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Fiscal and monetary policies are working together to promote economic growth: Finance Minister

by Sandhya Hirani
February 8, 2025
राजकोषीय और मौद्रिक नीतियां आर्थिक वृद्धि को बढ़ावा देने के लिए मिलकर कर रही हैं काम: वित्त मंत्री

New Delhi, 8 February (IANS). Union Finance Minister Nirmala Sitharaman said on Saturday that the monetary and fiscal policies of the government are working together and the strong budget and recent decisions of the RBI will benefit the growing economy.

Addressing the media with Reserve Bank of India (RBI) Governor Sanjay Malhotra, Finance Minister Sitharaman said that there has been a good coordination between the central bank and the government and no one interferes with each other’s work.

He met Union Minister of State for Finance Pankaj Chaudhary and Malhotra at the traditional meeting after the budget in New Delhi with the Central Board of Directors of RBI.

According to the Finance Minister, the industry is receiving signs of improving consumption. For this reason the industry is considering increasing its capacity use.

Finance Minister Sitharaman said that I see it as a positive signal and the RBI’s decision to cut the repo rate by 25 basis points will give the economy necessary.

According to the Finance Minister, a cut of 25 basis points in the repo rate will serve as a complement to the steps taken to increase consumption in the budget. This will give a big boost to demand in the country.

The RBI also indicated that necessary steps will be taken if the system needs to enter more liquidity, ensuring that monetary policy transmission remains effective.

Finance Minister Sitharaman further said that the change in the Basic Customs (BCD) is not a reaction to any global development and it was working for the last two years.

He said, “We will provide tariff security as per the need of the industry. At the same time we will focus on making the industry more competitive.”

Industry leaders are confident that the foreign bank will continue to ensure stability in the market despite increasing dollar pressure on the market and government’s support.

-IANS

ABS/

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