The main agenda of the meeting would be to discuss the ever falling rupee vs the US dollar. The currency has depreciated to about 13 per cent since the beginning of this year. As of now, rupee is Asia’s weakest currency in 2018, down more than 12 per cent on a widening current account deficit and higher oil prices. The Indian currency touching its lifetime low of 72.91 to a dollar, depreciating 12.3 per cent since the beginning of 2018.
According to a report by PTI, Finance Ministry had ruled out any cut in taxes to ease the burden on consumers, saying it does not have the bandwidth to lose any revenue without developmental spending being cut. The government can ill-afford this in an election year.
However, this has given major opposition parties including Congress a chance to criticise the government and they have been asserting that the Centre must cut excise duty as some of the states ruled by them have already announced measures to cut local taxes.
The BJP-led government, on the other hand, has clearly stated that it would not take any decisions in hurry to counter fall of rupee or hike in fuel prices. But a statement from finance ministry yesterday said that the government along with Reserve Bank of India (RBI) will ensure that required measures will be taken to stop the ongoing currency depreciation.