These 5 formulas of Modi government will lead to inflation, blueprint is ready - Newztezz Online


Friday, August 18, 2023

These 5 formulas of Modi government will lead to inflation, blueprint is ready

PM Narendra Modi himself has taken up the responsibility of reducing inflation. In the coming few weeks, the PM can take such decisions so that inflation can be checked and defeated immediately. On which Narendra Modi and his core team have started planning.

Along with the general public, the government is also troubled by inflation. To deal with this inflation, the government had already started importing crude oil from Russia. Now she is also going to import wheat from Russia. Even after this, there is inflation that is not taking the name of decreasing. That's why now the government is preparing such a blue print so that inflation can be controlled from all sides.

In the war against inflation, this time the command has not reached in the hands of RBI but in the hands of top leaders of the country. The backgammon that is being used to beat inflation and the kind of chessboard that is being laid. The moves in it should be such that inflation does not get a second chance and inflation can be directly defeated in a few moves.

On this chessboard, if inflation is on one side, then on the other hand, not the RBI Governor, but the Prime Minister of the country Narendra Modi himself has come. To win this game, he has started thinking of his pieces and moves and has decided which piece to move, when and in what form.

So that in the election season, the opposition does not have any issue in the form of inflation. So let's try to understand each and every piece of this chessboard on which the Prime Minister of the country, Narendra Modi is trusting and on the basis of that he has made complete planning to win this chessboard.

First move: making petrol and diesel cheaper

The first move of the central government is to cut the prices of petrol and diesel in the country. For this, the PM himself can take a decision soon. In fact, the central government is planning to reduce the tax on petrol and diesel. If the tax on petrol and diesel is reduced, then the prices of petrol and diesel will also be reduced.

On May 21, 2022 also, Finance Minister Nirmala Sitharaman reduced the excise duty on petrol by Rs 8 and on diesel by Rs 6. According to experts, excise duty can be reduced by Rs 15 on petrol and Rs 12 on diesel. After which there will be pressure from the states of the country to reduce VAT.

After which the prices of petrol and diesel will be reduced further. This means that in order to reduce inflation, the central government is in a mood to play such a trick, which will also beat inflation and make the atmosphere favorable to the government in this election year.

Second move: reducing import duty on wheat

Due to uneven rains this year, the crop has suffered a lot and according to the estimates of the government, the production of wheat in the country can be very less. Even the price of wheat has seen an increase since April. In such a situation, many important decisions can be taken to control the prices of wheat. At present, the import of wheat in the private sector is free, but it currently attracts a tariff. This tariff was 30 percent before April 2029. Now the government is considering abolishing the tariff completely to control the prices of wheat. On the other hand, it can also be decided to reduce the limit of stock holding.

Third move: Removal of import duty on edible oils

The Center has continuously reduced the import duty to reduce the price of edible oil. The effect of which has also been seen in the prices of edible oil in the retail market of India. According to the data, in the month of June, the central government had reduced the import duty on edible oil, especially soya and sunflower oil, from 17.5 percent to 12.5 percent, these rates were going to continue till March 2024. Now planning is being done to eliminate it completely. After which there will be a further decline in the prices of edible oil.

Fourth trick: Reallocation of one lakh crore rupees

The central government believes that if the prices of oil and food are controlled, then the inflation in the country will automatically come down. For this, the government has made a plan of one lakh crore rupees. In fact, about one lakh crore rupees will be re-allocated from the budget of the central ministries. This money will be used to reduce inflation from oil and food items. Special care will be taken that in order to reduce inflation, the government's deficit target should not be affected at all.

Step 5: Lower EMI

This will be the last move of PM Modi and the last chance to provide relief to the common people. Which can be run in the month of February under the monetary policy through RBI. Yes, the common people are not seeing any relief from the increased EMI this year, but shortly before the elections, the repo rate can be cut by 0.50 percent through the RBI. There has been no change in RBI interest rates for three consecutive times. Currently, the repo rate is 6.50 per cent, which is the highest in the entire Asian region. In such a situation, the work of providing relief to the common people can be completed in February.

Inflation at the height of 15 months

At present, inflation in the country is at a height of 15 months. On August 14, the government had released the figures of retail inflation in the country, which was expected to be 6.70 percent, but retail inflation reached 7.44 percent, demolishing all estimates and figures. According to the RBI bulletin on August 17, the country's retail inflation in the second quarter of the financial year 2024 could be more than 6 percent. In fact, due to the rise in the prices of vegetables along with tomatoes in the month of June and then in July, there has been an increase in inflation. Let us tell you that in the month of May the retail inflation had come down to 4.25 percent, but in the month of June it came down to 4.87 percent and in the month of July it reached a high of 15 percent inflation.

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