Infrastructure Sector
In order to control to rising inflation rate, the central bank has tightened the liquidity flow by raising the repo rate from 5.5 per cent to 5.75 per cent and the reverse repo rate from 4 per cent to 4.50 per cent. Repo rate is the rate at which banks borrow from RBI. Reverse repo rate is the rate at which the central bank borrows money from banks. But Cash Reserve Ratio (CRR) has been kept unchanged at 6 per cent. This asymmetric raise in rates narrows the LAF corridor from 150 basis points to 125 basis points.
Infrastructure Sector
Infrastructure Sector
First Quarter Review of Monetary Policy 2010-11
Overall fiscal scenario needs austerity measures
“The test of our progress is not whether we add to the abundance of those who have much.
It is whether we provide enough to those who have little.”- Franklin D. Roosevelt By Kartik
The main aim of every Government is to ensure the welfare of all its citizens. To achieve this end, the Government constantly works and reworks its overall policy objectives to meet various demands and changing environmental situations. Among other policies objectives, one of the important being the Fiscal Policy, which implies a policy with regard to the revenue, expenditure and borrowing programme of the Government. This Policy has four major objectives, namely, Growth, Stability, Allocation of resources and Reduction of inequalities.