“There is an inflexion point beyond which fiscal deficits militate against growth. Government borrowing is not bad per se, but excessive borrowing is. There is therefore a need to cap total public debt as a proportion of GDP,” RBI governor Subbarao said
Mumbai: Cautioning the government that excessive borrowing is bad, Reserve Bank of India (RBI) governor D Subbarao on Wednesday urged the government to put a cap on the public debt as it would hurt growth, reports PTI.
“There is an inflexion point beyond which fiscal deficits militate against growth. Government borrowing is not bad per se, but excessive borrowing is. There is therefore a need to cap total public debt as a proportion of GDP,” Mr Subbarao said in an address at the International Research Conference here.
The government’s fiscal deficit in 2011-12 is expected to exceed the budget estimate of 4.6% of the gross domestic product (GDP) on account of subdued receipts and overshooting of the subsidy bill by at least Rs1 lakh crore over and above the original projection.
In order to bridge the receipt-expenditure gap, the government plans to exceed its borrowing target for the current fiscal by Rs92,000 crore over budget estimate of Rs4.20 lakh crore.
The RBI had also flagged the issue of rising fiscal deficit at several occasions earlier, including its third quarter monetary policy review in the last week of January.
The government, as indicated by finance minister Pranab Mukherjee, is expected to announce steps to contain fiscal deficit in the budget for 2012-13 to be unveiled sometime in March.
Due to better performance in the previous months, the country’s exports grew by 25.8% to $217.6 billion in the April-December 2011-12 while imports in the nine-month period rose by 30.3% to $350.9 billion, leaving a trade gap of $133.2 billion
New Delhi: Exports grew by merely 6.7% to $25 billion in December 2011 compared to the same month last year due to demand slowdown in the western markets of the US and Europe, reports PTI.
On the other hand, imports were up by 19.8% year-on-year to $37.7 billion in the month, according to data released by the commerce ministry today.
In December 2010, exports stood at $23.4 billion, while imports were worth $31.5 billion. The trade deficit stood at $12.7 billion in December 2011 compared to $8 billion in the same period last year.
A muted export growth is mainly due to declining demand from Europe and the US.
Due to better performance in the previous months, the country’s exports grew by 25.8% year-on-year to $217.6 billion in the April-December 2011-12.
During the first nine months of the fiscal, imports also rose by 30.3% to $350.9 billion leaving a trade gap of $133.2 billion.
In December, oil imports grew by 11.2% to $10.2 billion while non-oil imports rose by 23.3% to $27.4 billion over the year-ago period.
During April-December, oil imports stood at $105.5 billion, an increase of 40.3% and non-oil imports rose by 26.5% to $245.3 billion.
“Macquarie’s business in Asia continues to develop into a full-service offering focused on creating new opportunities for Macquarie’s clients and its people:” Harvey
Macquarie Group Limited (Macquarie) announced the appointment of Alex Harvey as chief executive officer of Macquarie’s operations in Asia.
Alex joined Macquarie in 1999 from Bankers Trust and has over 15 years experience in the financial services industry having led equity, debt and advisory transactions in Australia, Asia, Europe and the United States.
Alex is currently an executive director in Macquarie Capital and global head of the telecommunications, media, entertainment and technology (TMET) group. Alex was also based in Hong Kong with Macquarie from 2000 to 2003.
“We are very pleased to appoint Alex to this role. Alex has a strong track record of leadership, and of building international businesses and client relationships,” said
Nicholas Moore, chief executive officer of Macquarie Group Limited. “Alex will play a key role delivering all aspects of Macquarie’s business to our clients in the region. His appointment reflects Macquarie’s commitment to providing the highest level of service to our growing client base in this region,” he added.
“I am honoured to have been invited to lead Macquarie’s Asia business,” said Mr
Harvey. “Macquarie’s business in Asia continues to develop into a full-service offering focused on creating new opportunities for Macquarie’s clients and its people.”
Mr Harvey will be based in Macquarie’s Hong Kong office from later this month.