Instead of cancelling MPLADS funds for 2 years, Centre should ask MPs to dovetail expenses exclusively for immediate healthcare
There is a strong case for reallocating MPLADS funds. But can we think of a compromise which allows money to be spent on the pandemic but at the same time not making the MP irrelevant to his/her constituency?
Coronavirus Outbreak: RBI firefights COVID-19 impact on economy, seeks to improve flow of credit but threat of rising NPAs real
While the broader goal of inflation management will run the background, the attempt here is to ensure that the slowdown in growth process which is a certainty now is contained.
Coronavirus Outbreak: How a prolonged shutdown will affect India’s salaried class, jobs, farm production, manufacturing
The government sector has been one of the drivers of the economy but will have to change track this year.
There are measures announced in the Budget which help to facilitate business, especially SMEs which is useful
Economic Survey 2020: Growth projection of 6-6.5% looks reasonable in current scenario; effort should be there to garner revenue on tax front
The Economic Survey is also quite a votary of disinvestment and the view held is that there should be exits by the government in non-critical areas.
Capex injects funds directly into the spending stream and is hence superior to even direct cash transfers where the action of the beneficiary can never be guessed accurately
At the time of the first simultaneous OMO announced, the 10-year yield was 6.75 percent and after the two rounds of Operation Twist has come down to 6.51 percent.
Demonetisation 3rd anniversary: Banning high-value notes failed to meet objectives, but digitisation may check black money generation
The defenders argued that demonetisation would help digitise the economy and make future black money generation difficult as there would be an audit trail all the time.
Nirmala Sitharaman's support for realty indicates Narendra Modi govt's willingness to get into micro details to revive growth in other sectors
The present decision to open a new window for finance is hence quite timely and should address to a large extent the woes of the real estate segment
Bank exposure to real estate as of March 2019 was Rs 2.2 lakh crore, but overall credit to the NBFCs stood at Rs 6.8 lakh crore.
RBI cuts repo rate by 25 bps to 5.15%: Central bank goes with the tide but reduction in interest rate cannot ensure pick-up in credit
The most important takeaway from the RBI policy statement is the revision in GDP growth number from 6.9% to 6.1% for FY20
MPC will definitely go for a rate cut, but will it turn around slowing investment cycle and spur demand?
The MPC is officially supposed to target CPI inflation which remains in the comfort zone of 3-3.2 percent which is less than the 4 percent benchmark
Cutting taxes not an effective remedy to accelerate slow economy in short-term, households should focus on higher spending
Cutting taxes has the same fiscal impact but takes time to work out as it is conditional on companies investing part of the gains.
New FDI norms: Investment should be driven by domestic private sector; manufacturing must get priority in fund infusion
The framework also allows 100 percent FDI in all coal activity which is good for the users to the extent that investment flows in which can reduce cost and increase availability.
RBI windfall of Rs 1.76 lakh cr surplus to Centre supports deficit, offers a permanent avenue to raise resources
The government will get a bonanza of around Rs 86,000 crore over and above the budgetary provision of Rs 90,000 crore from the RBI
The most positive aspect of the economic slowdown in the country is that there is official acceptance that something is amiss
US Fed rate cut: Need to be watchful on forex side if it is beginning of further interest reductions
Another interpretation provided is that the rate cut has more to do with preventing any slippage in the GDP growth and hence is a preemptory measure invoked keeping the future in mind.
From a market standpoint, sovereign bonds will mean more volatility in the markets.
Also, the PSBs have taken up technology quite well with core banking now virtually omnipresent. Employee efficiency too has improved and comparable with that in private banks.