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Archive for the tag “Finance minister”

India’s Got A Reputation Problem

India's Finance Minister and Arun Jaitley speaking at the launch of the India Post Payments Bank branches in New Delhi on January 30, 2017. Photo: PIB

India’s Finance Minister Arun Jaitley speaking in New Delhi on January 30, 2017. Photo: PIB

One of the least enviable jobs in the world at the moment has to be that of Indian finance minister. Arun Jaitley will present his fourth annual budget to India’s Parliament on Wednesday amid terrible headwinds — mostly caused by his government’s bewildering and disruptive decision to invalidate 86 percent of India’s currency last November.

Read Here – Bloomberg

India Seen Curbing Widest BRIC Budget Gap to Boost Rate-Cut Room: Bloomberg

India’s government may curb spending growth in the budget tomorrow to pare the widest fiscal deficit in major emerging nations, seeking to boost the central bank’s scope to reduce interest rates as the economy falters. Finance Minister Palaniappan Chidambaram will keep deficit goals set in October of 4.8 percent of gross domestic product for the year through March 2014 and 5.3 percent in 2012-2013, Goldman Sachs Group Inc. and Credit Suisse Group AG said.

Is India Doing Enough to Charm The Market?

MARGARET THATCHER said that you cannot buck the market. But if the experience of India’s government over the last few months is anything to go by, you can charm the pants off it. My e-mail inbox is overflowing with missives from the finance ministry that promise a bounce in the economy, assert a step change in investor sentiment, deny there is a bad debt problem in the banking system and promise a stable tax regime.

That love bomb is a huge change compared with 2011 and the first half of 2012, when the ministry nearly prompted a financial crisis by imposing retrospective taxes on foreign companies, terrifying equity investors with confusing rules and missing its borrowing forecasts. Everything changed in September when the government, led by a new finance minister, Palaniappan Chidambaram (pictured), proposed a mini-package of reforms. Since then he has been a one man source of animal spirits—expressing optimism even while conditions on the ground remain somewhat depressed.

Read Here – The Economist

Euro zone, IMF reach deal on cutting long-term Greek debt

Euro zone finance ministers and the International Monetary Fund clinched agreement on a new debt target for Greece on Monday in a breakthrough towards releasing an urgently needed tranche of loans to the near-bankrupt economy, officials said.

After nearly 10 hours of talks at their third meeting on the issue in as many weeks, Greece’s international lenders agreed to reduce Greek debt by 40 billion euros, cutting it to 124 percent of gross domestic product by 2020, via a package of steps.

The deal should open the way for a major aid installment needed to recapitalize Greece’s teetering banks and enable the government to pay wages, pensions and suppliers in December. Greece could receive up to 44 billion euros, although it remains unclear if the full amount will be paid in one go.

Read Here – Reuters

Celebrity Economist Rushes to Save India

The first time I met Raghuram Rajan, the Indian economist couldn’t sit still.

It was over coffee in Bangkok in November 2008, less than two months after Lehman Brothers Holdings Inc. imploded and almost took the global financial system down with it. Rajan had become a big draw by then, having warned as early as 2005 that a crash was coming. On that day in Thailand, he had a more local crisis on his hands: The hotel’s WiFi was out.

“I’ll be back — I need to make a call and make sure the world economy is still there before I begin my speech,” he deadpanned. “You never know.”

That last sentiment could also apply to an extraordinary bit of recruitment on the part of Indian Prime Minister Manmohan Singh. Rajan, 49, is one of his most pointed critics, never one to shy away from slamming India for trying the same failed policies over and over again. Rather than castigate Rajan, Singh offered him a job: top adviser to the Finance Ministry.

Read Here – Bloomberg

Decoding Manmohan’s Speech: Sonia Messed Up The Economy

Yet, it was what an unblinking Manmohan Singh said sotto voce, and what he left tantalisingly unsaid, that may be more politically significant. In the spaces between his prepared speech, what he was effectively saying was that what the country needs is more of the reforms that former Prime Minister PV Narasimha Rao unleashed in 1991 (with Manmohan Singh as Finance Minister), but the reckless welfarist spending under Sonia Gandhi‘s directive was ruining all that.

Read Here – Firstpost.com

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