Saturday, December 13, 2008

The Surjit S Bhalla effect!

What an effect after all. If Mr Bhalla calls himself as a “liberal” in India ‘No proof required!’ 

He writes in the BS “if the policy hawks want to note, are as follows: For the eight months of this fiscal year (April-Nov), inflation is running at an annual rate of 5.9 percent; seasonally adjusted, 3.9 percent; since June, minus 3.3 percent. What is needed: immediate removal of all the cesses, surtaxes, and gratuitous taxes in the system (including the fringe benefit tax). Reduction in the repo rate to 4 percent, reverse repo to 2 percent, CRR to 2 percent. Then watch for a month, and if need be, reduce rates further — and perhaps even reduce corporate and income tax rates”.

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