unspent
for
balances
were
major
large
budget
corruption.
The document discusses Assam's fiscal performance from 2002-2012. Key points:
- Assam's GSDP and revenues increased but it remains a poor state with high poverty and low human development.
- Revenue expenditure grew faster than capital expenditure, limiting infrastructure growth.
- The state receives substantial central grants but had large unspent balances, drawing most funds in March. This allows artificial deficit reduction while limiting funds for other states.
- Key sectors like power, water, and roads had high budget surrenders each year despite large needs, pointing to ineffective monitoring and
Impending Bankruptcy of Governments in IndiaShantanu Basu
The document discusses the state of India's public finances, including rising government debt levels and non-performing assets in public sector banks. Some key points:
- Government revenue deficits have averaged 40% of gross revenues each year from 2007-2015, despite expenditure growing faster than revenues. High inflation eroded the value of revenues.
- Interest payments, personnel costs, and establishment expenses account for 80-85% of government budgets, leaving only 15-20% for development. Rising debt levels could reach unsustainable levels in the next 5-10 years if trends continue.
- Non-performing assets in public sector banks have risen three-fold in recent years, with an estimated Rs. 20 lakh
Discusses financial mismanagement in states of North Eastern India and how the Govt. of India could direct its funds to achieving peace in the tinder box of NE India.
This document is the transcript of the 2021 Budget Speech delivered by South African Minister of Finance Tito Mboweni to Parliament on February 24, 2021. In the speech, Mboweni outlines South Africa's fiscal framework for 2021-2023, including projections for revenue, spending, debt levels, and the economic outlook. He highlights progress being made on structural economic reforms and the government's plans to support job creation, economic transformation, and social development programs over the medium term.
The budget document provides details on key fiscal highlights including a GDP growth target of 9% and a fiscal deficit target of 4.6% of GDP. It outlines plans to lower the corporate tax surcharge and increase exemptions for individual taxpayers, as well as changes to indirect taxes that will make some consumer goods cheaper and some services more expensive. Key areas that are positively impacted include infrastructure, where allocation was increased 23%, and education, where allocation rose 24%. However, some questions remain about whether the targets can be achieved and if enough is being done to support farmers and alleviate rural issues.
Fixed or Float or Bend or Anything Else (Nov 08 2015)Samsen Neak
1) The document discusses Cambodia's high level of dollarization and its causes and impacts.
2) While Cambodia has experienced political and economic stability in recent decades, dollarization has increased rather than decreased, with over 90% of deposits held in foreign currency.
3) Interest rate policies that favor dollar deposits and loans have discouraged use of the riel and contributed to dollarization. Adopting a managed float exchange rate regime alone has not been sufficient to promote use of the riel.
This document provides an overview of key economic challenges facing Pakistan. It discusses that Pakistan consumes more and saves less than needed for sufficient investment. It imports more than it exports, leading to reliance on foreign financing. Government spending exceeds revenues, resulting in high fiscal deficits. Social indicators like literacy and health lag behind other countries with similar incomes. Energy and water shortages are exacerbated by inefficiencies. The cost of doing business is high due to bureaucracy and outdated regulations. Overall, it summarizes Pakistan faces challenges including low savings and investment, trade imbalances, high government debt, poor social development, and an unfavorable business environment.
Bangladesh development update economy requires focus on sustainable and incl...Md. Farhad Islam
The Bangladesh economy has continued to grow strongly despite challenges, achieving over 6% growth in 2016. However, private investment rates have stagnated, remaining a concern. While macroeconomic stability has been maintained, the budget deficit is rising. Structural reforms are needed to boost energy, infrastructure, and private sector efficiency to sustain growth. Focus is required on sustainable, inclusive growth through measures like improving state banks, strengthening regulation, and addressing infrastructure bottlenecks.
Impending Bankruptcy of Governments in IndiaShantanu Basu
The document discusses the state of India's public finances, including rising government debt levels and non-performing assets in public sector banks. Some key points:
- Government revenue deficits have averaged 40% of gross revenues each year from 2007-2015, despite expenditure growing faster than revenues. High inflation eroded the value of revenues.
- Interest payments, personnel costs, and establishment expenses account for 80-85% of government budgets, leaving only 15-20% for development. Rising debt levels could reach unsustainable levels in the next 5-10 years if trends continue.
- Non-performing assets in public sector banks have risen three-fold in recent years, with an estimated Rs. 20 lakh
Discusses financial mismanagement in states of North Eastern India and how the Govt. of India could direct its funds to achieving peace in the tinder box of NE India.
This document is the transcript of the 2021 Budget Speech delivered by South African Minister of Finance Tito Mboweni to Parliament on February 24, 2021. In the speech, Mboweni outlines South Africa's fiscal framework for 2021-2023, including projections for revenue, spending, debt levels, and the economic outlook. He highlights progress being made on structural economic reforms and the government's plans to support job creation, economic transformation, and social development programs over the medium term.
The budget document provides details on key fiscal highlights including a GDP growth target of 9% and a fiscal deficit target of 4.6% of GDP. It outlines plans to lower the corporate tax surcharge and increase exemptions for individual taxpayers, as well as changes to indirect taxes that will make some consumer goods cheaper and some services more expensive. Key areas that are positively impacted include infrastructure, where allocation was increased 23%, and education, where allocation rose 24%. However, some questions remain about whether the targets can be achieved and if enough is being done to support farmers and alleviate rural issues.
Fixed or Float or Bend or Anything Else (Nov 08 2015)Samsen Neak
1) The document discusses Cambodia's high level of dollarization and its causes and impacts.
2) While Cambodia has experienced political and economic stability in recent decades, dollarization has increased rather than decreased, with over 90% of deposits held in foreign currency.
3) Interest rate policies that favor dollar deposits and loans have discouraged use of the riel and contributed to dollarization. Adopting a managed float exchange rate regime alone has not been sufficient to promote use of the riel.
This document provides an overview of key economic challenges facing Pakistan. It discusses that Pakistan consumes more and saves less than needed for sufficient investment. It imports more than it exports, leading to reliance on foreign financing. Government spending exceeds revenues, resulting in high fiscal deficits. Social indicators like literacy and health lag behind other countries with similar incomes. Energy and water shortages are exacerbated by inefficiencies. The cost of doing business is high due to bureaucracy and outdated regulations. Overall, it summarizes Pakistan faces challenges including low savings and investment, trade imbalances, high government debt, poor social development, and an unfavorable business environment.
Bangladesh development update economy requires focus on sustainable and incl...Md. Farhad Islam
The Bangladesh economy has continued to grow strongly despite challenges, achieving over 6% growth in 2016. However, private investment rates have stagnated, remaining a concern. While macroeconomic stability has been maintained, the budget deficit is rising. Structural reforms are needed to boost energy, infrastructure, and private sector efficiency to sustain growth. Focus is required on sustainable, inclusive growth through measures like improving state banks, strengthening regulation, and addressing infrastructure bottlenecks.
The Union Budget of India is the annual budget presented by the Finance Minister in Parliament each year on the last working day of February. Key facts from the 2016 budget include a projected fiscal deficit of 3.9-3.5% and revenue deficit of 2.8-2.5%. On taxes, an infrastructure and agriculture 'cess' will be imposed and car prices will increase due to new pollution cess. Company tax will be 29% for revenue under Rs. 5 crore. The agriculture allocation totals Rs. 35,984 crore, which will support irrigation of 28.5 lakh hectares of land and organic farming of 5 lakh acres over three years.
Bangladesh is moving towards middle income country myth or realityRiadh Mohammed Arif
Bangladesh has recently been upgraded to lower-middle income status by the World Bank based on per capita income. While Bangladesh aspires to become a middle income country by 2021 according to UN standards, the document examines whether this is realistic. It notes that Bangladesh's economy continues to perform well with macroeconomic stability and declining interest rates. However, the document argues that for sustainable growth, Bangladesh must increase public spending on education and healthcare, which are currently among the lowest levels relative to GDP compared to other countries at Bangladesh's income level. Strong reforms in infrastructure, energy, and finance will also help Bangladesh achieve middle income status.
The document summarizes issues with government revenue and spending in India over the past two decades based on data from the Ministry of Finance and Comptroller and Auditor General.
1) Government claims of increased revenue collections are illusory when adjusted for inflation, as much of the reported growth is due to rising prices rather than real economic growth.
2) Significant tax revenues have gone uncollected due to delays in the legal system, underassessment of taxes owed, and failure to recover unpaid taxes.
3) While government expenditure has increased nominally, the real growth accounting for inflation has been much less. Much spending goes to government salaries and pensions rather than development programs.
The 2012-13 Union Budget aims to cut the fiscal deficit from 5.9% to 5.1% while raising GDP growth to 7.6% through fiscal consolidation and raising additional taxes. Key measures include raising excise and service tax rates, increasing infrastructure investment, allowing foreign dividend repatriation, and introducing new tax-saving investment schemes. However, fiscal targets may be difficult to achieve if revenue falls short, crude oil prices rise substantially, or growth does not recover as projected. Overall the budget focuses on boosting key sectors like infrastructure, health, education, and rural development to support economic growth.
We are a team of highly qualified and experienced analysts, who deliver their expertise in providing stock market calls for traders which include tips like Stock Tips, Commodity Tips, MCX Tips, Equity Tips and Intraday Tips. All services are provided through SMS and Instant Messenger. Get free trail of Equity Tips .
2016/17 China Macroeconomic Outlook & Market OpportunitiesNan BAI,CFA
The document provides an analysis of China's macroeconomic environment and outlook for 2017. It finds that China's leverage levels are very high, especially in the corporate and local government sectors, though central government debt is relatively low. Deleveraging efforts are underway but progress has been slow. Financial reforms have continued to deepen markets but more efforts are still needed. Credit defaults have become more frequent in recent years but a systemic crisis is deemed unlikely. The report offers investment strategies for 2017, seeing opportunities in equities and fixed income given Renminbi inclusion in the SDR basket.
This document summarizes Indonesia's economic outlook for Q1 2019. It finds that GDP growth was 5.1% in Q4 2018 and is projected to be 5.1-5.2% for FY2018 and 5.2-5.3% for FY2019. Inflation was 3.13% in December 2018 and the current account deficit was 3.37% in Q3 2018. Overall, external pressures on the economy are expected to be lower in Q1 2019 due to improved capital flows, lower oil prices, and US-China trade negotiations.
India's Election 2014 - Presentation by Mohan Guruswamyavidas
The document discusses India's national elections, including key facts about voter turnout. Uttar Pradesh has the most voters at 16.4% of the total, while Sikkim has the fewest at 0.044%. It also discusses the performance of national and regional political parties and some of the challenges facing the new government, including fiscal discipline and improving the business environment. Economists identify four critical areas for the new government to focus on: tightening fiscal policy, improving business climate, controlling inflation, and sustaining a lower current account deficit.
This document is the 2020 Budget Speech given by South African Minister of Finance Tito Mboweni on February 26, 2020. In the speech, Mboweni outlines South Africa's economic context and forecasts modest GDP growth of 0.9% in 2020. He presents the national budget, including consolidated spending of R1.95 trillion, a budget deficit of R370.5 billion (6.8% of GDP), and gross national debt projected to reach 65.6% of GDP. Mboweni announces some personal income tax relief and adjustments to taxes and levies to support growth while aiming for fiscal sustainability.
