New Delhi, Feb 25: A day after announcing Rs
30,000 crore tax relief, Finance Minister Pranab Mukherjee
today said he has advised the RBI and banks to take risks and
be courageous to further bring down interest rates to
stimulate the economy reeling under the global meltdown.
"I have shared my concern with the RBI Governor. I also
met the banks. The Prime Lending Rate (PLR) is still high and
industry is complaining...Be little more courageous ... Take
risk without indulging in financial profligacy," he said
replying to a debate on the Interim Budget in the Rajya Sabha.
Mukherjee had spoken to RBI Governor D Subbarao on Monday
and discussed how to meet the industry`s demand for more
liquidity at lesser cost.
"Government will not abdicate its constitutional
responsibilities and will constantly monitor and whatever is
required we will do within the realm of possibilities," he
said
in the Upper House which returned the Interim Budget and the
related appropriation bills.
The government had yesterday announced two percentage
point reduction in general excise duty and service tax to
boost the domestic demand for goods and services.
Though the industry welcomed the tax cuts, it wanted more
reduction in the interest rates. Banks have already reduced
the rates but the PLR remains high as Mukherjee said.
Bureau Report
