Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Farm loan waivers increase risk of fiscal slippages, higher inflation: RBI

Author: S Vijaykrishnan/Wednesday, June 7, 2017/Categories: Banking & Financial Services

Farm loan waivers increase risk of fiscal slippages, higher inflation: RBI

Mumbai, (IANS) Raising its concern on state governments waiving off farm loans, the Reserve Bank of India (RBI) on Wednesday said that such actions increase the risk of slippages and contribute to inflation sooner or later.

"The Monetary Policy Committee (MPC) resolution says that risk of fiscal slippages has risen with the announcement of large farm loan waivers," RBI Governor Urjit Patel told media persons in a briefing after the repo rate was kept unchanged.

Unless there is existing fiscal space in the state budgets, the states should avoid going down the "slippery path" of farm loan waivers, he said, adding that it can erode the fiscal gains made over the previous 2-3 years.

He also added that the fiscal slippages sooner or later does lead to increase in inflation. 

"Past episodes have shown when there are significant fiscal slippages they do permeate through inflation sooner or later.

"So its a path we need to tread very carefully before it gets out of hand," Patel noted.

After Uttar Pradesh, Maharashtra Chief Minister Devendra Fadnavis has promised to implement what he termed as the "biggest" farm loan waiver in the state's history by October 31.

Print Rate this article:
No rating

Number of views (209)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

S Vijaykrishnan

Other posts by S Vijaykrishnan
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free