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Govt bites the bullet on subsidies by Sanjiv Shankaran

In a reformist move long recommended by various economists and panels, the government has set up a task force to create a way to directly transfer cash to the ultimate beneficiaries of various subsidy schemes, which are, at best, messy and, at worst, ineffective. The task force will be headed by Nandan Nilekani, chairman of the Unique Identification Authority of India. A pilot will be rolled out in the next four...

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It’s the fisc

While monetary policy is an important element of the artillery against inflation — and with the 25 basis point hike, the RBI did part of what it was expected to do to tighten policy — there is the fiscal task too. As raghuram rajan, adviser to Prime Minister Manmohan Singh, points out, the Centre must control expenditure, cut subsidies and not start new spending programmes. Fiscal deficits are large and rising...

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Interest-free banking urged

Indian Centre for Islamic Finance delegation makes presentation at Yojana Bhavan The Indian Centre for Islamic Finance (ICIF) has made out a strong case before Prime Minister's Economic Advisory Council member V. S. Vyas for introducing interest-free banking in the country at the earliest to ensure “inclusive growth with innovation” in accordance with the recommendations of the Planning Commission's raghuram rajan Committee. An ICIF delegation from New Delhi, led by its general...

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