Latest news with #FRBM
Mint
3 days ago
- Business
- Mint
India's GDP: A key test lies ahead
The fiscal policy-led rescue of India's economy from the covid shock has been impressive, even though its pace of expansion slowed to 6.5% in 2024-25, as provisional data shows, after a three-year run averaging above 8.8%. Last year's rate of GDP growth dropped below the path demanded by Viksit Bharat, but the second half's acceleration reveals a grip on its gear-stick held by the government through public expenditure. How long, though, will state support last? Also Read: Kaushik Basu: Redefine prosperity; GDP tunnel-vision could prove costly Last year's fiscal gap was under 4.8% and this year's 4.4% goal is achievable. After that, public debt will be adopted as the official gauge to constrain risky over-spending. Also Read: It's time to lay the great Indian GDP controversy to rest Clearly, India's Fiscal Responsibility and Budget Management (FRBM) law needs rework in the light of lessons from our economic recovery. How 2025-26 turns out may be instructive. If inflation stays subdued at around 4%, the central bank's aim, even with the fiscal deficit exceeding the FRBM's 3% cap, it'll be a relief. Also Read: The state of India's economy is not as bright as GDP data may suggest What happens to price stability if private investment and consumption regain full strength, however, remains untested. It's a key test, as faster growth and lower debt require both these to form a robust mutually reinforcing loop.
The Hindu
24-05-2025
- Politics
- The Hindu
BRS flays Centre's decision to fund A.P.'s Polavaram-Banakacherla Link Project
HYDERABAD The Bharat Rashtra Samithi (BRS) has criticised the Centre's decision to fund 50% of funds required for the execution of Polavaram-Banakacherla Link Project to divert Godavari water to the Krishna and Penna Basins without mandatory clearances and to allow Andhra Pradesh to mobilise the remaining 50% funds by borrowing loans beyond Fiscal Responsibility and Budget Management Act limits. The Centre's move was nothing but allowing A.P. to undertake illegal water diversion in violation of Telangana's riparian rights, senior leader of the BRS T. Harish Rao said, alleging that Chief Minister A. Revanth Reddy and his Cabinet colleagues were maintaining silence. He requested the Chief Minister to oppose A.P.'s illegal project in every possible way. Mr. Rao reminded the Centre, A.P. and Telangana governments that as per the Andhra Pradesh Reorganisation Act provisions, it was mandatory to get clearance from the river management boards established under the Act for taking up new projects in the Krishna or Godavari Basins. 'The Centre was unfortunately encouraging the violators by providing funds', Mr. Harish Rao said in a statement. The BJP-led government was doing grave injustice to Telangana, he said and questioned the silence of Congress and BJP leaders of Telangana, including their 16 Parliament members, and two Union Ministers from the State. Step-motherly treatment He stated that the Centre had cut Telangana's borrowing limit under FRBM in lieu of the loans taken from the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for executing the Kaleshwaram Project. However, A.P. is being allowed to borrow loans for the Polavaram-Banakacherla Link Project beyond the FRBM limits, indicating the Centre's step-motherly treatment to Telangana. He recollected that it was the Congress that had allowed injustice to Telangana when the rulers of combined A.P. diverted Krishna water illegally by expanding Pothireddypadu Head Regulator to draw water from Srisailam to meet the needs in the non-basin areas at the cost of in-basin areas of Telangana. It was the Congress again now which was allowing illegal diversion of Godavari water.
The Hindu
21-05-2025
- Business
- The Hindu
Congress govt. pressuring banks for loans: BJP
Former MLA and Telangana BJP vice president N.V.S.S. Prabhakar has accused the Congress government of pressuring the banks to issue loans by mortgaging contentious public lands. Mr. Prabhakar, who met Union Finance Minister Nirmala Sitharaman in New Delhi on Tuesday, told mediapersons later that the financial condition in the State has gone from bad to worse with the State government in no position to take further loans since it had exceeded Fiscal Responsibility & Budget Management (FRBM) limits. The Finance Minister was told about Telangana's fiscal situation and how the State government here has been not releasing matching grants though it keeps on complaining about the Centre not releasing funds under various schemes, he said. The BJP leader alleged that the Congress government has been cheating people by not implementing various Central government schemes and wanted action to be taken for the same. The government here was only dependent on sale of land or liquor for revenue generation, said a press release.
