The Indian Government is a disappointer...With inflation refusing to cool down, the Indian Government is doing nothing. RBI is helpless as it has already raised bank rates by almost 150 basis points over the past 12 months.
Raising bank rates will not help reduce increase in prices of food and crude...Fiscal measures are required and not Monetary measures. Since the Central Government is sitting quietly waiting for the state elections to get over, the common mass is sitting on a ticking time-bomb...further rise in inflation!!
The Central Government has obviously asked the Oil Marketing companies not to raise the oil prices till elections are over. So with the crude prices having crossed USD 120, we may see significant rise in petrol, diesel and LPGprices post elections. This would further increase prices across all sectors!!
Why cant the Central Government reduce duties on crude and also ask state Governments to reduce sales tax on the same. This could infact lead to fall in prices in petrol, diesel and lpg despite the fact that crude has crossed USD 120.
RBI in its last policy declarations clearly said that it was helpless....despite this we still do not have any response from the Government...Now with the unwinding of all the big scams during the tenure of this Government, I have serious doubts on the capability of these guys to run the country!! We can just hope for a change soon!!
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