They should focus on increasing the Gold Reserves part of forex which is just ~ $ 20 billionPrem wrote:https://www.rbi.org.in/Scripts/WSSView.aspx?Id=21564
Reserves now 393 Billions, on way to cross 400 Billion in next few weeks.
If you cannot take that Rupee or Yuan and buy what ever you want across the globe but the same USD/Euro/Yen guy can do it then it really does not matter it is just a question of internal stastics for the nation.Suraj wrote:PPP was created to better represent the value of output of the same goods and services generated by different countries with widely disparate exchange rates, e.g. a haircut is the same everywhere . PPP and absolute are two sides of a coin . The former assumes every standard goods or services are worth the same, but can be distorted by lack of convertibility . Absolute measures everything in dollars but adds the distortion hat the same thing cost different $ prices in various places.
You are missing the point, and oversimplifying things. The same $ buys you different things around the world (e.g. simplified as the Big Mac Index), for reasons far more complex than mere convertibility between currencies. Capital account convertibility exists in the west because the most fundamental trait of the western economies is that they are capital surplus, and they NEED capital account convertibility to chase returns on that capital easily.Austin wrote:If you cannot take that Rupee or Yuan and buy what ever you want across the globe but the same USD/Euro/Yen guy can do it then it really does not matter it is just a question of internal stastics for the nation.
Unless we have a full free floating currency and capital account convertibility of Rupee where any citizen can exchange its curreny with what ever currency or goods or service he wants across the globe then it would be a true benchmark
Boss, that's the point *I* tried to make - that countries with substantial capital surplus will support and emphasize convertibility because they need it, not because it's 'better'. Their emphasis is suited to their needs. At the same time they'll be hypocritical about free movement of labor.Austin wrote:Well if you argue about Labour , I can also argue about free movement of capital something West has and we dont.
China is capital surplus due to decades of mercantilism, but does not have institutions that enable it to quickly move to full convertibility. You don't become developed just by being capital surplus. China is an undeveloped economy with a developed economy capital situation. China risks capital flight if they achieve full convertibility. You and I both know that. They open themselves to potential currency speculator attacks like Soros did with the Pound in 1992.Austin wrote:IF surplus was the criteria then China has capital surplus yet it does not have a free floating currency or a capital account convertible one.
The west originally sought the free movement of capital and of goods, while restricting movement of labor because it would depress wages. As countries like China became economically powerful by being efficient low cost producers, they became to emphasize restriction on movement of goods as well . Now it's just capital that they emphasize the movement of. And of course control of technology.Supratik wrote:Free market assumes free movement of both capital and labor. Then why do western nations have visa caps and other assorted restrictions. Convertability has to do with confidence about economy. India stopped short after the east asian crisis. We don't want that to happen. India and China are doing fine with present restrictions. It has very little to do with PPP.
Just a minor correction. "Free market" refers to a market environment free from govt or other external intervention. "Free trade", on the other hand, is usually limited to goods but MAY also extend to capital and services depending on the nature of the FTA.Supratik wrote:Free market assumes free movement of both capital and labor.
If there was no government intervention what would keep labor or capital from crossing political boundaries?Viv S wrote: Just a minor correction. "Free market" refers to a market environment free from govt or other external intervention. "Free trade", on the other hand, is usually limited to goods but MAY also extend to capital and services depending on the nature of the FTA.
What you may be thinking of is the "single market" or "economic union" which involves free movement of both labour and capital.
A free market as defined by libertarian anarchists doesn't exist anywhere/is a mirage. In colloquial usage, its usually used to distinguish from markets/economies with significant SOE presence and/or interventionist regulators.A_Gupta wrote:If there was no government intervention what would keep labor or capital from crossing political boundaries?
"Free market" by the above definition is largely an ideological construct that doesn't exist anywhere.
The necessity of "free trade agreements" - why should they be necessary if there are free markets at both ends of the agreement? - also shows that "free market" is a mirage.
The government's demonetisation drive and the subsequent “Operation Clean Money“ seem to have smoked out those avoiding taxes, resulting in a massive jump in the number of returns filed this year as well as individuals paying taxes.
As they say, it's not just demonetisation:
The number of Income Tax (I-T) returns filed for 2016-17 year grew by 25 percent to 2.82 crore, as increased number of individuals filed their tax returns post demonetisation, the tax department said today.
Additionally, advance tax collections from personal income tax showed a growth of about 42% over the corresponding period in FY17. Personal income tax under self-assessment tax (SAT) grew at 34% over the corresponding period a year ago, CBDT said. “This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation,” CBDT said.
How much of the control of inflation is related to the other indicators.Sicanta wrote:There is, however, one important area where the current government, aided by RBI, has done exceptionally well—it has succeeded in taming the inflation monster.
Which resources are you talking about here?Theo_Fidel wrote:How much of the control of inflation is related to the other indicators.Sicanta wrote:There is, however, one important area where the current government, aided by RBI, has done exceptionally well—it has succeeded in taming the inflation monster.
If you go back and look through the growth history of Japan/SK/China the thing that strikes you is the surging inflation that rolled through the system during their strong growth phases. As a similar resource poor nation I have long said that inflation is not the monster that everyone in India makes it out to be. Yes food inflation is bad, but food inflation is complete other animal. In India time and again the economy is crushed to control food inflation. At our stage of development, as a resource poor nation, we should be burning up with the fever of inflation. This is what flips the currency exchange rate and allows exports to power the industrial sector for products there is little local demand for.
Looking at our import bill would give you an idea I think,Karthik S wrote:Which resources are you talking about here?
