ok Sabha passes the
Anti-Rape Bill Criminal Law Amendment Bill 2012
whose specific provisions can be summarized as below:-
2. The Food Security Bill got cabinet approval, with the latest provisions of
-monthly quota of coarse grains
for Rs.1, 2 and 3 per kg respectively.
- The bill will cost Rs. 1,30,000 crore
as opposed to the current Rs. 90,000
cost of the Food subsidy Bill.
- The food prices (of Rs 1,2 ,3) would be reviewed every three yearsCriticism of the Bill By Shri Sharad Pawar
- He logically asked why would a poor farmer grow wheat and rice when he cold get it for Rs2 & 3, which is below the cost of producing it?
uropean Union backs Italy's ambassador Daniele Mancini
saying that the Indian Supreme Court order violates Vienna Convention
n the mid term review of monetary policy
, RBI raised reduced
the repo rate under Liquidity Adjustment facility
(LAF) by 25 basis points
( 100 basis points = 1 %
) from 7.75% to 7.5%
. RBI has retained
the Cash Reserve Ratio unchanged. Cash Reserve Ratio is the portion of deposits that banks have to mandatorily maintain with the RBI
Analysis:- Why is the RBI reluctant to ease monetary policy?
Because of its concerns about headline inflation
and Current Account Deficit
. Easing monetary policy releases more money
in the market, and increase inflation
. The RBI believes that inflation, especially Food Inflation is partly caused by the Govt's Minimum Support Price Policy increases
. However it has recognized the govt. efforts at fiscal consolidation (no populist announcements in Budget etc.) and hence the easing monetary policy.
*No good deed goes unpunished*