Tagged: fiscal deficit

Strong fundamentals of Indian Economy


Please see the total debt , interest and principal payments by the Government of India . Still do you think that we can pull this country out of the mess under the UPA ? We need radical changes

As per data made available by the Ministry of Finance on debt vide RTI dated 13th May 2013 letter dated AAAD/COORD/ L(1)2012;  AS ON 31/12/2012

Government Loans :

Total multilateral debt is INR 2,401,829,740,367

Total bilateral debt is INR 1,046,418,091,740

Total Government loans ( multi-lateral and bilateral ) is INR 3,448,247,832,107

Non – Government loans

Multi-lateral INR 302,495,682,321

Bilateral INR 190,240,677,456

Total Non-governmental Multilateral & Bilateral loans  – INR 492,736,359, 778

Grand total ( Government & Non-Government ) 3,940,984,191,885

Total yearly payments of interests & principal

2011-12                                     2012-13 ( 01.04.12 – 31.12.2012)   Figures in 1000 INR

Interest                 2425686378                                 2028398390

Principal               34823428250                               24641868095

 

 

 

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Budget 2013-14


I am not an economist , so in case, my predictions go wrong ( so far, i have not been wrong on a single occasion ), i do have an option to take refuge in my lack of educational qualifications in the Economic theory unlike the proficient doctors of economics do at PM’s office , Planning Commission & the Finance ministry …..

My belief is that in 2013-14;

1. This Government will struggle to revive growth

2. Inflation ‘might’ ( 50 % chances ) come down a bit , as consumption story of India will go down

3. Manufacturing sector will slow down

4. Fiscal deficit will increase, and might create a balance of payments problem , or the Government will open more avenues for FDI ( or bend to the demands of the industrialists )

5. Tax collections will go down

6. Divestment target will not be met under the current situation unless some more ‘targets’ are divested

7. India might face a ‘security threat’ before the next elections

8. Investor confidence cannot be revived due to ‘Governance deficit’ and ‘Scamful’ Government at the centre .

Also, you can expect this Government to come out with injecting ‘Oxytocin’ in the economy as mentioned in my earlier blog ….. but this will be a short-term story, and will further dent the strength of the economy

Overall, not a good omen for job seekers and this nation . Hopefully, this will be the last budget for Congress

Rajendra Pratap Gupta

http://www.commonmansblog.com

Auction of Spectrum fails


Auction of Spectrum fails

The attempt of the UPA Government to raise Rs. 40,000 cr via spectrum auction failed  . I had written in detail in October 2012 about the same …… The UPA’s failure is becoming so predictable now ………even for a layman like me !

Read in the link pasted above how the Government has killed the Telecom sector 

Shoot first ( without an aim ) ……principle of the Government


Centre for Participatory Democracy

With the UID scheme involving a Rs 5,000 crore rollout in the initial stage, now, it was felt the proposal be subjected to a more detailed examination by a GoM ! Can you imagine how the public money is being spent without having clarity ?  This is not just a blatant loot of the public money , but a plunder more brutal than what Mughals did !  On one side , we have 300 million starving , one the other side , this Government is throwing away the money on its whims and fancies in the name of a common man ?

The Cabinet discussion on Thursday ( 31st January 2013) revealed that , the ministerial panel was not immune from contradictory and blurred perceptions about Aadhaar, as UID is known, with some ministers saying they had received a card along with a number.

Confusion over whether the unique identity number is a number, a card or both, and concerns over UID and the National Population Register duplicating functions prompted the Cabinet to refer UPA-2’s ambitious project to a group of ministers.

Differences persisted as concern was also expressed over duplication or overlap between the National Population Register (NPR) and the UID. Both processes involve a similar collection of biometric data including iris scans.

And this is being done after spending thousands of crores of the hard-earned money, when we have a dangerous levels of external debt and fiscal deficit ?   Why have we not converted NPR into UID ?

This Government follows the principle ‘Shoot without a target’ in the name of the common man.

Most of the Government schemes have been executed with no end in sight and this is what is faulty with the Government .

Time to question this Government

Rajendra Pratap Gupta

http://www.commonmansblog.com

Is Indian Government lying to the world about its fiscal condition ?


Last week , i was in Delhi and met up with two friends who gave me shocking news .

One friend works as a vendor to Ministry of Defence ( MOD ). He informed that the MOD is not in a position to pay for the orders already placed as there is no money available .Always, MOD was flush with funds , and this is happening for the first time in history

Also, a senior official of the Ministry of Health informed that , they are planning with money ! This means that there is no money with the ministry but meetings with regards to planning are going on

Corroborating these two meetings with RBI’s news ( dated 5th Nov , 2011)  that , RBI  cannot pay interest on CRR. I am afraid if India has already fallen off the fiscal cliff !

News web link is http://articles.economictimes.indiatimes.com/2012-11-05/news/34925243_1_reserve-ratio-percentage-of-deposits-banks-finance-ministry

By the way, Indian Government is borrowing at the rate of 1.5 lac rupees per second to run the Government this year . Nothing more to write . I believe that the Government owes an explanation