This refers to the editorial macro Economic Stability the key (ET dated 3/2/16).The latest policy statement of RBI keeping its policy rates unchanged carries a clear message to the Government as to how the ensuing budget of the Government should be shaped to keep the growth trajectory of the economy strong and achieve the ever elusive macroeconomic stability.RBI has highlighted the urgency for structural reforms needed in the economy to attract more of private investments to accelerate the stagnant growth and on the need to have prudent public investment and expenditure to contain fiscal deficit at comfortable level without disturbing the price stability achieved in the economy. Ensuring its continued accommodative credit policy, RBI wants the Government to come out with a strong economic policy through its budget encouraging private investments, employment and growth oriented public expenditures without ignoring the social aspects. While Fiscal Consolidation is the key to keep the macroeconomic stability, the growth of the economy is the master key to achieve the much needed fiscal consolidation. .
Dr T.V.Gopalakrishnan
(This apperaed in ET dated 4/2/16)
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