Best of BS Opinion: Accounting gains, games promoters play & more

Here are the best of Business Standard's opinion pieces for Friday

A significantly higher surplus transfer by the Reserve Bank of India (RBI) in the middle of a pandemic when both tax and non-tax revenues are under pressure will definitely help the government. However, in this context, our lead editorial notes that the issue needs to be debated. Government finances are likely to remain under pressure in the medium term. Thus, should the RBI be churning its foreign currency holdings to generate surplus and ease the fiscal pressure? There are limits to the extent such gains can be generated. Additionally, would RBI’s excessive focus on easing fiscal pressure not increase risks to financial stability? Read here

If a promoter knows that he can afford not to repay bank loans and buy back his company in the bankruptcy court at a discount with a reduced debt burden, he has a strong incentive to drive his company aground, writes Shyamal Majumdar

After the epidemic, we will again cater to the interests of the privileged class and keep the underprivileged quiet with handouts, writes Nitin Desai

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“In sum, the deterioration in major fiscal indicators in 2020-21 may be attributed to the pandemic superimposed on a cyclical slowdown in tax revenues and a counter-pandemic fiscal push through higher government expenditure."

Reserve Bank of India