Just in:
2024 Lok Sabha Election Is A Historic Battle Against The Advent Of Fascism In India // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // Study: Stainless steel circular economy significantly reduces the risk of climate change in Thailand // Ajman Celebrates Conclusion of Ramadan Activities with Grand Ceremony // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Sunshine’s Debut Features Leave Tech World Scratching Its Head // Lisboeta Macau’s world first LINE FRIENDS PRESENTS CASA DE AMIGO and BROWN & FRIENDS CAFE & BISTRO has officially opened // HSBC Streamlines Gold Investment for Hong Kong Residents with Tokenized Product // The World’s First & Wettest Party: “S2O Hong Kong Songkran Music Festival” proudly returns Get an immersive water and music experience on 8-9 June during Dragon Boat Festival long weekend at Central Harbourfront Event Space! // Superland Announced Annual Results for 2023, 2023 Net Profit Increased approximately 39.5% to approximately HK$22.2 million as Compared to the 2022 Adjusted One // Employer Obligations Tighten: 30-Day Deadline for Emirati Employee Registration with GPSSA // Near Miss at Kolkata Airport: IndiGo Plane Makes Contact with Stationary Air India Express // Experts come together to support updating the city’s nature conservation masterplan // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // Renewables Surge Sets Record, But Global Equity Lags // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Universal Language for Healthcare: General Authority Embraces Global Coding System //
HomeColumnsAgendaModi resists populism for a sensible policy option

Modi resists populism for a sensible policy option

agenda by k raveendran|By K Raveendran| India has raised tax rates on petrol and diesel, taking advantage of falling oil prices to bolster government revenues, which will help Narendra Modi’s government to tough fiscal deficit targets.

The move has disappointed even the most ardent Modi fans, who would have expected the government to take advantage of the falling oil prices to reduce retail prices of petrol and diesel. But a deeper examination of the issue reveals that Modi may have resisted the appeal of a populist move to opt for a more prudent alternative.

In fact, the Modi government has followed other similarly placed economies, including China, which have used the opportunity to raise fuel taxes while some others such as Indonesia have selected the easier option of cutting subsidies.

ADVERTISEMENT

Observers point out how higher fuel taxes constitute a sensible fiscal strategy as it raises revenue, encourages energy efficiency and, in the longer term, help the overall economy.

India spends some $23 billion a year on subsidising petrol and diesel, a major part of which goes to the benefit of the wealthy. Cheaper fuel, for all practical purposes, end up subsidizing the middle and upper classes, who can afford to pay higher prices.

So, the Modi government can be credited with a pragmatic as well as sensible move, irrespective of the immediate negative reaction

ADVERTISEMENT

ADVERTISEMENT
Just in:
Emirates Post Speeds Up Deliveries for GCC with Special Day // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // Experts come together to support updating the city’s nature conservation masterplan // Universal Language for Healthcare: General Authority Embraces Global Coding System // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // Sunshine’s Debut Features Leave Tech World Scratching Its Head // The World’s First & Wettest Party: “S2O Hong Kong Songkran Music Festival” proudly returns Get an immersive water and music experience on 8-9 June during Dragon Boat Festival long weekend at Central Harbourfront Event Space! // Hong Kong Seen Granting Mainland Investors Access to Crypto via ETFs // Employer Obligations Tighten: 30-Day Deadline for Emirati Employee Registration with GPSSA // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Near Miss at Kolkata Airport: IndiGo Plane Makes Contact with Stationary Air India Express // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // 2024 Lok Sabha Election Is A Historic Battle Against The Advent Of Fascism In India // Party Nominees Refusing To Contest: Major Perception Threat For BJP // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // AI Boost for Galaxy Devices: Samsung Expands One UI 6.1 Update // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // Renewables Surge Sets Record, But Global Equity Lags //