governance, political economy, institutional development and economic regulation
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 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Read More Indian cities: Victims of outdated political-economy constructsAs July turns into August and the second wave of covid mutants’ wanes, the temptation, after relentlessly fighting the havoc and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 statesTamil 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 rebootDespite 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 budgetDespite 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 foundationsThe Union government has done well to resist being dragged into “bhed-chaal” (following the herd) by blowing up its fiscal balance beyond repair in the hope of a steep economic recovery. The case for continued fiscal rectitude The fiscal deficit (FD) is on track to increase to Rs 12.5 trillion this year. The expected GDP […]
Read More Fiscal rectitude flows from resilient revenuesOne 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
Opinion India 