Madam Speaker
In A Tale of Two Cities, Charles Dickens opens with:
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity… we were all going direct to Heaven, we were all going direct the other way...”
So too is the present time. As a country, we stand at a crossroads. We can choose a path of hope; or a path of despair. We can go directly to Heaven, or as Dickens so politely puts it, we can go the other way.
Canada’s small- and medium-size enterprises
(SMEs) are collectively the largest employer in
Canada, employing about 55 per cent of
Canadians (based on Statistics Canada’s Survey
of Employment, Payrolls and Hours 2008).
When you take into account the fact that they
contribute 1.4 times the premiums their
employees do, this makes them the single
largest employer-stakeholder group in the EI
system today. SMEs employ Canadians in every
province and in every sector of the economy,
from the retail and service sectors to
manufacturing and primary industries. This
broad range of industries and employee
requirements make SME owners an excellent
judge of the efficacy of the EI system.
EI is becoming a more and more important
issue for SMEs. In fact, EI is one of the top
priorities for CFIB members across the nation.
This was highlighted in a survey conducted in
the first half of 2009, which found that 48 per
cent of CFIB members listed EI reform as a
priority for their business, behind only the
total tax burden and regulations and paper
burden, both of which are also directly related
to the EI system.
Presentación de la Ministra Nathalie Cely en el Simposio Global de Inversiones “Caminos a la Prosperidad”, organizado por el Club Harvard de Nueva York. 20 de septiembre de 2011
The reasons for the sharp focus on recent state elections last month could have a number of reasons. While political commentators liked to see it as report card on the central government’s performance and a bellwether for its fortunes in the general elections in 2019, it also underscored the growing importance of state performance in determining the fortunes of the economy as a whole.
This might seem somewhat obvious – the national economy has to be the sum of its parts. While that is true, the economic policy and implementation ball is now firmly in the states’ court. States are bigger spenders on capex than the federal government, in 2017-18 they will borrow more form the debt markets than the centre and so forth. The smooth implementation of GST will depend on the support and ease of implementation by states. And so forth …
The implication is that, be in domains as diverse as corporate strategy and interest rate behavior, states will increasingly start pulling their weight. It is thus important to track their economic health more closely. On our part we are bringing out a series of reports on different facets of their performance. The first, ‘The state of the states’ focuses on issues related to growth and fiscal performance.
The report involves ranking of states. While we believe that our methodology is defensible, we by no means claim that this is the ‘holy grail’ of ranking states. Ranks could be different and these differences would depend principally on the variables. However a casual glance would suggest that our ranks based only on growth and fiscal health are not wildly different from others who choose to do their exercise based on another basket of parameters.
For those interested in growth, fiscal capacity and performance, the state bond (SDL) market, recent reforms such as UDAY and ultimately their future growth and fiscal paths, we hope this report will make for some compelling reading.
This document analyzes the efficiency of commercial banks in Tanzania from 2008 to 2011 using data envelopment analysis. It finds that large banks were more efficient than small banks over this period, with technical efficiency ranging from 54-79% for large banks and 65-70% for small banks. Under variable return to scale, large banks had higher pure technical efficiency levels than small banks, though both experienced declining efficiency from 2008 to 2011. The document concludes that inefficient use of resources contributed to the relatively low efficiency of commercial banks in Tanzania and that banks could improve by better utilizing existing resources and reducing operating expenses.
The document summarizes opportunities for engaging Tanzania's diaspora given the country's economic and financial development over the past 50 years. Specifically:
1) Tanzania has achieved macroeconomic stability and strong GDP growth following financial sector reforms in the 1990s.
2) This stability and ongoing reforms to infrastructure, agriculture, and business environment present opportunities for diaspora engagement through investments, remittances, and trade.
3) The government is taking further measures to deepen financial markets and ease access for diaspora investments in areas like housing, SMEs, and government securities.
The key points are:
- The BSE Sensex plunged 769 points or almost 4% to close at 18,598 while the NSE Nifty lost 234 points or 4.08% to close at 5,507 on Friday, August 16, 2013.
- Stocks fell sharply due to the steep decline in the rupee which hit a new low of 62.03 against the US dollar and fears that the US Federal Reserve will begin tapering its bond buying program.
- Measures by the RBI to curb capital outflows and speculation have had little effect in stemming the rupee's slide and dampened investor sentiment, leading to the sharp falls in the Indian stock markets.
The Arab Spring uprisings led governments in the Middle East and North Africa region to increase salaries and benefits for public sector employees. This placed pressure on private sector organizations to match the higher compensation or risk losing employees. Some effects included pay inequity, higher inflation, demands for improved benefits, and challenges retaining expatriate workers due to safety concerns. Going forward, organizations will need to strengthen performance management and develop variable pay to link compensation more closely to individual contributions.
This document provides an overview of Pakistan's budget and economy for the 2013-2014 fiscal year. It highlights several key economic indicators such as GDP growth, investment levels, inflation rates, and fiscal developments. It also outlines significant proposed amendments to Pakistan's income tax, sales tax, and federal excise policies, including changes to tax rates and exemptions.
The document provides a summary of the performance of Andhra Pradesh during the first four years (2007-2008 to 2010-2011) of the 11th Five Year Plan in India. Some key points:
1) The state economy grew at an average of 7.93% during this period, close to the national GDP growth of 8.16%. Agriculture grew at 7.16%, industries at 6.82%, and services at 8.84%.
2) Major initiatives included the Jalayagnam irrigation program, Rajiv Arogyasri public health insurance, 108 emergency services, and housing construction under Indiramma.
3) 32.51 lakh houses were constructed, 65.13
The document summarizes issues with government revenue and spending in India over the past two decades based on data from the Ministry of Finance and Comptroller and Auditor General.
1) Government claims of increased revenue collections are illusory when adjusted for inflation, as much of the reported growth is due to rising prices rather than real increases in tax collection.
2) Significant tax revenues have also gone uncollected due to delays in the legal system and lack of enforcement. Arrears in taxes owed amount to tens of thousands of crores of rupees.
3) Similarly, reported increases in government spending have not kept pace with inflation. As a result, budgets for critical areas like infrastructure, health
The document discusses India's fiscal policies and their role in controlling inflation. It outlines the objectives of fiscal policy, including achieving desirable price levels and employment. Higher direct taxes, lower government spending, and reducing borrowing can effectively control demand-pull inflation. The document also provides an overview of India's fiscal policy in 2008, noting goals to reduce the fiscal deficit. While there has been fiscal consolidation and an increased tax-GDP ratio, challenges remain around high inflation and the need to address supply constraints and infrastructure bottlenecks.
The Union Budget of India is the annual budget presented by the Finance Minister in Parliament each year on the last working day of February. Key facts from the 2016 budget include a projected fiscal deficit of 3.9-3.5% and revenue deficit of 2.8-2.5%. On taxes, an infrastructure and agriculture 'cess' will be imposed and car prices will increase due to new pollution cess. Company tax will be 29% for revenue under Rs. 5 crore. The agriculture allocation totals Rs. 35,984 crore, which will support irrigation of 28.5 lakh hectares of land and organic farming of 5 lakh acres over three years.
Bangladesh is moving towards middle income country myth or realityRiadh Mohammed Arif
Bangladesh has recently been upgraded to lower-middle income status by the World Bank based on per capita income. While Bangladesh aspires to become a middle income country by 2021 according to UN standards, the document examines whether this is realistic. It notes that Bangladesh's economy continues to perform well with macroeconomic stability and declining interest rates. However, the document argues that for sustainable growth, Bangladesh must increase public spending on education and healthcare, which are currently among the lowest levels relative to GDP compared to other countries at Bangladesh's income level. Strong reforms in infrastructure, energy, and finance will also help Bangladesh achieve middle income status.
The document summarizes issues with government revenue and spending in India over the past two decades based on data from the Ministry of Finance and Comptroller and Auditor General.
1) Government claims of increased revenue collections are illusory when adjusted for inflation, as much of the reported growth is due to rising prices rather than real economic growth.
2) Significant tax revenues have gone uncollected due to delays in the legal system, underassessment of taxes owed, and failure to recover unpaid taxes.
3) While government expenditure has increased nominally, the real growth accounting for inflation has been much less. Much spending goes to government salaries and pensions rather than development programs.
The 2012-13 Union Budget aims to cut the fiscal deficit from 5.9% to 5.1% while raising GDP growth to 7.6% through fiscal consolidation and raising additional taxes. Key measures include raising excise and service tax rates, increasing infrastructure investment, allowing foreign dividend repatriation, and introducing new tax-saving investment schemes. However, fiscal targets may be difficult to achieve if revenue falls short, crude oil prices rise substantially, or growth does not recover as projected. Overall the budget focuses on boosting key sectors like infrastructure, health, education, and rural development to support economic growth.
We are a team of highly qualified and experienced analysts, who deliver their expertise in providing stock market calls for traders which include tips like Stock Tips, Commodity Tips, MCX Tips, Equity Tips and Intraday Tips. All services are provided through SMS and Instant Messenger. Get free trail of Equity Tips .
2016/17 China Macroeconomic Outlook & Market OpportunitiesNan BAI,CFA
The document provides an analysis of China's macroeconomic environment and outlook for 2017. It finds that China's leverage levels are very high, especially in the corporate and local government sectors, though central government debt is relatively low. Deleveraging efforts are underway but progress has been slow. Financial reforms have continued to deepen markets but more efforts are still needed. Credit defaults have become more frequent in recent years but a systemic crisis is deemed unlikely. The report offers investment strategies for 2017, seeing opportunities in equities and fixed income given Renminbi inclusion in the SDR basket.
This document summarizes Indonesia's economic outlook for Q1 2019. It finds that GDP growth was 5.1% in Q4 2018 and is projected to be 5.1-5.2% for FY2018 and 5.2-5.3% for FY2019. Inflation was 3.13% in December 2018 and the current account deficit was 3.37% in Q3 2018. Overall, external pressures on the economy are expected to be lower in Q1 2019 due to improved capital flows, lower oil prices, and US-China trade negotiations.
India's Election 2014 - Presentation by Mohan Guruswamyavidas
The document discusses India's national elections, including key facts about voter turnout. Uttar Pradesh has the most voters at 16.4% of the total, while Sikkim has the fewest at 0.044%. It also discusses the performance of national and regional political parties and some of the challenges facing the new government, including fiscal discipline and improving the business environment. Economists identify four critical areas for the new government to focus on: tightening fiscal policy, improving business climate, controlling inflation, and sustaining a lower current account deficit.
This document is the 2020 Budget Speech given by South African Minister of Finance Tito Mboweni on February 26, 2020. In the speech, Mboweni outlines South Africa's economic context and forecasts modest GDP growth of 0.9% in 2020. He presents the national budget, including consolidated spending of R1.95 trillion, a budget deficit of R370.5 billion (6.8% of GDP), and gross national debt projected to reach 65.6% of GDP. Mboweni announces some personal income tax relief and adjustments to taxes and levies to support growth while aiming for fiscal sustainability.
