The Union government’s fiscal discipline has not been matched by state fiscal discipline, thanks to the tendency to promise unconditional freebies to the electorate.
The repo rate cut should be interpreted as a pre-emptive measure to create a buffer, ensuring that the economy enters the forthcoming year with adequate liquidity.
For India, this is not an opportunity for schadenfreude but rather a reflection of shared responsibility. It's what happens when the governance framework underpinning economic growth is weakened.
RBI lifted ceiling on interchange fee on ATM withdrawals through circular issued Friday. Interchange fee is amount one bank pays another to facilitate ATM transactions.
RBI Monetary Policy Committee member Ram Singh says Budget 2025 provides opportunity for govt to show it is doing its part to address growth-inflation dynamics.
In its first advance estimates for the current financial year, govt predicts growth to be slower than RBI’s prediction of 6.6% & much lower than 8.2% seen in FY24.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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