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Leaders of Russia, China, India and Brazil will discuss the reform of international financial institutions at their debut summit on Tuesday in the Russian city of Yekaterinburg.
It said in a statement that the four countries, known by the BRIC acronym, would discuss "prospects for dialogue between the Group of Eight and traditional partners" on reform ahead of the G8 summit in Italy in early July.
BRIC countries want to increase their representation in the IMF, where the majority of quotas are currently controlled by developed nations. They are aiming for an agreement on IMF reforms by January 2011. Russia currently has 2.7 per cent of IMF votes, and is unlikely to see its quota increased even under a proposed reform. China holds 3.7 per cent, Brazil 1.4 per cent and India 1.9 per cent.
BRIC states are trying to strengthen their clout as the producers of 15 per cent of global gross domestic product by building up the grouping into a powerful world player. The Kremlin said the four will issue a communique after the summit.
The four are also among the world's seven biggest holders of international reserves. They have expressed worries about the economic stimulus programs in developed nations, fearing they may threaten their savings by driving up future inflation.
Kremlin foreign policy adviser Sergei Prikhodko said on Sunday that BRIC countries were unlikely to discuss a new reserve currency but the reform of the IMF is closely linked to the currency discussion.
China said it is willing to contribute up to $50 billion to the IMF through a purchase of IMF bonds, non-tradable securities which will likely be denominated in the IMF's Special Drawing Rights (SDRs).
Brazil and Russia said they will buy $10 billion each. The debt issue will boost the role of SDRs in international finance.
The statement said the four will also discuss a response to the economic crisis and exchange views on international policy issues, including regional crises, the fight against terrorism, energy and food security.
BRIC will also discuss further steps aimed at "strengthening collective and legal foundations in global policy." The Kremlin said the communique will "reflect common vision of the current stage of global development."
courtesy economictimes
Monday, June 15, 2009
BRIC's maiden summit to discuss about economic crises
Sunday, June 14, 2009
Plan outlay may swell by Rs 1,00,000 cr in Budget
Plan expenditure may see a quantum jump of about Rs one lakh crore due to likely increased allocation for the UPA's flagship programmes such as NREGA, Bharat Nirman as well as concessional foodgrains to the poor.
This is likely to take total Plan expenditure to Rs 3.85 lakh crore against Rs 2.85 lakh crore in the interim Budget, tabled in February, sources told media.
Higher Plan expenditure may cause increase in the fiscal deficit for 2009-10 to over six per cent of gross domestic product (GDP) from 5.5 per cent projected in the interim budget.
President Pratibha Patil in her address to the joint sitting of Parliament had expressed the government's commitment to flagship schemes including the NREGA and Bharat Nirman, besides food security, among other programmes.
"Ministries have sought more allocation to implement flagship schemes, including social sector programmes and new schemes. This may result in the Plan expenditure pegged at 2.85 lakh crore during the interim budget to swell by about Rs one lakh crore," a source said.
Ministries seeking higher allocation in view of the government's commitment for flagship schemes and strengthening infrastructure include rural development, railways, power, urban development, water resources and human resource development among others, the sources said.
Sector-wise plan allocation for education may go up over Rs 15,000 crore, rural development Rs 4,000 crore, urban development about Rs 4,000 crore, power Rs 8,000 crore and health Rs 4,000 crore.
Tuesday, June 9, 2009
Indian Union Finance budget on July 3rd
Finance Minister Pranab Mukherjee is expected to present the 2009/10 budget on July 3, an official said today.
"Parliament's budget session is proposed from June 29 to August 7 and the budget could be presented on July 3," an official in the Parliamentary Affairs Ministry, who did not wish to be named, told reporters.
He said the Economic Survey, an annual report on the state of economy, was likely to be presented on July 2 and the railways' budget on July 1.
The proposed dates need to cleared by the Cabinet and notified by the President's office, he said.
The government presented an interim budget for the 2009/10 (April/March) year in February ahead of national elections in April and May.
courtsy economictimes
Friday, June 5, 2009
UPA government's Agenda
UPA government has been elected to power for second time in a row and it has huge hurdles to overcome on the path of development of the nation which are clearly top priority of this goverment here are few important issues in UPA government Agenda.
1. Major shift in governance practices :
one, ongoing, independent evaluation and public reporting of progress in implementing government schemes; two, big strides in e-governance; three, decentralisation and empowerment of panchayats and non-government organisations to implement and monitor government schemes; four, breaking barriers between departments and schemes to achieve synergy, integration and better utilisation of existing resources;
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five, innovative regulation of health, education and provision of public services; six, liberal use of technology in welfare transfers and achieving public awareness; and, seven, institutionalisation of the government’s basic commitments by requiring all Cabinet notes to specify how their proposals would enhance the goals of equity or inclusion, innovation and public accountability.
