governance, political economy, institutional development and economic regulation
Finance Ministers have an uncanny way of figuring out what makes the fish bite and neutralizes the sceptics. Nicely rounded words in the budget speech – like phonetic “quick wins” – come in handy to send the roosters crowing a new Dawn. A three pronged paradigm shift in the budget? FM Sitharaman’s salad dressing for […]
Read More Budgetary provisions matter more than the speechDespite the hoopla around the Union government’s Budget, for citizens, allocations in their state budgets matter more. Nearly two-thirds of total government expenditure is done by states and for capex, this could be even higher (FY 2020-21 BE data). Union FM primus inter pares Twenty-eight states and eight Union Territories share the enlarged pie at […]
Read More A bottom up look at the annual budgetSenior BJP leader Uma Bharati’s first reaction to the terrible news of the Chamoli glacier break/avalanche disaster on Sunday — “I told you so” – resonates with the reservations of all those who put a higher value on conservation than on the development of natural resources for economic growth. On Sunday, a part of the […]
Read More Playing with God’s worldThere is a fun-side to budgets beyond the dreary boredom of the data and pedantic truisms bandied about. The lightest side of the budget this year, were capital receipts from disinvestment (code for under-the-radar privatization) which at 85% below budget outclassed, for the “back bencher award”, revenue receipts, which only shrank – like cooked methi (Fenugreek)- to […]
Read More Budgetary #funstuff- “never befores” for 2022On the eve of the 2021-22 budget presentation, Finance Minister Nirmala Sitharaman has clearly earned her spurs just two years into the job. A coordinated collection tax effort revives revenue receipts in Q3 Despite the economy being somewhere between 15 to 8% below last year’s level all through Q3 (October to December) this year, cumulative […]
Read More FM Sitharaman earns her spurs raising expectations sky highDespite receipts being 18% lower than even last year till November, largely because of the yawning gap against the aggressive budget estimate for disinvestment receipts (Rs 2,1 trillion), the Union government did well to spend almost 5% more than last year by enhancing borrowing. This is in the best traditions of trying to keep the […]
Read More Budget for hope, build resilient foundationsDespite the hoopla around this year’s annual budget, it is unlikely to be a stunning display of “clever accounting” catering to all whilst pleasing none. Nor is it likely to strew goodies all around. Challenges abound The need is to spell out hard fiscal decisions. The list of challenges is long. The interest burden consumes […]
Read More No room for extravagance in 2021-22 budgetParenting is a thankless job except when your child flashes you an admiring look of appreciation and love or envelopes you in a warm, spontaneous hug. But most of the time, you — the parent — are under scrutiny, by your children, your parents and relatives, society and indeed the law — with everyone expecting […]
Read More C-virus funk? Relax and respect the kids“When you are down and out, on the streets and evening falls hard”, say songwriter Paul Simon and singer Art Garfunkel, friends appear magically like a bridge across troubled waters. That is exactly what 2021 needs to be for the entire world today. A magical bridge across which lies a shinning, clean, healthy and happy […]
Read More 2021 – A bridge across troubled watersEpisodes of fiscal stress are unpleasant. But, like war, they are necessary to separate the wheat from the chaff in governments expenditure profile. The growing overhang of debt servicing This year interest payments account for 89% of the budgeted fiscal deficit. The accumulated debt was incurred not to finance infrastructure or enhance investments. It is […]
Read More FM plays Shylock with steely grit