The path towards total privatisation does involve breaking ideological shibboleths that have been built since Independence. At the same time, is it necessary for the government to actually sell stake to get private ethics in
The government can consider issuing bonds for roads or railways as part of the Rs 12 lakh crore programme to retail investors with a simple payoff matrix. Tax-free bonds have resonated well with investors, so too would these
Union Budget 2021 India: Interest payments excluded, the expenditure budgeted for FY22 is slightly lower than FY21 expenditure (RE). So, Bugdet FY22 is not as fiscally expansionary as believed by some
It is hard to have a fool-proof system that cannot be dodged by determined participants. This has happened in banking as well as NBFCs, and having stringent regulation is only one part of the story.
This is where the GDP growth of 15.4% in nominal terms represents as it lays down the base for the Budget as the size of the Budget is linked to this number.
RBI’s calibrated measures will likely be able to address the issue of an increase in demand for funds from both the govt and the private sector in FY22
Union Budget 2021 India: While sectors may want more from the government in terms of policies, there have already been myriad policy announcements since May 2020 for various sectors and hence it would not be realistic to expe
‘Top of the charts’ is the Delhi rondo, with farmers gathered to protest against the farm Bills. Everyone is arguing with everyone else on this issue, and a fairly pragmatic policy put up by the government has now been op
The government is working to deepen the commodity derivatives market—a replica of the MSP system. Farmers, through the FPOs, should be nudged to the exchanges to hedge their risks and move towards a diversified crop base
This book is not just interesting and educative, but could also be used in schools where children must navigate inventions in a rather mundane way. Clearly there are better ways of conveying these stories, and Harford excels
If we are not averse to the concept of RBI deploying excess forex reserves for commercial returns, there are strong grounds for the central bank to explore such options
His America First, anti-immigrant, anti-multilateral fora rhetoric seems to be working at a time when globalisation has failed millions in the US & elsewhere
Farm loan waivers are customised schemes announced by states to help the peasants. The quantum announced is impressive, but the actual amount disbursed is much lower. Further, it gets spread over a period of 2-5 years for a v
The major challenge is to eschew the winner’s curse, and here the laureates argue that the best way out is to place bids below their estimate of the common value
The lockdown affected many businesses in ways that made servicing debt difficult; so, this is a good proposal. Interest subvention for those that made timely payments avoids skewing the playing field and preempts any moral ha
U-shaped or V-shaped or W-shaped recovery is nothing but an optical delight. FY21 will be the one where there was economic destruction, FY22 an apology for a recovery, and we may have to look for real growth only in FY23, ass
The three agri-reforms that have been brought about will be quite positive for the agri-economy, and assurance that the MSP-based procurement system won’t be withdrawn. Of course, if the system works well for farmers, the g
A fiscal stimulus can be considered as being expedient under present conditions as there is no other way out. Growth is something outside our control today, which also means that employment will be a challenge for the rest of