Fiscal prudence needed at Centre, state levels: RBI deputy governor

While emphasising on the need for fiscal prudence at both the state and national level RBI deputy governor Subir Gokarn said, “The important thing in this year’s budget is the commitment to return to the rule-based approach and the current macro-economy is much threatened by fiscal expansion”

Mumbai: Concerned over impact of rising deficit on the economy, Reserve Bank of India (RBI) deputy governor Subir Gokarn on Friday said it was imperative for Centre as well as states to follow the path of fiscal prudence.

“The important thing in this year’s budget is the commitment to return to the rule-based approach and the current macro-economy is much threatened by fiscal expansion,” Mr Gokarn said while speaking at the 14th Annual Conference on Money and Finance organised by Indira Gandhi Institute of Development Research here.

He also emphasised the need for fiscal prudence at both the state and national level.

Finance minister Pranab Mukherjee in his Budget for 2012-13 proposed to bring down the fiscal deficit to 5.1% of the Gross Domestic Product (GDP) from 5.9% in the previous fiscal.

Pointing out that market perceives the state debt as something which is backed by the sovereign, he said, presently states with strong finances pay the same premium as the states with weak financial position.

The debt of the state governments, he said, “is implicitly guaranteed by the sovereign. So with or without a formal guarantee, market perceives that state debt has been fully backed by sovereign”.

“States with weak fiscal consolidation don’t pay much premium compared to states with strong fiscal conditions,” he added.

User

CIL may import coal to ensure adequate fuel to power companies

“We have to see how much we can increase production to meet the commitment. CIL will do the imports if it is inevitable,” chairman and managing director designate S Narsing Rao said

New Delhi: In a bid to meet the obligations of supplying a minimum assured quantity of coal to power producers under the presidential directive, Coal India may resort to imports, reports PTI quoting its chairman and managing director designate S Narsing Rao.

“We have to see how much we can increase production to meet the commitment. CIL will do the imports if it is inevitable,” Mr Rao, who is currently heading state-run Singareni Collieries, told PTI.

The company earlier had expressed inability to import saying it was not in the business of importing coal.

The government on 3rd April issued a presidential directive to the Maharatna PSU to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80% of the committed coal delivery.

The directive came in the wake of Coal India failing to meet the deadline of 31st March, set by the Prime Minister’s Office (PMO) for CIL to enter into FSAs with power producers for minimum assured supply.

When asked about the options of imports following PMO’s directives to ink FSAs, CIL’s acting chairperson Zohra Chatterji in February had said, “We are not in the business of importing coal... it is one of the ways to meet the demand theoretically.” 

Mr Rao, who is due to take the charge of the company shortly, said the PSU would weigh various options of importing coal that will include direct imports, if required.

“Coal India may import directly. At the same time there are public sector undertakings like MMTC which are there for a long time in the business. They have expertise... All options we should see if that (import) is inevitable...” Mr Rao said.

Asked, how, he views the presidential directive at a time when the company is battling on various fronts including delays in regulatory clearances, Mr Rao said, “It is a very logical directive. They are only saying that supply more coal.” 

Mr Rao, who was handed over the appointment letter for Coal India’s top post on 4th April, added that apart from imports, the company may also think of diverting coal meant for e-auction to power firms.

The Rs50,000 crore PSU is the largest domestic producer of dry-fuel and recorded an output of 435.84 million tonnes (MT) of coal in the just-concluded fiscal, missing its revised target of 447 MT.

It’s production is almost stagnant for the last three years as the company says it is battling to get various regulatory clearances for expansion to augment production.

User

Maharashtra legislators fudged income for acquiring govt flats: CAG

According to the CAG report, which is yet to be tabled in the legislature, 11 Maharashtra legislators had declared their monthly income ranging from Rs2,500 to Rs12,500 to acquire large flats under the government quota in Ashirwad Co-operative Housing Society in suburban Mumbai

Mumbai: Eleven Maharashtra legislators indicted in the yet-to-be-released CAG (Comptroller and Auditor General) report, had declared their monthly income ranging from Rs2,500 to Rs12,500 to acquire large flats under the government quota in Ashirwad Co-operative Housing Society in suburban Mumbai, reports PTI.

According to the CAG report, which is yet to be tabled in the legislature, the legislators include deputy speaker Vasant Purke, EGS minister Nitin Raut, water resources (Krishna Valley) minister Ramraje Naik Nimbalkar and culture minister Sanjay Deotale.

Mr Purke, who was the EGS minister at the time of allotment, had declared a total monthly family income from all sources of Rs2,500.

Mr Nimbalkar had declared an income of Rs5,500, while Mr Deotale had shown his income as Rs12,500. Both were MLAs at the time of the allotment.

Mr Raut showed his family monthly income of Rs12,500.

The other MLAs include Anilkumar Kher (Rs5,300), Jayant Sasane (Rs 5,400), Sudarshan Nimkar (Rs 4,000), Naresh Thakre (Rs 8,000), Ajit Ghorpade (Rs 10,000) and Sanjay Deshmukh (Rs 6,600).

The report says, minister of state Ranjit Kamble and former MLA Chandrakant Chhajed own flats both in Rajyog and Ashirwad Co-operative Housing Societies.

Bhagyashree Patil, wife of co-operative minister Harshvardhan Patil, had declared her income as Rs6,000 per month. The report says that while she was entitled to 41.82 sq meter of carpet area, she got 99.67 sq meter carpet area.

“Husband of the same member is the chief promoter and member of Rajyog CHS,” the report said. However, Mr Patil told reporters that he was only the promoter of Rajyog and not a member.

The report said, as per the monthly income declared by the legislators, they were entitled to 27.87 to 60.40 sq meters carpet area only. However, flats of carpet area of 99.67 sq meters were allotted to them.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)