If the government borrows and consumes that money, the pressure of spending is on us and the pain of repayment of that loan is on our children's generation says the RBI governor
Mumbai: Highlighting the need for government spending on productive purposes, Reserve Bank of India (RBI) Governor D Subbarao has said future generations should not pay the price for the high borrowing of today, reports PTI.
"Government borrowing is not necessarily bad, but if the government borrows and consumes, that is bad," Subbarao said, addressing the AD Shroff memorial lecture.
The government should rather focus on investing in productive sectors like infrastructure and ports, he said.
"If the government borrows and consumes that money, the pressure of spending is on us (and) the pain of repayment of that loan is on our children's generation."
On the issue of reserve currencies, he hinted at the US dollar continuing to hold the dominant position, stating the euro has "failed" to live up to the expectations.
Subbarao called upon emerging market economies like India to build greater currency chests for stability.
Speaking on global imbalances, he said the imbalances today do not arise from China as was the case in the days leading up to the 2008 crisis, but from oil exporting nations like Russia.
The RBI chief reiterated the need to change the structure of the IMF, which he said, reflects the economic realities of the 1960s.
He said there was a request by India to start a dollar swap facility with the US, but Washington had reservations as our capital account is not fully convertible.
India made the request during the visit of US Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke here last month, Subbarao said, adding America is yet to convey a final decision on the matter.
Worldwide remittances will reach $534 billion in 2012 with India topping the list of developing countries says a World Bank report
Washington: India will receive record $70 billion remittances in 2012, topping the list of developing countries which are expected to receive a total of $406 billion this year, the World Bank has said, reports PTI.
After India, China will stand second with $66 billion, followed by Mexico and the Philippines with $24 billion each, a latest report by the bank said on Tuesday.
In all, worldwide remittances -- including those to high-income countries -- will reach $534 billion in 2012, according to a newly updated World Bank brief on global migration and remittances.
Other large recipients are Nigeria ($21 billion), Egypt ($18 billion), $14 billion each for Pakistan and Bangladesh, followed by Vietnam ($9 billion) and Lebanon ($7 billion).
Officially recorded remittance flows to developing countries are estimated to grow by 6.5% over $351 billion in 2011, with India again topping the chart with $58 billion, followed by China ($57 billion), Mexico ($24 billion) and the Philippines ($23 billion).
Worldwide remittances, including those to high-income countries, are projected to grow to $685 billion in 2015.
According to the World Bank, remittances to developing countries are expected to rise 8% in 2013 and 10% in 2014 to reach $534 billion in 2015.
In its report, the World Bank notes that the true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger.
"Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance," the Bank said.
Kasab's hanging came after President Pranab Mukherjee rejected his mercy petition on 8th November
Mumbai: Ajmal Kasab, the lone Pakistani gunman caught alive after the Mumbai terror attack, was hanged to death at the Yerawada central prison in Pune in a top-secret operation Wednesday morning, less than a week before the fourth anniversary of the carnage, reports PTI.
25-year old Kasab was hanged at 7.30am (local time), Maharashtra Home Minister RR Patil said in Mumbai shortly after the hanging. Pakistan government was kept informed about the execution.
Maharashtra Chief Minister Prithviraj Chavan Kasab was buried inside the Yeravadi jail premises. Kasab did not have any last wish or a will, Chavan told reporters in Mumbai.
The execution in the Mumbai attack trial brought closure to many people affected by the audacious strike by 10 terrorists of Pakistan-based terror outfit Lashkar-e-Taiba (LeT) in which 166 people were killed. Nine LeT men were killed during the 60-hour siege which began on the night of 26 November 2008.
Kasab was executed after he exhausted all legal remedies available to escape the noose with President Pranab Mukherjee rejecting his mercy plea on 5th November.
Kasab, who has been lodged at the Arthur Road prison in central Mumbai ever since his arrest soon after the terror attack, was whisked out of his heavily-guarded cell in the intervening night of 18th and 19th November, a senior police official said. The team, along with Kasab, reached Pune's Yerwada jail in the wee hours of 19th November.
