Inflation above comfort level, govt concerned: FM

Finance minister Pranab Mukherjee said both the government and RBI were taking steps to contain inflation. Steps taken by government include, reducing import duties on pulses and edible oil to zero and banning export of certain edible oil and pulses. Besides, the government has reduced customs duty on crude oil

New Delhi: The government today said inflation, which is above comfort level, is a matter of concern and steps are being taken to address the price situation, reports PTI.

“...inflation has been above comfort level and is a matter of concern,” finance minister Pranab Mukherjee told the Rajya Sabha in a written reply.

He, however, expressed satisfaction that inflation has started to decline.

The headline inflation declined to 9.11% in November against 9.73% in the previous month.

Similarly, food inflation eased to a nearly four-year low of 4.35% for the week ended 3rd December.

Mr Mukherjee said both the government and Reserve Bank of India (RBI) were taking steps to contain inflation.

Steps taken by government include, reducing import duties on pulses and edible oil to zero and banning export of certain edible oil and pulses. Besides, the government has reduced customs duty on crude oil.

The RBI on its part has adopted a tight monetary policy since March 2010 in its bid to tame inflation.

When asked if increasing interest rates was the only option in the monetary policy to contain inflation, Mr Mukherjee said RBI has multiple monetary policy instruments at its command. However “the use of each instrument is situation specific”.

MR Mukherjee further said high inflation and some of the efforts to control liquidity “has detrimental” effect on growth in the short-term.

Since March 2010 the RBI has cumulatively raised the cash reserve ratio (CRR) by 100 basis points, and hiked the policy rate (repo rate) 13 times by 375 basis points.

However, in its latest mid-quarter review, the RBI refrained from raising interest rates.

User

Rs300 crore in black money unearthed in Apr-Oct FY11-12: FM

Of the total amount seized, Rs179.59 crore was in cash, Rs95.67 crore was jewellery and Rs24.36 crore was in the form of other assets, finance minister Pranab Mukherjee informed Parliament

New Delhi: The Income Tax (I-T) Department in India seized Rs300 crore in black money, including cash and jewellery, during April-October 2011-12, reports PTI.

The I-T Department has issued 2,190 warrants and seized assets worth Rs299.63 crore, finance minister Pranab Mukherjee said in the Rajya Sabha.

Of the total amount seized, Rs179.59 crore was in cash, Rs95.67 crore was jewellery and Rs24.36 crore was in the form of other assets, he said.

During the 2010-11 fiscal, the I-T Department has seized assets worth Rs774.98 crore by executing 4,852 warrants, Mr Mukherjee said.

In a separate reply to the Rajya Sabha, minister of state for finance SS Palanimanickam said the I-T Department does not doubt the authenticity of information provided by the French government on Indians with bank accounts in Switzerland, but was verifying the data.

“The question of any doubt on the authenticity of the list of bank account holders does not arise as it was received from the government of France. However, information so received is verified in accordance with provisions of the Income Tax Act and necessary action taken to bring to tax any undisclosed income...” Mr Palanimanickam said.

The minister of state said this in response to a question related to the information received from the French government on the Swiss bank accounts of Indians.

India received information on these accounts from the French government under the Double Taxation Avoidance Convention between the two countries.

He further said, “While handing over the information, the French government has not indicated its source.”

With regard to the quantum of black money, Mr Palanimanickam said the government has commissioned a study to ascertain the amount of unaccounted wealth both within and outside the country and its ramifications on national security.

The study is being conducted separately by three institutes—the National Institute of Public Finance and Policy (NIPFP), National Institute of Financial Management (NIFM) and National Council of Applied Economic Research (NCEAR).

He further said the I-T Department has seized undisclosed assets worth Rs2,038 crore since April 2009 and detected unaccounted income of over Rs30,000 crore domestically.

The department, he added, has detected mis-pricing of goods and services worth Rs66,085 crore since April 2009, including Rs42,838 crore in the current financial year. It has collected Rs33,784 crore in tax on cross-border transactions in the last two financial years, he added.

User

Apple scores limited victory in smartphone patent war

Apple Inc scored a narrow victory against Taiwan’s HTC Corp in a patent lawsuit over smartphone technology that will set the stage for further battles between rival makers in the fiercely competitive market.

Read Article...

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)