India is hardly a model example of an efficient economy. Until about 2008, Russia saw GDP growth of between 5-8%, ran budget surpluses and invested the proceeds in a stabilization budget (to hedge against falls in commodity prices). Since 2008, growth has been negligible, the stabilization fund has been almost halved (and continues to fall), govt spending is soaring and has come to be dominated by defence & security expenditure. If you think this new trend is sustainable we must agree to disagree.Austin wrote:Yes yet we have 4.6 % Budget Deficit ... Hope you see the point .....the key is to get a balanced budget or as low as deficit as possible the rest is all on how you spend and earn.Viv S wrote:India's internal security budget is roughly Rs 60,000 crore. About 3.5% of the Union Budget.
I think you understand economics less than Defence
Come now don't spare my understanding of defence.

If the each country retains its current growth, China will match Russia's per capita GDP within a decade. They're not as far as apart as one might assume.India like China has still growth potential so we will grow irrespective how deep dirt we stand today ...Russian economy are already advanced and it will grow slower ......so as long as the Oil/Gas price remains high ( and thats really not Russian only problem but also the entire Gulf ,Norway etc ) they would sail through... the only factor that remains when we have the next 2008 till then enjoy.
As for oil/gas prices remaining high, Venezuelan production is stagnating, Libya isn't back online yet, Iraq is still scaling up production and Iran remains under sanctions for the time being. (Unlike the Nigerian insurgency none of these are chronic issues.) Yet oil prices have fallen below $100/bl. Why?
The primary reason is the shale revolution in the US (oil imports have already fallen by 50%). China has the world's largest shale reserves and are building an industry to rival the US. With rising Canadian production forming the third leg, the effects are reverberating throughout the industry and oil market.
As the OPEC stabilizes and ramps up production, its basically a poor gamble to rely on continuing high oil prices. (Taxes on oil exports contribute to half the Russian federal budget)
Its an interesting topic though yes it ought be discussed on a different thread.Never Mind my last post on this we covered all topics except the one the thread belongs to may be Admin can clear it.
