Where will money for such a package come from? Tax revenue & domestic borrowing could fall this year, and India will need to be risk-free to borrow from abroad.
Printing money, a last resort in financing the deficit, can help move resources from those with some existing savings to those with no existing savings.
As the lockdown is eased, the elderly will need to be protected. But India’s young working population, the largest in the world, will be a great asset.
As India prepares exit strategy from lockdown, it must heed Nobel laureate Paul Romer’s words — spending a small percentage of GDP on testing can get big gains.
Social distancing is our best bet against coronavirus, but will sharpen the impact on the world economy. India is better placed than many developing countries.
Govt will need to get both production & consumption back on track quickly after the lockdown is lifted and also have adequate health safety norms in place.
Lockdown will help health system be better prepared, but there’ll be many jobless & destitute. The Rs 1.7 lakh crore package announced Thursday is a start.
Preventing the spread of the coronavirus before it infects more people is critical. If it doesn’t hit the working population badly, the economy will bounce back.
Yes Bank should’ve been overseen by a Resolution Authority, depositors shouldn’t have had to face moratorium. Now SBI or LIC shouldn’t be forced to buy it.
Speaking at an event, the former CEA says he no longer thinks fuel & electricity should be included in GST and added that India has only now, 7 yrs later, reached pre-GST revenue levels.
Ministry of Defence claims 60 percent rise in indigenous defence production in past 5 yrs, attributing it to policy reforms and soaring defence exports.
Changed reality for Modi govt in its 3rd innings is by no means rise of a new phenomenon. It's a return to old normal where even majorities had to routinely wrestle with storied million mutinies.
There are thousands & lakhs of jobs available in rural areas particularly Agriculture. Agri is one area where there is a serious man power shortage. No one ready to work in villages for 4 hours but wanted go to towns and cities to work 12 – 14 hours with same or less wage. Over and above Government schemes and free subsidies with out linking them to productive Agriculture activities further hurting Agriculture and filling the pockets of contractor and local politicians. No body wants to talk about this. Lack of Government support to automation / mechanization of agriculture and false schemes to labors without link agriculture based activities should be focused and corrected
They can drop the massive rs2,00,00,00,00,000 Central-Vista project, recover the money from defaulters strictly rs6,80,00,00,00,000, and postpone buying of pvt jets worth rs80,00,00,00,000. Then the govt will have around 1 lac crore Rupees in hand.
What u consider as sensible is actually insensitive.when u are hurt at four different places and the doctor concentrates on curing two, the only thing that’s going to happen is spread of infection in entire body due to two unattended wounds.There are many sectors which will see 50 to 90% dip in demand.This will cause deflation.once consumer confidence is hit it will take a long period to revive.acting late will put u in coma.Govt is not having plan of action
yes, you have a point here.
The clamor for unlimited printing of notes for social support and stimulus is not rational
It may generate inflation and chaos.
However, gov. needs to bring some scheme so that no body should starve, at least.
This is the minimum, any gov. should do.
At last I hear some sensible talk.
Printing of notes and/ or significant increase in deficit financing will create havoc.
As somebody who depends on Interest earnings (vis-a-vis Govt Pensioners whose Pension is inflation linked), I felt relieved after reading the article.
Excellent well thought out article.The BJP Government at center is not a corrupt as Congress use to be where the ministers and Sonia and her Family would borrow fro IMF and World Bank and pocket large money and keep it in foreign banks.
How naive, brainwashed and foolish, Mr Chohan. Not one fact or truth in your absurd statement.
This is the rainy day prudent housewives save for. The government has already used up most reserves, including with organisations such as LIC and other cash rich PSUs. It needs to support economic activity through a swift, scientific opening up of the economy. If there is a Lakshman Rekha, it should be no printing money. Lower oil prices should be regarded as a huge bonus. The rating agencies should be made firm promises / commitments and we should stick to them. 2. The sensible thing to do would be to start reforms. However, at least so far, the MRI does not show vertebrae made of steel.
While the writer has made a perfect argument for 2013 but has forgotten to consider the variable about policy paralysis in 2013 and political uncertainty due to national elections. They were the main reasons for capital flight.
Secondly by the time the government decides to act or increase the stimulus we may not even have an economy.
Also kindly refer to 1st May article in ET about foreign lending emergency bonds.