I do not have expertise in this area. But the data seems to be all over the place. There is this guy (who clearly has an axe to grind) who has a whole thread about this:Suraj wrote:India's Demonetisation Leads To A 24% Rise In Tax Returns Filed, 42% Increase in Advance CollectionsThe government's demonetisation drive and the subsequent “Operation Clean Money“ seem to have smoked out those avoiding taxes, resulting in a massive jump in the number of returns filed this year as well as individuals paying taxes.
As they say, it's not just demonetisation:
The number of Income Tax (I-T) returns filed for 2016-17 year grew by 25 percent to 2.82 crore, as increased number of individuals filed their tax returns post demonetisation, the tax department said today.
Additionally, advance tax collections from personal income tax showed a growth of about 42% over the corresponding period in FY17. Personal income tax under self-assessment tax (SAT) grew at 34% over the corresponding period a year ago, CBDT said. “This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation,” CBDT said.
1. I did not write the article
And thisBut for now, wholesale and distribution businesses in particular are hesitant to despatch untaxed cargo under the GST regime. Untaxed invoices dodging the tax authorities have virtually disappeared from freight markets, except for a few interstate destinations in Rajasthan, Madhya Pradesh, Bihar, Chhattisgarh, Gujarat, parts of Maharashtra and the North-East, said Singh of IFTRT. That’s led to a postponement of new truck purchases and a rise in defaults on hire purchase dues.
Read the bolded part above and one will goAnother truck company executive said his company had started seeing a 10-15% increased efficiency in goods movement, which effectively means the existing fleet can do that much more business. Vinod Aggarwal, MD and CEO at VE Commercial Vehicles, expects demand to be slow in the coming two months before things normalise in the GST ecosystem. “There are hiccups expected in the next one or two months,” he said. “Starting September, the demand may pick up. Customers are in wait-and-watch mode.
I don't seem to see the number 2.82 crores anywhere in that link. The total has only seemed to increase by 2% (from 6.12 crores to 6.26 crores), though that is likely because a lot of people will file a little late. That 6.26 crore number likely includes people who had a TDS (for e.g in bank accounts), but don't file returns. I have always found India income tax data all over the place. It could be just that they keep changing the terminology very often. Another place where data is all over the place is Tax to GDP ratio.
In the US, ~55% of the people pay federal taxes. If you include Social security and Medicare taxes, it is a lot more.dsreedhar wrote:The number of tax filers increased to 2.82 crore. India population is 120 crore. Just curious, what is the ideal figure when 100% of population files tax returns.
I think the govt should link tax filing to any kind of govt sops to people.
Let's see, 120 crore population, if we take 4 per household, it means we have around 30 crore households. Let's assume only 1 member per family earns ( which is more likely true apart from IT people). Therefore around 30 crore potential taxpayers. Now considering the BPL and Agri households combined will form 70% of such potential taxpayers. That leaves us to 9 crore potential taxpayers. That means roughly 30% in the tax bracket pay taxes based on our assumed numbers. Is this a low number? Probably, but would it increase over say certain period, very likely.dsreedhar wrote:The number of tax filers increased to 2.82 crore. India population is 120 crore. Just curious, what is the ideal figure when 100% of population files tax returns.
I think the govt should link tax filing to any kind of govt sops to people.
We need to compare with AY 2017-18 numbers.guru.shetty wrote:I don't seem to see the number 2.82 crores anywhere in that link. The total has only seemed to increase by 2% (from 6.12 crores to 6.26 crores),
Apparently this figure is half that was transferred last year. Looks like the counting process has reduced this amount, which should have been atleast twice last year's figure.CNBC-TV18Verified account @CNBCTV18Live 1h1 hour ago
More
Replying to @CNBCTV18Live @RBI @Latha_Venkatesh
RBI to transfer Rs 30,659 cr to govt as dividend for year ended June 30, 2017 |
he government on Thursday introduced in the Lok Sabha ‘The Code on Wages’ bill which seeks to empower the Centre to fix a “universal minimum wage” aimed to benefit over 40 crore unorganised sector workers. Once approved by Parliament, even workers getting monthly pay of higher than Rs 18,000 would be legally entitled to a minimum wage. At present, laws on wages do not cover workers getting monthly wage of more than Rs 18,000. Besides, the minimum wage will be applicable on all classes of workers.
“It is for simplification, rationalisation and making it less cumbersome. No way workers’ right is being infringed... It is going to bring in a historical change in the wages for workers and universal minimum wages will be implemented for the first time in India,” Dattatreya said.
The bill would help generate employment and attract entrepreneurs, he said, adding that there were 44 labour laws which were being clubbed in four codes and the bill introduced today deals with the code on wages.
The Code provides for the government to determine the minimum wages every five years using factors like skills required for the job, arduousness of work, geographical location of work place and other aspects.
Such wages are to be fixed on recommendation of panels comprising an equal number of representatives of employers and employees, and independent persons, according to the Code on Wages, 2017, Bill.
Under this, the government will fix the number of hours of work that would include a day of rest every seven days. The payment for work on a day of rest will not be less than overtime rate.
Sorry I don't understand. The costs of the bolded part cannot be as high as 30K crores, or is it?Suraj wrote:That's not how the dividend works. The difference is the cost of the entire demonetization exercise - the time, effort and manpower expended in collecting and tabulating old notes, and printing and distributing new notes.
Suraj wrote:Just the cost of printing the new currency notes is ~15k crores. 30K crore is not a large sum - less than $5 billion . The total face value of currency taken out of circulation was over $200 billion, with about half of that replaced by new notes .
