Good Monsoon, Crude Down, Economy “Growing Fastest”, Government Hopes To Ease Inflation Now

Economy 'Fastest', Good Monsoon, Downtrend: Government hopes for upside price cut now, says sources

High prices of fuel, food and other necessities have been a concern. (File Image)

New Delhi:

Sources said today that the government hopes to control price momentum as key factors are favorable again, adding that India is “considered the fastest growing economy in the world” world this year and next”. The government also intends to eventually “remove income tax exemptions” and “consider ways to strengthen the system”, they said.

“There is a good monsoon and with the price of crude oil, fertilizers and commodities falling, inflation should ease,” the sources said.

“There’s inflation and there’s no denying it… The Reserve Bank of India and the Treasury have worked to combat inflation and keep it below 6%. We want it back to 4%.” , they added .

However, the exact figures are debatable. There were reports that retail inflation eased in July – to below 7% – but remained above the Reserve Bank’s tolerable range of 2-6%.

In fact, it’s been over the 6% limit for over six months now.

In July, however, it is likely to fall to an annualized 6.78%, a five-month low – down from June’s 7.01% – according to a poll of analysts. Reuters economist. Food prices, which have a big influence, fell last month. In addition, the benefits of lower international commodity prices and government interventions, such as cuts in import duties and restrictions on wheat exports, Reuters poll.

Besides inflation, sources also talk about the income tax exemption regime. However, no deadline was mentioned. The idea has been floating around for a while. Two years ago, people were offered an optional alternative to paying lower taxes if they didn’t make deductions and exemptions – such as rent, loans and long-term investments. term.

Finance Minister Nirmala said Sitharaman had said, after the 2020 budget, the exemption would apply but there was no set timeframe. “For now, we are just starting the second alternative with some waivers removed or some waivers, even though the original intent was to remove all exemptions,” she said. and offer a clear, simplified reduced income tax rate.”

Regarding the privatization plan, sources today said the government wants to move forward with de-investment – IDBI for example – and “achieve the required targets”, they said. But it wants the proposed law on privatization of banks to be “absolutely correct” before it is presented in Parliament.

The sources also cautioned against the cryptocurrency, saying that recent cases suggest it could be abused in “money laundering, terrorism.” They cited recent raids by the Department of Enforcement against a cryptocurrency exchange. The exchange allegedly helped several Chinese companies move their illicit funds to non-traceable digital assets.

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