Skip to main content

FinMin debating bad bank, basic income proposals: Jaitley

By

Finance Minister Arun Jaitley on Sunday said the ministry is debating two innovative suggestions made by the latest Economic Survey— Universal Basic Income (UBI) and creation of bad bank —to deal with the unacceptable levels of bad loans.He, however, said the idea of UBI does not seem to beafeasible policy option at this
point of time given the “political limitations”.

While inaugurating the oneweek teachers´ workshop at the Indian Institute of Technology (IIT), Delhi, the Finance Minister also emphasised policy makers to continuously upgrade their knowledge on different subjects.

“I think it´s equally meant for policy makers because they should also be acquainted with the facts for informed policy making,” he noted.On innovative ideas of the Survey, he said it remainsachallenge on how to allocate subsidies inatargeted manner.

“This year also it (survey) initiated a very important idea as to how do we subsidise… substitute the entire set of subsidies...we want to replace it by a Universal Basic Income (to a defined section of poor) and that UBI expedites their pulling out of the present state of poverty that they live in.” The Survey, prepared by Chief Economic Adviser Arvind Subramanian, also strongly pushed for a bad bank in which all non-performing assets of the banks are vested so that the rest of the banking system could carry on with its own activities, he said.

Business Standard New Delhi, 12th june 2017

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more