Madam Speaker
In A Tale of Two Cities, Charles Dickens opens with:
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity… we were all going direct to Heaven, we were all going direct the other way...”
So too is the present time. As a country, we stand at a crossroads. We can choose a path of hope; or a path of despair. We can go directly to Heaven, or as Dickens so politely puts it, we can go the other way.
Canada’s small- and medium-size enterprises
(SMEs) are collectively the largest employer in
Canada, employing about 55 per cent of
Canadians (based on Statistics Canada’s Survey
of Employment, Payrolls and Hours 2008).
When you take into account the fact that they
contribute 1.4 times the premiums their
employees do, this makes them the single
largest employer-stakeholder group in the EI
system today. SMEs employ Canadians in every
province and in every sector of the economy,
from the retail and service sectors to
manufacturing and primary industries. This
broad range of industries and employee
requirements make SME owners an excellent
judge of the efficacy of the EI system.
EI is becoming a more and more important
issue for SMEs. In fact, EI is one of the top
priorities for CFIB members across the nation.
This was highlighted in a survey conducted in
the first half of 2009, which found that 48 per
cent of CFIB members listed EI reform as a
priority for their business, behind only the
total tax burden and regulations and paper
burden, both of which are also directly related
to the EI system.
Presentación de la Ministra Nathalie Cely en el Simposio Global de Inversiones “Caminos a la Prosperidad”, organizado por el Club Harvard de Nueva York. 20 de septiembre de 2011
The reasons for the sharp focus on recent state elections last month could have a number of reasons. While political commentators liked to see it as report card on the central government’s performance and a bellwether for its fortunes in the general elections in 2019, it also underscored the growing importance of state performance in determining the fortunes of the economy as a whole.
This might seem somewhat obvious – the national economy has to be the sum of its parts. While that is true, the economic policy and implementation ball is now firmly in the states’ court. States are bigger spenders on capex than the federal government, in 2017-18 they will borrow more form the debt markets than the centre and so forth. The smooth implementation of GST will depend on the support and ease of implementation by states. And so forth …
The implication is that, be in domains as diverse as corporate strategy and interest rate behavior, states will increasingly start pulling their weight. It is thus important to track their economic health more closely. On our part we are bringing out a series of reports on different facets of their performance. The first, ‘The state of the states’ focuses on issues related to growth and fiscal performance.
The report involves ranking of states. While we believe that our methodology is defensible, we by no means claim that this is the ‘holy grail’ of ranking states. Ranks could be different and these differences would depend principally on the variables. However a casual glance would suggest that our ranks based only on growth and fiscal health are not wildly different from others who choose to do their exercise based on another basket of parameters.
For those interested in growth, fiscal capacity and performance, the state bond (SDL) market, recent reforms such as UDAY and ultimately their future growth and fiscal paths, we hope this report will make for some compelling reading.
This document analyzes the efficiency of commercial banks in Tanzania from 2008 to 2011 using data envelopment analysis. It finds that large banks were more efficient than small banks over this period, with technical efficiency ranging from 54-79% for large banks and 65-70% for small banks. Under variable return to scale, large banks had higher pure technical efficiency levels than small banks, though both experienced declining efficiency from 2008 to 2011. The document concludes that inefficient use of resources contributed to the relatively low efficiency of commercial banks in Tanzania and that banks could improve by better utilizing existing resources and reducing operating expenses.
The document summarizes opportunities for engaging Tanzania's diaspora given the country's economic and financial development over the past 50 years. Specifically:
1) Tanzania has achieved macroeconomic stability and strong GDP growth following financial sector reforms in the 1990s.
2) This stability and ongoing reforms to infrastructure, agriculture, and business environment present opportunities for diaspora engagement through investments, remittances, and trade.
3) The government is taking further measures to deepen financial markets and ease access for diaspora investments in areas like housing, SMEs, and government securities.
The key points are:
- The BSE Sensex plunged 769 points or almost 4% to close at 18,598 while the NSE Nifty lost 234 points or 4.08% to close at 5,507 on Friday, August 16, 2013.
- Stocks fell sharply due to the steep decline in the rupee which hit a new low of 62.03 against the US dollar and fears that the US Federal Reserve will begin tapering its bond buying program.
- Measures by the RBI to curb capital outflows and speculation have had little effect in stemming the rupee's slide and dampened investor sentiment, leading to the sharp falls in the Indian stock markets.
The Arab Spring uprisings led governments in the Middle East and North Africa region to increase salaries and benefits for public sector employees. This placed pressure on private sector organizations to match the higher compensation or risk losing employees. Some effects included pay inequity, higher inflation, demands for improved benefits, and challenges retaining expatriate workers due to safety concerns. Going forward, organizations will need to strengthen performance management and develop variable pay to link compensation more closely to individual contributions.
This document provides an overview of Pakistan's budget and economy for the 2013-2014 fiscal year. It highlights several key economic indicators such as GDP growth, investment levels, inflation rates, and fiscal developments. It also outlines significant proposed amendments to Pakistan's income tax, sales tax, and federal excise policies, including changes to tax rates and exemptions.
The document provides a summary of the performance of Andhra Pradesh during the first four years (2007-2008 to 2010-2011) of the 11th Five Year Plan in India. Some key points:
1) The state economy grew at an average of 7.93% during this period, close to the national GDP growth of 8.16%. Agriculture grew at 7.16%, industries at 6.82%, and services at 8.84%.
2) Major initiatives included the Jalayagnam irrigation program, Rajiv Arogyasri public health insurance, 108 emergency services, and housing construction under Indiramma.
3) 32.51 lakh houses were constructed, 65.13
The document summarizes issues with government revenue and spending in India over the past two decades based on data from the Ministry of Finance and Comptroller and Auditor General.
1) Government claims of increased revenue collections are illusory when adjusted for inflation, as much of the reported growth is due to rising prices rather than real increases in tax collection.
2) Significant tax revenues have also gone uncollected due to delays in the legal system and lack of enforcement. Arrears in taxes owed amount to tens of thousands of crores of rupees.
3) Similarly, reported increases in government spending have not kept pace with inflation. As a result, budgets for critical areas like infrastructure, health
The document discusses India's fiscal policies and their role in controlling inflation. It outlines the objectives of fiscal policy, including achieving desirable price levels and employment. Higher direct taxes, lower government spending, and reducing borrowing can effectively control demand-pull inflation. The document also provides an overview of India's fiscal policy in 2008, noting goals to reduce the fiscal deficit. While there has been fiscal consolidation and an increased tax-GDP ratio, challenges remain around high inflation and the need to address supply constraints and infrastructure bottlenecks.
This document summarizes the key points from a speech given by the Chief Minister of Gujarat, Narendra Modi, at the Annual Plan Discussion in the Planning Commission in New Delhi on June 1, 2012. It discusses Gujarat's strong economic growth over the past decade, priorities for the upcoming 12th Five Year Plan, and achievements and priorities in sectors like health, education, and women and child development. The 12th Plan size is proposed to be Rs. 2,51,000 crore, almost double the 11th Plan size, to support continued high growth, improved human development, and balanced regional development.
The Union Budget 2016 highlights include boosting rural development, farmer's income, and infrastructure spending while maintaining the fiscal deficit target of 3.5%. Revenue expenditure is budgeted to rise 11% and tax revenues are expected to increase 11%. Allocations were increased for agriculture and farmer welfare, rural development including MGNREGA and PMGSY, and rural electrification. Infrastructure spending saw higher allocations for roads and ports. No major tax reforms were announced, but some relief was provided for affordable housing and startups. The budget aims to balance growth initiatives with fiscal prudence, but the fiscal targets may require cautious execution.
The Kelkar Committee on Fiscal Consolidation recommends several measures to address India's growing fiscal deficit, including raising prices of fuel, LPG, and fertilizers to reduce subsidies; increasing disinvestment proceeds; rationalizing plan expenditures; and tax reforms. Implementing these steps could help reduce the fiscal deficit from 5.8% to 5.2% of GDP, contain subsidy expenditures, boost tax revenues, and improve the overall fiscal health of the government.
Budget analysis of Bangladesh of Fiscal Year 2016-17Kaium Munsi
The document summarizes key aspects of Bangladesh's proposed national budget for fiscal year 2016-17, including:
- Total budget proposed is approximately 350,000 crore Taka
- Major allocations include education (22.3%), transport and communication (20.8%), and local government and rural development (18.4%)
- Sources of funds include tax revenue (30.3%), VAT (30%), and foreign grants (2.71%)
- Anticipated deficit is 55,000 crore Taka to be covered by foreign and domestic financing
- Strategic plans and allocations are proposed for key sectors like power, health, agriculture, and taxation policies
Tri-State Regional Workforce Alliance, Economic Report, 2016 UpdateLucas Stewart
Final regional economic report prepared for the Southeast Tennessee Development District and Tri-State Regional Workforce Alliance, Inc. as part of The University of Tennessee, Knoxville's Smart Communities Initiative.
The document discusses subsidies in India, including their objectives, effects, and trends at the central and state government levels. Some key points:
1. Subsidies aim to induce higher consumption/production, offset market imperfections, and achieve social objectives like redistribution and population control.
2. They impact resource allocation, income redistribution, government finances, and trade. Subsidies have increased in India due to expanded government activities and weak cost recovery efforts.
3. Central government subsidies are mostly for economic services, with low recovery rates. Food and fertilizer subsidies account for 30% of the total. State government subsidies are split evenly between social and economic services, with an overall low 5.8%
Government at a Glance Southeast Asia 2019 - Key elements from the report.OECD Governance
Government at a Glance Southeast Asia 2019 is the first edition in the Government at a Glance series for the region. It provides the latest available data on public administrations in the 10 ASEAN member countries: Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
For more information see http://www.oecd.org/gov/government-at-a-glance-southeast-asia-2018-9789264305915-en.htm
This document analyzes the finances of 17 Indian states based on their 2016-17 budget documents. Some key points:
1) States collectively spend 30% more than the central government, with total state spending at Rs. 23.4 lakh crore compared to Rs. 17.6 lakh crore for the centre.
2) There was no significant change in state spending on key social sectors like education, health, and rural development following the 14th Finance Commission's increase in tax devolution to states.
3) On average, states spend 21% of their total receipts (excluding borrowings) on servicing debt through interest and principal repayments. Some states like Punjab and West Bengal spend
State of Minnesota Economic Outlook: Implications for the Systemguest962eab
This document summarizes the economic outlook and budget challenges facing the state of Minnesota through fiscal year 2013. It notes that state revenues have fallen below forecasts in recent years due to the economic downturn. The state faces large budget gaps and deficits through 2013 due to slowing revenue growth and increasing spending pressures from an aging population. This will significantly impact funding for higher education institutions like the Minnesota State Colleges and Universities system.
State of Minnesota Economic Outlook: Implications for the SystemBecky LaPlant
This document summarizes the economic outlook and budget challenges facing the state of Minnesota through fiscal year 2013. It notes that state revenues have fallen below forecasts in recent years due to the recession. The state faces budget gaps in upcoming fiscal years due to slowing revenue growth and increasing spending pressures from an aging population. This will reduce funding available for higher education and the Minnesota State Colleges and Universities system.
