Business Daily from THE HINDU group of publications
Wednesday, Jan 31, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Jan 31, 2007 ePaper |
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Opinion
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Letters Inflation control
The constant increase in printed notes supply and the excess requirement of working capital due to processes and legacy issues are two elements that need to be tackled head-on to rein in inflation. The slack money in the system in the form of credit at various stages is increasingly pushing up the cost to the consumer and sucking in more credit for achieving the same output. An alternative will be to incentivise the use of money for shorter periods. This has to be through a policy initiative and will signal better management of working capital limits. Given the fact that most of the receivables are linked to Central and State governments, the Finance Ministry would do well to seek a review of the outstanding payments — the Government's `Sundry Creditors List' — and devise methods to settle the same within reasonable limits. This must be addressed if the accelerated growth of recent years is to be sustained. Balakrishnan. V
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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