Inflation has made life of ‘common man’ difficult and to control it, fiscal deficit needs to be curtailed, said Nasik’s renowned economist Dr. Vinayak Govilkar during a conference at KTHM College. He was speaking on ‘From where inflation comes and where it goes’ in a conference organized by Commerce Laboratory of college.

Growth rate is not up to expectation, at the same time fiscal deficit is increasing rapidly. It means government is spending more than its income. Foreign investment is being promoted, but this investment should be used for productive purposes than just investment or speculation in share markets. If this happens, inflation will come down significantly. Another important reason for inflation is our imports are more than our exports. International trade imbalance also leads inflation. Demand dominated inflation, deficit dominated inflation, natural calamity and sudden price rises are the types of inflation. Out of this fiscal deficit is major cause of inflation in India. Controlling expenses, more savings, increasing output as well as exports and gross domestic product are some effective ways to overcome inflationary situation, added Dr. Govilkar.

Member of Central Board of Direct Taxes (CBDT), Makarand Mahadeokar also guided the students saying, international accounting standards are considerably changed and these standards will be applicable to around 70000 companies in India from 1st April. Satyam scam which accounted three thousand crores ₹ was possible because of shortcomings in accounting policies and with some transformations on an international level, this kind of scams can be avoided.

HOD Dr. S V Ghumare, D R Patade, Shrikant Jadhav, S Y Salunke and Shveta Mali of KTHM College were also present there.