State of Minnesota Economic Outlook: Implications for the Systemguest962eab
This document summarizes the economic outlook and budget challenges facing the state of Minnesota through fiscal year 2013. It notes that state revenues have fallen below forecasts in recent years due to the recession. The state faces large budget gaps and spending pressures from entitlement programs are expected to grow substantially as the population ages. This will significantly impact funding for higher education institutions like the Minnesota State Colleges and Universities system.
State of Minnesota Economic Outlook: Implications for the SystemKHanon
This document summarizes the economic outlook and budget challenges facing the state of Minnesota through fiscal year 2013. It notes that state revenues have fallen below forecasts in recent years due to the recession. The state faces large budget gaps and spending pressures from entitlement programs are expected to grow substantially as the population ages. This will significantly impact funding for higher education institutions like the Minnesota State Colleges and Universities system.
The budget aims to achieve GDP growth of 5.1% by attracting investment and containing inflation to 8%. Key measures include targeting tax collection of PKR 2.81 trillion through increased withholding taxes, reducing the corporate tax rate to 20% for new investments involving at least 50% equity from FDI, and investing PKR 42 billion in water projects and PKR 205 billion in power projects. However, the economy faces challenges of low tax collection, a large trade deficit, and energy shortages hampering growth.
The document provides an executive summary of the City of Tulsa's FY15 budget. It discusses revenues, expenditures, and the economic conditions in Tulsa. Total revenues are projected to be $687 million, an 0.8% increase from FY14. Taxes make up 52% of revenues, with sales tax being the largest at 33%. Expenditures are highest for public safety at 26% and public works/transportation at 39%. The economic forecast for Tulsa is improved, with growth in employment, income, and construction activity.
Fiscal deficit was retained at 3.9% in 2015-16 and 3.6% in 2016-17, and is targeted to be 3.2% of GDP in 2017-18 with a commitment to achieve 3% the following year. Total expenditure was projected to be Rs. 19.78 lakh crore in 2016-17 and is estimated to be Rs. 21.47 lakh crore in 2017-18. Revenue deficit targets were reduced from 2.8% to 2.5% in 2016-17 and further to 2.1% in revised estimates for 2017-18, while net market borrowing was restricted to Rs. 3.48 lakh crores after buyback in 2017-18.
Transformation of farmers agitation 2021 in IndiaShantanu Basu
This movement began as a protest against controversial farm acts by farmers, but has expanded into a broader challenge and alliance against the government by 90% of India's population. It represents common people challenging the privileged elite and seeking to replace the existing political system that perpetuates inequalities. The movement signals dissatisfaction with a system skewed in favor of upper castes and brings together various disadvantaged groups including farmers, laborers, and the unemployed from across different states. It seeks equitable policies for both buyers and sellers in the agricultural sector and other reforms benefiting farmers and rural communities.
- War clouds are gathering as Russia threatens to invade Ukraine and China flexes its muscles on the Indian border. Both countries have rebuilt their economies and militaries while Western powers have aging equipment.
- China and Russia want to show strength domestically and see Western treaties as having truncated their nations. They have penetrated infrastructure overseas and tested new weapons.
- The global power balance has shifted eastward as Western nations ceded manufacturing and technology to Asia. A future world war would likely be in Asia between East and West. India would struggle to fight on multiple fronts against China and Pakistan.
Red challenges to Biden's blue presidencyShantanu Basu
Biden faces formidable challenges as President from Republican opposition in the Senate and from Trump supporters across America. His agenda will likely be stalled as the Senate is evenly split, requiring Vice President Kamala Harris's vote. The US economy also presents challenges as it relies on high debt and deficits. Biden will face stiff opposition to providing further COVID relief, returning to Obama-era policies, and replacing Trump administration officials. Relations with China may continue as both countries rely on trade, but Biden will face pressure over issues like India from Republicans portraying him as soft. As the first Democratic president in decades, Biden will have to navigate tensions over race, business interests, and personal freedoms to achieve his reform agenda.
- War clouds are gathering as Russia threatens to invade Ukraine and China flexes its muscles on the India-China border. Both countries have rebuilt their economies and militaries while Western powers have aging equipment.
- China and Russia want to show strength domestically and see Western treaties as having truncated their nations. They have penetrated Western systems through cyber and economic means.
- The global power balance has shifted eastward as Western nations ceded manufacturing and technology to Asia. A future world war would likely be in Asia between East and West. India would struggle to fight on multiple fronts against China and Pakistan.
Red challenges to biden's blue presidencyShantanu Basu
Biden faces significant challenges as President from Republican opposition in the Senate and from conservative Americans who supported Trump. His agenda faces obstacles to passing legislation due to the even Senate split, and he may be forced to compromise on issues like abortion, immigration, and healthcare to appease conservatives. Biden also inherits an economy weakened by the pandemic and trade wars, high debt levels, and social divisions exacerbated by Trump. His ability to enact his agenda and make progress on issues like racial justice and climate change will depend on his ability to navigate these political and economic challenges from his opponents on the right.
The document summarizes India's fiscal deficit and gross liabilities for the years 2019-20 and 2020-21. It states that India's GDP in 2019-20 was approximately Rs. 250 lakh crore, with a fiscal deficit of Rs. 8.75 lakh crore or 3.5% of GDP. However, additional liabilities not provided for in the budget estimate totaled Rs. 38.75 lakh crore, bringing the real fiscal deficit to 15.5% of GDP. For 2020-21, GDP declined by 23.9% to approximately Rs. 190 lakh crore, while additional liabilities above the budget estimate of Rs. 35 lakh crore total Rs. 70 lakh
1. The document discusses the political and economic fallout of the COVID-19 pandemic, originating from China. It argues that while the Chinese government is culpable for initially suppressing information about the outbreak, blaming the Chinese people is unfair.
2. It describes how China's economic reforms and opening up led to massive growth and wealth creation, but also political ambitions and social tensions. The pandemic may cause countries to bring manufacturing back and reconsider their dependence on China.
3. India is positioned to benefit if it replicates China's economic model to attract investment and jobs, but it faces major challenges around infrastructure, bureaucracy, and corruption. Overall, the pandemic could spur manufacturing growth in multiple countries and regions.
1. The author argues that nationalism in India is often propagated by politicians to distract from domestic issues and consolidate power, rather than unite people. True nationalism respects India's diversity and ensures prosperity for all.
2. Many contributors to India's freedom struggle and cultural heritage are unknown or forgotten. Figures from all religions, genders, and social groups made sacrifices but a narrow version of nationalism promotes only certain identities.
3. India still faces significant issues of poverty, hunger, and inequality despite recent economic growth. True nationalism requires upholding democracy and rule of law to protect all citizens' rights and development.
India's Public Finances are in ShamblesShantanu Basu
The finances of the Government of India (GOI) are in dire straits. As of January 2020, the fiscal deficit was estimated at Rs. 9.85 lakh crore, which is about a third of total budgeted expenditures. With disastrous tax revenue in the first three quarters of the fiscal year and the impact of COVID-19, the actual deficit could exceed 45-50% of expenditures. Adding additional off-budget borrowing, the deficit could jump to 45% of revenues. To fill this large shortfall, GOI will need to take on substantial new borrowing, further increasing debt levels and interest payments in the coming years. The financial condition of GOI is weak, limiting its ability to provide further fiscal support
The document discusses India's debate around issuing sovereign bonds. It notes that India's high levels of domestic debt could amount to 45-50% of the government's budget annually. Issuing sovereign bonds in US dollars also presents risks like currency fluctuations, inflation risks, and lower credit ratings increasing interest rates. While sovereign bonds could raise large funds, there are doubts around India's ability to repay its obligations without impacting domestic debt payments or leading to a debt crisis. Alternative domestic funding options that avoid sovereign bond risks need more exploration.
The author argues that a lockdown in India would be misplaced and ineffective at stopping the spread of Covid-19 due to several factors unique to India. First, high population densities in urban and rural areas would make social distancing and quarantine impossible. Second, many migrant workers have returned from overseas and are traveling within India, negating the impact of a lockdown. Third, daily necessities are purchased from dense markets and small shops, and shutting these down would cause food shortages and panic. The author provides several alternative suggestions to address the virus, such as increased testing, protective equipment for frontline workers, and enlisting private industry to help produce medical supplies.
This document summarizes the debate around India issuing sovereign bonds for the first time. It notes that India already has high levels of domestic debt totaling Rs. 350-400 lakh crore. Issuing dollar-denominated sovereign bonds would expose India to currency and inflation risks given its lower-medium credit rating. While sovereign bonds could raise large funds, India may struggle to find projects that generate enough return to pay the estimated 6-7% coupon rate required due to these risks. The document argues for reforms like reducing government ministries, increasing foreign portfolio investment limits, and privatizing some state projects before relying too heavily on sovereign bonds.
Revocation of Art. 370 - The Ultimate Victory?Shantanu Basu
The document discusses corruption among politicians in Kashmir and the siphoning of public funds. It argues that revoking Article 370 is not an end in itself and that more needs to be done to address corruption. Statistics are provided showing large expenditures and grants to Kashmir compared to low revenues and poor development outcomes. The author urges the government to take exemplary action against corrupt politicians, scrutinize financial records, improve governance and economic opportunities in Kashmir, and handle the situation with care and fairness to avoid further conflict.
Dance of democracy or descent into mockocracyShantanu Basu
Briefly discusses the role of small parties that do not participate in elections in India but are errand boys of the larger ones in criminality like cash and drugs distribution during elections in India.
1. The author argues that excessive nationalism propagated by politicians is often used to mask internal flaws and promote superiority over others. However, true nationalism accepts diversity and is inclusive.
2. The author notes that India's rich cultural heritage and history of national heroes is often unknown or forgotten. Many contributions to India's freedom struggle came from a diverse range of individuals across religions and social groups.
3. While India has become one of the largest economies, there remains significant hunger and poverty that true nationalism should aim to address. Crony capitalism has benefited the privileged more than addressing issues facing the masses. The rule of law and democracy are also threatened when different rules apply to different groups.
Briefly registers my protest against the proposed implementation of NYAYA by the Indian National Congress. It opposes the very idea of unsustainable cash handouts to the indigent.
Ten takeaways from india state assembly elections 2018Shantanu Basu
1. The document provides 10 takeaways from the 2018 Indian state assembly elections. Key issues included voters rejecting both the BJP's majoritarian religious politics and the INC's weak religious appeals. Development was prioritized over allegations of corruption.
2. Voters rejected negative campaigning and were not swayed by promises or incentives but cared most about issues like jobs, farm loans, prices, and wages. Narrow victory margins showed that politicians must deliver or face backlash.
3. Caste and religious loyalties mattered less while educated leaders were preferred. Social media was a double-edged sword that allowed debates to influence remote voters. A silent voter revolution occurred as voters rejected empty promises and arrogance.
Telecom Revolution, Governnace and Elections in IndiaShantanu Basu
Briefly discusses the telecom and media revolutions in India. The article concludes that a large part of voting in India's next General Election in 2019 would be decided from homes and that such choices would make voters much more conscious of seeking accountability of their elected representatives.
