Since general government debt will rise regardless of who borrows for GST compensation, a plan to move to a sustained borrowing trajectory should be made.
If patients wish to change a healthcare provider, they have to carry pieces of paper. NDHM envisions changing that by digitally storing their health records.
RBI has accepted bankers’ demand for one-time loan restructuring instead of extending the moratorium as a way of countering the impact of the Covid-19 pandemic.
Central govt has removed numerous restrictions in various sectors of the Indian economy, and unlike the 1991 liberalisation, states have also chipped in.
With gradual resumption of supply chains, inflation may come down. Data has also been limited by the lockdown, so the MPC should wait before changing rates.
There have always been questions over who controls cooperative banks in India, states or the Centre. The ordinance empowers RBI to intervene in failing banks.
If the reason why PSU privatisation is politically challenging is that the people are swayed by emotional arguments, then it is incumbent on the government to work on its communication
TeamLease’s Manish Sabharwal spoke to ThePrint about how political leaders, for the sake of winning elections, make big welfare-related promises without a proper plan to fund them.
The rocket is comparable to Space X’s Falcon 9 and has been independently developed by Space Pioneer, which has emerged as China’s leading commercial player in the space industry.
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.
if states borrow, they have to pay the interest which centre will not compensate, hence the disadvantage to states. why not just increase limit of investment under small savings ( post office savings, PPF, kisan patra etc, but do not increase limit under Sec80C). Retired people who do not have pension and other weaker sections will be benefited . Also some part of this collection goes to centre, major part to the collecting state.
Not a convincing argument. If the states go to the market to borrow, interest rates, nevertheless, will go up. The spreads states pay over and above the sovereign federal debt benchmark will also go up; differently for different states. The yields on central government bonds too will also rise in sympathy. Moreover, not all states will be able to borrow. Some will, many may not. This opens up a political minefield. Given the political polarisation, the centre is more likely than not be supportive (by making phone calls to put pressure on the banks – who are the main investors) of the borrowing program of the states partisan to itself leaving the other states in the lurch. Under the public debt act, the centre is as much liable for the borrowings by the states. The centre being the senior partner, it should tale an accommodative stance and borrow in tandem with the states, not shove the onus on states under the pretext of (i) saving its ammunition for its own borrowing program and (ii) not disturbing the benchmark rates in the system by pushing up interest rates in the system. As it is, the interest rate transmission mechanism in India is faulty. The centre’s insistence on the ‘states going first’ will be disastrous.
How do you expect any wise decision when you have a finance minister this dumb….
if states borrow, they have to pay the interest which centre will not compensate, hence the disadvantage to states. why not just increase limit of investment under small savings ( post office savings, PPF, kisan patra etc, but do not increase limit under Sec80C). Retired people who do not have pension and other weaker sections will be benefited . Also some part of this collection goes to centre, major part to the collecting state.
Not a convincing argument. If the states go to the market to borrow, interest rates, nevertheless, will go up. The spreads states pay over and above the sovereign federal debt benchmark will also go up; differently for different states. The yields on central government bonds too will also rise in sympathy. Moreover, not all states will be able to borrow. Some will, many may not. This opens up a political minefield. Given the political polarisation, the centre is more likely than not be supportive (by making phone calls to put pressure on the banks – who are the main investors) of the borrowing program of the states partisan to itself leaving the other states in the lurch. Under the public debt act, the centre is as much liable for the borrowings by the states. The centre being the senior partner, it should tale an accommodative stance and borrow in tandem with the states, not shove the onus on states under the pretext of (i) saving its ammunition for its own borrowing program and (ii) not disturbing the benchmark rates in the system by pushing up interest rates in the system. As it is, the interest rate transmission mechanism in India is faulty. The centre’s insistence on the ‘states going first’ will be disastrous.