| ||||||||||||||||||||||
|
“State Finances: A Study of Budgets of 2015-16” by RBI
State Finances: A Study of Budgets of 2015-16 report by RBI adopts quality of expenditure as its theme. The report has highlighted that the states budgeted for a turnaround in fiscal performance during 2015-16 from the deterioration that set in during the earlier two years.
The report is an assessment of the finances of state governments and provides an analysis on the fiscal position of the state governments. The theme of this year’s report is ‘Quality of Expenditure’. The report has highlighted that the projected improvement in key fiscal indicators was premised on cutbacks in revenue expenditure with a marginal decline in capital outlay. The reports confirms that the composition of government expenditure can have perceptible growth implication.
The report observes that expenditure quality at the sub-national level has improved under the impetus provided by implementation of fiscal responsibility and budget management (FRBM) rules. Also the states have been cautioned against the adverse implications that the power sector reform scheme UDAY could have for state finances due to growing liabilities on them to take over 75% of the existing debt of power distribution companies. This would also hurt growth by impacting developmental expenditure.
Major Deficit indicators of State Governments (Amount in Rs. billion)
Note: 1. Negative (-) sign indicates surplus.
2. Figures in parentheses are percentages to GDP.
3. The ratios to GDP at current market prices are based on new GDP series (Base:2011-12) released by CSO in early 2015.
Source: PHD Research Bureau compiled from Budget documents of State Governments, RBI.
Snapshot of major findings of the study:
· The empirical analysis indicates that expenditure on social and physical infrastructure could have growth augmenting effects.
· The quality of expenditure could be improved through prioritization and rationalization that would generate fiscal space for raising the share of capital expenditure, which is conducive for growth.
· Reforming state level public enterprises and the proposed implementation of the consumption-based destination-centric goods and services tax (GST) could strengthen state finances.
· Around 30% of the operating 849 state-level public enterprises (SLPEs) in the country are estimated to be incurring losses
· The report said apart from budgetary support to SLPEs, state governments need to invest in research and development for enhancing product quality while consumer preferences need to be gauged through market surveys.
· The implementation of The Goods and Services Tax (GST) will make industry more competitive through dismantling of the complex indirect tax structure and boost the tax revenue of states and will pave the way for a common national market for goods and services.
· While 20 states have budgeted for revenue surplus, 18 have budgeted for improvements in their revenue accounts in terms of GSDP.
· The contribution of public account items like ‘deposits and advances’ and ‘suspense and miscellaneous’ in GFD financing has declined.
· The consolidated revenue expenditure GDP ratio of state governments is budgeted to be smaller by 0.7 percentage points due to lower growth in its developmental component
· Capital expenditure is budgeted to decelerate in 2015-16. The major concern is not only the deceleration of developmental capital outlay on social and economic services, but an absolute decline in capital outlay on services
The report has analyzed the fiscal positions of the states. The report says that public finances of states deteriorated in 2013-14 and 2014-15 (RE). While revenue receipts slowed in 2013-14 as overall economic activity slowed, they were shored up in 2014-15 by grants in aid through enhanced transfers under ‘State Plan Schemes’. Despite higher devolution of taxes, central transfers-GDP ratio is budgeted to decline in 2015-16 due to discontinuation of many centrally sponsored schemes. Expenditure rationing measures have been budgeted to arrest the erosion in state finances in 2015-16 (BE), but adverse implications for the quality of consolidation raise concerns.
The quality of expenditure is of prime importance at sub national level fiscal consolidation in India . Empirical evaluation indicates that expenditure on public infrastructure, human capital, science and technology can be growth and welfare augmenting by improving capital and labour productivity. Further, the report says that the quality of expenditure of most Indian states has modestly improved following the enactment of FRBM. It is suggested that states need to prioritize expenditure on physical and social infrastructure and economize on non-essential heads.
From a medium term perspective, enduring improvements in the quality of states’ finances revolves around the revival of state level public enterprises (SLPEs) and improving the viability of Discoms, alongside the rationalization of centrally sponsored schemes. Strengthening of state finance commissions would facilitate resource empowerment through greater devolution to local bodies. Further, issues with revenue implications for both the Centre and states have to be addressed for enabling a smooth roll-out of the goods and services tax (GST).
