Kshitiz Kant and Suchit Bajpai
Starting
the credit policy of new financial year, RBI Governer, Urjit Patel by not doing
any change in Repo Rate has clarified that the running Credit Policy is not for
the interest rate.
Urjit Patel
has introduced about 5 big standing Economic challenges through his Credit
Policy.
Among
these challenges, most important one is Farmers’ Loan Model that has been
forwarded by UP CM Yogi Adityanath -- RBI says it’s a very tough challenge.
The loan waive plan of
UP Government will merely provide the relief for short term to the farmers who
burdened in the problem from, but it will promote the bad tradition of loaning
and will affect of state's finances policy.
The loans up to Rs
100000 have been waived to the 2.15 crore of small and marginal farmers by the
UP BJP government.
This will burden of Rs 307.29 billion over the
state’s finances. Moreover of this, the government has put 7 lakh farmers' debt
Rs 56.30 billion into the account of non-executed assets.
RBI, introducing the first
monetary policy review, said the proposed 8-24% house rent allowance in the 7th
pay commission will affect the consumer price index (dearness).
RBI has estimated that the acceptance of
allowance on proposed rates by the pay commission in the beginning of running
financial year will be followed by the most states to their government
servants, which may enhance more in dearness from 1 - 1.5 percent during the
financial year.
RBI has expressed its fear in its monetary
review that El-nino impact appears of endangering the climate this year, which
is expected to be weak monsoon.
Many years' loss in kharif crop had resulted
into gain during a good monsoon of year 2016, but the prediction of weak
monsoon by the weather department has been a big challenge before RBI.
The prices of crude oil in
international market from the past 3 years were running at its lowest level.
This impact controlled the fiscal deficit of
country, which affected the treasure of union government; but the crude
oil has again cross the rate 50 dollar per barrel in the wake of the OPEK countries agreement
during the past a few months.
RBI assumes that the
crude oil price rise in next few months may cross 60 dollar per barrel --
dearness impact will surface clearly.
Donald trump has given a new challenge before
the countries of world by giving his speech slogan ‘America First’.
America was leading free trade and globalisation
so far; and many countries economic policies were the dependents of America’s
policy.
RBI’s monetary review
estimates that the adverse effect of D trump’s policies over Indian economy may
create grave challenge.