I feel the writer has not taken an holistic approach while writing this article and just focused on the basic principles of economics which don’t apply in an emergency or war time situation.
Ma’am does make interesting points. But then what do we do about the jobs? There are job losses, pay cuts which will eat away Savings & incomes…not to mention it can push many below poverty line undoing whatever socioeconomic development we painstakingly built (hunger, school enrollment etc). The govt will have to provide wage support or any support it can to firms (small and also big like those in aviation) and households. These are truly testing times and ma’am makes a case for calibrated small boosters at best. But i am sure we can hammer out something to provide stimulus.
I have so finance problem I have small scale industries no subsidi I have give to subsidi Call urgent Modi Sir
I have so finance problem I have small scale industries no subsidi I have give to subsidi Call urgent
Call urgent
Govt should give another moratorium for loans instead of giving free package.
This will reduce cash burden of firms and it should be made compulsory to pay 50% wages to employees and workers.
There are thousands & lakhs of jobs available in rural areas particularly Agriculture. Agri is one area where there is a serious man power shortage. No one ready to work in villages for 4 hours but wanted go to towns and cities to work 12 – 14 hours with same or less wage. Over and above Government schemes and free subsidies with out linking them to productive Agriculture activities further hurting Agriculture and filling the pockets of contractor and local politicians. No body wants to talk about this. Lack of Government support to automation / mechanization of agriculture and false schemes to labors without link agriculture based activities should be focused and corrected
They can drop the massive rs2,00,00,00,00,000 Central-Vista project, recover the money from defaulters strictly rs6,80,00,00,00,000, and postpone buying of pvt jets worth rs80,00,00,00,000. Then the govt will have around 1 lac crore Rupees in hand.
What u consider as sensible is actually insensitive.when u are hurt at four different places and the doctor concentrates on curing two, the only thing that’s going to happen is spread of infection in entire body due to two unattended wounds.There are many sectors which will see 50 to 90% dip in demand.This will cause deflation.once consumer confidence is hit it will take a long period to revive.acting late will put u in coma.Govt is not having plan of action
Good and constructive suggestion.
Large fiscal push should be avoided to help middle class from eroding the value of their savings, especially of those from private sector.
yes, you have a point here.
The clamor for unlimited printing of notes for social support and stimulus is not rational
It may generate inflation and chaos.
However, gov. needs to bring some scheme so that no body should starve, at least.
This is the minimum, any gov. should do.
At last I hear some sensible talk.
Printing of notes and/ or significant increase in deficit financing will create havoc.
As somebody who depends on Interest earnings (vis-a-vis Govt Pensioners whose Pension is inflation linked), I felt relieved after reading the article.
Excellent well thought out article.The BJP Government at center is not a corrupt as Congress use to be where the ministers and Sonia and her Family would borrow fro IMF and World Bank and pocket large money and keep it in foreign banks.
How naive, brainwashed and foolish, Mr Chohan. Not one fact or truth in your absurd statement.
This is the rainy day prudent housewives save for. The government has already used up most reserves, including with organisations such as LIC and other cash rich PSUs. It needs to support economic activity through a swift, scientific opening up of the economy. If there is a Lakshman Rekha, it should be no printing money. Lower oil prices should be regarded as a huge bonus. The rating agencies should be made firm promises / commitments and we should stick to them. 2. The sensible thing to do would be to start reforms. However, at least so far, the MRI does not show vertebrae made of steel.
While the writer has made a perfect argument for 2013 but has forgotten to consider the variable about policy paralysis in 2013 and political uncertainty due to national elections. They were the main reasons for capital flight.
Secondly by the time the government decides to act or increase the stimulus we may not even have an economy.
Also kindly refer to 1st May article in ET about foreign lending emergency bonds.
I feel the writer has not taken an holistic approach while writing this article and just focused on the basic principles of economics which don’t apply in an emergency or war time situation.
Ma’am does make interesting points. But then what do we do about the jobs? There are job losses, pay cuts which will eat away Savings & incomes…not to mention it can push many below poverty line undoing whatever socioeconomic development we painstakingly built (hunger, school enrollment etc). The govt will have to provide wage support or any support it can to firms (small and also big like those in aviation) and households. These are truly testing times and ma’am makes a case for calibrated small boosters at best. But i am sure we can hammer out something to provide stimulus.