This refers to the article “An MRI on health of the economy” (Business Line, September 7). The manner in which the precarious position of the economy has been explained goes well with the transparency in policy announcement that the RBI has exhibited in recent years. If the powers that be refuse to listen and make drastic changes in fiscal policy to reduce the obesity of the RBI’s balance-sheet, it could lead to the death of the central bank, and there should be no excuse that the diagnosis was delayed. The concern about dwindling reserves (as percentage of asset size) deserves immediate attention. That the transfer of surplus profit to the Government at Rs 16,010 crore, as percentage of gross income, was lower by 10.4 per cent as compared with 2010-11 is no reason for comfort.
- M.G. Warrier, Mumbai (HBL)
Click to read Warrier's blog
No comments:
Post a Comment