2. Disinvestment, FDI lead reforms roadmap:
The government will push ahead with economic reforms, pursue disinvestment, encourage FDI and increase public spending without giving up fiscal prudence. It will also provide tailor-made booster packages for specific sectors to pull the economy out of the slow lane of growth. “Our immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown by a combination of sectoral and macro-level policies. This must be accompanied by measures to achieve a counter-cyclical expansion in public investment in infrastructure sectors,” President Pratibha Patil said.
Disinvestment of up to 49% in state-run companies will be key to removing those funding constraints. The government will ride piggyback on IPOs by PSUs to offload its shares to public.
3. Zero tolerance for terror :
The second Administrative Reforms Commission (ARC) had earlier recommended UIC for checking illegal immigration and terrorist infiltration. In fact, a pilot project for a Multi-purpose National Identity Card (MNIC) has already been implemented in 13 districts.
“The scheme will be implemented in three years, overseen by an Empowered Group. This will serve the purpose of identification for development programmes and security,” Patil said. According to the ARC, the card is imperative also for delivery of services to citizens. Patil said the government had already prepared a detailed plan to address internal security challenges which would be implemented in a time-bound manner.
4. Food security act :
The government committed itself to coming true on its ‘aam aadmi’ poll agenda with the President promising a national food security Act backed by a new BPL survey which could alter the ambit of those under food schemes.
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While the UPA government has been at work to revamp the method of identifying below poverty line beneficiaries for various social sector programmes, its move to provide 25 kilogrammes of rice or wheat at Rs 3 per kg could heighten the need to redo the list systematically.
5. One rank-one pension report :
After tying itself in knots over the long-standing demand for one rank-one pension (OROP) for armed forces during the run-up to the general elections, the UPA government has promised to resolve the contentious matter by this month-end. President Pratibha Patil said the committee headed by cabinet secretary K M Chandrasekhar had ‘‘already commenced its work and expects to complete it by the end of June 2009’’.
The UPA government, however, is promising only a partial implementation of OROP at best, with the defence ministry acknowledging that full implementation is simply not feasible ‘‘administratively’’.
6. Home stretch for urban poor :
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The government plans to take a slew of measures to uplift the living conditions of the poor in fast-expanding cities. A major thrust on affordable housing is on the cards, President Pratibha Devisingh Patil said. She said the government will propose Rajiv Awas Yojana for slum dwellers and the urban poor on the lines of Indira Awas Yojana for the rural poor.
Over 15-lakh homes are being made for the urban poor. Meanwhile, the housing ministry has asked developers to list the sops they expect from the government for building low-cost houses. The ministry is keen on reviving tax benefits for real estate developers who construct houses for the economically-weaker sections (EWS). The scheme was discontinued last year.
7. Realistic power generation goals :
The government has pared the target for increasing power generation to make it more achievable but that may put paid to its poll promise of making electricity available to all Indians by 2012. By the end of the Eleventh Five Year Plan (2007-12), the government plans to add 52,000 MW new capacity, a 34% drop from the original target of 78,600 MW.
“The effort would be to see that at least 13,000 MW of generating capacity is added each year through a mix of sources—coal, hydel, nuclear and renewables,” President Pratibha Patil said. Total capacity addition in the first two years of the 11th Plan was 12,700 MW, virtually half of the targeted 23,100 MW. The government’s performance was dismal in 2008-09, when a mere 3,500 MW was added, 68% less than the target of 11,061 MW.
8. Women’s quota bill :
Government would hold consultations with all political parties to get around the resistance from the OBC outfits which have held up implementation of the landmark measure insisting on a separate quota for OBCs and Muslims within the larger women’s quota.
9. Right to education law on anvil :
Along with the formulation of a “brain gain” policy, work on the National Council for Higher Education will be initiated in the first 100 days. Other areas of concerted action include enactment of the Right to Free and Compulsory Education Bill, setting up of a National Female Literacy Mission, strengthening of the scholarship and education loan provisions.
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The focus is on higher education. The efforts will not be limited to mere expansion, but reform in the regulatory framework. There is a proposal to attract talent from across the globe — the “brain gain” policy will find expression through 14 new universities that are being set up over the Eleventh Plan period.
Direct tax receipts up by 5.8% in April/May 09
(Direct tax collection updates) - India's April-May direct tax receipts grew by 5.77 per cent from a year earlier to Rs 241.58 billion, the Central Board of Direct Taxes said in a government statement on Friday.
