Press Esc to close
Tuesday 31 May 2016
News updated at 3:16 PM IST
Weather
Max: 31.2°C
Min : 21.7°C
In Bengaluru
Sunny day

Govt endeavour to push reforms lacking even after Fed decision

New Delhi, DHNS: Sep 20, 2013

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
HP Chief Minister Virbhadra Singh addresses a Youth Congress rally in Mandi ...

HP Chief Minister Virbhadra Singh addresses a Youth Congress rally in Mandi ...

Stranded passengers facing a harrowing time due to 'rail roko' protest by the activists of Hills ...

Stranded passengers facing a harrowing time due to 'rail roko' protest by the activists of Hills ...

Farmers holding a rally against the BJP government on the issue of farmers suicide in Thane ...

Farmers holding a rally against the BJP government on the issue of farmers suicide in Thane ...

People from Biafra State (Nigeria) holding a protest for the release of their leader Nnamdi Kanu ...

People from Biafra State (Nigeria) holding a protest for the release of their leader Nnamdi Kanu ...

A man along with kid displays no-smoking messages on their faces on the eve of 'World No Tobacco Day

A man along with kid displays no-smoking messages on their faces on the eve of 'World No Tobacco Day

Activists of Hills and Tribe Protection Forum block the railway tracks of Diphu railway station ....

Activists of Hills and Tribe Protection Forum block the railway tracks of Diphu railway station ....

Police spray water cannon to disperse BJP members during a protest against congress president Sonia

Police spray water cannon to disperse BJP members during a protest against congress president Sonia

Sunrisers Hyderabad players celebrates with VIVO 2016 IPL champiionship Trophy after winning the...

Sunrisers Hyderabad players celebrates with VIVO 2016 IPL champiionship Trophy after winning the...

Sunrisers Hyderabad Ben Cutting (C) celebrates the wicket of Chris Gayle during the IPL 2016...

Sunrisers Hyderabad Ben Cutting (C) celebrates the wicket of Chris Gayle during the IPL 2016...

Royal Challengers Bengaluru player Chris Gayle raises his bat towards crowd against Sunrisers...

Royal Challengers Bengaluru player Chris Gayle raises his bat towards crowd against Sunrisers...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523