Articles: February 2017

By: Ranjit K Pattnaik, Jagdish Rattanani
Category: RBI, Indian economy
Dr. Acharya minces no words in describing the problem staring at the banks and the economy; he speaks of “a certain sense of urgency”, of consequences as “pernicious”, of being “at the crossroads” and of festering wounds that “could result in amputation of healthier parts of the economy”
By: Ajit Ranade
Category: Jobs, Indian economy, Inclusive growth
As we worry about capital formation, we must remember that the greatest reward will come from investing in our human resources. Human capital is not just an instrumental view of human beings as a resource for the economy, but also as an integral part of a robust democracy and flourishing society.
By: Arun Maira
Category: Common citizen, India politics, Inclusive growth
For two decades, business executives have been chasing the ball to produce more shareholder value and create higher stock market valuations. Though there were a few voices reminding them of the other sorts of values they should protect, those voices were drowned in the hoof-beats of the herd.
By: Saugata Bhattacharya
Category: Union Budget, RBI, India politics
Under the given circumstances, both domestic and global, the Budget was the best possible. It has opted for a capex push, with revenue expenditures scaled back. Whether higher revenues permit these spends without the usual scale back remains to be seen. The Budget has a wide canvas to work on.
By: Ajit Ranade
Category: Common citizen, India politics, Inclusive growth
Economic reforms must urgently address these twin challenges: that the country’s demographic ratio has peaked and the growth dividend must be quickly encashed. And the stark intra-country divergence in the ratio and demographic imbalance should be addressed by suitable labour policies and reforms.
By: Bishwajit Bhattacharyya
Category: Common citizen, India politics, Indian economy
It is not at all clear as to how enmeshing the Railway Budget and discontinuing plan and non-plan expenditure would facilitate optimal allocation of resources. Another disturbing aspect is the ever swelling debt situation of the Government of India. The fiscal situation is far from rosy!
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Union Budget, RBI, India politics
The perception that the predominance of cash in the economy makes it possible for the people to evade their taxes does not hold much water. There are many gaps between the cup and the lip. One may hasten to comment that the structural weaknesses of tax administration pre dominate the tax system.
By: Rupa Rege Nitsure
Category: Union Budget, India politics, Indian economy
In line with our expectations, the Union Budget-2017-18 has focused on active economic stabilisation, given the backdrop of economic slowdown intensified by demonetisation. A large increase of 25.4% in Capital Expenditure reflects the government’s intent to reinvigorate the growth cycle.
By: Usha Thorat
Category: Common citizen, India politics, Inclusive growth
Last year the Budget used CSO’s advance estimate that is not yet available for 2017-18. Moreover, the CSO has revised upward the GDP growth for last year. In light of this, the assumption of 11.75 per cent GDP growth may be optimistic. Would this alter any of the calculations for the fiscal ratios?