic. And almost probably when they were going to correct or do something came the pandemic. Now, the correction of the course, which they are doing, is a slightly different exercise than we are doing here.
We are looking at the interest rates that have never reached that level. Second, the pandemic, and, of course, for a country that has less fiscal space. Now, of course, the income has been improved; You are looking at a situation in which the lower layer really does not suffer for any quick action.
Inflation is not out of control the band that government should be considering. Yes, it continues to rise and fall, but it is going down when we are taking action and we have to rebuild it there when it is reduced. Then, the image there and the image here have different colors and tones. The ways we have to handle, those differences should be kept in mind, do not reflect exactly the steps they are taking. But, of course, he can not suffer for the mistakes they can make. There are appropriations of a strong increase in fuel prices after assembly elections.
Is there a cushion on your side of income to undertake another tax cut to provide relief?
I'll have to see how it goes. This is very important. The composition of the CPI (consumer price index) and the impact of fuel in it is also something that you want you to study, because there are repeatedly these arguments that spill fuel over the economy due to transport of food and transportation. Logistics. These play in the essential final goods that are consumed and their prices are influenced due to the spill. This is also something I want you to study. We have to bring.