"The President rejected the mercy petition on 5th November. I signed it on 7th November and on 8th November, the Maharashtra government had been communicated to take action. It was decided that he would be executed on 21st November at 7.30am and accordingly the whole process has been completed today," Union Minister for Home, Sushilkumar Shinde said, adding secrecy about the hanging was a key.
External Affairs Minister Salman Khurshid said according to legal requirements, India informed Pakistan Government and Kasab's family about the "inevitable event" of his execution.
"We attempted to convey to Pakistan's Foreign Office that this decision has been taken and the execution will be done this morning. Since those were not accepted by Foreign Office, by fax we indicated the information to them," he said in New Delhi.
Meanwhile, relatives of victims and survivors of the Mumbai 26/11 strike felt that justice has been done with the hanging of Pakistani terrorist Ajmal Kasab, saying it will serve as a lesson to terrorists that India is determined to act firmly against them.
K Unnikrishnan, father of National Security Guard commando K Unnikrishnan, who was killed in the Taj Hotel strike, said, "The way in which the execution has been done, it is a model way.
"Before anybody could react to the rejection of the mercy petition (of Kasab), everything is over. That is the thing which I cherish," he said.
Smita Salaskar, wife of slain encounter specialist Vijay Salaskar who fell victim to the bullets of terrorists during the carnage, said, "Though the execution was delayed, Kasab was finally hanged. With this hanging, homage has been paid to my husband."
Eknath Omble, brother of assistant police sub-inspector Tukaram Omble who died while capturing the terrorist, said, "I am proud and very happy that my brother's efforts have paid off."
"We are very happy and satisfied. Ajmal Kasab should have been hanged in public, but I know our law does not permit this," he said.
Vinita, wife of police officer Ashok Kamte, who died fighting the terrorists, expressed satisfaction over the hanging of Kasab, saying though belated; the government had done justice to the families of the martyrs.
"Though it took a long time, justice has been done to us. The authorities maintained extreme secrecy to carry out the execution and we are satisfied," she said.
13-year-old Devika Rotwan, who was shot in the right leg in the terror attack, said, "I am very much happy that Kasab has been hanged. But I would have been happier if this would have been done in public. It is a good news that a terrorist has been hanged... Wish this should have been done on the anniversary of the attack this year."
Devika, who studies in Class IX now, had gone to the CST with her family members and was waiting for a train, when two terrorists opened fire.
Ragini Sharma, whose Railway ticket collector husband S K Sharma was killed in the strike, said, "The first thing that comes to my mind is what happened is good. We are happy that we have got justice."
Vishnu Zende, an announcer at the Chhatrapati Shivaji Terminus, the railway station here which was one of the targets of the attack, said, "I had never thought that I would get to hear this news like this.
"I am very happy that he has been hanged. All the people who died in the terror attack have been given tribute by hanging him," Zende, who had helped save many lives by making announcements over the public address system in the station about the strike, said.
Bhisham Mansukhani, who escaped the attack at the Taj Hotel, told PTI, "I am taken aback! It is surprising! I feel the death penalty is more of a political thing. I think by executing the death penalty the government is trying to earn brownie points and use this as a tool to brandish this during elections."
Mansukhani was on the roof-top of the Taj Mahal hotel in Colaba in south Mumbai on the dreadful night of 26th November.
Kuresh Zorabi, whose bakery opposite Chabad House (Nariman House) in south Mumbai, was splattered with bullet holes in the 26/11 attack, said, "It is surprising and shocking, but at the same time I am little disappointed that all this was kept secret. This is difficult to digest for a second. I am thrilled that Kasab has been hanged. This will serve as a lesson to terrorists that India can take strict action against them."
For terror attack victim Sarika Uphadyay, "It is definitely a time for celebration...it is like Diwali! We have been waiting for this since the past four years and finally it has happened. Feeling sad that this was kept as a secret."
Sarika was at the Leopold Caf for a dinner with her friend Anamika Gupta, where Kasab and his other accomplice opened fire. "I am finding it hard to digest that he has been hanged to death. He and his accomplices had brought the city of Mumbai to a halt, killed so many innocent people...I think he should have been hanged in Mumbai and not in Pune," she said.