India saves $ 2.3 bilion as US refuses higher IMF quota; To help in containing fiscal deficit

[Chanakya's_Chant]

India saves Rs 14,000 crore as US refuses higher IMF quota

The government has been setting aside the sum for the past three years to pay for the higher quota at the multilateral agency. ​

NEW DELHI: The United States' refusal to sign off on a higher quota for developing countries such as India in the International Monetary Fund (IMF) has given the government an opportunity to save Rs 14,000 crore that it had budgeted for this reform and use it for shoring up its fiscal deficit.

The government has been setting aside the sum for the past three years to pay for the higher quota at the multilateral agency that has been stalled as the US Congress has refused to ratify the IMF reform agreed to in 2010. "There are no signs of any breakthrough, so there will be no cash outgo of Rs 14,000 crore as budgeted," said a senior official, adding that any increase in quota was unlikely before next year.

The reform seeks to increase the quota of developing countries in the IMF by six percentage points and also move two of the 24 directorships from European to developing countries. With the stalling of the reform, the government has got some leeway at a time when the finance ministry has ruthlessly cut expenditure to stay within its fiscal deficit target of 4.8% of GDP for 2013-14.

The government had budgeted Rs 56,574 crore for investment in international financial institutions this fiscal.

Of this, Rs 42,149 crore was to be met through issue of securities, or without any cash outgo. The additional saving will help the government rein in its fiscal deficit, which rose by November-end to Rs 5.1 lakh crore, or 94% of Rs 5.42 lakh crore estimated for the entire fiscal.

"The government should look at any opportunity that comes its way. Anything as a standalone may look like a small amount but such opportunities can make a serious contribution towards reining in the fiscal deficit," said Sunil Sinha, Director with India Ratings.

The government is looking to plug all gaps to curtail its expenditure and find ways to shore up its revenues. It has already asked state-run companies to issue special dividends given that it has managed to raise only aboutRs 3,000 crore with its disinvestment programme this fiscal.

"After Coal India, other public sector units will soon follow suit on special dividends. The government is expected to raise around Rs 7,000 crore through its partial stake sale in Axis Bank," an official said, adding that with some clarity on stake sale in Balco and Hindustan Zinc, the government would be easily a

Source:- India saves Rs 14,000 crore as US refuses higher IMF quota - The Economic Times

 

[Dem!god]

And now that 14000 crores will be wasted by congress on politics gimmick..in great lok sabha election tamasha 2014...

 

[Chanakya's_Chant]

And now that 14000 crores will be wasted by congress on politics gimmick..in great lok sabha election tamasha 2014...

Nah not really - its the exchequers money safe in the national treasure rather I guess it will pull down the fiscal deficit even below 4.8% projected for FY13 - extremely good for the economy!

 

[Dem!god]

Nah not really - its the exchequers money safe in the national treasure rather I guess it will pull down the fiscal deficit even below 4.8% projected for FY13 - extremely good for the economy!

ha ha..
congress will make a new scheme ...work for 1 day get pay for 1 month ..only for BPL families...
from where do you think money will come for the 3 extra subsidies LPG cylinders if 12 LPG under subsidy comes into effect..
there are many ways to waste..

 

[Ayush]

good

 

[acid rain]

India lended 10 billion to IMF in 2009. Any further lendings after that?

 

[anonymus]

Guys,


This is the most depressing news for India which is being provided with positive spin by uneducated journalists.

Voting rights in IMF are directly proportional to your quota. Lower quota for India means lower voting rights and IMF remaining under control of EU. ( there is agreement between US and EU where US support an EU country in IMF and EU support US in world bank)

+ Money kept in IMF is like money kept in PF.It could be withdrawn in time of need.

If government wants to control deficit, it should cut back on it's bribery programs like MGnrega and indramma.

 

[Chanakya's_Chant]

ha ha..
congress will make a new scheme ...work for 1 day get pay for 1 month ..only for BPL families...
from where do you think money will come for the 3 extra subsidies LPG cylinders if 12 LPG under subsidy comes into effect..
there are many ways to waste..

Well as far as these popular schemes are concerned - they are not in a position to make a new one for the simple reason that the 15th Lok Sabha has almost finished its tenure and is about to be dissolved - money bills can be passed only through the Lok Sabha and second as far as the cylinders case is concerned there is very little chance that the petroleum ministry together with the PMO and the Finance ministry are going to allow it and moreover I don't know what "Aadarsh Aachar Sahinta" is called in English but as a matter of fact hardly a month is left for that to be imposed by the ECI after which any such thing is literally not possible! the bottom line is nothing is going to happen as you think of bro

Guys,


This is the most depressing news for India which is being provided with positive spin by uneducated journalists.

Voting rights in IMF are directly proportional to your quota. Lower quota for India means lower voting rights and IMF remaining under control of EU. ( there is agreement between US and EU where US support an EU country in IMF and EU support US in world bank)

+ Money kept in IMF is like money kept in PF.It could be withdrawn in time of need.

If government wants to control deficit, it should cut back on it's bribery programs like MGnrega and indramma.

I guess you missed it out bro!

The government has been setting aside the sum for the past three years to pay for the higher quota at the multilateral agency that has been stalled as the US Congress has refused to ratify the IMF reform agreed to in 2010. "There are no signs of any breakthrough, so there will be no cash outgo of Rs 14,000 crore as budgeted," said a senior official, adding that any increase in quota was unlikely before next year.

That is ultimately going to be there but not for FY13 at least #good for bring down the fiscal deficit!

 

[jarves]

Today i read an article in DB that how corrupt congress is fooling the people by saying that they will control the fiscal deficit.....