Cost of borrowing will go up if foreign lenders mistrust India’s budget estimates, off-budget borrowing or fear payment could be delayed to achieve annual targets.
India is losing the fiscal plot with bureaucrats trying to marshal resources by squeezing taxpayers, foreign investors, firms planning buybacks and even the RBI.
Nirmala Sitharaman announces a series of steps to raise tax revenues, including a surcharge on the super rich and a hike in excise duty and cess on fuel.
The Budget is upon us and so are terms such as revenue deficit, fiscal expansion & Public Sector Borrowing Requirement. Here's a dictionary to unscramble them.
Compassion and cohabitation with animals are ingrained in the Indian value system. A humane solution must be found for the rising conflict between man and free-range animals.
New bill aims to fix key issues with IBC 2016, including delays & patchy implementation, and protect creditors, with window for genuine promoters to retain control of their companies.
Putin sees this as a victory. Europeans have decided to deal with Trump on his terms for the sake of the larger Western alliance. We look at the lessons for us in India.
Jai modiji…we just trust you..know well cant change the spoiled roots within few years..55 years no one talk about all these. .nehru plus Italy family knowhow to use Indians
Growth in economy needs big push.. agreed. But it cannot be achieved by growth within. If you keep increasing the taxes, it will be never ending story. That is the reason, Modi tried to bring in more tax payers in the net and the collections have gone up 3 times in the past 5 years. What was not done since ages cannot be fixed in short tenure. Do we need to borrow? Yes, if we have leverage, why not? Ila talks about India is heavily borrowed country. Another Rajanomics, without much substance.
Except in election speeches – perhaps not even then, from responsible candidates and major parties – there should be a sense of gravitas when talking about big numbers. Where did this figure of 100 lac crores come from ? Has it been assembled from a bottom up building up of an inventory of viable, bankable projects in different domains of infrastructure ? What would be the cost of servicing $ 1.5 trillion, in foreign currency, to the extent it is sourced from abroad ? Do Indian construction companies – one stranded in Lavasa – have the execution capabilities to do these projects in five years, and would they be able to borrow from banks to handle such a large volume of turnover ? We should study the development of China’s High Speed Rail network after 2008 to get a sense of how world class infrastructure gets created.
Whether bold, audacious, venturesome, one cannot say. To some it would appear a little imprudent, exposing India to an open sea where so far the sovereign has operated in a completely closed lagoon. The sovereign rating has been poised just above Junk for a long time. There is no safety cushion. The rupee has been depreciating almost continuously, reflecting both permanent merchandise trade deficits and a rate of inflation that is higher than in the West. It is not as if vast pools of domestic and global capital lie before a selective, cost conscious government that can pick and choose. Even small savings are now being hoovered out. Whether it is growth – fastest in the world – or the ‘ glide path ‘ to a lower fiscal deficit, the reliability of the official data itself is universally questioned. The markets have not welcomed the Budget, which contains provisions that are out of step with global best practices. Shutting down MoF to accredited journalists creates a sense of unease. How we see ourselves and how the world’s rich investors / pools of long term capital see us need harmonisation.
Jai modiji…we just trust you..know well cant change the spoiled roots within few years..55 years no one talk about all these. .nehru plus Italy family knowhow to use Indians
Growth in economy needs big push.. agreed. But it cannot be achieved by growth within. If you keep increasing the taxes, it will be never ending story. That is the reason, Modi tried to bring in more tax payers in the net and the collections have gone up 3 times in the past 5 years. What was not done since ages cannot be fixed in short tenure. Do we need to borrow? Yes, if we have leverage, why not? Ila talks about India is heavily borrowed country. Another Rajanomics, without much substance.
Borrowing is not bold, earning enough and borrowing is bold.
Except in election speeches – perhaps not even then, from responsible candidates and major parties – there should be a sense of gravitas when talking about big numbers. Where did this figure of 100 lac crores come from ? Has it been assembled from a bottom up building up of an inventory of viable, bankable projects in different domains of infrastructure ? What would be the cost of servicing $ 1.5 trillion, in foreign currency, to the extent it is sourced from abroad ? Do Indian construction companies – one stranded in Lavasa – have the execution capabilities to do these projects in five years, and would they be able to borrow from banks to handle such a large volume of turnover ? We should study the development of China’s High Speed Rail network after 2008 to get a sense of how world class infrastructure gets created.
Whether bold, audacious, venturesome, one cannot say. To some it would appear a little imprudent, exposing India to an open sea where so far the sovereign has operated in a completely closed lagoon. The sovereign rating has been poised just above Junk for a long time. There is no safety cushion. The rupee has been depreciating almost continuously, reflecting both permanent merchandise trade deficits and a rate of inflation that is higher than in the West. It is not as if vast pools of domestic and global capital lie before a selective, cost conscious government that can pick and choose. Even small savings are now being hoovered out. Whether it is growth – fastest in the world – or the ‘ glide path ‘ to a lower fiscal deficit, the reliability of the official data itself is universally questioned. The markets have not welcomed the Budget, which contains provisions that are out of step with global best practices. Shutting down MoF to accredited journalists creates a sense of unease. How we see ourselves and how the world’s rich investors / pools of long term capital see us need harmonisation.