India on track to stay among fastest growing economies: IMF
Washington, Aug 8 : Observing that India'a near-term macroeconomic outlook is "broadly favorable", the International Monetary Fund (IMF) has said that the country is on course to hold its position as one of the fastest growing economies in the world.
Following its Executive Board's assessment concluded last month, the IMF said on Tuesday that key risks to the Indian economy include higher oil prices, tightening global financial conditions and tax revenue deficits.
"The near-term macroeconomic outlook is broadly favorable. Growth is forecast to rise to 7.3 per cent in FY2018/19 and 7.5 per cent in FY2019/20, on strengthening investment and robust private consumption," an IMF release said.
"Headline inflation is projected to rise to 5.2 per cent in FY2018/19, as demand conditions tighten, along with the recent depreciation of the rupee and higher oil prices, housing rent allowances, and agricultural minimum support prices."
IMF mission chief for India Ranil Salgado said the Indian economy at present is like "an elephant starting to run".
Continuing structural reforms would be key to high growth, he said, adding that further rationalisation of the Goods and Services Tax (GST) would give maximum benefits, while labour reforms would be an incentive for companies to expand.
Underlining India's importance for the world economy, the IMF India Staff Report also said the country accounts for about 15 per cent of global growth.
Persistently high retail inflation expectations, large government fiscal deficits and debt remain key macroeconomic challenges, the multilateral financing agency said.
"Systemic macrofinancial risks persist, as the weak credit cycle could impair growth and the sovereign-bank nexus has created vulnerabilities," it said.
Domestic risks pertain to tax revenue shortfalls related to continued GST implementation issues and delays in addressing the twin balance sheet problems and other structural reforms," it added.
The IMF also said that the Reserve Bank of India should be given full supervisory powers over government-owned banks, while the legal independence of RBI must also be clarified.
The report also recommended higher private sector participation in Indian banking.
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Karnataka Assembly passes bill on Palace Grounds amid opposition protest
Bengaluru, Mar 6 (PTI): The Karnataka Assembly on Thursday passed the Bangalore Palace (Utilisation and Regulation of Land) Bill, reaffirming state ownership over 472 acres and 16 guntas of land here, amid protests by the opposition BJP.
During the discussion, Karnataka Law and Parliamentary Affairs Minister H K Patil said the state government would have to provide Rs 200 crore worth of Transfer of Development Rights (TDR) for each acre of land, which means that for 15 acres, Rs 3,000 crore worth of TDR would be issued.
“If we accept it, then this 2-km stretch of road will become the costliest road in the world. If we accept it then how are we going to develop the city in later stages? How will you carry out development works?” asked Patil.
He also pointed out that this question was raised not only under the Congress government but also during the previous BJP regime.
However, the BJP-led cabinet has opposed the project.
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“Suppose we agree to it then, what will be the valuation of the 472 acres? It will be lakhs and lakhs of crores of rupees. Can we accept?” Patil wondered.
The Minister said the government had previously exercised its executive powers to issue an ordinance, which was approved by the Governor. Now the government is bringing a bill with two amendments.
“In this bill, we have made provisions either to develop or drop the road development work,” Patil explained.
However, BJP state president B Y Vijayendra and BJP MLA Arvind Bellad opposed the move, alleging that the government was targetting Yaduveer Krishna Datta Chamaraja Wadiyar, the scion of the Mysuru royal family, and the BJP MP from Mysuru-Kodagu constituency out of political vendetta.
“We talk of 472 acres of Mysuru Maharaja but here there are many Maharajas who too own 400 acres, 500 acres and thousands of acres of land, which is known to everyone,” Bellad said.
He slammed the Congress government, saying political power should not be misused for personal vendetta.
“Why (the then Deputy Chief Minister) Siddaramaiah brought the law in 1996 pertaining to the Bangalore Palace? Why are you setting eyes on the Bangalore Palace?” he asked.
Vijayendra charged that Wadiyar won the election on BJP ticket so the state government realised that it should acquire it.
“This bill has been brought for political vengeance. We are not discussing whether Rs 3,000 crore is exorbitant or not but the moment Yaduveer became MP, the state government woke up. You should be ashamed. This house should not be used for political vendetta,” he said.
Intervening, Minister Priyank Kharge said Vijayendra should not have raised it because the intention behind building the road was noble.
According to him, the BJP too had the same plan when it was in power.
He sought to know whether thousands of crores of rupees be spent on a road which should have cost significantly less.
In response, BJP MLA B A Basavaraj (Byrathi) said issuing TDR will not be a burden on the state government and appealed to the ruling Congress to reconsider its stance.
Minister Ramalinga Reddy too explained that the Karnataka government acquired the entire land way back in 1996.
The Mysuru royal family went to the High Court, which gave ruling in favour of the state government. The royal family then approached the Supreme Court, where the case is still going on, the Minister pointed out.
“The final judgment is pending in the SC to decide whether the acquisition was right or wrong. If the SC says it’s the royal family’s property then let it be so. If the order is in the state government’s favour then we can take a decision. The bill is only about it,” Reddy explained.
Speaker U T Khader then called for a voice vote and the bill was passed by the Assembly amidst opposition BJP’s discontent.
