RBI governor for better education loans regime

Rajan hopes for better enforcement of tax laws and punishment for black money holders

GN Staff | February 21, 2015


#rbi   #raghuram rajan   #student   #loans   #governor   #bank   #balck money   #tax   #budget   #arun jaitley  

Reserve Bank of India governor Raghuram Rajan on Saturday sought better student loan schemes as he felt that there were lot of stress on education loans.

Taking the theme of rationalizing tax structure as finance minister Arun Jaitley presents budget next week, he spoke against the inheritance tax. He said the focus should on bringing people up rather than bringing down those who are well-off. Because of such a tax, there will be no incentive for wealth creation, he said.

Rajan also strongly advocated punishing of black money holders by streamlining laws and enforcement.

Terming the black money issue as "sensitive" he said what is important is ensuring that conditions are such that people don't misuse the rules and regulations and don't have the incentive to park money outside.

"Let people pay, but if they don't pay, go after them. That message has to get out. People have to know if they evade, they will be penalised. We need to strengthen the tax administration as part of the government," Rajan said.

The best way to prevent law breaking is to reduce the incentive to do that, Rajan said.

On future rate cuts he said it would depend on the fiscal consolidation path in the upcoming budget. Defending the the status quo on the policy front, the governor said, "further action will be in the direction of rate cut that was initiated, and it will depend on the developments in particular on the fiscal front as well as a continuation of the disinflationary process." He indicated that the quality of fiscal consolidation, rather than the headline deficit numbers alone, will be important for him while undertaking any future rate cuts.

"It is not that we are locked to a specific number or a specific path, but it is the overall package, whether it makes for serious, high quality fiscal consolidation over time that clearly will impact the inflationary forces that we are most worried about. We will be looking at all aspects of the budget and they are eagerly awaited," Rajan said.

While rejecting bankers' call to extend the loan restructuring window beyond April 1 he said “to build confidence in banks' balance sheets, we have to come to an end of forbearance. We have to put banks on the right track. I do not think the answer is to pretend and extend or extend and pretend; it is to call spade a spade," Rajan said.

Comments

 

Other News

FM concludes pre-budget consultations

Union minister for finance and corporate affairs Nirmala Sitharaman has concluded the pre-budget consultation meetings for Budget 2023-24 that were held from November 21 to 28 in the virtual mode. More than 110 invitees representing seven stakeholder groups participated in eight meetings sch

Coal production rises by 18% to 448 MT

The total coal production in the country stands at 448 million tonnes (MT) for the month of October 2022 which is 18% higher than the production of the corresponding period of last year. The growth of coal production from Coal India Ltd (CIL) is also more than 17%. The ministry of coal said

How to execute large-scale social impact projects

The number of social innovators and entrepreneurs has considerably increased recently in India. The idea of social entrepreneurship, which aspires to provide novel solutions for the world`s most critical social issues, is now receiving more attention. Challenges like overworked healthcare,

Plastic is no longer a waste management issue

Plastic is arguably the most ubiquitous material of our times. In this Age of Plastic, it might seem its use can’t go up any further – and yet it keeps going. Between 2000 and 2015, global production of plastic increased by a whopping 79%. The total mass of plastics on our planet is now twice t

Celebrating the Ganit of Protein!

“Why is the child growing?” is the question that bothers a lot many in the administration. The answer, to be honest, is to be discovered via science, and less via what we call ‘effective administration’. Eventually, it will be the latter that will enforce the former on the field, bu

Trying to achieve work-life balance? Here’s some advice

The untapped potential of every individual is the biggest tragedy of the human race. The primary reason for this is our lack of awareness of the processes, tools and t

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter