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.
Contact-less service in hotels & hospitals among 18 recommendations Indian medical tourism industry has sent to Centre as it wants multi-billion dollar sector to reopen.
Bengal has reported 40,209 cases and 1,076 deaths. It’s conducting 6,790 tests per million, while its average positivity rate for the last 7 days is 13.18%.
Emerging from the Covid crisis, the Centre will have to take a fresh approach to reviving growth, re-visiting fiscal balance with states, re-imagining GST etc.
The affidavit was filed in response to a petition by Dr Arushi Jain, challenging the new SOP for healthcare workers that ended the mandatory 14-day quarantine for them.
In April and May, the central govt transferred cash based on tax collection estimates. But with actual collections falling well short, the amount will soon dip.
Expenditure Secretary T.V. Somanathan tells ministries to first check if states have capacity to utilise money, and are not parking it and earning interest.
Once seen as a fading presence on India’s investment & startup picture, the state is slowly moving up the ladder, with policy reforms & infrastructure building.
Agreement signed during 17th Joint Working Group (JWG) on defence cooperation. Defence Secretary Rajesh Kumar Singh met Director General in Israeli Ministry of Defence Amir Baram Tuesday.
This world is being restructured and redrawn by one man, and what’s his power? It’s not his formidable military. It’s trade. With China, it turned on him.
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.