Press Esc to close

Govt endeavour to push reforms lacking even after Fed decision

New Delhi, DHNS: Sep 20, 2013 22:57 IST
After the US Federal Reserve’s decision to continue with $85 billion per month stimulus injected an unexpected momentum in India’s stock, bond and money markets, experts have suggested the government use the limited window of opportunity to push reforms, but the Centre’s commitment to reforms sounds far from convincing.

Talking to reporters soon after Federal Reserve’s measures, Economic Affairs Secretary Arvind Mayaram said, the government will continue to deepen reforms. But another official told Deccan Herald that the government will not halt its subsidy payout despite capping non-plan expenses by 10 per cent. "Subsidies will be based on whatever is the requirement. Obviously, our endeavour is to reduce the subsidies as much as possible, but we cannot say there will be a 10 per cent cut," the official said.

"If there is a further requirement for subsidy payout, we cannot say no. At the moment subsidies are not so disturbing. Fertiliser is in control, food is in control, petroleum, there might be a slight overshooting but we will get a better sense after a month or so," he said.
The Centre, which has hastened reforms in infrastructure and coal sectors in the past six months, needs to do more on subsidy front, especially fuel and fertilizer subsidies.

“If reforms, especially the ones targeting subsidies, are not addressed at a time when rupee is getting strengthened on Fed’s action and crude slipping after concerns over Syria eased, it will again be a panic situation for India, especially after the talks of taper come alive somewhere in November,” said Aman Agarwal of Indian Institute of Finance. The government, however, seems to have postponed its decision on oil price reforms and talks about carrying out a one-time increase in diesel prices is relegated to the backburner once again after the rupee stabilized.

Go to Top

Photo Gallery
Rashtriya Swayamsevak Sangh (RSS) volunteers taking...

Rashtriya Swayamsevak Sangh (RSS) volunteers taking...

Air Chief Marshal BS Dhanoa, Chief of the Air Staff...

Air Chief Marshal BS Dhanoa, Chief of the Air Staff...

SUCI activists stage a protest rally against State...

SUCI activists stage a protest rally against State...

Mick Jagger of the Rolling Stones performs during the...

Mick Jagger of the Rolling Stones performs during the...

Mime artist Ujjal Kar gets ready to perform as Charlie Chaplin...

Mime artist Ujjal Kar gets ready to perform as Charlie Chaplin...

Acid attack survivor Mohi walks the ramp along with...

Acid attack survivor Mohi walks the ramp along with...

People buying Sugar Canes in a market for upcoming...

People buying Sugar Canes in a market for upcoming...

Britain's Foreign Secretary, Boris Johnson, arrives to speak at the Chatham...

Britain's Foreign Secretary, Boris Johnson, arrives to speak at the Chatham...

Actress Katerina Lehou as high priestess, passes the Olympic Flame onto...

Actress Katerina Lehou as high priestess, passes the Olympic Flame onto...

Tamil Nadu coach L Balaji with R Ashwin at BKC...

Tamil Nadu coach L Balaji with R Ashwin at BKC...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.