Indian economy’s growth for the quarter ended Dec’19, as per the data released by MOSPI today, presents a complex picture. GDP growth is marginally better than initial estimates of Sept’19 quarter giving reason to believe that economy has bottomed out. However, there is a catch. Growth for previous two quarters has been adjusted upwards by as much as 0.5 percentage points, which makes this another quarter of growth decline. (What if this quarter also sees an upward revision later?). Whichever way it is approached, it is clear that economy is still in distress and recovery, if at all it has begun, would be a slow and long drawn one. Here is a look at the details of what is pulling it down. Continue reading GDP Growth – Dec’19 Performance Analysis
OECD (Organisation for Economic Co-operation and Development) is engaged in, possibly, the most complicated task in its history. And the task is – how to make the new age, digital companies pay fair share of their taxes. More importantly, how to apportion it to countries which are contributing to these company’s revenues. The OECD task … Continue reading OECD’s Challenge – Taxing Digital Giants
The visit by the US president, the fifth successive (including two visits by Barack Obama) in last twenty years contrasts with only three visits by US president during 1950-1999. Even though India is a marginal player economically, it has successfully established itself as a responsible democracy and an intellectual powerhouse, earning for itself a unique … Continue reading Indo-US Relations – Economic & Other Aspects
The decision by two of the top audit firms not to take non-audit work for their audit clients, is the culmination of regulatory efforts to improve the standard of corporate governance. However, the immediate trigger is a discussion paper, floated by MCA (Ministry of Corporate Affairs), which proposes a variety of measures to make audit procedures more independent. Here is a look at the issues raised and proposals suggested by the paper. Continue reading Towards Better Corporate Governance – Strengthening Audit Framework
The AGR (Adjusted Gross Revenue) woes has come back to haunt the telecom companies with the Supreme Court refusing to grant any relief to the companies. While Airtel appears reasonably well placed, things looks quite tough for Vodafone Idea. Here is a look at the company, its financials and why things could be tough for … Continue reading Vodafone Idea – Braving the AGR Crisis…
A term being deliberated upon a great deal after this year’s budget is “extra budgetary resources (EBR)”. Essentially, it is an accounting adjustment which helps government take some of its expenses off the annual budget and thus, show a lower deficit. So, what exactly is EBR, how government gets it and how it helps. Here is a look. Continue reading Extra Budgetary Resources (EBR) – Who Foots the Bill?
Real estate sector is among the most hit and most talked about sector amidst the current slowdown. However, property prices haven’t corrected sufficiently despite the stress across all the affected segments, banks, NBFCs and the developers themselves. The stalemate has forced the Economic Survey to advise developers to take a ‘hair-cut’ to revive the market. … Continue reading Real Estate Sector – Down but Not Out!
The first and the most important figure economists and all analysts look at while analyzing the budget is the fiscal deficit (FD) as a percent of GDP. For FY20, FD has been revised up sharply from 3.3% to 3.8%, a result of significantly lower revenue mop-up. For FY21 also, it is projected to remain high … Continue reading Understanding Deficit Terminologies
Against total receipt of Rs 22.4 lakh crore, government is projected to spend nearly Rs 30.4 lakh crore in FY21. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. Here is a look at the details of various government expenses. Government’s expenditure classification is possibly … Continue reading Budget – Revenue & Expenditure Analysis (Part II)
The Budget proposal for year 2020-21 projects total expenditure of Rs 30.4 lakh crore against receipt of Rs 22.4 lakh crore. This implies shortfall of Rs 8.0 lakh crore corresponding to 3.5% of projected GDP. For 2019-20, budget has been off the mark by a huge margin, with fiscal deficit estimated to be 3.8% of GDP … Continue reading Budget – Revenue & Expenditure Analysis (Part I)