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Govt will manage inflationary pressures: FM
By agencies
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Friday, 08 April 2005, 19:30 IST
MUMBAI:Finance Minister P Chidambaram today said the government is confident of managing inflationary pressures despite rising crude oil prices.
"RBI and the government are taking necessary steps as we have enough capacity and resilience to withstand the situation", Chidambaram said.
The cabinet will take a decision on hiking petrol and diesel prices after consulting the ministry of petroleum, he added.
On interest rates, he said there is no likelihood of rates going up in the medium term.
The finance minister said state governments must implement VAT as over 130 countries have benefited from such a regime. "Why should India be singled out?" he asked.
He also requested the traders to give up their protest against VAT since "it is an effective tax mechanism."
He said two more states will switch over to VAT from today, and hoped the reluctant ones would also implement the regime soon.