18062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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Christian persecution in Islamic countries has intensified, with alarming incidents of violence, discrimination, and intolerance. This article highlights recent attacks in Nigeria, Pakistan, Egypt, Iran, and Iraq, exposing the multifaceted challenges faced by Christian communities. Despite the severity of these atrocities, the Western world's response remains muted due to political, economic, and social considerations. The urgent need for international intervention is underscored, emphasizing that without substantial support, the future of Christianity in these regions is at grave risk.
https://ecspe.org/the-rise-of-christian-persecution-in-islamic-countries/
La defensa del expresidente Juan Orlando Hernández, declarado culpable por narcotráfico en EE. UU., solicitó este viernes al juez Kevin Castel que imponga una condena mínima de 40 años de prisión.
Shark Tank Jargon | Operational ProfitabilityTheUnitedIndian
Don't let fancy business words confuse you! This blog is your cheat sheet to understanding the Shark Tank Jargon. We'll translate all the confusing terms like "valuation" (how much the company is worth) and "royalty" (a fee for using someone's idea). You'll be swimming with the Sharks like a pro in no time!
Recent years have seen a disturbing rise in violence, discrimination, and intolerance against Christian communities in various Islamic countries. This multifaceted challenge, deeply rooted in historical, social, and political animosities, demands urgent attention. Despite the escalating persecution, substantial support from the Western world remains lacking.
मद्रास उच्च न्यायालय के सेवानिवृत्त न्यायाधीश और केंद्र और राज्य सरकार के नौकरशाहों सहित आठ अन्य लोगों की अध्यक्षता वाली एक उच्च स्तरीय समिति ने 2021 में NEET परीक्षा को खत्म करने की सिफारिश की थी। महत्वपूर्ण बात यह है कि रिपोर्ट में 2010-11 में ग्रामीण पृष्ठभूमि से तमिल छात्रों की संख्या में 61.5% की भारी गिरावट को दर्शाया गया है। इसके बजाय मेट्रो छात्रों में वृद्धि दर्ज की गई है।
Apna Punjab Media is a Punjabi newspaper that covers local and global news, cultural updates, and community events. It's a trusted source for Punjabi-speaking communities, offering a mix of traditional values and modern insights into Punjab's vibrant life and heritage.
लालू यादव की जीवनी LALU PRASAD YADAV BIOGRAPHYVoterMood
Discover the life and times of Lalu Prasad Yadav with a comprehensive biography in Hindi. Learn about his early days, rise in politics, controversies, and contribution.
Why We Chose ScyllaDB over DynamoDB for "User Watch Status"ScyllaDB
Yichen Wei and Adam Drennan share the architecture and technical requirements behind "user watch status" for a major global media streaming service, what that meant for their database, the pros and cons of the many options they considered for replacing DynamoDB, why they ultimately chose ScyllaDB, and their lessons learned so far.
projet de traité négocié à Istanbul (anglais).pdfEdouardHusson
Ceci est le projet de traité qui avait été négocié entre Russes et Ukrainiens à Istanbul en mars 2022, avant que les Etats-Unis et la Grande-Bretagne ne détournent Kiev de signer.
La defensa del expresidente Juan Orlando Hernández, declarado culpable por narcotráfico en EE. UU., solicitó este viernes al juez Kevin Castel que imponga una condena mínima de 40 años de prisión.
विवादास्पद फिल्म के ट्रेलर से गाली-गलौज वाले दृश्य हटा दिए गए हैं, और जुर्माना लगाया गया है। सुप्रीम कोर्ट और बॉम्बे हाई कोर्ट दोनों ने फिल्म की रिलीज पर रोक लगा दी है और उसे निलंबित कर दिया है। पहले यह फिल्म 7 जून और फिर 14 जून को रिलीज होने वाली थी, लेकिन अब यह 21 जून को रिलीज हो रही है।
17062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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#First_India_NewsPaper
Federal Authorities Urge Vigilance Amid Bird Flu Outbreak | The Lifesciences ...The Lifesciences Magazine
Federal authorities have advised the public to remain vigilant but calm in response to the ongoing bird flu outbreak of highly pathogenic avian influenza, commonly known as bird flu.
Federal Authorities Urge Vigilance Amid Bird Flu Outbreak | The Lifesciences ...
Financial Management in Assam
1.
2. 1.1 Since the late 1960s Assam has benefitted from
poverty estimates showing 32% of the population of
liberal Central govt. funding for its Plan and non-Plan
Assam below the poverty line. The State’s GSDP has
needs by the Planning Commission’s Gadgil formula as
risen from 3.7% in the VII Plan from 1985-90 to 6.5% in
amended from time to time. This formula was made for
2007-12 in the XI Plan against the national median of
three Special Category States (SCS), viz. Assam, J&K
5-7-9.1% in the same period. The State’s tax revenues
and Punjab - in the late-1960s primarily to develop
too have grown on a year-to-year basis by about 9-11%
them for they had borders each with a neighboring
while the major sources of revenue remain those from
nation. This formula, with several permutations and
commodities (mainly tea & petroleum) and a buoyant
combinations, continues to date, with Assam receiving
services sector (that grew from an annual 4.5% to 8%
90% of Central assistance as non-interest bearing
against the national median of 7.7-9% in the same Plan
grants-in-aid and 10% as loan. Although the quality of
periods) and rising share of income tax from the Govt.
life of Assamese has improved substantially in the post-
of India. Yet the overall contribution of SCS to GDP,
2003-04 years, yet this State remains one of the poorest
including that of Assam, remains at a minuscule of
in India with the Planning Commission’s 2011-12
0.78% to 1.78% in 2011-12.
2
3. 1.2 Although Assam’s GSDP increased by 12.7% in
relatively small budget deficits.
2011-12, that of other Special Category States, like
1.3 Net borrowings are on a declining trend although
Uttarakhand and Sikkim, fared much better with
old interest liability runs relatively high, but not
24.7% and 19.24% respectively. Such tiny share of
worrisome by the standards of many other larger
GDP could not have owed singly to the marginal
States. In fact, Assam’s debt stock at 21.3% of GSDP
decline of 1.88% in absolute terms from the IVth to
among SCS is perhaps the lowest when compared to
XIIth FC by way of Central assistance to Assam since
Sikkim’s 68.9% and Uttarakhand’s 87.5%. Naturally,
GOI grants have also risen by about 50% in absolute
this reflects positively on Assam’s declining debts &
terms in the last decennial. Yet direct transfers for
liabilities from 37.65% to 27.29% of GSDP in the last
flagship Central schemes may be a major factor for
decennial. A vastly improved cash balance has enabled
such decline but improved the quality of life of
the State to steer clear of any advances and/or
Assamese people. Notwithstanding a rise in absolute
overdrafts from the Reserve Bank of India since 2005-
terms in taxation and Central assistance, Assam’s
06. The position would have been certainly better were
gross revenue has constituted about 18-23% of GSDP
it not for a minuscule 1.04% return on the State’s PSU
per annum in the last decennial while gross
investment in 2011-12.
expenditure has ranged between 21-25% thus leaving
3
4. 1.4 Owing mainly to relatively high inflation and
revenue surplus in 2010-11, a trend that continued
rising
employees,
in 2011-12. Such surpluses mainly owe to the
expenditure on revenue account has risen by an
Financial Responsibility & Budget Management
annual average of 18-24% while that on capital by
(FRBM) Act, 2005 that, inter alia, prescribed
only 2-3% in the last decennial. Obviously, the
maxima of 3% of GSDP as revenue deficit.
accretion of benefit-yielding capital expenditure
However, the above statistics do not necessarily
has been thwarted by rising operating costs of
imply that fiscal and administrative governance
government. After several years of revenue
synergize each other as the succeeding paragraphs
deficits, in 2009-10, Assam returned a small
----would bear out.
wages
of
government
4
5. 2.1
While
40%
of
Assam’s
highways
are
from an over 50% shortage of energy. In fact, the
macadamized & 93% roads remain single-laned, and
overall registration of educated job seekers as per
71% fields have markets more than 5km from the
record of Employment Exchanges increased by
nearest field. Moreover, the average operational land
17.25% in 2010. The PDS Outlet: Population Ratio is
holding size is only 1.15 ha that may account for the
adverse at 1:898 and the State has 14 lakh
State having a low
of
unemployed registered in employment exchanges
commercial banks of only 35.6% against 75.1%
with about 75% of all job-seekers being educated.
nationally. The State is yet to reach self-sufficiency
Assam also ranks 26th among all States in literacy
in productivity as well as minimum nutrition.
rates with 79% for males & 67% for females, 70.44%
Industry is mainly small scale, and the State suffers
rural and 88.88% urban literacy.
deposit: credit
ratio
5
6. 2.2. The sex ratio of the State is heavily skewed at
also higher than the national average of 6.50%. In
1000:957 while the State has India’s highest
sum, while incomes have grown and quality of life
maternal mortality ratio of 390. The labor force is
improved in the State, the State still lacks in basic
equally skewed with 53% marginal female workers
infrastructure and development of basic quality of
against 15% male. Birth rate of 23.6 per mille
life parameters such as energy, roads & bridges,
against the national median of national 22.5 per
hospitals and primary health care, communications
mille and infant mortality of 58 per mille are higher
and roads and bridges, etc. Assam also suffers 16%
than the national average of 47 per mille. The State
power shortage aggravated by 26% T&D losses.
also has a relatively high birth rate of 23.2 and death
Notwithstanding
rate of 8.2 per mille. Yet Assam’s below the poverty
assistance over the last several decades, often to the
population at 19.70% (Lakdawala) or 34.40%
exclusion of equally and more needy states, Assam
(Tendulkar) is relatively lower when compared to
remains on the fringe of assuring a minimally
national averages of 27.5% and 37.20% respectively.
acceptable quality of life for its inhabitants.
large
infusions
of
Central
Assam’s net per capita income growth of 11.50% is
6
7. Tax and non-tax revenues rose 4.5 and 4 folds
respectively but were adversely affected by inflation
GSDP ranged from 4.62% to 6.62% from 2007-08 to
2011-12.
ranging from 2-17% per annum during this decennial,
However, the State’s record in collecting taxes on
particularly from 2009-10. While tax revenue rose
commodities and services with a tax efficiency ratio
partly in tandem with GSDP, non-tax revenue fell
ranging from 0.82%-1.33% in the same period is
substantially short of GSDP growth rate primarily
praiseworthy. In the same period percentage of State’s
owing to PSU/AB losses. The State also remained
share of Union taxes declined from 59.42% to 54.86%.
below the national average GDP growth rate except in
While taxes on income & expenditure have risen,
2009-10 with the services sector expanding by 8.76%
grants-in-aid & contributions have declined compared
in 2010-11. The rise in taxes on income and
with revenue receipts. However, in absolute value,
expenditure owes mainly to a corresponding nine-fold
grants-in-aid increased from Rs. 2351.50 crore in
rise in the share of net proceeds of Union taxes and
2002-03 to Rs. 7666.87 crore in 2011-12, i.e. over a
duties assigned to the State from 2002-03 to 2011-12.
three-fold rise in the decennial, showing continuing
Supported by increasing Central grants-in-aid, the
dependence on central grants. Receipts from Govt. of
State’s revenue and expenditure as percentage of
India increased over 2010-11 by Rs. 2248.64 crore to
GSDP have broadly kept pace with each other, except
Rs.
in 2009-10 owing to arrear payments and salary
appropriation of Rs. 39,482.69 crore, i.e. 43% in
increases recommended by
2011-12.
the 6th
State Pay
16950.40
crore
against
gross
budget
Commission. Percentage of State’s own revenue to
7
8. Although the state registered a fiscal surplus
to emerge between GSDP, debt and other liabilities.
from 2005-06 to 2008-09, 6th Pay Commission
With relatively liberal funding from the GOI,
payments forced it back into a deficit in 2009-10.
