Our Finance Minister has begged the industralist to curb their profit and to reduce the inflation. Is it the right approach or what else can the government do to curb inflation
2007-03-05 17:13:55 · 9 answers · asked by Lavgan 4 in Social Science ➔ Economics
The demand supply mismatch was the primary source for fuelling inflation. Production of wheat and pulses was way short of demand and in the long term augmenting production and productivity was essential to erase the gap. shortages, particularly in essential commodities, which carry a high weightage in the WPI index, are being blamed for some of the problems. A decline in prices of crude, along with a better than expected crop for wheat and potato, may bring down the price levels.
Government has to relax some taxes and duty on food grains and all types of oils.
2007-03-08 06:39:47 · answer #1 · answered by jitesh kumar 3 · 0⤊ 0⤋
To reduce inflation i strongly believe to RATIONALISE TAX structure tax richer on receipt basis @10 to 20% EXEMPT income upto 3 lacs, open the economy. delete all incentives.Concetrate on big tax evaders ,leave the poor public let them give chance to grow especially middle class salaried persons small businessman.tax big corporate houses on turnover basis,instead of giving tax incentives.let the money flow from top to bottam.tax the AGRICULTURE INCOME on rational basis so that tax evation can be restrictedfrom polititions, beaurocrats,big businessmans who divert major income through this route.these are tough stands but its a real fact which the govt.hesitates to implement knowingly.
2007-03-06 02:37:38 · answer #2 · answered by rakesh g 1 · 0⤊ 0⤋
I don't think this is the right way. May be if i knew the solution i would be the Finance Minister
2007-03-06 02:42:39 · answer #3 · answered by newsundersky 3 · 0⤊ 0⤋
Purchase less and only when in need.
Low demand will force suppliers to reduce rates.
Govt. can not do anything in each and every matter.
Govt. can not punish each businessmen who are very clever.
Every one has a right to sell at any cost.
I have a home. I can sell it for 2 lakh or for 2 crore.
2007-03-06 01:33:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
the produce from rural areas need to be picked up and a proper handling of rural produce to urban areas will certainly reduce inflation and beat the competetion of urban market
2007-03-06 01:47:11 · answer #5 · answered by kunju r 1 · 0⤊ 0⤋
Inflation is directly related to supply and demand. Whenever their is a mismatch in supplies or demand, inflation increases or decreases accordingly.
2007-03-06 01:24:46 · answer #6 · answered by Rahul 3 · 0⤊ 0⤋
inflation will come down in FY"07 itself and fall in FY"09.
2007-03-06 07:49:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
just by producing more food
manufacturing more goods
not by services alno
nor trading alone.
FM has given a request.
next may be a punishing -pl wait-
2007-03-06 01:18:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋
follow thechinas financial policy
2007-03-06 01:24:40 · answer #9 · answered by bapy d 1 · 0⤊ 0⤋