Governor of the Reserve Bank of India, RBI Mr Subbarao said that April inflation figure of 8.66% is still too high ( Times of India, May 18 ). The figure for February was 8.31% but has been raised to 9.54% while that for March has been raised to 9% from 8.98%. The RBI is hopelessly behind the curve even though it has raised interest rates 9 times since March 2010. It started with rising food prices last year after a poor monsoon in 2009 but has now spread to the rest of the economy because the the government, led by the World Famous Economist, was boasting of high growth rates and predicting 9% growth. Petrol prices have been raised by Rs 5 last week to Rs 65 a lit and diesel and cooking gas prices will also have to be raised adding to inflationary pressures. Any idiot would say that inflation is being fueled by astronomical rises in property prices and indirect taxes being raised by various states. Delhi lost billions of rupees in the Commonwealth Games scam and is desperate to raise money. Tamil Nadu already has debts of Rs 1 trillion but Ms Jayalalitha, the newly elected Chief Minister, has already announced 35 kilos of free rice for the poor, Rs 50000 marriage present for women and a free mangalsutra . This has clearly been done without any thought of balancing the budget. Bengal has a debt of Rs 2 trillion. Meanwhile the RBI has asked banks to increase provision for bad loans from 10% to 15%. Bad loans are those that have been non performing for 1 year. Ordinary people in India never default on housing loans because half the amount is paid in cash. The bank probably foresees speculators and property developers defaulting. Nice mess.