Finance Minister P. Chidambaram’s obsession with “we are still
the second fastest growing economy in the world” seems to growing with every
passing day. Despite being reminded by many observers that this not only
irrelevant but also factually incorrect. Nevertheless, the tendency to blame
the economic troubles on the global challenges and sheltering behind this
‘second fastest’ argument is growing.
Yesterday, FM promised a whole lot of measures to tackle the
problems of rising CAD, falling INR, slowing growth. He also promised that he
will deliver all this without compromising on fiscal deficit targets. He made
the following promises. We leave it to you how much you want to believe.
·
We have succeeded in containing fiscal deficit
and look forward to a growth rate between 5.5 - 6%.
·
Will ease long term External Commercial
Borrowings
·
Will tackle both deficits; red lines will not be
breached
·
Expect to fully finance CAD; will not draw into
reserves
·
Have provided additional funds -- Rs 2,000 crore
to boost exports
·
Will take steps to up inflows; ask PSBs to
invest
·
Will ease long term external commercial
borrowing
·
Looking at some measures to attract long term
external borrowings. Propose to liberalise overseas
borrowing norms
·
Looking at measures to up NRI investment
·
Some import compression will take place on
luxury goods
·
June - July gold imports down on year basis.
Hope to contain gold imports well below last year’s
aggregate
·
Sovereign bond issue an option but won't rush
into it
·
Will provide more money for subsidies, if needed
·
Expect Agriculture growth to be better than last
year
·
Industrial sector presents a mixed picture
·
No reason to doubt revenue target
·
PSU balance sheets strong enough to issue
overseas bonds
·
Govt, RBI on same page to contain forex
volatility
·
Core inflation at lowest level in many years
·
Every economy in the world is challenged
·
All banks with NRI Accounts to be allowed to
raise funds abroad
·
FDI in Multi Brand Retail will come in once
cabinet takes a decision
·
Must address issues related to Safe Harbour
Rules; Will be out by August 7
·
Must do everything possible to improve exports
·
Will urge banks to provide Agri loans in excess
of Rs 7 lakh a year (BS)
Thought for the day
“He who has a why to live can bear almost any how.”
- Friedrich Nietzsche (1844-1900)
Word of the day
Residuum (n):
The residue, remainder, or rest of something.
(Source: Dictionary.com)
Shri Nārada Uvāca
Let’s become The United States of India with 50 states and some administrated regions or union territories.
At least some more people will be able to fulfill their aspirations of becoming Governor, Chief Minister, Deputy Chief Minister, Chief Secretary, State Party President, Leader of Opposition, Chief Justice etc. etc.!
No comments:
Post a Comment