India to Borrow and Spend More in 2010-2011

[12345]

How many thread u will have on same topic.

U should be more concerned for pakistan which is borrowing and buying cheap chinese stuff than India.

Now u r out of arguments as Education got 30% hike, Health got 25% hike and defense a mere 3.88 hike.

Respect this defense forum and join some economic forum for this type of trash talk.

I have been observing this guys HAQ threads in particular which only depicts hatred on India.

and afterall he leaves/ignores other development activities going around wile netpicking the defence .And what he consistently fails to notice is that, for any country to keep its growth sustained-->It has to keep its borders strong.

You can`t make your borders stong with a mere 100 archers with centuries old bows and arrows when u have hostile neighbours with nuclear weapons and with whom you have fought many wars.

If spending on health,education is as important to a nation,spending on defence is more important than that.Because you simply cant left your enemy robb everything you have ,while you were less concerned on defences and only spending more on education/health.

Most importantly for those people living inside the borders to sleep peacefully every day and edycate themself everyday in schools and get treatment in hospitals,you have to keep your borders secure.MOST importantly from terrorists.

And If you still try to pick the defence while ignoring the rest, you should considere consulting a doc.

 

[TechLahore]

Great post by a think tank of PDF.

You're very welcome. Any time.

I know Pakistan's economy is doing great these days. With a fiscal deficit of 4.3% and current account deficit of 5.3% (as per you), could you please let me know what is Pakistan's GDP growth in 2009?

Pakistan's GDP growth for 2009 was a little over 2%. It is expected to go above 4% in 2010 and reach as high as 8% there-after according to the IMF (below).

Business Recorder [Pakistan's First Financial Daily]

Over the past decade, despite the war on terror etc., Pakistan's median growth rate has been well over 6%.

What you may not know is that Pakistan - as matter of stated and pre-announced policy - traded a debt driven growth rate for a smaller deficit and modest spending. Fiscal conservatism is alive and well.

This is taken straight from the budget speech given on the floor of the parliament:

Text of Budget Speech 2009/10 Pakistan Politics

"Madam Speaker!

6. While stabilisation of the economy was necessary it was achieved at a cost. A tight monetary policy coupled with strict public expenditure management adversely impacted access to capital in the private sector and a reduction in the public sector development programme. The biggest casualty of stabilisation was the economic growth which declined to around 2pc. The contraction in the economy adversely affected the growth in manufacturing. However, our pricing policy for the agriculture sector helped this sector in recording a growth of 4.7 pc in 08-09 as compared to 1.1 pc in the previous year."

Why add from IMF and other countries have to bail out pakistan's economy?

IMF has lent money to Pakistan, but even after one includes this debt, our ratios are lower than India's. So going by your argument, the Indian government has to receive an even bigger "bail out" to rescue its economy and unsustainable spending?!

The IMF/other countries didn't bail Pakistan out any more or less than this $100B of debt is going to bail India out.

But what amuses me is your reaction to a comment I made about the massive borrowing India is currently engaged in, even after accounting for the size of GDP. For some reason, this has you worked up in a tizzy and you're talking about Pakistan's economic growth rate.

It's quite meaningless to celebrate growth if you've borrowed with both hands and grown more than Pakistan over the past few years... If you look at the historical average since 1947, Pakistan has done better than India even in growth rates. We haven't received near the levels of aid India has required even in basic items like food to avert famine etc. and we've done all of this from starting point that was far more disadvantaged as compared to your own. For one, we never got the funds and resources that were rightfully ours at the time of partition.

But we haven't let any of this stand in our way. Yet, you can't take a factually correct comment about India's massive borrowing?

In the times of recession our growth is ok. It is 7.2% for 2009-10.

You are incorrect. India's growth rate in 2009 was 6.7%

India's GDP grows 6.7% in FY09 : Rediff.com Business

 

[Atheist]

Haha and you guys should read the local newspapers in India - Most of them have asked for a 30% increase in defense budget this year and many wrote that they were disappointed with the budget especially the spending on defense sector

 

[TechLahore]

What really matters is how much of external debt a country carries and its capacity to service that debt

Wonderful, now we have invented a new brand of economics!

Yes, internal debt doesn't matter because the central bank can simply print money and pay it off when it comes due. This sort of thing doesn't cause inflation or anything...

