The Prime Mini-ster’s Economic Advisory Council chairman, Dr C. Rangarajan, on Tuesday said that inflation level has reached an uncomfortable level and the RBI need to step in to prevent it from further rising.
“Inflation rate has reached uncomfortable levels. Therefore, some action is called for. It is for the Reserve Bank of India (RBI) to decide on the timing. But, some action is called for,” Dr Rangarajan told reporters on the sidelines of a function at the University of Hyderabad here on Tuesday.
“I think fiscal deficit could be somewhat low than what was projected,” he said when asked if there is any case for a lower fiscal deficit in the backdrop of the huge additional revenue from the 3G and broadband spectrum auctions.
Dr Rangarajan was earlier honoured with an honorary doctorate by the University of Hyderabad. The honorary degree was present by the Vice-President, Mr M. Hamid Ansari. Governor Mr ESL Narasimhan and chairman of scientific advisory committee to the Union Cabinet, Dr R. Chidambaram, who is also the chancellor of university, were present.
Speaking on the occasion, Dr Rangarajan said, “Idealism without ambition may not achieve much but ambition without idealism is dangerous. Youth is full of idealism and ambition but may you combine both in the right proportion.”