Assam’s debt stock at 21.30% of GSDP is the lowest
While interest payments remained largely static
among all SCS and barely a fourth of Uttarakhand.
until 2008-09, these rose substantially from 2009-
In fact, the State’s debts and liabilities have declined
10 owing to more payments under internal debt,
by about a third to 27.29% in 2011-12 from 2002-
Small Savings and PF, etc. While total internal debt
03. Regrettably, the return on the State’s investment
and other liabilities show a rising trend, L&A from
on its public sector enterprises has contributed only
GOI shows a declining trend, all without adjusting
0.5-1% per annum in the last decennial, making
for inflation. Declining L&A from Ministries, other
these a major drain on the State’s economy. With its
than Finance, write-off of loans by 12thFinance
improved liquidity the State has also not taken any
Commission plus Assam’s special category eligibility
ways and means advances since 2004-05.
for 90% grants and 10% loan, has caused a balance
8
9. 4.1 Expenditure on revenue account (18-24% of
social services, where the State’s many beneficiaries
GSDP) has risen appreciably faster than on capital
lie, accounted for only 11%. Even within social
account (2-3% of GSDP) that has stagnated with few
services,
new capital assets being added without adjusting for
accounted for relatively small percentages. Although
inflation. Declining borrowings by 90% SCS grants,
the State shows erratic fiscal health up to 2009-10,
write-off of loans by 13th Finance Commission and
large budget surrenders/undrawn balances every
extra budgetary transfers for flagship schemes and
year by key infrastructure and social welfare
reducing pensions with introduction of New Pension
departments shows that the state is unable to apply
Scheme, have helped raise expenditure on social
such funds even when human development indices
services without adjusting for inflation. Although
are among the lowest in India. This also points to
pensions have remained largely static as a percentage
ineffective schematic monitoring and evaluation both
of total revenue expenditure, in absolute terms they
by the State and GOI.
health,
education
and
social
welfare
have risen by approx. 300% in the last decennial,
without adjusting for inflation.
4.2
However,
surprisingly,
economic
services
accounted for 87% of total capital expenditure while
9
10. 4.3 While there are large budget surrenders every
every year. While, on the one hand, the State was
year, large investments are made in short-term
unable to utilize approx. Rs. 86,000 crore of its
investments in Govt. of India Treasury Bills owing
budget allotments in the past decade, it drew
to unutilized cash balances of the State with RBI. If
several thousand crore of Rupees in March. Since
current bank account balances are factored, the
such moneys were not lawfully available after
State is not short of funds even if Central Plan
March 31 every year, its utilization remains
grants were temporarily reduced. In fact, the 2011-
unknown.
12 Annual Plan’s outlay almost equals gross budget
surrenders/undrawn balances in the same year. The
State’s receipts, its own and from GOI, are received
regularly through the year but about a quarter to a
third of the state’s budget is expended in March
alone. As a logical corollary, the State’s accounts
invariably show a large revenue surplus till March
10
11. 4.5 Assam receives substantial grants (90% as grant
such large funds are made available to Assam at the
and 10% as loan, being a Special Category State) from
expense of needier States.
the GOI. However, the State’s Appropriation Accounts
4.6
for 2011-12 show that Assam had an unspent balance
allocations are decided by the Planning Commission,
of Rs. 10,128.67 crore against total appropriation of
partly on the basis of the achievements of the state
Rs. 39,482.69 crore, i.e. 25.65%. Such large unspent
govt. in the preceding year. When the figures of
balances caused a revenue surplus of Rs. 926.85 crore
expenditure depicted in the Appropriation Accounts
and artificially lowered the fiscal deficit to Rs.
show such large unspent balances and heavy drawings
1,646.05 crore, i.e. 1.43% of GSDP (of Rs. 1,15,409.64
in March alone, these subvert Govt. of India’s Plan
crore), less than half the maxima set by the FRBM Act
budget that finds itself short of resources for more
ibid. If transfers to DDOs’ current bank accounts (ref.
deserving states and artificially inflates both revenue
para 12 infra) are not included as expenditure in the
and fiscal deficits of the Centre.
Future
years’
schemes
and
their
budget
Appropriation Accounts, Assam’s fiscal deficit to
GSDP ratio would decline further and substantially,
although this may detract from avowed State policy to
improve the quality of life for its citizens for which
11
12. 4.7 Section 4 (3) (v) of the State’s Fiscal
57%), Urban Development (57-67%) and Roads &
Responsibility and Budget Management (FRBM)
Bridges (35-38%), Power (55-57%) etc. Within such
Act states that the fiscal deficit is required to be
large
restricted to no more than 3% of the estimated
surrenders, e.g. Water Resources (Rs. 1891.45
Gross State Domestic Product within a period of five
crore), Roads & Bridges (Rs. 1292.02 crore) and
financial years beginning on the 1st April, 2005, and
Power (Rs. 916.88 crore) from 2009-10 to 2011-12.
ending on 31st March, 2010. However, the State’s
Cumulative surrenders over 2009-10 and 2010-11 in
Appropriation Accounts for 2011-12 show that
14 major budget heads alone were Rs. 11716.40
Assam showed unspent balance of Rs. 10128.67
crore. In fact, in 2011-12, except for 2-3 budget
crore against a total appropriation of Rs. 39,482.69
heads where there was excess spending, in all other
crore, i.e. 25.65%. From 2009-10 to 2011-12, the
budget heads there were savings and/or unspent
State surrendered/did not draw 23-37% of its gross
balances - a most unusual trend in an era of major
budget allocation approved by the State Assembly.
budgetary cutbacks country and world wide. Such
Key infrastructure and social welfare departments
savings also carry with it the distinct possibility of
have showed abnormally high surrenders in areas
needier States being underfunded while the revenue
such as Social Service (68-90%), Water Resources
deficit of the Centre artificially mounts.
overall
savings
are
large
capital
fund
(57-68%), Social Security, Welfare & Nutrition (27-
12
13. 4.8 Of the total Plan schematic surrenders of Rs.
colleges and rural family welfare sub-centers, water
16,951.84 crore from 2009-10 to 2011-12, Rs.
supply, child services, mid-day meals for school
9163.28 crore were on account of major schemes
children, flow irrigation, grants for backward
with 75% savings in about a dozen, 50-74% in 18
regions and hill areas, both State and Central, Plan
and 20-49% in another 19, affecting diverse budget
and non-Plan.
heads such as, but not limited to, Water Resources,
4.10 In addition, there were large surrenders of
Hill
Urban
revenue allocations, many of which sub serve Plan
Development, Water Supply & Sanitation, Roads &
schematic expenditure such as Rs. 1,117.36 crore in
Buildings, Rural Development, Medical & Public
Medical & Public Health, Rs.1,730.05 crore in Social
Health and others.
Security, Welfare & Nutrition, Rs. 574.16 crore in
4.9 Even externally funded schemes like those of
Welfare of SC/ST/OBC and Rs. 1,602.27 crore in
the North Eastern Council (NEC) showed savings of
Social Service from 2009-10 to 2011-12. These
Rs. 1,426.72 crore from 2009-10 to 2011-12. Some
include unfilled posts of doctors, teachers, repairs
schemes that showed large savings include flood
and maintenance of existent capital projects, etc.
Areas,
Social
Security/Services,
control of Brahmaputra and Barak rivers, medical
13
14. 4.11 Such large surrenders caused an artificial
Although the State’s departments report large
revenue surplus of Rs. 926.85 crore and artificially
surrenders and/or unspent balances every year
lowered the fiscal deficit to Rs. 1,646.05 crore, in
that invariably leads to an accretion in the cash
2011-12, i.e. 1.43% of GSDP (of Rs. 1,15,409.64
balance of the State held by the Reserve Bank of
crore), less than half the maxima set by the FRBM
India, the State invested Rs. 5146-8858 crore per
Act ibid. However, if 80% of capital allocations
annum in short-term Govt. of India Treasury Bills
were expended, there ought to have been a fiscal
and earned interest thereon, ranging from Rs. 231-
deficit of Rs. 8822 crore in 2011. This, in turn,
481 crore per annum from 2007-08 to 2011-12. In
would have raised the fiscal deficit to 7.64% of
fine, the FRBM Act has not only failed to achieve
GSDP. Likewise, if 80% of revenue budget
its desired objective but, paradoxically, has
allocations were expended, there ought to have
become an instrumentality for subversion of
been a revenue deficit of Rs. 4829 crore in 2011-12.
prudent financial practices and accountability.