Going forward, the report highlighted an important fact that given the fiscal constraints and limited maneuverability of states in augmenting tax revenue, institutional reforms/restructuring will play a pivotal role in fiscal consolidation over the medium-term by both enhancing non-tax revenue and pruning unproductive expenditure.
Warm regards,
THE NEW AMENDED MOTOR VEHECLES ACT (MVA)
GLOBAL ROAD SAFETY BODY INTERNATIONAL ROAD FEDERATION (IRF) URGES ALL POLITICAL PARTIES TO HELP EXPEDITE PASSAGE OF THE NEW AMENDED MOTOR VEHECLES ACT (MVA) DURING THE FORTHCOMING PARLIAMENT SESSION TO HELP REDUCE FATAL ROAD ACCIDENTS IN THE COUNTRY .
THE NEW MOTOR VEHICLE ACT WOULD NOT HAVE ALLOWED THE PARENTS AND THE MINOR GET AWAY AS EASILY
New Delhi April 13, 2016 International Road Federation (IRF) , a Geneva based global body working for better and safer roads world-wide has appealed to the government and all political parties to help expedite passage of the amended Road Safety and Traffic Management Bill (Motor Vehicle Bill) for saving valuable human lives from road accidents in the country .
“Out of global 1.24 million deaths due to road accidents India accounts for about 1.4 lakh deaths ,the highest in the world ,resulting in heavy loss, which a developing country like India can ill afford. Ministry of Road Transport and Highways (MoRTH) has to take concrete measures to reduce fatal road accidents one of the highest in the world with aim to halving the number of deaths in road accidents by the year 2020 as India is signatory to UN decade of Action for Road safety.” Said MR K K Kapila, who has been re-elected Chairman of International Road Federation (IRF) for Third Time .
“ To reduce fatal road accidents in the country and avoid incidents like recent Mercedes accident case where minor and his parents are expected to get away easily a tough new amended Motor Vehicle Act with clarification on accountability of vehicle owner for unlicensed driving, hefty fines for traffic violators ,make getting driving license more difficult and bring in new laws on vehicle safety is immediately needed. IRF urges all political parties to help in expediting passage of the new amended Road Safety and Traffic Management bill in the coming parliamentary session commencing April 25”.said Mr Kapila.
“India accounts for 10 % of the global road accident fatalities highest in the world . Several initiatives for improving road safety such as the much awaited amendment in the Motor Vehicles Act (MVA), improvements in roads from the engineering perspective, road safety audits at all stages of road construction beginning right from the planning stage besides identification and remedy of black spots in a sustained systematic manner on war footing can help bring down fatal road accidents in the country” said Mr. K K Kapila.
“India is signatory to the United Nation’s Decade of Action plan for Road Safety across the world which aims to reduce road fatalities by 50% by the year 2020. The Motor Vehicles Act (MVA) Amendment bill needs urgent approval of the Parliament. IRF hopes it will be cleared in the coming session of Parliament as Road Safety should be utmost in minds of all political parties “said Mr Kapila .
“Clearing and implementation of new MVA, which has provisions for strict Enforcement with appropriate penalties, accompanied by public awareness of the laws which will be a critical factor in reducing road traffic injuries and deaths. Once the proposed amendment is passed, traffic rule violators will have to cough up hefty penalties – almost 10 times more than what they pay now – for offences such as over speeding and drunken driving. The Bill seeks to raise the compensation for death resulting from a hit and run accident to Rs one lakh and Rs 50,000 for the grievously injured in such incidents,” said Mr Kapila.
At 2016, we are in the midst of the ‘’Decade of Action Plan’’ and have a mammoth task of catching up with the target of reducing road fatalities by 50% by 2020. A strong political will, which is beyond party politics and differences of opinion, is the need of the hour. IRF earnestly appeals to all political parties of India to stand united for the cause of road safety and pass the amended MV Act (MVA) in the ongoing session of the Parliament.
Mr. Kapila called upon the Hon’ble Members of Parliament to swiftly act by unanimously passing the MVA and enjoining upon the Government to ensure that India meets its commitment of ‘Decade of Action Plan’.
