The deficit widened to 3.34 trillion rupees ($40.18 billion) as on Jan. 23, nearly tripling from the start of the month, data from the Reserve Bank of India (RBI) showed.
The RBI suggested in a December 2023 report that with GST impacting ‘vertical fiscal imbalance’, states should consider collecting additional taxes under the head ‘States’ Own Tax Revenue’.
Firms have seen losses because of tax imposed in 2022 on crypto assets & uncertainty amid unfriendly regulations. They are, however, hoping for a policy shift in upcoming Budget.
Central banker remains guarded over use of virtual currencies. US markets regulator has allowed firms to issue certain instruments on US stock exchanges that track Bitcoin.
RBI Governor Das highlighted benefits of central bank digital currencies, or e-rupee in India’s case, and said it is working on ‘programmability’ of e-rupee to enable cash transfers.
Govt, RBI term IMF’s exchange rate re-classification as arbitrary. They also disagree with its assertion that India’s general govt debt-GDP ratio could exceed 100% of GDP in medium term.
The RBI claims its cloud facility will boost the security & integrity of financial sector data. But why is a central bank competing with private players that are already in the market?
With predatory digital lending practices drawing attention, it’s crucial to look at the funding and regulatory environment within which the sector operates.
RBI has made it more costly to lend & borrow unsecured loans. One reason is financial risk these loans can pose, while another is harassment of borrowers by recovery agents.
Urban consumers are more optimistic about current economic conditions, while those in rural India are more so about expectations of 1-yr ahead income, economic & business environment.
While global corporations setting up GCCs in India continue to express confidence in availability of skilled AI engineers, the panel argued that India’s real challenge lies elsewhere.
Without a Congress revival, there can be no challenge to the BJP pan-nationally. Modi’s party is growing, and almost entirely at the cost of the Congress.
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