14
16. Borders 7 states and 2 countries
Area of 78,438 sq. km
Has 48 major and 128 minor rivers
Population of 31.17 million in 2011
27 districts + 4 under Bodoland TC
2.4% of India’s area home to 2.57% of its population
Decadal population growth of 16.93% against national average of 17.64%
GSDP growth in 2011-12 est. at 8.42%
NSDP growth in 2011-12 est. at 8.42%
Primarily agricultural economy with paddy covering 91% of cultivated land and employing 52% of work force
Manufacturing only 7% of GSDP
Source: Economic Survey of Assam, 2011-12
16
17. Source: Economic Survey of Assam, 2011-12
Services sector growth in 2011-12 est. at highest among all
sectors at 9.74%
Est. 10.73% growth in tax income of State
Per capita indebtedness of Rs. 8677 in 2010-11
20000 population covered by a bank branch against
national average of 14000
Rice production up by 14% in 2010-11
7% of land area eroded by major rivers since 1954
Yet to reach self-sufficiency in productivity as well as
minimum nutrition
Tea industry of 332000 ha. major source of economic and
>10 million heads of livestock
social sustenance
Industry mainly small scale
Except natural gas, Coal, Petroleum(Crude) and Limestone
No improvement in power availability
production declined
PDS Outlet : Population Ration = 1:898
Tele-density of 35.18% below national average of 66.17%
14 lakh registered unemployed in employment exchanges
17
18. Growth of population during 1971-2011 is 113.12 % against the national growth rate of 120.77%
14th in size of population in India
15th in density
15th in sex-ratio
0.19 0.09
26th in literacy
0.09
0.04
0.08
3.7
30.92
64.89
Hindu
Muslim
Christian
Sikh
Buddhist
Jains
Other
Not Stated
Source: Economic Survey of Assam 2011-12
18
19. Source: Economic Survey of Assam 2011-12
Literacy rate 79% for males & 67% for females
70.44% rural and 88.88% urban literacy
Child sex ratio M: F = 1000:957
53% marginal female workers against 15% male
Birth rate of 23.6 per mille against national 22.5 per mille
Infant mortality 58 per mille against national average of 47 per mille
Birth rate 23.2 and death rate 8.2 per mille
BPL population 19.70% (Lakdawala) or 34.40% (Tendulkar) against national averages of 27.5% and 37.20% respectively
GSDP growth rate of 7.34% against national average of 8.5%
19
20. Source: Economic Survey of Assam 2011-12
Net per capita income growth of 11.50% against national average of 6.50%
Average operational land holding size is only 1.15 ha
71% fields have markets more than 5 km from nearest field
16% power shortage aggravated by 26% T&D losses
40% macadamized highways & roads of which 93% single-laned
Deposit : Credit ratio of commercial banks 35.6% against 75.1% nationally
Percentage of educated job seekers about 75% of all job-seekers
Overall registration of educated job seekers as per record of Employment Exchanges increased by 17.25% in 2010
Highest maternal mortality ratio of 390
20
24. 10
Figures In Per cent
9
8
Per Cent
7
6
5
4
3
2
1
0
1985-90
1992-97
1997-2002
2002-07
2007-12
Assam
4.5
4.4
3.9
7.3
8
Median
7.7
5.8
6.9
8.5
9
Assam’s growth rate of services is fast catching up with the national median
24
25. Human Services
• Medical & Public
Health
• Education
• Water Supply &
Sanitation
• I-T enabled
services for
remote areas
Infrastructure
• Power
• Alternative
sources of energy
• Roads & Bridges
• Irrigation &
Waterways
• Water Resources
• Communication
Economic
•
•
•
•
Agriculture
Manufacturing
Financial Services
Employment
25
28. Percent
80
60
40
20
0
GCS Tax:
GSDP
GSDP
GCS
SCS Tax:
GSDP
GSDP
SCS
GCS Tax: GSDP
GSDP GCS
SCS Tax: GSDP
GSDP SCS
2014-15
8.97
13.55
6.31
11.77
2013-14
8.89
13.54
6.24
11.76
2010-11
8.66
12.57
6.02
11.33
2012-13
8.81
13.52
6.16
11.74
2011-12
8.74
13.09
6.09
11.55
2009-10
8.58
10.04
5.94
10.25
While in the case of General Category States (GCS), the gap between GSDP growth and tax rate growth has
worsened from approx. 1.5% in 2009-10 to a projected approx. 4.5%, the Special Category states
(SCS), including Assam, project a rise from approx. 4.5% in 2009-10 to approx. 5.50% by 2015.
Obviously, there is reticence to widen the tax net and/or raise existing rates of state taxes.
28
29. Percent
45
40
35
30
25
20
15
10
5
0
VIII FC
IX FC
X FC
XI FC
XII FC
Transfers as %age of Gross Central
Revenues
37.86
40.33
35.79
35.27
38.51
Total Revenue Transfers from Centre
to States as %age of GDP
10.04
12.57
13.09
13.52
13.54
http://fincomindia.nic.in/ShowContentOne.aspx?id=28&Section=1 pp. 375-376 & http://www.tradingeconomics.com/india/gdp
29
30. http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 6
Year
Revenue Receipts
of Centre
(Rs. In Crore)
Quantum of FCT
(Rs. In Crore)
FCT as %age of
Central Revenue
Receipts
Actual
devolution
%age
-
-
37.80
-
1999-2000
181482
46222
25.46
-
2004-05
305991
88354
28.87
25.77
2005-06
345754
115345
33.36
27.77
2006-07
434387
136486
31.42
25.41
2007-08
525098
155973
29.70
25.93
1990-91
Although Twelfth FC fixed States’ share of Central taxes at 30.50% of net
proceeds, actual devolution has been below this level.
30
31. http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 11
Although GOI grants have risen by about 50% in the last decennial in absolute terms, Assam’s share has
declined by 1.88% in absolute terms from the IVth to XIIth FC. However, in real terms the decline is
substantially more when inflation is factored. Direct transfers for flagship Central schemes may be a
major factor for such decline.
31
32. 18
16000
16
14000
14
12000
12
10000
10
8000
8
6000
6
4000
4
2000
Rs. In Crore
18000
2
0
2011-12
2010-11
2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Tax Revenue
16921.77 13898.46 10326.25 9340.11
8277.71
7382.31
6288.99
5297.65
4232.39
3748.87
Non-Tax Revenue
0
692.97
2866.76
2373.33
2752.94
2271.9
2134.59
1859.27
1459.28
1070.03
945.8
GSDP %age grow over previous year
10.74
18.4
13.57
6.61
14.62
34.63
8.23
8.51
9.76
Tax as %age of GSDP
17.14
15.62
14.86
14.98
14.33
14.57
12.22
10.04
8.16
7
Tax and non-tax revenues rose 4.5 and 4 folds respectively but were adversely affected by inflation
ranging from 2-17% per annum during this decennial, particularly from 2009-10. While tax revenue rose
partly in tandem with GSDP, non-tax revenue fell substantially short of GSDP growth rate primarily
owing to PSU/AB losses. The State also remained below the national average GDP growth rate except in
2009-10 with the services sector expanding by 8.76% in 2010-11.
32
33. 2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Percentage of Total Receipts
100%
80%
60%
40%
20%
0%
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
Percentage to GSDP
23.79
24.01
22.59
23.32
21.08
21.55
25.57
22.83
19.36
21.78
Grants/Contributions
27.32
29.27
34.22
35.76
32.06
32.38
35.67
35.92
33.31
34.61
Economic Services
8.24
7.92
9.39
9.18
11.08
11.01
11.08
9.72
10.93
9.51
Social Services
0.09
0.12
0.13
0.12
0.2
0.99
0.32
0.21
0.64
0.19
General Services
0.32
0.39
1.77
0.77
0.92
0.24
0.29
0.64
0.44
0.37
Interest/Dividends/Profits
1.78
1.87
2.56
2.5
1.73
1.36
0.43
0.2
0.17
0.13
Commodities/Services
9.46
37.4
32.41
34.23
34.91
37.63
38.03
38.81
39.69
42.36
Property & Capital Tr.
1.2
1.18
1.16
1.25
1.25
1.27
1.35
1.33
1.61
1.66
20.97
21.83
18.36
16.19
17.85
15.12
12.83
13.17
13.21
11.17
Income & Expdn
The rise in taxes on income and expenditure owes mainly to a corresponding nine-fold rise in the share
of net proceeds of Union taxes and duties assigned to the State from 2002-03 to 2011-12
33
35. State’s share of
Central taxes
47%
State's Own Taxes
53%
Decennial Average
Percentage of State’s own revenue to GSDP ranged from 4.62% to 6.62% from 2007-08 to 2011-12.
However, the State’s record in collecting taxes on commodities and services with a tax efficiency ratio
ranging from 0.82%-1.33% in the same period is praiseworthy. In the same period %age of State’s
share of Union taxes declined from 59.42% to 54.86%.
35
36. 15%
1%
34%
Decennial Average
38%
Income & Expd.
Property & Capital
Commodities & Services
10%
Interest/Dividend/Profit
General Services
Economic Services
1%
1%
While taxes on income & expenditure have risen, grants-in-aid & contributions have declined compared
with revenue receipts. However, in absolute value, grants-in-aid increased from Rs. 2351.50 crore in
2002-03 to Rs. 7666.87 crore in 2011-12, i.e. over a three-fold rise in the decennial, showing continuing
dependence on central grants.
36
38. 5000
4000
3000
2000
1000
0
-1000
-2000
Borrowings
Interest Payment
2011-12
2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
1646.05 1990.56 4043.42 -1406.7
2074.5
1912.12
1832.58 1593.33
-790.1
-711.38
-355.7
1512.24
1515.67
1510.12
2057.45 1393.98
1197.43
1403.53
1244.74
1446.1
Although the state registered a fiscal surplus from 2005-06 to 2008-09, 6th Pay Commission
payments forced it back into a deficit in 2009-10. Although interest payments remained largely
static, these rose substantially from 2009-10 owing to more payments under Internal debt, Small
Savings and PF, etc.
38
39. 20000
140000
Progressive Balances
18000
120000
16000
100000
14000
12000
80000
10000
60000
8000
6000
40000
4000
20000
2000
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Internal Debt
4507.97
L&A from GOI
6482.36 6734.45 6904.25 2875.02 2775.31 2708.44 2639.57 2346.38 2238.69 2143.48
Other Liabilities
2768.36 3331.22 4006.96 4070.73 4675.38 5296.29 6403.74 9444.3
0
GSDP (Rs. In Crore)
36547
5023.5
40115
6633.71 11681.8 12402.5 13032.5 15198.1 16674.0 17903.6 17805.1
43529
47113
63428
72700
77506
88023
9550.37 11548.5
104218
115408
While total internal debt and other liabilities show a rising trend, L&A from GOI shows a declining
trend, all without adjusting for inflation. Declining L&A from Ministries, other than Finance, writeoff of loans by 12th Finance Commission plus Assam’s special category eligibility for 90% grants and
10% loan, has caused a balance to emerge between GSDP, debt and other liabilities.
39
41. 45
As percentage of GSDP
40
35
30
25
20
15
10
5
0
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
%age of GSDP
27.29
28.49
32.34
31.28
28.94
31.3
39.54
40.3
37.61
37.65
Debt and Liabilities as a percentage of GSDP is declining that is a positive sign of the state’s fiscal health
and its ability to sustain itself on limited borrowings. However, this decline owes primarily to the XIIth
FC’s 90% grant and 10% loan component of Central assistance
41
42. Effective %age return for FY
1.21
1.17
0.94
1.04
0.93
0.78
0.69
0.70
0.48
The return on investments in PSUs is negligible owing to their below par performance, although state
investment on them has risen approx. four-fold in the last decennial
42
43. No. of days
2011-12
No. of days without advance
2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
365
365
365
365
365
365
365
No. of days with advance
155
11
23
0
0
0
0
0
0
0
81
39
30
No. of days with overdraft
0
0
0
0
0
0
0
129
315
312
The state is living within its means owing, inter alia, to rising Central assistance from 2004-05
and onward in absolute terms
PRINCIPAL ACCOUNTANT GENERAL (A&E), ASSAM
43
44. 35000
30000
NPE on Capital Account
PE on Revenue Account
25000
PE on Capital Account
GSDP (Revenue)
NPE on Revenue Account
GSDP (Capital)
20000
15000
10000
5000
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
0
Expenditure on revenue account (18-24% of GSDP) has risen appreciably faster than on capital account
(2-3% of GSDP) that has stagnated with few new capital assets being added without adjusting for
inflation.
