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Economy · 2 stories · About 1 minutePublished 9:40 am IST

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  1. 02EconomyFormer NITI Aayog chief Amitabh Kant proposes statutory liquidity ratio cutReducing the SLR could lower borrowing costs for manufacturers, directly impacting operational expenditures.
  2. 04EconomyBBC reports: Institute for Fiscal Studies warns Iran war risks UK budget plansThis assessment highlights the sensitivity of UK public finance to external geopolitical shocks, suggesting that escalating regional hostilities could force the government to reconsider its current fiscal trajectory and spending priorities.
Economy02 / 07

Former NITI Aayog chief Amitabh Kant proposes statutory liquidity ratio cut

What happened

Former NITI Aayog CEO Amitabh Kant has suggested lowering the statutory liquidity ratio (SLR) to reduce credit costs and support the manufacturing sector. Kant stated that while production-linked incentive schemes provide necessary short-term relief, reducing the overall cost of doing business is essential for long-term growth.

Why it matters

Reducing the SLR could lower borrowing costs for manufacturers, directly impacting operational expenditures. By easing financing constraints, this measure aims to improve capital availability for industrial producers seeking to fund ongoing operations and capacity expansion.

Bigger picture

The proposal highlights a shift in focus from targeted fiscal incentives toward broader structural financial reforms. It underscores a debate over whether specific output-based subsidies or systemic banking adjustments better support long-term industrial competitiveness.

Watch next

Monitor for any formal responses from the Reserve Bank of India or government finance officials regarding potential SLR adjustments.

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Economy04 / 07

BBC reports: Institute for Fiscal Studies warns Iran war risks UK budget plans

File photograph: Fiscal Studies.
File photograph: Fiscal Studies. · Philafrenzy / Wikimedia CommonsCC BY-SA 4.0

What happened

The Institute for Fiscal Studies (IFS) has issued a warning that the ongoing conflict involving Iran poses significant risks to the UK government's spending and budgetary plans, according to a report by the BBC.

Why it matters

This assessment highlights the sensitivity of UK public finance to external geopolitical shocks, suggesting that escalating regional hostilities could force the government to reconsider its current fiscal trajectory and spending priorities.

Bigger picture

The warning underscores the vulnerability of national fiscal strategies to international volatility, illustrating how military conflicts in energy-producing or strategically sensitive regions can directly destabilize domestic economic management and public expenditure frameworks.

Watch next

Monitor upcoming statements from the Treasury regarding fiscal contingencies and any formal adjustments to the Chancellor's budget plans.

Original source
BBC
Edition published 9:40 am IST
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