Give RBI inflation target to contain prices: The Economic Survey
Farmers should be allowed to sell their products directly in the markets
New Delhi: In order to bring down prices, RBI should be given an inflation target and farmers allowed to sell their products directly in the markets, according to the Economic Survey 2013-14.
“The government must ensure low inflation by putting in place a framework for monetary policy, fiscal consolidation, and food market reforms,” said the Economic Survey 2013-14 tabled in the Parliament on Wednesday.
It said that lower inflationary expectations would increase domestic household savings and make resources available for investment. “There is need for a formal monetary policy framework through which the RBI is given clarity of objective and operational autonomy in pursuit of that target,” said the Economic Survey.
Re-work regulatory powers
Calling for a re-examination of all laws that empower government to interfere in markets, the Economic Survey on Wednesday said regulators should be given only “limited powers.”
“The biggest challenge is improving state capacity suitable for a market-based economy. A long term, careful and systematic effort is required for undertaking institutional change,” the government said. Stating that agenda of removing inappropriate Centre interventions is incomplete, the government said it was important to focus on the second generation reforms.