Articles: February 2018

By: Chetan Dalal
Category: Blackmoney, Common citizen, Governance, RBI, India politics, Indian economy
“Our messaging, standards and services connect you to your counterparties worldwide, so you can transact securely and reliably.” So reads the home page of SWIFT, the secure messaging system that has been used by Nirav Modi and his associates within and outside the Punjab National Bank (... read more
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, Governance, Inequality, Global, RBI, India politics, Indian economy, Inclusive growth
The question that must be asked is this: Is our money safe in banks? How and why should Indians believe in anything that is reported by the bank managements, their supervisory boards, regulators and auditors if big bombs like this can be concealed and go unnoticed, ticking away quietly in the... read more
By: Ajit Ranade
Category: Common citizen, Inequality, Taxes, Union Budget, RBI, India politics, Indian economy, Inclusive growth
There are many positive features of the Union Budget presented on February 1. First, there is great expenditure restraint. The total spending is budgeted to be up by 10 per cent even as national nominal income is estimated to rise by more than 11 per cent.  The second positive is a reform... read more
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, Governance, Inequality, Sustainability, Taxes, Union Budget, India politics, Indian economy, Inclusive growth, GST
The Union Budget 2018-19 has in many ways dishonoured prudent fiscal management and thereby has bid goodbye to the idea of fiscal governance. First, the revenue deficit target has been done away with in the proposed new FRBM architecture.  This is a body-blow to one of the biggest reforms that... read more
By: Himadri Bhattacharya
Category: Common citizen, Global, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth
Clearly, in the hierarchy of preference of MPC, the need to support growth and investment ranked higher than the necessity of curbing inflation expectation. Be that as it may, it is doubtful if this decision is consistent with MPC’s objective of achieving medium-term target for CPI between 2% and 6%
By: Usha Thorat
Category: Common citizen, Global, RBI, India politics, Indian economy
The real challenge for debt management will be to ensure that yields are not pushed up unduly, as this would have an impact on borrowing rates all around. The transmission of lower interest rates is usually much slower and an increase in lending rates all around would not augur well for growth.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, Global, Union Budget, RBI, India politics, Indian economy, Inclusive growth
The Monetary Policy Committee (MPC) of the RBI at its last sitting for the current financial year and the first meeting after the Union Budget has decided by a majority vote (5 to 1) to keep the policy repo rate unchanged at six per cent. One member voted to increase the rate by 25 basis point.
By: R Gopalakrishnan
Category: Common citizen, Governance, Taxes, Global, Union Budget, RBI, Jobs, India politics, Indian economy, GST
The Prime Minister now faces a Modi moment. India needs leadership to reach out and honestly attempt a rainbow effect of people policies, irrespective of political parties. To achieve this, we need inclusiveness and accommodation, which can come out of actions as well as body language.
By: Saugata Bhattacharya
Category: Common citizen, Global, Union Budget, RBI, India politics, Indian economy, Inclusive growth, GST
The good news in this is that the synchronised global recovery and the lag in the conservative monetary policy response is likely to make the “risk-on” investor sentiment persist, thereby keeping capital flows to the most attractive global destinations active, and providing risk capital.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, Governance, Taxes, Global, Union Budget, RBI, India politics, Indian economy
If 2017-18 is any guide, there are serious question marks on reaching the budgeted fiscal numbers for 2018-19. This has implications for budget integrity. The finance minister and the government are riding on a budget cart which has broken wheels. Many have said this is an election budget.
By: Dr. K. G. Karmakar
Category: Common citizen, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth
This visionary and reform-oriented Green Budget for 2018-19 was expected to be a populist budget in view of the looming elections in 2019. While the middle-class may feel let down as their personal income taxes have not been considerably reduced, the farmer and his family has reason to cheer.
By: Himadri Bhattacharya
Category: Common citizen, Governance, Taxes, Global, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth, GST
Its rural and social sector proposals, the most attention-catching and hotly-debated of which is the Rs. 5 lakhs a year assistance to 10 crores families for medical treatment, will likely reduce distress and deprivation, and eventually result in higher and balanced economic activity in the country.
By: Dr. Indira Hirway
Category: Common citizen, Governance, Inequality, Taxes, Global, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth
There is no doubt that the budget has come out with several new ideas. However, there are a few questions that need clear answers (1)are the targets given in the budget doable? (2) How will these be implemented? And (3) are the funds allocated to different heads enough to meet their implementation?
By: Usha Thorat
Category: Common citizen, Taxes, Global, Union Budget, RBI, India politics, Indian economy, GST
We are in for difficult times. Tackling the real sector by determined action to complete the implementation of stalled projects, push on infrastructure and further reforms in the power sector are the need of the hour, rather than tweaking fiscal or monetary policy to stimulate growth and employment.
By: Rupa Rege Nitsure
Category: Common citizen, Taxes, Global, Union Budget, RBI, India politics, Indian economy, Inclusive growth, GST
Against the backdrop of India achieving the lowest growth in the past five years in 2017-18 (FY18) and posting a sustained fall in the investment rate since 2011-12 (from 39% to 30.6% of GDP), the government’s decision to take a pause in fiscal consolidation is neither worrisome nor unexpected.
By: Ranjit K Pattnaik
Category: Common citizen, Inequality, Taxes, Global, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth
Investment decline stems from balance sheet stress, making it particularly difficult to reverse. One of the key messages from the Survey is that raising investments is more important than raising savings to reignite growth. The argument thus follows: “The ‘animal spirits’ need to be conjured back.”
By: Jagdish Rattanani
Category: Common citizen, Governance, Taxes, Global, Union Budget, RBI, Jobs, India politics, Indian economy, Inclusive growth, GST
The true import behind today’s exercise lies in the political context and intent, given the string of electoral battles coming up this year and leading on to national elections in 2019, if not earlier. So this will be an election budget and it comes in difficult economic times.