DEFICIT MATTERS
Article Abstract:
Mr Bimal Jalan, the Governor of the Reserve Bank of India (RBI), feels that the fiscal deficit of the Government of India is an over-rated measure to determine the country's economy. Instead he has recommended foreign investors to concentrate on India's modest current account deficit. According to the International Monetary Fund (IMF), fiscal deficit is an important criterion for measuring the economic growth of any country. According to IMF, India has the potential for growth but has been hampered by inflated fiscal deficit. Fiscal deficit is the amount that the Government has to borrow to meet its expenditure. These borrowed funds should be used in creating productive assets but they have been used improperly in India. This has made the fiscal deficit to slow down the economy. The revenue deficit, which is the difference between the Government's current receipts and current expenditure, is 3 percent of the GDP. These opinions have been expressed in an editorial. (gs)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
RRBs MAKE MAIDEN ENTRY INTO PROFIT STREET
Article Abstract:
Regional rural banks (RRBs) have declared net profits in 1997-98 for the first time in their entire history. An impact analysis by the National Bank for Agriculture and Rural Development shows that 196 RRBs collectively showed a net profit of Rs72 crore in 1997-98 against net losses of about Rs800 crore in 1996-97. The aggregate deposits of the RRBs increased by 23 percent to Rs22,197 crore in 1997-98 against Rs18,032 crore in 1996-97 while their advances increased to Rs4584 crore from Rs3920 crore. One of the main reasons for the turnaround of the RRBs is recapitalisation, with 151 RRBs getting recapitalised in four phases with financial support aggregating Rs1547.14 crore by March 1998. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: HINDUSTAN MOTORS LIMITED ALL SEES FURTHER DENT IN PROFITS
- Abstracts: CHAMERA II BID PACKAGE MAY FIND NO TAKERS Re MOVES IN TIGHT BAND
- Abstracts: SRINIVASA MINERALS AND TRADERS. JUMBO BAG's H1 NET PROFIT RISES BY 35%
- Abstracts: ACC SET TO DILUTE STAKE IN TWO ASSOCIATE FIRMS JK INDUSTRIES
- Abstracts: WINTER FROST MAY CHILL NILGIRIS TEA OUTPUT. PACKET TEA INDUSTRY SET TO ROLL BACK PRICES