India's 2016-17 growth will not meet optimistic budget

2016 ◽  
Keyword(s):  
Public Sector ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Economic Strain ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Public Sector Banks ◽  
The Government ◽  
Official Data

Significance He faced pressure to drop the government's commitment to reducing the fiscal deficit in the next few years to 3.0% of GDP, from 3.5% in 2016-17. The economic circumstances seem appropriate for a fiscal stimulus, but Jaitley has decided against this. Impacts Divestment receipts will probably undershoot targets in 2016-17. The health of public sector banks will deteriorate further if the government forces them to increase infrastructure lending. High GDP growth figures despite rising economic strain will fuel suspicions about official data.

Rising bad debt risks insolvency at Indian banks

2016 ◽  
Keyword(s):  
Public Sector ◽  
Fiscal Deficit ◽  
Content Type ◽  
Public Sector Banks ◽  
The World ◽  
Growing Economy ◽  
The Government ◽  
Indian Banks ◽  
Bank Bailouts ◽  
Bad Debt

Subject India's public sector banks and bad debt. Significance While India is being lauded for being the fastest-growing economy in the world, the government is grappling with a growing bad debt problem that threatens the solvency of at least some of its public sector banks. Impacts If the government prioritises its fiscal deficit targets, financing bank bailouts would be difficult. Meanwhile, banks will cut lending, thereby choking growth. Absent a clear policy, the banking strain could intensify, leading to the actual failure of some banks.

India’s 5G auction will boost Reliance’s digital plans

2021 ◽  
Keyword(s):  
Public Sector ◽  
Business Strategy ◽  
Financial Support ◽  
Content Type ◽  
Public Sector Banks ◽  
Spectrum Auction ◽  
Floor Price ◽  
The Government

Significance This came after the government announced plans for a 4G spectrum auction in March 2021, after a five-year gap. There is growing speculation that this will be followed by an auction of 5G spectrum later in the year. Impacts Reliance’s lead on 5G will boost its broader digital business strategy. New financial support to indebted telcos will help to avoid further strain on public sector banks. Data tariffs are likely to remain competitive in India, even after a new floor price.

Prospects for India in 2018

2017 ◽  
Keyword(s):  
Public Sector ◽  
Prime Minister ◽  
Content Type ◽  
Public Sector Banks ◽  
Bharatiya Janata Party ◽  
Economic Slowdown ◽  
The Government

Subject Prospects for India in 2018. Significance India’s ruling Bharatiya Janata Party (BJP) has responded to the recent economic slowdown by drawing up plans to recapitalise public sector banks (PSBs) and invest in infrastructure. Prime Minister Narendra Modi is also under pressure to create jobs. The government will be expected to deliver on its promises with elections due in around 18 months’ time.

Action at a distance

2018 ◽  
Vol 26 (1) ◽  
pp. 39-61
Author(s):  
Athula Ekanayake
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Long Distance ◽  
Content Type ◽  
Public Sector Banks ◽  
Good Corporate Governance ◽  
Distance Control ◽  
Action At A Distance ◽  
The Government ◽  
Case Organization

Purpose By using Latour’s notion of “action at a distance” (Latour, 1987), the purpose of this paper is to examine the ways in which the government acts at a distance to achieve corporate governance of public sector banks, and the extent to which accounting enables such actions of the government. Design/methodology/approach This study follows the qualitative research approach and adopts the case study research method. A major public sector bank in Sri Lanka was selected as the case organization for this study. Data were gathered from semi-structured interviews with organizational participants and document study. Findings The study provides evidence to suggest that inscriptions produced through four areas of accounting, namely external reporting, external auditing, management accounting and internal auditing, have the capacity to develop strong explanations enabling action at a distance and good corporate governance in the case organization. The study also provides evidence to show how the role of accounting in long-distance control and corporate governance in the case organization is influenced by various contextual factors. In particular, the study finds that undue government interference over the case organization to gain the long-distance control have resulted in deteriorating the level of corporate governance. Research limitations/implications The findings support the literature that examines the accounting in its social context. Practical implications The findings suggest that actors should be allowed to operate independently, particularly without political expedience and undue influences from pressure groups, which ensure effective utilization of accounting inscriptions by the actors in long-distance control as well as good corporate governance of public sector banks. Originality/value Although research into accounting in public sector organizations has gained considerable importance in recent times, those studies examining public sector banks are still lacking. The paper aims to fill this gap.

India will struggle to rein in fiscal deficit

2021 ◽  
Keyword(s):  
Public Health System ◽  
Well Being ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Content Type ◽  
The Public ◽  
Glide Path ◽  
The Government ◽  
Health And Well Being

Significance The fiscal deficit is projected to be 9.5% of GDP in 2020/21 -- compared with a budgeted 3.5% -- narrowing to 6.8% in 2021/22 and 4.5% by 2025/26. The government is counting on increased tax revenue and receipts from divestment to help it stick to this fiscal ‘glide path’. Impacts Increased spending on health and well-being should at least create more jobs in the public health system. Delhi will count on a return to high levels of GDP growth to help reduce the government debt-to-GDP ratio. The government may find it difficult to realise its goal of pushing through privatisation of Air India within the first half of 2021/22.