Brazil president Rousseff denounces coup plot against her
Brazil, President Dilma Rousseff has denounced a coup plot against her, suggesting that Vice-President Michel Temer is one of the conspirators. The President, who is facing impeachment in the national Congress, hinted that he was one of the ringleaders of a plot to overthrow her. She said an audio message released on Monday by Mr Temer, whom she did not name, was evidence of the conspiracy.
In the message, Mr Temer appears to accept replacing her as President. He also calls for a government of national unity. The 65-member congressional committee voted 38 to 27 to recommend going ahead with impeachment proceedings. All eyes will now be on a full vote in the lower house starting on Sunday in the capital Brasilia.
Meanwhile, another coalition partner of Brazilian President Dilma Rousseff has announced quitting the government, dealing a further blow to her bid to stave off impeachment. The Progressive Party said most of its 47 MPs would vote for Ms Rousseff to be impeached. Last month the PMDB, the largest party in Brazil’s governing coalition, also voted to leave. Ms Rousseff, who faces an impeachment vote in the lower house on Sunday, says her opponents of plotting a coup.
Welcome to Kingdom of Cambodia and Happy New Year!
Samdech Hun Sen, Cambodian Prime Minister added 9 new photos — with Sary Khmer Ang Kor and 12 others.
6 hrs ·
ព្រះរាជាណាចក្រកម្ពុជា សូមស្វាគមន៌!
Welcome to Kingdom of Cambodia and Happy New Year!
Welcome to Kingdom of Cambodia and Happy New Year!
ទីកន្លែងប្រារព្ឋពិធីទទួលទេវតាឆ្នាំថ្មី ព្រះនាង មណ្ឌាទេវី នៅខាងកើតប្រាសាទបាយ័នដ៏អស្ចារ្យរបស់កម្ពុជា ដែល សម្តេចតេជោ ហ៊ុន សែន និង សម្តេចកិត្តិព្រឹទ្ឋបណ្ឌិត ប៊ុនរ៉ានី ហ៊ុនសែន នឹងអញ្ជើញ ទទួលទេវតាឆ្នាំថ្មីនៅយប់នេះ ៕
+6
EU nationals living in the UK has gone up.
The number of EU nationals living in the UK has gone up.
Police raid law firm Mossack Fonseka in Panama Papers leak
Police in Panama have raided the headquarters of the law firm Mossack Fonseka, at the centre of a massive data leak. The attorney general’s office said in a statement that the objective of the raid was to obtain documentation linked to the information published in news articles that establish the use of the firm in illicit activities.
It added that searches would also take place at subsidiaries of the firm. The raid comes on the eve of an inquiry by tax officials from 28 countries into the massive data leak. The Panama-based law firm is at the center of the Panama Papers leaks scandal that has embarrassed several world leaders and shone a spotlight on the shadowy world of offshore companies.
Minister of Environment & Forests of Bangladesh,
The Minister of Health & Family Welfare of Bangladesh, Mr. Mohammed Nasim and the Minister of Environment & Forests of Bangladesh, Mr. Anwar Hossain Manju along with others Bangladesh officials calling on thePresident of India, Shri Pranab Mukherjee, at Rashtrapati Bhavan, in New Delhi on April 12, 2016. Courtesy: Photo Division, pib.nic.in
William and Kate go on a safari at Kaziranga
Slideshow | William and Kate go on a safari at Kaziranga National Park in Assamhttp://reut.rs/22tGyJs
Britain’s Prince William and his wife Catherine, the Duchess of Cambridge, sit in a jeep as they go on a safari at Kaziranga National Park in Assam, April 13, 2016. REUTERS/Adnan Abidi
REUT.RS|BY INDIA ONLINE INDIA ONLINE, REUTERS
UN backed Yemen truce
>UN-backed ceasefire has come into effect in Yemen from today. The Saudi-led coalition supporting government forces in Yemen has said it will respect the UN-backed ceasefire.
Iranian-backed Houthi rebels who are trying to overthrow the government have also said they will respect the truce.
Iranian-backed Houthi rebels who are trying to overthrow the government have also said they will respect the truce.
More than 6,000 people have been killed and 2million displaced in more than a year of fighting between the two sides.
Negotiations on ending the conflict are due to be held later this month in Kuwait.
Comments
Post a Comment