| Author | Message | ||
     Kamal Hero Username: Kamal Post Number: 12364 Registered: 08-2009 Posted From: 130.36.62.140 Rating: N/A |
} Deficit is something that could not be managed by all finance ministers including MMS .. and NDA finance ministers .. and thats the reason we are languishing at 6.9% GDP and if we also include the deficits of the states .. it is going to reach an astonishing 12.4% (like it or not, we have to include deficits of the states as well .. ) Now what are the chances that deficit will be controlled unlike previous years and whats the guarantee that next years budget will not have same promises repeated? Looks like this summer oil is going to reach astronomical heights again .. and India and the world might again have to bear the brunt ! Ofcourse, this is on the back of whatever little financial knowledge I have and I do not claim to be an expert ! "Each nation has an identity and destiny. As far as Bharat is concerned, Hindu is its identity and religion is its way of working" - Swami Vivekananda "Embracing Islam or Christianity would have meant going away from the cultural soil of India, which I do not wish to do." - Dr. B.R. Ambedkar | ||
| Getafix Side Hero Username: Getafix Post Number: 5810 Registered: 02-2008 Posted From: 159.127.66.112 Rating: N/A |
Bloomberg seems to have different opinion about India and its deficits. S&P upgraded India 's debt outlook to stable. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a8.ZD msLMEuE Pranab has already raised urea prices and is planning to cut fertlizer subsidies, as per the article. | ||
| Kamal Hero Username: Kamal Post Number: 12363 Registered: 08-2009 Posted From: 130.36.62.140 Rating: N/A |
Well .. kind of true .. though I am no big financial expert .. there were not many ambitious programs taken up after 2002 except for playing on the backfoot due to 3 consecutive years of drought .. unlike 1999 when the "Golden Quadrilateral" was launched along with financial reforms like tax reforms .. "Each nation has an identity and destiny. As far as Bharat is concerned, Hindu is its identity and religion is its way of working" - Swami Vivekananda "Embracing Islam or Christianity would have meant going away from the cultural soil of India, which I do not wish to do." - Dr. B.R. Ambedkar | ||
| Scallion Side Hero Username: Scallion Post Number: 3422 Registered: 05-2009 Posted From: 206.123.17.17 Rating: N/A |
Deeni meedha nee opinion petu if possible.... Jai NTR, Jai Jai TDP | ||
| Kamal Hero Username: Kamal Post Number: 12362 Registered: 08-2009 Posted From: 130.36.62.140 Rating: N/A |
God bless .. we have MMS as PM, Chidambaram (ex-FM) as Home and Pranab as FM and they compared them to "Trimurti" in the govt .. lol .. "Each nation has an identity and destiny. As far as Bharat is concerned, Hindu is its identity and religion is its way of working" - Swami Vivekananda "Embracing Islam or Christianity would have meant going away from the cultural soil of India, which I do not wish to do." - Dr. B.R. Ambedkar | ||
| Scallion Side Hero Username: Scallion Post Number: 3421 Registered: 05-2009 Posted From: 206.123.17.17 Rating: N/A |
India's top officials are increasingly self-congratulatory about the country's growth trajectory. Last month the Finance Ministry issued a report stating that India could overtake China to become the world's fastest growing economy within four years. Minister Pranab Mukherjee foresees double-digit growth "in the very near future." But amid all the triumphalism, no one in New Delhi seems to be focusing on just how sustainable—or not—that growth will prove. That's probably because, like the rest of Asia, India experienced rapid expansion for years on the back of the Federal Reserve's easy money policies, which inflated the global economy and saw capital pour into the Asia-Pacific region. The 2002-08 boom in India had little to do with fresh action from New Delhi, which used the upswing to run up notable deficits and spread the wealth around with generous cash payouts to the poor. But with booms come busts. The Federal Reserve is still running easy money policies, but the U.S. economy is sluggish, as is Europe. Without those engines of growth—and no discernible economic reforms of its own—it will be hard for India to repeat the previous decade's performance. There are already signs of a slowdown. By the government's own tally, real GDP growth slipped to 6.0% for the October to December quarter, versus 6.2% the previous year. The failure to move back toward the pre-financial crisis pace has been dismissed as due to a weak monsoon and other transient factors, with a return to 9% growth portrayed as around the corner. It is at least as likely that 9% growth will prove transient. New Delhi is struggling to meet its commitments. In its February budget presentation, the Congress Party-led government pledged to cut its deficit to a still hefty 5.5% of GDP. This is supposed to be accomplished on the back of revenue gains from a faster economy. But the government promised the exact same thing last year, and the deficit reached 6.9% of GDP. Persistent budget deficits cloud the prospects of a generation of rapid growth, as interest burdens rise and the government has to raise taxes or debt to fund it. There is also harm in the here and now: The Reserve Bank has been forced by record government borrowing to maintain exceptionally loose monetary conditions, or risk choking off private credit. This has allowed inflation to move into the 9% range in barely a year. Last week's rate hike by the Reserve Bank is welcome but tightening probably started too late. Monetary authorities have little leeway given the Congress Party's demands for both high growth and cheap deficit financing. Congress isn't helping by sticking to a program of populist handouts, despite the fiscal constraints. Scheduled tax overhauls have been delayed and diluted, with the government again reduced to cries of "next year." Food imports have soared despite hideously expensive fertilizer subsidies. Congress claims growth will motor ahead on a surge of public infrastructure spending. Technically, that might be true: Government spending on infrastructure automatically adds to current GDP. But the future returns are likely to be dismal. Public infrastructure programs almost always exceed both schedules and budgets, and many are never completed. Further, foreign companies have voted with their feet on commercial value. Wholly-owned foreign infrastructure projects are permitted, and incentives have been offered. But the foreign share of much-touted public-private infrastructure partnerships is negligible. It was not infrastructure spending that moved India beyond the "Hindu rate of growth." The way to achieve durable expansion is to repeat the 1991 big-bank reforms: liberalize, liberalize, liberalize. But for now, the Congress-led government is headed in the wrong direction, and slowly taking the shine off of India's economic miracle. http://online.wsj.com/article/SB1000142405274870377550457513 6761316818470.html?mod=WSJ_Opinion_LEFTTopBucket Jai NTR, Jai Jai TDP |