Hungarian economic stimulus measures will leave gaps

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Unemployment Rate ◽  
Value Added ◽  
The State ◽  
Gdp Growth ◽  
State Budget ◽  
Content Type ◽  
The Third ◽  
The Government

Subject The series of tax-related measures that the Fidesz government hopes will boost competitiveness and support GDP by reducing labour shortages. Significance Following disappointing economic growth of just 2.2% on an unadjusted basis in the third quarter, owing to a larger-than-expected drop in investment, Fidesz’s latest tax-related measures are well-timed, since the economy is expected to slow in the final quarter of 2016. The government insists no amendments will be needed in the state budget, and is now forecasting 3.1% GDP growth in 2017, after 2.5% this year. Impacts Value-added tax cuts and rises in public-sector minimum wages will cause inflation to rise faster in 2017, as deflationary trends disappear. The unemployment rate is expected to bottom out as workers return from neighbouring countries. The government will need to make complementary reforms in education and privatising the state-dominated energy and telecoms sectors. If it does not, competitiveness as measured by wage growth and productivity will remain subdued.

India elevates energy ambitions as 2019 polls near

2016 ◽  
Keyword(s):  
Public Sector ◽  
Prime Minister ◽  
Oil Price ◽  
Content Type ◽  
Public Sector Banks ◽  
General Elections ◽  
Gas Consumption ◽  
The Government

Subject Energy outlook. Significance As Prime Minister Narendra Modi's administration approaches the 2019 general elections, its key election promises are receiving increased scrutiny. On energy, the scale of ambition has increased, with targets stretching beyond 2019. The government hopes to leverage early successes to seek a second term in office to implement its agenda. Impacts Subsidies will rise when the oil price rises, although leakages will be lower. In the post-Paris summit era, the window available to India to utilise coal for growth has narrowed to 2020. The recent rise in gas consumption will continue as long as LNG prices are low and domestic coal targets are unmet. The insolvency of distribution utilities will impede their ability to fulfil their renewable purchase obligations. The problem also affects public sector banks, which hold a large proportion of the utilities' debt.

Living cost woes to shape Zambia's pre-poll politics

2015 ◽  
Keyword(s):  
Public Sector ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Power Capacity ◽  
State Spending ◽  
Content Type ◽  
Fuel Prices ◽  
The Government ◽  
Wage Increases ◽  
Living Cost

Significance This is due to spending on imported electricity and fuel, prices of which have risen due to the falling kwacha currency (down 40% to the dollar during 2015). The deteriorating economy raises the likelihood of escalating protests. Impacts Debt servicing costs, already 25% of state spending, will likely rise as the government takes on new debt and the currency slumps. Cooling GDP growth means that Zambia's non-tax revenue and VAT mobilisation targets (rises of 200% and 50% respectively) will disappoint. Public sector wage increases (of 9-29%) announced in October will help consolidate PF support in this influential constituency. Investments in new power capacity may soften power woes, but only in the longer term due to lengthy project timeframes.

Exogenous risks loom over Indonesia’s foreign debt

2016 ◽  
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Debt ◽  
Foreign Debt ◽  
Commodity Prices ◽  
Household Debt ◽  
Fiscal Deficit ◽  
Content Type ◽  
Private And Public ◽  
The Government

Subject Outlook for Indonesia's foreign debt distress. Significance Indonesia’s total foreign debt reached 325.3 billion dollars by end-September, up 7.8% from the same period last year, according to Bank Indonesia data. This debt is spread almost equally between the private and public sector: 163.1 billion dollars and 162.2 billion dollars respectively. However, while private sector debt is falling, public debt is rising. Impacts Private miners are unlikely to invest heavily in smelters unless they are certain of an uptick in commodity prices. Raising the legal fiscal deficit limit beyond 3% of GDP will be politically difficult for the government. Household debt is unlikely to rise substantially in 2017.

India’s public sector will see more disinvestment

2017 ◽  
Keyword(s):  
Public Sector ◽  
Trade Unions ◽  
Think Tank ◽  
Content Type ◽  
Public Sector Banks ◽  
The Government

Subject Indian disinvestment in state-owned enterprises. Significance India’s state-owned enterprises (SOEs), also known as public sector undertakings (PSUs), include central public sector enterprises (CPSEs). Some CPSEs have become more efficient, but the government's tendency is now to privatise rather than reform, with its new policy think-tank recently recommending disinvestment in over 40 PSUs. Impacts The government may seek to disinvest in public-sector banks. Trade unions may launch strikes opposing disinvestment plans. The government may pursue labour reforms to make it easier to recruit and dismiss workers.

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