Archive for February 22nd, 2013

Why should President of India talk like Prime Minister/Finance Minister?

February 22, 2013

It was a bitter disappointment to read President’s opening speech ahead of crucial Budget session. I was amused to read some newspapers calling it a signal in

Firstly, the speech was just like any speech from PM/FM etc. It is like reading an Economic Survey of sorts with My Government thrown in between.  My last count showed he used the word My Government 52 times! I mean we know he heads the government. But why mention it so many times?

The speech hardly had any vision or anything beyond praising his govt and lauding its efforts for doing so much for India’s public. Really? What about the several negatives like rampant corruption and several policy errors.  Corruption being mentioned just once speaks volumes.

It is high time that Presidents use such forums to tell what its Government is not doing and should aspire to do. But how can they when they owe their Presidency to the ruling party and its politics. It is a pity that all offices in India are just boiling down to politics and strength of political parties. So you get elected just because of your affiliation with the ruling party.

And we have a President who has actually been a political leader of the ruling party for many decades. One does not expect much from him and that is a serious pity.

We hardly have anyone to hear for inspiration these days…Sad times..


Reasons for Eurozone Crisis: Keynesian or Hayekian?

February 22, 2013

As I keep saying no matter how much you read on EZ crisis, it can never be enough. There are always some different and interesting perspectives to follow.

George Selgin of Univ of Georgia in this note points that there were two critique schools when formation of EZ was being considered – Keynesian and Hayekian:


A Primer on India’s Centre-State Finances (Functioning of India’s Fiscal Union)

February 22, 2013

I have been working on this area of Centre-State Finances/India’s Fiscal Union. It is an amazing amount of learning and I don’t think there is anything as vast as this area of Centre-State finances. There are so many concepts and issues.

So here is a paper written by your truly which should provide a start to those interested in the subject. It explains the flow of funds between Centre and Funds and concepts behind the several flows. I have provided some numbers from the Union Budget to bring more clarity and practical.

In a way, it helps understand the functioning of India’s fiscal union, a concept much in vogue these days. Much is written about US Fiscal Union and how it has helped US states avert the crisis. But still one does not know where to connect the dots with numbers. For this one needs to a deep dive into the US Federal Budget numbers and so on.

I have tried to connect these fiscal union ideas with facts and numbers for India. So, people know how to make sense of all these flows.

But then this subject is an ocean really. Lots to learn and unlearn. Will surely be writing more on the subject.

Comments/suggestions are welcome.

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