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Corporate tax receipts rose 5.56 per cent to Rs 85.78 billion rupees in the first two months of 2009/10, while income tax collections were up by 5.92 per cent to Rs 155.59 billion, it said.
"Growth during the month of May 2009 was 16.88 per cent at Rs 11,919 crore (119.19 billion) against Rs 10,198 crore, as against a negative growth of 3.19 per cent for the month of April 2009," it added.
Thursday, June 4, 2009
Govt to focus on recession hit sectors says President Pratibha Patil
Presenting the agenda of the second UPA government at the joint session of Parliament, Patil said the new regime will develop a roadmap for listing public sector units, co-ordinate with other countries to bring back illegal money stashed in secret bank accounts, recapitalise public sector banks, and bring in the pension reforms bill.
"The current financial year is expected to see a slowing down of growth on account of the global recession... Our immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown by a combination of sectoral and macro-level policies," she added.
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The new Government, the President said, will focus on sectors like small and medium enterprises (SMEs), exports, textiles, commercial vehicles, infrastructure and housing as they are adversely hit by the global financial meltdown.
The UPA government, the President, said will enact the National Food Security Act to provide 25 kg of rice or wheat at Rs three a kg per month to families below the poverty line, a promise made in the Congress election manifesto.
"This legislation will also be used to bring about broader systemic reforms in the public distribution system," she said.
The immediate priority of the government, Patil said, must be to focus on managing the economy to counter the effect of the global slowdown through a combination of sectoral and macro-level policies.
The efforts, she added, should be accompanied by an expansion of public investment in infrastructure sectors, besides encouraging public-private partnerships.
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"Financing the investment will be a critical constraint and my government is determined to ensure that innovative steps are taken in this area, consistent with medium term strategy of prudent fiscal management," the President said.
Annual inflation at 0.48 per cent on May 23
(May 2009 inflation updates) Wholesale price index rose 0.48 per cent in the 12 months to May 23, lower than previous week's annual rise of 0.61 per cent, government data showed on Thursday.
It was below a median forecast of 0.56 per cent in a poll of analysts. The annual inflation rate was 8.90 per cent during the corresponding week of the previous year
Tuesday, June 2, 2009
$ v/s INR daily updates -June 2009
This post gives daily INR v/s US$ updates for the month of June 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -
PS - the order of each daily entry is as follow:
Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis
RS v/s $ | 48.53 | 0.38 | Up^38 paise wrto $
RS v/s $ | 48.06 | -0.15 | Down(-15) paise
RS v/s $ | 47.91 | -0.15 | Down(-15) paise
June 8/2009 - Rs v/s $ updates
RS v/s $ | 47.08 | 0.08 | Up^8 paise wrto $
RS v/s $ | 47.16 | -0.32 | Down(-32) paise
RS v/s $ | 46.84 | -0.30 | Down(-30) paise
June 2/2009 - Rs v/s $ updates
RS v/s $ | 46.99 | 0.30 | Up^30 paise
No change in retail policy - FDI still not allowed
(2/6/09 Retail policy updates) - Ruling out any "review" of the foreign direct investment policy, Commerce and Industry Minister Anand Sharma has said there are in-built safeguards against FDI finding its way into multi-brand retail and breaching caps in broadcasting and defence production.
Sharma, who took charge of the nodal ministry for FDI on May 29, said there is no need for a relook at the policy amended in February by the Department of Industrial Policy and Promotion (DIPP).
"At this stage, we don't see that the time has come for any comprehensive review . it is too early in the day . we will see how the new policy is working," Sharma told in an interview.
There are safeguards against FDI in sensitive sectors like broadcasting and defence production, while the policy does not allow overseas investment in retail, he said. The "misunderstanding" on FDI being allowed indirectly in multi-brand retail "is not well placed at all", he said.
He said there were "effective, inbuilt safeguards when it comes to the sectoral caps, particularly in those sectors which have been sensitive, and (going) by the new policy those areas remain protected ..."
While the policy does not allow overseas inflow into this sector, the changes in February were perceived to be opening the sector to FDI up to 49 per cent in an Indian firm that has a downstream subsidiary firm in retailing.
Thursday, May 28, 2009
inflation updates - Annual inflation at 0.61 percent
(28/5/09 - Inflation updates) - The wholesale price index rose 0.61 percent in the 12 months to May 16, matching the previous week's annual rise, government data showed today.
It was below a median forecast of 0.74 percent in a Reuters poll of analysts. The annual inflation rate was 8.66 percent during the corresponding week of the previous year.
