FM: Fiscal and monetary policies should working in coordination on growth, inflation

On Saturday, finance Minister Nirala Sitaraman expressed confidence that the government and the Indian reserve bank will continue to work in the system to ensure that fiscal and monetary policy will work effectively to solve inflation and growth problems.

Monetary policy and fiscal policy should work like the wheels of coordination, which will provide a public good, the Minister of Finance said the issue of applying to the Central Council of Directors of the Indian Reserve Bank. Budget meeting. RBI Governor Sanjay Malhotran and Finance Minister Pankaj Chaudharyan were also present.

The RBI Monetary Policy Commission has reduced the RPO interest rate on Friday by 25 main points, which shows that the demand for consumption is stimulated.

The Minister of Finance stressed that the coordination between the RBI and the government is always required and emphasizes that this also helped the Indian economy failed not to coincide with Sagh.

The Minister also expressed hope that the events announced in the budget will help with Repo Rate Cut in the restoration of private investment. He said that on the basis of discussions with the Industry Representative, the anecdotal evidence suggests that the orders of rapid moving consumer goods are registered in June. The industry sees the signs of consumption recovery and looks at the rehabilitation of power.

“I see it as a positive sign and the RBI decision to reduce 25bps, it can serve as a required pulley,” said the Foreign Minister.

Meeting the media, RBI Governor Sanjay Malhotra also expressed hope that Repo Rate Cut will help stimulate the consumption and say that RBI announces all the pressure of inflation. “I hope that the movement of inflation should be resolved and will help,” he said. According to RBI estimates, Rupee’s 5% devaluation leads to inflation on 35 main points.

For FY26, RPI rated the rupee for an average of $ 87 in US dollars. “RBI does not target any price level or group for Rupees, but only will stimulate extremely instability,” he said.

At the same time, the Minister of Finance also said that he hopes to submit a new income tax bill in the parliament for the coming week. The bill, which seeks to simplify the current income tax operation, was cleaned by the Cabinet of the Union on February 7, 1961.

Despite a timely manner, the minister should go through several stages before the parliament must pass. He noted that the bill will be sent to a standing committee, after being introduced, the cabinet will present further changes based on the proposals of the commission.

When asked for his reaction to Delhi election results, which show that BJP is leading by a majority of seats, the Foreign Minister said. “… is happy to know. The National Capital of India, led by Prime Minister Naryidra Modi, must have a government ready to serve his people, “he said.