Economics

As deliberations continue for the 2017-18 budget of Union, State and Local governments, it may be useful to consider measures to make the budget processes and exercise yield better outcomes and help generate fiscal space.

In Democracies, the ruling party makes a decision which the opposition opposes, like a ritual. There are exceptions, those related to National Security are agreed by all with no opposition. However these decisions might end up as short term success only to create long term problems. Iraq war is one such decision.

Indian tax system is the most complicated one in the world with the Centre; the States and local bodies having power to levy variety of taxes to earn revenue. The Current multi-staged tax structure has charges from both the States as well as Centre leading to cascading effect of taxes.

It was November 8th 2016 and like many others I was frantically refreshing my twitter timeline to find out who would win the US Presidential elections. I have been closely following the US Presidential elections and this was a night I simply couldn't miss. It was almost as if watching India Vs Pakistan cricket match.

The article Most sweeping change in currency policy in the world in decades  coauthored by Natasha Sarin and Lawrence Summers makes sweeping statements of India's demonetization unhindered by facts.

Dear Mr Shourie,

As a long-standing fan of your work both as a courageous journalist and minister of disinvestment, I was saddened by the quality of your answers in your latest interview on NDTV. Not so much because you criticized the government’s demonetization policy as I am convinced that every policy of any government should be critically reviewed by people who are competent to do that.

Sun Tzu in his ancient treatise “Art of War” advises ““The whole secret lies in confusing the enemy, so that he cannot fathom our real intent.” In today’s highly connected world, wars are fought not only on battlefields but also on information front.  The opponents of Indian government’s demonetization have fired the first major salvo of disinformation by projecting State Bank of India’s e

The evening of 8th Nov was unlike any other evening for every Indian. Rich or poor, weak or powerful, within India or outside India; PM Modi’s announcement that 1000 and 500 rupee bills shall no longer be considered legal tenders rattled every one. The announcements had various effects on everyone.

Arthur Hailey is one of my most favorite English fiction writers. He is a master of fiction who has the rare ability to write fast-paced thrillers on events that unfold in diverse industries. The names of Hailey's novels themselves indicate the background of the story; for example, 'Strong Medicine', 'Airport', 'Hotel', ‘Wheel’, and others.

In an unprecedented move, Prime Minister Modi on his first televised address to nation declared a full-blown war on the parallel economy by demonetizing high value currency notes Rs 500 and Rs 1000. The move which will come into effect after the midnight of November 8th can be the ultimate panacea against scourge of terrorism, black money, counterfeit currency and corruption.

In a move that took all media pundits and his own support base by complete surprise, PM Narendra Modi announced that effective midnight, 8th November 2016, 500 and 1000 rupee bills will cease to be accepted as legal tenders.  This is one of the most decisive blows dealt to the malignant evil of corruption aided by black money.  With this move, the wily Prime Minister of Ind

Reserve Bank of India released this Frequently Answered Questions after PM’s announcement of demonetization of 500 and 100 rupee notes. We reproduce it here for the benefit of readers.

1. Why is this scheme?

In a move than can permanently and decisively change the rules of engagements in the war on black money and corruption, PM Narendra Modi announced that as of midnight of 8/11/2016, 500 and 1000 rupee notes will cease to exist as legal tenders. 

An important avenue for advancing public policy reforms is to locate or to discern relatively small measures which could potentially have disproportionately large leverage, i.e. positive impact on desired outcomes, and then implement them effectively, using a system perspective.

In the 163 year old History of Indian Railways never has one witnessed the railways undergoing reforms at such a tremendous pace as has happened over the last two years.

“You can resist an invading army; you cannot resist an idea whose time has come”, this oft quoted statement somehow defines the state of affairs on the Indian soil which is undergoing a series of new-age reforms across the spectrum. They are being, but obviously, claimed transformational by the official propaganda machinery.

Raghuram Rajan has challenged his critics of high interest rates. He has asked them to prove that inflation has fallen. He has quoted consumer price index (CPI) data to argue his case. There are arguments about whether CPI should be used for setting interest rates or WPI (wholesale Price Index) should be used.

First up, the writer is no economist. The hope through this write up is to merely shine the spotlight on a couple of issues that have not really been discussed in any forum – print or social media (at least the writer has not come across any such). So, without further ado, here are the questions.