PM says Indian economy faced crises very well

Returning home after attending the summits of Shanghai Cooperation Organisation (SCO) and Brazil-Russia-India-China (BRIC), where the global financial crisis was the main theme, Singh said there was a need for reforming the present systems of global governance and international financial system.

He hoped the BRIC would not remain a "talk-shop" and the member countries would work together so that their voice is heard in the global arena.

"We live in times of rapid economic changes when the BRIC economies are a factor of stability and growth," Singh told accompanying journalists while returning from Yekaterinburg in Russia.

"India has borne the global economic crisis well, though we have not been unaffected," he said.

Talking about the BRIC Summit, he said the leaders discussed the need to intensify cooperation among the four nations and international economic downturn and how to prepare for the forthcoming G-8 and G-20 Summits.

G20 Nations agree to trilion dollar financial plan for lifting global economy

G20 summit updates April 2009- World leaders agreed a trillion-dollar deal on Thursday to combat the deepest economic downturn since the Great Depression.

At a G20 summit, they also signed off on plans to commission blacklists of tax havens and tighten financial rules to bring hedge funds and credit rating agencies under closer supervision.

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"This is the day that the world came together, to fight back against the global recession. Not with words but a plan for global recovery and for reform and with a clear timetable," British Prime Minister Gordon Brown, the summit host, said.

World markets reacted positively. The index of top European shares was up 5 percent after Japan's Nikkei gained 4.4 percent. On Wall Street, the Nasdaq was up 4 percent and the Dow Jones 3.6 percent.

Brown said that while there were "no quick fixes," the decisions meant that "we can shorten the recession and we can save jobs."

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French President Nicolas Sarkozy said the results were beyond what could have been imagined.

Addressing a key demand from France and Germany, Brown said the leaders agreed "there will be an end to tax havens that do not transfer information on request. The banking secrecy of the past must come to an end."

He said leaders agreed to commit new resources of 1 trillion dollars that are available to the world economy through the International Monetary Fund and other institutions.

This included 250 billion dollars of IMF reserve units called Special Drawing Rights. "This is available to all IMF members," Brown said. In addition, the IMF would see its own resources tripled, with up to $500 billion of new funds.

The G20 also agreed a trade finance package worth $250 billion over two years to support global trade flows.

posted under - G20 updates, G20 2009, G20 summit updates, economic recession updates, economic crises updates, world economies updates, G20 meeting

Economy Updates - Fiscal deficit at 7.8 pc of GDP

Indian Economy Updates - Including bonds issued to oil and fertiliser companies, the government's fiscal deficit for the year to March is estimated at 4.22 trillion rupees ($84 billion), the minister of state for finance said on Thursday. That equates to a total federal fiscal gap of 7.8 percent of gross domestic product.

Last week, the finance minister said in the budget speech the federal fiscal deficit would rise to 3.27 trillion rupees, or 6 percent of GDP, this financial year, but that did not include the off-balance sheet oil and fertiliser bonds.

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In a written reply to parliament, Pawan Kumar Bansal said a rise in global oil and food prices had lifted the government's subsidy bill, while stimulus packages to shield the economy from the global slump had raised expenditure.

"The fiscal deficit including the liability on account of securities issued during the year to oil marketing companies and fertiliser companies is (4.22 trillion) rupees," he said.

On Tuesday, Standard & Poor's cut its outlook on the country's long-term sovereign credit rating to negative from stable projecting the country's deficit, including off-budget items such as oil and fertiliser bonds, to increase to 11.4 percent in 2008/09, up from 5.7 percent in the previous year.

posted under - fiscal deficit, indian economy blog, economy of india, fiscal deficit updates, indian economy, economy of india, economic recession updates