As the moratorium on loan repayments ends, the government will have to answer the key question about how to treat defaulting borrowers.
RBI must work towards better transmission mechanism, for which India needs deep & liquid bond market, competitive banking sector & regulatory framework.
Under 2016 RBI Act, govt needs to review the inflation target next year but not its framework. Yet, there’s a growing clamour to scrap the system.
Let zombie firms linger on & banks stay crippled a little longer if it leads to deeper reform, so India can get away from broken financial system of the 1980s.
Onion prices have already risen due to heavy rain and crop damage, and could hurt consumers reeling due to income loss in the Covid-induced lockdown.
Since general government debt will rise regardless of who borrows for GST compensation, a plan to move to a sustained borrowing trajectory should be made.
GST revenue collected this August was 12% lower than the amount last August, and the economy is only crawling back to life post the Covid-19 lockdown.
Fiscal deficit for 2020-21 was pegged at 3.5 per cent of GDP in Budget 2020. But Covid and the lockdown have made sure this is impossible to achieve.
If patients wish to change a healthcare provider, they have to carry pieces of paper. NDHM envisions changing that by digitally storing their health records.
RBI has accepted bankers’ demand for one-time loan restructuring instead of extending the moratorium as a way of countering the impact of the Covid-19 pandemic.