It may be noted that The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
Wednesday, May 27, 2009
Govt might put an end to Fringe benefit tax this budget
(27/5/09 - FBT updates) - The government is considering a proposal to put an end to fringe benefit tax (FBT) — the tax on all benefits and perks that companies provide to their employees introduced in the 2005-06 Finance Bill — in the coming Union budget, according to revenue officials familiar with the development.
FBT, at Rs 8,000 crore last year, accounted for just over 2% of the total direct tax collection of Rs 3.4 lakh. There is a view that collections from this unpopular tax is too minuscule to worth all the paperwork involved, officials said on condition of anonymity.
From Day One, corporates opposed FBT not just on account of adding to the tax burden, but because of the huge additional paperwork and accounting complications involved in estimating a company’s FBT outgo.
FBT is levied on perquisites provided by the employer to the employee in addition to the regular salary. This is a tax paid by the employer on the benefits or perks that the employee receives. It includes components like the employee’s accommodation, entertainment, travel expenses and phone calls. Later Esop too was brought under the FBT umbrella.
Tuesday, May 26, 2009
Rs v/s $ daily updates - may 09
This post gives daily INR v/s US$ updates for the month of may 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -
PS - the order of each daily entry is as follow:
Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis
RS v/s $ | 47.67 | -0.04 | Down(-0.04) paise
RS v/s $ | 47.63 | -0.41 | Down(-0.41) paise
May 26/2009 - Rs v/s $ updates
RS v/s $ | 47.22 | -0.03 | Down(-0.03) paise
India's crude oil imports dip 12.1 percent
India's crude oil imports fell 12.1 per cent in April on lower buying by private refiners while the nation's fuel consumption was up only marginally despite hectic electioneering during the period.
The Asia's third largest energy consumer imported 9.7 million tonnes of crude oil in April as Essar Oil shut its Vadinar refinery for maintenance, according to the data available from oil ministry. India had imported 11.04 million tonnes of crude oil in April 2008.
Fuel consumption rose 1 per cent to 11.58 million tonnes against 11.47 million tonnes a year ago. Diesel, the most consumed fuel, saw a moderate 4.8 per cent rise to 4.72 million tonnes while petrol sales jumped 7.8 per cent to 1.01 million tonnes.
LPG, naphtha and aviation turbine fuel demand fell. ATF sales was down 3.2 per cent to 3,77,400 tonnes.
Cheaper natural gas replaced naphtha, which saw 39 per cent fall in demand to 292,100 tonnes. Oil product imports was down 11 per cent to 2.17 million tonnes.
Petroleum product exports dipped 37.8 per cent to 1.78 million tonnes in April. Diesel exports was down 26.6 per cent to 781,000 tonnes.
source - pti
Monday, May 25, 2009
Govt finds Rs 1,200 crore in frozen demat accounts
The I-T department has found over Rs 1,200 crore lying unaccounted in lakhs of frozen demat accounts across the country and has sought a detailed probe on the possibility of their use for illegal transaction and tax evasion.
More than 6.5 lakh frozen demat accounts were taken under scanner and investigated by the Income Tax Department in December last year on the suspicion of huge evasion of taxes and 'benami' transactions.
According to official sources, the CCITs have been asked to serve notices to all the account holders and report unclaimed accounts so that such accounts can be seized.
All the I-T Commissioners have also been asked to prepare "detailed reports" on the transactions of these accounts.
Official sources said that distinction between claimed and unclaimed accounts will help the authorities to proceed with further probe or seizure procedures respectively, as these accounts could lead to links to further cases of tax evasions and unreported economic transactions.
Sunday, May 24, 2009
FM meets senior officials to discuss Budget 2009-10
Finance Minister Pranab Mukherjee is understood to have held an informal meeting with the senior officials in the ministry and discussed issues relating to preparation of the Union Budget.
Finance Secretary Ashok Chawla and Chief Economic Advisor Arvind Virmani met Mukherjee at his residence today. Mukherjee is likely to take over the charge tomorrow.
According to official sources, Mukherjee has convened a meeting of senior finance ministry officials tomorrow immediately after assuming office.
Yesterday, after the first meeting of the new Cabinet, Mukherjee had expressed hope that the government would be able to present the Union Budget for the year 2009-10 in due time to avoid uncertainties.
Commenting on the economic scenario, he had said, "Indian economy is resilient, strong and we shall have to build up and come back to the growth track as early as possible. We will be able to, I hope, present the budget in due time so that uncertainties can be avoided and time of spending can be renewed."
Mukherjee, who was given additional charge as Finance Minister earlier this year in the previous UPA government, had presented an interim budget in February and had sought approval from the Parliament for withdrawal of money from the consolidated fund only till July 31.