44
48. As per cent of Total Revenue Expenditure
120
Percentage
100
80
60
40
20
0
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2.59
1.04
0.07
0.07
17.71
20.26
22.4
23.3
41.03
38.89
39.08
14.99
10.1
10.52
13.68
13.24
12.8
9.14
11.94
1.39
0.72
1.18
0.93
Grants-in-aid & Contributions
2.47
1.56
Economic Services
17.58
20.34
Social Services
43.22
44.26
40.24
Pensions
12.79
10.68
Administrative Services
13.64
11.74
Debt Servicing
8.32
8.85
Organs of State
0.93
Fiscal Services
1.05
2005-06
2004-05
2003-04
2002-03
0.1
0.13
0.15
0.11
22.18
22.14
18.3
15.39
37.84
41.67
39.78
40.75
10.29
9.61
10.39
10.76
10.92
10.57
12.35
8.98
10.4
12.07
13.47
14.76
15.7
14.15
18.25
18.51
1.25
0.79
0.75
1.08
0.96
1.15
0.82
1.14
1.06
1.18
1.14
1.58
1.21
1.43
Declining borrowings by 90% SCS grant, write-off of loans by 13th FC and extra budgetary transfers for
flagship schemes and reducing pensions with introduction of NPS have helped raise expenditure on social
services without adjusting for inflation. Although pensions have remained largely static as a percentage of
total revenue expenditure, in absolute terms they have risen by approx.
300% in the last
decennial, without adjusting for inflation.
48
49. 6000
4000
2000
0
-2000
-4000
2012-13
2011-12
Revenue 5302.23
926.85
Fiscal
3592.23 -1646.0
2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04
53.12
-1990.5
-1347.7
3833.71 2580.77 2210.42 1509.08
-4043.4 1406.79
790.1
711.38
355.7
-291.87
-684.69
-2057.4
-6000
-1393.9
Although the State shows erratic fiscal health up to 2009-10, large budget surrenders/undrawn
balances every year by key infrastructure and social welfare departments shows that the state is
unable to apply such funds even when human development indices are among the lowest in India.
This also points to ineffective schematic monitoring and evaluation both by the State and GOI.
49
50. 60000
Rs. In Crore
50000
40000
30000
20000
10000
0
2009-10
2010-11
2011-12
Net Savings
3006.75
2640.44
2797.08
Capital
6742.89
5635.59
6537.45
Net Savings
9637.77
11313.55
6416.46
Revenue
30870.4
34265.8
32945.24
Central grants have risen in absolute terms by over 50% in the last decade. Utilization certificates are not
submitted to PAG/AG (A&E) in time – gross average annual cash savings are 23-37% although some
departments have up to 90% in certain years. If unspent balances were drawn in toto, Assam may have had
a large budget surplus every year that would have militated against such excessive funding, if these
amounts were not expended. Transfers to current bank accounts compounds excess cash flow, overstates
physical achievements but understates cash balance and interest.
50
51. Fiscal Year
2009-10
2010-11
R u p e e s
Department
i n
2011-12
C r o r e
Rev
Cap
%
Rev
Cap
%
Rev
Cap
%
Roads & Bridges
129.59
438.02
35.23
264.16
378.09
38.40
224.66
475.91
36.86
Water Resources
22.48
828.41
68.34
69.15
438.72
73.40
11.47
624.32
57.06
Social Security,
Welfare & Nutrition
891.69
0.18
57.36
466.34
1.52
37.65
372.02
0.10
26.63
Power
182.01
125.99
56.73
150.91
166.57
55.29
11.47
624.32
57.06
Welfare of SC/ST/OBC
226.32
9.66
38.98
224.02
0
42.58
123.82
0.24
19.64
Water Supply &
Sanitation
20.21
399.22
47.49
83.36
33.19
22.32
18.03
8.82
6.47
Urban Development
174.34
22.03
56.58
193.73
22.83
53.39
165.37
7.57
66.09
Social Service
391.13
0
68.03
704.82
0
90.43
506.32
0
73.51
Medical & Public
Health
380.65
0
21.15
543.96
0
28.91
192.75
0
11.66
Miscellaneous General
Services
2473.48
0
63.64
95.49
0
58.98
647.57
42.34
27.66
Administration of
Justice
54.74
0
39.44
61.76
0
29.87
76.66
0
37.19
Education
156.65
0.10
22.38
108.66
0
10.86
132.14
0.10
12.29
Secretariat & Attached
Offices
437.62
-1.64
24.66
1114.14
4.78
63.98
479.31
1.50
28.23
Rural Development
153.40
0
27.88
242.59
0
40.74
50.80
0
9.21
51
52. 2009-10 to 2011-12
23-37% of State’s gross budget allocation surrendered annually
Social Service (68-90%)
Water Resources (57-68%)
Social Security, Welfare & Nutrition (27-57%)
Urban Development (57-67%)
Roads & Bridges (35-38%)
Power (55-57%) etc.
Within such large overall savings are large capital fund surrenders:
Water Resources (Rs. 1891.45 crore)
Roads & Bridges (Rs. 1292.02 crore)
Power (Rs. 916.88 crore)
Rs. 11716.40 crore of cumulative surrenders in 14 major budget heads
In 2011-12, except for few budget heads, in all others were savings
52
53. Externally funded schemes like those of the North Eastern Council (NEC) savings of
Rs. 1426.72 crore from 2009-10 to 2011-12 with Rs. 861.01 crore in 2011-12 alone:
Flood control of Brahmaputra and Barak rivers
Medical colleges and rural family welfare sub-centers
Water supply & flow irrigation
Child services & Mid-day meals for school children
Grants for backward regions and hill areas
53
54. 2009-10 to 2011-12
Total Plan schematic surrenders of Rs. 16951.84 crore
Rs. 9163.28 crore on account of major schemes
75% savings in about a dozen
50-74% in 18 and
20-49% in another 19
Affecting diverse budget heads such as, but not limited to:
Water Resources, Hill Areas, Social Security/Services, Urban Development, Water Supply & Sanitation,
Roads & Buildings, Rural Development, Medical & Public Health
54
55. 2009-10 to 2011-12
Large surrenders of revenue allocations that sub serve Plan schematic expenditure such as:
Rs. 1117.36 crore in Medical & Public Health
Rs.1730.05 crore in Social Security, Welfare & Nutrition
Rs. 574.16 crore in Welfare of SC/ST/OBC and
Rs. 1602.27 crore in Social Service
Include unfilled posts of doctors, teachers, repairs and maintenance of existent capital projects, etc.
55
57. 10000
9000
8000
Rs. In Crore
7000
6000
5000
4000
3000
2000
1000
0
2007-08
2008-09
2009-10
2010-11
2011-12
GOI Treasury Bills
5146
8858
8175
6747
6021
Interest
231
351
481
407
464
While there are large budget surrenders every year large investments are made in short-term investments
in Govt. of India Treasury Bills. If current bank account balances are factored, the State is not short of
funds even if Central Plan grants were temporarily reduced
57
58. Artificial revenue surplus of Rs. 926.85 crore that
Artificially lowered the fiscal deficit to Rs. 1,646.05 crore, in 2011-12, i.e. 1.43% of GSDP (of Rs.
1,15,409.64 crore), less than half the maxima set by the FRBM Act
If 80% of capital allocations were expended, fiscal deficit = Rs. 8822 crore in 2011 raising fiscal deficit to
7.64% of GSDP
If 80% of revenue budget allocations were expended = revenue deficit of Rs. 4829 crore in 2011-12
2010-11 & 2011-12 Annual Plan Outlays almost equal gross budget
unspent balances
58
59. Grant
Grant
Apprn.
Grant
savings
Unspent
29- Medical & Public health – 2215 & 2217
1147.44
744.17
65% overall unspent
30-Water Supply & Sanitation – 4215
659.39
459.32
66% overall unspent in
ARWSC
31- Urban Dev (T&CP) - 2217
363.16
279.73
77% unspent in JNNURM
38- Welfare of SC/ST/OBC-2225
223.01
190.59
85% unspent overall
39- Social Security, Welfare & Nutrition – 2235,
2236
3205.98
1930.17
60% unspent overall
42 - Social Services – 2070, 2575
1690.42
1561.30
92% unspent overall
49- Irrigation – 4701, 4702
170.69
170.69
100% unspent overall
59 – Sericulture & Weaving – 2851
28.16
27.82
99% unspent
63 – Water Resources - 4711
2061.26
1610.27
78% unspent overall
64 – Roads & Bridges – 3054, 5054
220.00
220.00
100% unspent
71 –Education - 2202
435.57
430.44
99% unspent overall with
MDMS single largest
73 – Urban Dev (GDD) – 2217, 4217
936.35
516.59
55% unspent overall
76 -78 – Hill Areas & BTC – 2202, 3451
694.66
421.53
61% unspent overall
11836.09
8562.62
72% overall unspent
GRAND TOTAL
59
61. Dept
Unspent Balance
(Rs. In Crore)
Dept
Unspent balance
(Rs. In Crore)
Health
221.25
Irrigation
440.20
Town & Country Planning
109.01
Industry & Commerce
131.73
Mines, Minerals & Power
296.15
Social Welfare
219.08
Hill Areas
380.25
Planning & Development
238.81
Agriculture
280.33
Education (Technical)
117.45
Minority Development
678.64
Education (General)
919.17
Finance
567.57
Finance (Taxation)
377.88
Food & Civil Supplies
225.72
Guwahati Development
407.67
Rural Development
200.85
Public Works
1306.23
WPT & BC
190.42
Home
722.34
Water Resources
629.91
Forest
188.60
Secretariat Administration
1293.85
TOTAL
9952.69
61
62. To state the facts frankly is not to despair the future nor
indict the past. The prudent heir takes careful inventory of
his legacies and gives a faithful accounting to those whom
he owes an obligation of trust.
US President John F Kennedy
62
63. The oldest known accounting records date back to 3500 B. C. and relate to commerce in the Mesopotamian
Valley. The duties of a scribe (a Mesopotamian accountant) were to record commercial transactions and to audit
these transactions to ensure compliance with the Code of Hammurabi, the earliest legal code. To be a scribe in
Mesopotamia was to be an honored and respected member of society.
Governmental accounting developed in ancient Rome. The emperors had control of the Roman Treasury but
the records were maintained by quaestors (Roman accountants). To manage their vast commercial enterprises
within the empire the Romans developed the use of an annual budget.
Medieval accounting was agency accounting. The chief task of the accountant was to monitor the taxes due to
the king from his various counties. Tax settlements were made at a table covered with a checkered cloth. In
England this cloth was named the Exchequer.
The father of modern accounting was Luca Pacioli, a Franciscan friar of the Renaissance period. In 1494 he
published a book on mathematics which contained twenty-six chapters outlining a system of bookkeeping used
by Italian merchants. This system was called the "Method of Venice".
Scotland was the birthplace of the modern accounting profession. In 1854 a group of Scottish accountants
petitioned Queen Victoria for a charter to form a society of accountants.
It was granted and they called
themselves Chartered Accountants using the letters, "C A" as a professional designation.
Many of these Chartered Accountants came to the United States in the late 1800s and set up firms in New
York, Philadelphia, and Chicago.
PRINCIPAL ACCOUNTANT GENERAL (A&E), ASSAM
63
64. The dogmas of the quiet past are inadequate to the
stormy present. The occasion is piled high with
difficulty, and we must rise with the occasion. As
our case is new, so we must think anew and act
anew.
US President Abraham Lincoln (1809-65)
64