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Apr 1, 2008

Budget, Inflation and Poor People

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The glory of Indian budget is replaced by the current inflation trends. The government of India has set measures to check the inflation rate, which is at 13 month high. The 'Aam Admi' or common man is under the burden of inflation, however the budget has given little relaxation. The attention of the whole nation is shifted towards the trends of inflation and the measures that are being taken to tackle the problem. Inflation is a very sensitive issue in India, it is due to the monetary and fiscal forces but the government would be targeted for the rise in inflation.

No political leader would favour the rise of inflation as they do now want to hurt the middle class and poor families of India. The rise in the price of goods and services will have impact on the household economy of the middle class and poor families. It's more important at this juncture to supply the basic needs of the people at reasonable price. The government of India would change the fiscal measures to check the inflation whereas the Reserve Bank of India could review it credit control measures. The RBI could change the bank rate and cash reserve ration to check the inflation. However, the credit control measures and fiscal measure are very technical in checking the inflation but the government has to protect the interest of common man.


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