Storm in India’s monetary tea cup

The 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 cup

To spend or not to spend

Governments 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 spend

Tamil Nadu needs an economic reboot

Tamil is an ancient language which jostles Sanskrit on antiquity but remains in vibrant, modern use. It is also a cultural identity. Post-Independence, in 1947, the erstwhile Madras Presidency became the Madras State within the Union of India. In 1956, its borders were redrawn to shed the non-Tamil speaking peripheral areas of Andhra Pradesh, Karnataka, […]

Read More Tamil Nadu needs an economic reboot

A bottom up look at the annual budget

Despite 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 budget

Marching alone

One of the realizations, home-spun by Covid in India, is that there is value to “atmanirbharta” (ANB) or self-reliance – the capacity to march alone, if necessary. An admirable attribute except that “aloneness” creeps up silently on you like a habit, difficult to shake off. Looked at more cheerily, it is not so different from […]

Read More Marching alone