Making RBI the issuing authority will ensure that the Centre won’t enjoy the sole discretion on information use, which is possible now with SBI being the issuing authority For long, widespread use of black or unaccounted money in elections has been the fountainhead of corruption. Fighting elections — be it a Member of Parliament (MP) or Member of the Legislative Assembly (MLA) or any other elected body — costs huge sums which a candidate/political party is unable to garner. Businessmen and industrialists (even other entities engaged in undesirable activities) exploit this vulnerability of candidates and political parties to give contributions, expecting good returns, either by way of favourable policies or support in other forms such as award of contracts and so on....
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Category: Economic outlook
Bail out to all and sundry – road to disaster
The banks – mostly public sector banks [PSBs] – are relentlessly fighting a battle to deal with unsustainable levels of non-performing assets [NPAs] those were caused by ‘indiscriminate’ lending [with hardly any or no ‘due diligence’ which is a fundamental requirement for funding any project] mostly to corporate sector particularly during a decade under erstwhile UPA – dispensation [2004-2014]. While, NPAs have declined significantly from the peak level reached as on March 31, 2018 [courtesy, a massive dose of recapitalization by the union government of over Rs 300,000 crore during the last 5 years as also rigorous governance norms including putting some of them under prompt corrective action framework], the stress is far from over. This is in view of...
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Digital Revolution – challenges and way forward
Having missed the first and second industrial revolution of 19th century and early 20th century respectively [courtesy subjugation of India to colonial rulers of those times] and even the third technology-driven revolution [this one was primarily due to the ‘protectionist’ and ‘inward looking’ policies which were not conducive to embracing technology], India is now in the forefront of the fourth industrial revolution – a digitally driven. The digital revolution is the shift from mechanical and analogue electronic technology to digital electronics which began anywhere from the late 50s to the late 1970s with the adoption and proliferation of digital-computers and digital record keeping that continues to the present day. The last five years have seen massive proliferation of affordable mobile...
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Growth hit by ‘fear’ and ‘distrust’ – really!
In the wake of further deceleration in GDP [gross domestic product] growth to 4.5% during the second quarter ending September 30, 2019 on top of a low of 5% during first quarter ending June 30, 2019, the former Prime Minister, Dr Manmohan Singh has launched a virulent attack on Modi – government squarely blaming the latter for what he terms as ‘disastrous policies’ and creating a palpable climate of ‘fear’ and ‘distrust’ in our society. While, delivering his valedictory address at the national conclave on economy organized by the New Delhi based Rajiv Gandhi Institute for Contemporary Studies, Dr Singh observed:- “There is a palpable climate of fear in our society today. Many industrialists tell me they live in fear...
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A scandalous waste
Successive Governments have reiterated their unflinching commitment to rationalise subsidies and reduce the unsustainable burden they put on the country’s Budget, yet they have failed to do so Millions of people (including many undeserving ones) are getting a variety of subsidies from the Central Government and States. These cost crores, impairing the ability of the Centre and States to rein in fiscal deficit (excess of total expenditure over total revenue) within the range mandated under the Fiscal Responsibility and Budget Management (FRBM) Act. These subsidies are administered in an “ad-hoc” and “arbitrary” manner and this leads to misallocation of resources, promotes inefficiency in production, distribution and use, encourages misuse and diversion of funds and makes way for controls. Successive Governments,...
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Electoral Bond Scheme – the ‘transparency’ puzzle
For long, widespread use of black or unaccounted money [income on which tax has not been paid or even money generated from dubious sources] in elections has been considered to be the fountainhead of corruption. Fighting elections – be it member of parliament or member of legislative assembly or any other elected body – costs huge sums which a candidate [or the party on whose ticket he/she is contesting] is unable to garner on his/her own. Businessmen and industrialists [even other entities engaged in undesirable activities] exploit this vulnerability of candidates and political parties to give contributions expecting favors in return – under quid pro quo arrangement – either by way of favorable policies or favors in other forms such...
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Too little and a little too late
The Govt has put a moratorium on pending spectrum payments for telecoms without altering the overall timeline of clearing all dues by 2030-31. But, given the huge amount to be paid, this won’t be of much help Vodafone Idea Limited (VIL) — a joint venture between UK-based Vodafone and KM Birla-owned Idea Cellular — and Bharti Airtel have reported a staggering loss of Rs 51,000 crore and Rs 23,000 crore respectively for the second quarter of the current financial year ending September 30, 2019. This is primarily due to a recent order of the Supreme Court (SC) directing telecom companies to give “unpaid” dues towards licence fee and spectrum usage charges (SUC). The order is the culmination of a long-drawn court...
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Giving push to second generation reforms
A section of the commentators is always on the prowl looking for the slightest opportunity to lambast Modi – dispensation irrespective of the state of the economy. During the first four years of its first term i.e. 2014-15 to 2017-18 when GDP [gross domestic product] figures were promising, they blamed the government for fabricating data. But, when the numbers were not so promising as during 2018-19 and first half of current year, they target it for allegedly doing great damage to the economy, loss of jobs and income earning opportunities. Unfortunately, in this blame game that gets hyper-publicity in the media, some of the transformative reforms undertaken by this government – reforms that will have lasting effect for generations in...
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Telecom industry – heading towards monopoly
Vodafone Idea Limited [VIL] – a joint venture [JV] between UK based multinational Vodafone and Kumar Mangalam Birla owned Idea Cellular – and Bharti Airtel have reported a staggering loss of Rs 51,000 crore and Rs 23,000 crore respectively for the second quarter of current financial year ending September 30, 2019. This is primarily due to a recent order of the Supreme Court [SC] directing telecom companies to pay ‘unpaid’ dues to the Government of India [GOI] towards license fee and spectrum usage charges [SUC]. The order is the culmination of a long-drawn court battle between the department of telecommunication [DoT] and service providers with the former insisting that for determining the license fee and SUC charged as a percentage of adjusted...
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E-commerce majors – punish only if they break rule-book
The Confederation of All India Traders [CAIT] [it represents millions of small traders who are not only a major source of employment but also is a constituency which Modi – dispensation can’t afford to ignore from a political perspective] has complained to the government that global e-commerce majors viz. Amazon, Flipkart are giving huge discounts, selling exclusive brands [including their own] and controlling inventory of sellers etc – all of which is prohibited under the extant policy on foreign direct investment [FDI]. Promising action, the minister for commerce and industry, Piyush Goyal has already ordered collection of data on their financials, business model and operating practices. Meanwhile, it is necessary to analyze whether the FDI rules are really being flouted....
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