Interest rates may fall, subsidy reforms to continue: Jaitley | business | Hindustan Times
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Interest rates may fall, subsidy reforms to continue: Jaitley

The government on Wednesday said it is committed to pursuing subsidy reforms by efficient targeting of subsidies to the poor and needy, while saving the ‘scarce financial resources’ for infrastructure and development needs.

business Updated: Aug 13, 2015 01:32 IST
Union-finance-minister-Arun-Jaitley-while-giving-final-touches-to-the-Annual-Budget-2014-15-in-New-Delhi-on-Wednesday-PTI-Photo
Union-finance-minister-Arun-Jaitley-while-giving-final-touches-to-the-Annual-Budget-2014-15-in-New-Delhi-on-Wednesday-PTI-Photo

The government on Wednesday said it is committed to pursuing subsidy reforms by efficient targeting of subsidies to the poor and needy, while saving the ‘scarce financial resources’ for infrastructure and development needs.

In his Medium-Term Expenditure Framework Statement tabled in Parliament, finance minister Arun Jaitley, however, said that the macro-economic scenario has improved on back of higher growth and subdued inflation. “With fiscal deficit coming down, and easing of inflationary pressure, it is expected that interest rates would fall in years to come,” he said.

Stating that it was essential to gradually reduce expenditure on subsidy through reforms to meet fiscal deficit targets, Jaitley also said that the Seventh Pay Commission award “poses a risk”. The outlay on salary is estimated to go up to Rs 1.28 lakh crore in 2017-18 from Rs 1 lakh crore this fiscal.

(With inputs from PTI and IANS)