Presentation On Fiscal and Monetary Policy in India
Presentation On Fiscal and Monetary Policy in India
Presentation On Fiscal and Monetary Policy in India
POLICY IN INDIA
Presentation by-
RBI Government
❖ BANK RATE
❖ CASH RESERVE RATIO
❖ STATUTORY LIQUIDITY RATIO
❖ REPO RATE
❖ REVERSE REPO RATE
6 BANK RATE
CRR LIQUIDITY
SLR
The Statutory Liquidity Ratio (SLR) refers to
the proportion of deposits the
commercial bank is required to maintain
with them in the form of liquid assets.
EXPANSIONARY CONTRACTIONARY
MONETARY POLICY MONETARY POLICY
DEFICIT POLICY
PUBLIC EXPENDITURE
TAXATION POLICY
PUBLIC DEBT
DEFICIT POLICY
17
• Deficit Financing refers to financing the budgetary deficit.
• Budgetary deficit here means excess of government expenditure
over government income. It means “Taking loans from reserve bank
of India by the government to meet the budgetary deficit” .
• Reserve bank gives loans by issuing new currency notes. Increase in
money supply leads to fall in value of money. Fall in value of money
in turn leads to increase in price level. So deficit financing should be
kept low asit leads toprice rise in economy.
• Thus due to deficit financing necessary funds are made available for
economic Growth and on the other inflation of country increases.
• India’s fiscal deficit goal i.e. 3.3% of the GDP for the year 2018-19 faces
risk from high crude oil prices and pressure on the government to spend
more before next elections. Fiscal deficit target of 3.5% was met in the
year 2017-18.
PUBLIC EXPENDITUTRE
18
EXPANSIONARY FISCAL
FISCAL POLICY CONSOLIDATION