RBI in its latest review of monetary policy,has done nothing more than providing some liquidity and it is in fitness of things.Given the strident clamoring from the industry lobby and government's tacit inclination to facilitate the same, has not derailed the RBI from the economic logic.It is indeed surprising that when the industry lobby has already cornered many of the common wealth of the nation like minerals,natural gas, water,power etc., why there should be so much insistence for downward revision of interest rate.
The benefit of such concession never reaches the common man as there is no additional creation of job or any social impact of the additional profit generated by the corporates. Well,of course,some of our supper rich industrialists retain or enhance their Forbes standing. How does that mater to the teeming million, who are in the look out for a balanced life of something to eat,some shelter to live and keep healthy and happy in the polluted environment created by the clutters of industrial growth.There is no gain saying that lack of growth is bigger pollutant ,unless growth is impacting living of the not so well to do,distinct from lifestyle changes among the well to do.Funnily enough a good percentage of the well to do ,do struggle to keep their financial status steady, with the incessant affront of sky rocketing prices,which increase at the drop of a hat by the mandarins in governance.
Some occasional sensibilities do cross the minds of people in governance,though the same is used as a matter of opportunism than sincerity - the repayment credibility of common man availing small loans.How much effort has been made by the government to educate the people at large to strongly build up this healthy loan repayment culture vis a vis debt waiver as part of vote bank politics and to plug the escape routes for the big defaulters? Otherwise the owners of KFA ,DC ,SI etc. would keep on flaunting their ill gotten financial supremacy to mock the hapless lot.If the banks can afford to absorb big defaults ,why not the government think in terms of offering a better pay packet to the bank officers in the middle and higher management,the least paid among PSU/government organisations, with one of the highest professional risk and responsibilties.
The cautious approach of RBI is quite understandable in view of the not so comfortable inflationary pressure and no palpable will or discipline on the part of government to control expenditure and hence any promise to reduce the fiscal deficit could not be accepted on the face of it.Industries have to globally compete within the existing financial frame work instead of resorting to devious methods to evade tax and stack money in foreign banks for perennial comfort.Let them utilise the same fund for growth ,if they are really concerned.
The benefit of such concession never reaches the common man as there is no additional creation of job or any social impact of the additional profit generated by the corporates. Well,of course,some of our supper rich industrialists retain or enhance their Forbes standing. How does that mater to the teeming million, who are in the look out for a balanced life of something to eat,some shelter to live and keep healthy and happy in the polluted environment created by the clutters of industrial growth.There is no gain saying that lack of growth is bigger pollutant ,unless growth is impacting living of the not so well to do,distinct from lifestyle changes among the well to do.Funnily enough a good percentage of the well to do ,do struggle to keep their financial status steady, with the incessant affront of sky rocketing prices,which increase at the drop of a hat by the mandarins in governance.
Some occasional sensibilities do cross the minds of people in governance,though the same is used as a matter of opportunism than sincerity - the repayment credibility of common man availing small loans.How much effort has been made by the government to educate the people at large to strongly build up this healthy loan repayment culture vis a vis debt waiver as part of vote bank politics and to plug the escape routes for the big defaulters? Otherwise the owners of KFA ,DC ,SI etc. would keep on flaunting their ill gotten financial supremacy to mock the hapless lot.If the banks can afford to absorb big defaults ,why not the government think in terms of offering a better pay packet to the bank officers in the middle and higher management,the least paid among PSU/government organisations, with one of the highest professional risk and responsibilties.
The cautious approach of RBI is quite understandable in view of the not so comfortable inflationary pressure and no palpable will or discipline on the part of government to control expenditure and hence any promise to reduce the fiscal deficit could not be accepted on the face of it.Industries have to globally compete within the existing financial frame work instead of resorting to devious methods to evade tax and stack money in foreign banks for perennial comfort.Let them utilise the same fund for growth ,if they are really concerned.
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