governance, political economy, institutional development and economic regulation
In India, the Union government takes on a much broader fiscal mandate than is necessary. Some of this is driven by the constitutional allocation of tax mandates, which favor tax flows to the Union government. Nearly 20 per cent, on an average, of a state government’s revenue flows in a “waterfall arrangement” from the Centre […]
Read More Indian Economy: Reading the Tea LeavesOur garden is full of goodies come and get what you need. This is what Finance Minister Sitharaman conveyed to the people (and voters) of India in her 2023-24 budget speech. Adding to the ever deepening gift bag that the Modi administration has held out to voters since 2015, the budget not only slashed income […]
Read More Budget Bounties 2023-24Growth is slowing in India. In July to September this year there were six major economies- Malaysia, Greece, Philippines, Israel, Colombia, Argentina (The Economist December 1) with growth higher than the 6.3 percent India achieved in the April to September quarter of this fiscal. Growth by year end is unlikely to be vastly different. Is […]
Read More Indian Economy between A Rock and A Hard spaceElections are to democracy what financial markets are to the economy. Elections channel the flow of political power, from the people to the government via political parties, which act like asset management companies in financial markets, enhancing market contestability and assuring stability. The absence of an omnibus law to regulate elections and political parties in […]
Read More Regulating Political Parties and Opaque Election FinanceAfter inflation levels off, hopefully in the first quarter of the next fiscal year, after the Ukraine crisis becomes dormant, yet again, through exhaustion or accommodation (as in 2014) and thinking beyond the growing domestic political contestation, as India prepares for the quinquennial national electoral contest in April 2024, the problem of low growth is […]
Read More India: Export for GrowthThe Reserve Bank of India-led Monetary Policy Committee (MPC) brewed a storm in a teacup by continuing its accommodative monetary policy stance—retaining the Repo rate (the cost of borrowing from the RBI) at 4 percent and the Reverse Repo (the cost of depositing funds with the RBI) at 3.35 percent. The MPC is a device, initiated in […]
Read More Storm in India’s monetary tea cupGovernments are habitually profligate and gladly eat into an ever-larger share of GDP growth. The United States, the richest, big country in 1990, spent 40.6 percent of GDP on government expenditure. By 2011 its government was spending even more at 43.7 percent of the GDP. Countries which went in the opposite direction were rare- such as […]
Read More To spend or not to spendIn late June this year, Reliance Industries announced a US $10 billion investment for the production and use of hydrogen (H2). H2 is a colourless gas physically. But in the race to Net Zero Carbon, it comes in multiple colours, each representing a specific process. The many colors of H2 Grey is the cheapest at US […]
Read More If data is the new oil is hydrogen the new gas?Livability in a city, over the past 18 months is strongly influenced by the extent of the ravages unleashed by the COVID-19 virus. The Economist Intelligence Unit’s (EIU) annual survey done in February 2021, “The Livability Index”, focuses on the pandemic’s impact on city rankings. It is a relief that no Indian city is in […]
Read More Indian cities: Victims of outdated political-economy constructsAs July turns into August and the second wave of covid mutants’ wanes, the temptation, after relentlessly fighting the havoc and mayhem of the last financial year, will be for government to enjoy a well-deserved rest. This would be a costly mistake. Now is the time for top decision makers to define a sustainable fiscal […]
Read More A direct-tax league table can energize revenue receipts across states
Opinion India 