While releasing 'India Employment Report 2024', V Anantha Nageswaran said govt can't solve 'all social, economic challenges'. Congress leader Kharge says CEA protecting 'dear leader'.
In an interview with Gulistan News this week, Union Home Minister Amit Shah said the government would leave law and order to J&K Police and slowly withdraw troops.
The ‘idea’ Kejriwal's politics grew around was a no-holds-barred fight against corruption. That is the reason Modi govt has now tarred him and his entire party with the same paint.
The RBI performs many important functions as India’s central bank, but being a profit centre for the government is not one of them. It earns a genuine profit each year, mainly through “ seigniorage “. The fact that it holds genuine reserves – apart from revaluation reserves attributable to its holding of gold and forex, whose increase in value is largely attributable to the continuing loss of the value of the rupee – underlines the fact that before 2013 – 14, it was, like any prudent entity, it was not distributing its entire profit to its sole shareholder, was slowly accumulating a cushion. Transferring everything each year is in itself an unhealthy practice. Hoovering out past accumulations of genuine reserves to meet one preelection year’s compulsions is imprudent, but it pales before dipping into revaluation reserves. 2. The rating agencies know the facts of life as well as the babus of MoF do. India’s sovereign rating has been delicately perched at the lowest investment grade for a long time now. Growth is slowing, the combined fiscal deficit at 6.6% is already too high. Disinvestment targets are increasingly being met by shuffling resources around, depleting the reserves of organisations like ONGC and LIC. Whether this urge to drink more deeply of the RBI’s nectar is meant to dress up the fiscal books or to finance one last surge of populist spending is unclear. Either way, not a happy development. If it happens, the new Governor will not be creating a fine legacy.
Good article
Gr8
The RBI performs many important functions as India’s central bank, but being a profit centre for the government is not one of them. It earns a genuine profit each year, mainly through “ seigniorage “. The fact that it holds genuine reserves – apart from revaluation reserves attributable to its holding of gold and forex, whose increase in value is largely attributable to the continuing loss of the value of the rupee – underlines the fact that before 2013 – 14, it was, like any prudent entity, it was not distributing its entire profit to its sole shareholder, was slowly accumulating a cushion. Transferring everything each year is in itself an unhealthy practice. Hoovering out past accumulations of genuine reserves to meet one preelection year’s compulsions is imprudent, but it pales before dipping into revaluation reserves. 2. The rating agencies know the facts of life as well as the babus of MoF do. India’s sovereign rating has been delicately perched at the lowest investment grade for a long time now. Growth is slowing, the combined fiscal deficit at 6.6% is already too high. Disinvestment targets are increasingly being met by shuffling resources around, depleting the reserves of organisations like ONGC and LIC. Whether this urge to drink more deeply of the RBI’s nectar is meant to dress up the fiscal books or to finance one last surge of populist spending is unclear. Either way, not a happy development. If it happens, the new Governor will not be creating a fine legacy.