Need for greater focus on state finances: RBI study

“There is a need for greater focus on structural issues confronting state finances, particularly for those states that could not undertake rule-based fiscal corrections prior to the crisis years of 2008-09 and 2009-10,” an RBI study said.

As part of fiscal transparency initiatives, the Reserve Bank of India (RBI) has called for greater attention on structural issues confronting state finances in the country.

“There is also need for greater focus on structural issues confronting state finances, particularly for those states that could not undertake rule-based fiscal corrections prior to the crisis years of 2008-09 and 2009-10,” a RBI study said.

The state governments, it said, need to ensure that their finances capture both explicit and implicit liabilities associated with certain off-budget activities, including project financing undertaken through special purpose vehicle (SPV) or public-private partnership (PPP) mode.

The study also highlighted several issues of significance and concern for the state governments. “Although all the states except Goa have amended their fiscal responsibility and budget management (FRBM) Acts or Rules, most of them do not include provisions for additional disclosures for enabling transparent assessment of state finances.”

According to the RBI, the recommended restructuring of the public expenditure system would enable better management of outlays for effective outcomes.

The report also emphasised on the issues on debt liabilities of distribution utilities and the revision of power tariffs. Besides state finances, the study also referred to issues regarding fiscal consolidation, decline in key expenditure ratios that raises concern on the quality of fiscal adjustment and states’ overall debt-GDP ratio.

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India Yamaha Motor sales up 14% in March

In the domestic market, the India Yamaha Motor's sales stood at 29,819 units in March 2012, against 25,786 units in the same month last year, up 15.64%.

Two-wheeler maker India Yamaha Motor reported 13.92% increase in total sales at 41,886 units in March. The company had sold 36,768 units in March last year, India Yamaha Motor said in a statement.

In the domestic market, the company's sales stood at 29,819 units, as against 25,786 units in the same month last year, up 15.64%. Exports of India Yamaha rose by 9.88% to 12,067 units from 10,982 units in the year-ago period, it added.

“We are pleased with the encouraging response we have been receiving for our deluxe and premium segment bikes such as the YZF-R15 Version 2.0, FZ series and SZ series,” India Yamaha Motor chief executive officer and MD Hiroyuki Suzuki said.

The company is planning to strengthen its sales, service and spares set up in the Tier II and III cities and increase sub-dealers in the rural areas to further boost sales in the coming months, he added.

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Toyota Kirloskar sales up 87% in March

Toyota Kirloskar Motor, however, said the demand next month could be impacted due to the increase in excise duty, registration tax and VAT.

Toyota Kirloskar Motor reported 87% increase in car sales to 18,220 units in March, driven by highest ever monthly sales of its ‘Etios’ and ‘Liva’ models.

The company had sold 9,726 units in the corresponding month last year, Toyota Kirloskar Motor (TKM) said in a statement.

The company, however, has also said the demand next month could be impacted due to the increase in excise duty, registration tax and VAT.

TKM, a joint venture between Toyota and the Kirloskar Group, attributed the growth last month to healthy sales of its Etios and Liva models.

“Etios continues to register high sales... The company registered 85% growth in the first quarter. However, the demand next month could be impacted due to the increase in excise duty, registration tax and VAT,” TKM deputy managing director (marketing) Sandeep Singh said.

Auto makers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra and India Yamaha had also expressed their unhappiness over the government’s decision to hike the duties in the Budget.

Etios registered a 57% growth with the highest ever monthly sales of 5,104 units compared to 3,257 units in March 2011. The Etios Liva also recorded its highest ever monthly sales with 4,034 units.

The New Innova sold 6,765 units last month against 4,418 units in March last year, a growth of 53%.

The New Fortuner sold 1,379 units over 980 units in the same month last year, up 41%, while the Corolla Altis sold 917 units.

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