Food Corporation of India – The Elephant in the Room

The sharp increase in funds allocation to FCI (Food Corporation of India), as projected in the recent Budget, points to a serious deficiency in its operations, indeed, entire food distribution system. Total gap in FCI’s expenditure and receipt is projected to reach Rs 2.5 lakh crore in FY21. More worryingly, there is no solution in … Continue reading Food Corporation of India – The Elephant in the Room
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GDP Growth – Dec’19 Performance Analysis

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’s Challenge – Taxing Digital Giants

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
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Indo-US Relations – Economic & Other Aspects

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
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Towards Better Corporate Governance – Strengthening Audit Framework

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

Extra Budgetary Resources (EBR) – Who Foots the Bill?

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 … Continue reading Extra Budgetary Resources (EBR) – Who Foots the Bill?
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