 

[TechLahore]

Haha and you guys should read the local newspapers in India - Most of them have asked for a 30% increase in defense budget this year and many wrote that they were disappointed with the budget especially the spending on defense sector

I think a significantly greater increase in India's defence budget is justified and necessary. Consistent with India's strategy of waging a two front war, India should immediately match China+Pakistan in their combined defence expenditure.

 

[12345]

Wonderful, now we have invented a new brand of economics!

Yes, internal debt doesn't matter because the central bank can simply print money and pay it off when it comes due. This sort of thing doesn't cause inflation or anything...

India will become another zimbambe by printing a billion Rs note )

But the other poster is right as well.
External debt has more significance than internal debt.

If a country has more external debt, it has to compromise its national security virtually.It has to lean towards his creditor. And the situation will become more worse if your debt to GDP ratio keeps on increasing and you putting your eggs in his basket.

But on the other hand,internal debt is of insignificant concern.Though the inflation can be tamed in as many ways while amortising wisely.

 

[desiman]

This thread is nothing but a bunch of Anti-India folk taking a bite at something that they have no Idea about. I don’t know what India's internal budget has to do with Pakistan's growth or China's internal consumptions or the number of slums in India or with so many of the other illogical comments here. Seriously people get a life, stop criticizing everything that comes out of India. The Indian budget is set up by people who know far more than any of us and im sure they know what they are doing.

 

[12345]

I think a significantly greater increase in India's defence budget is justified and necessary. Consistent with India's strategy of waging a two front war, India should immediately match China+Pakistan in their combined defence expenditure.

Negative.

May be on paper, but not viable practically and not necessary ofcourse.

In a hypothetical scenario,India taking on both pak & China

Pak uses its total resources while China cant.And India has to employ all its resources.

If India tries to match combined Pak+China budget? It would surely be a over kill while neglecting other spendings.

China definitely dont have the loyalty to use its total force on India in case of a war. Apart from what its geography says, its own enemies eat a part of its military force .

This is clearly the sitaution where sense prevails and numbers along with logic talks.

I am sure that such a situation wont occur in future ,apart from a small war with pakistan.

In an indo-china war,the uncertainity of others force levels will keep both sides at bay.

People say that Chinese like to hide stuff from world.Same does go with Indians.But what makes the difference is how you play with world.
If Santhanam has to be given credit for creating an infinite uncertainity about indian nukes,there were many sources and office heads that do take their part of share in keeping the numbers scrambled.

This is not a typical doing with indians/chinese,but the whole world does follow.
And the only one who emerges as a winner is who works hard underground drilling tunnels from hyderabad to jaipur and delhi to bhopal. this is what Chanakya says:dont praise a cat which can see dark,but try yourself doing that.In the end after a hectic life in his lab,he came out with NV goggles.

 

[desiman]

Wonderful, now we have invented a new brand of economics!

Yes, internal debt doesn't matter because the central bank can simply print money and pay it off when it comes due. This sort of thing doesn't cause inflation or anything...

LOL r u sure mr.think tank. RBI cannot print money when they want sir. Adding extra money to the system decreases the value of the currency and increases inflation. Its a simple demand-supply equation really. Printing money to pay debt is what Germany did after WW2 and you can go research on what happened to them after that. Lets just say that they were taking money in trucks to buy milk lol The RBI is there to regulates money supply and manage inflation by adjusting key parameters such as the interest rates, adjusting money output, playing with internal regulations etc etc. It does not print money when it wants to.

 

[yuba]

LOL r u sure mr.think tank. RBI cannot print money when they want sir. Adding extra money to the system decreases the value of the currency and increases inflation. Its a simple demand-supply equation really. Printing money to pay debt is what Germany did after WW2 and you can go research on what happened to them after that. Lets just say that they were taking money in trucks to buy milk lol The RBI is there to regulates money supply and manage inflation by adjusting key parameters such as the interest rates, adjusting money output, playing with internal regulations etc etc. It does not print money when it wants to.

to right if you look at zimbabwe they printed more money creating runaway inflation they devalued their currancy so much had to start printing billion dollar note

 

[12345]

to right if you look at zimbabwe they printed more money creating runaway inflation they devalued their currancy so much had to start printing billion dollar note

I mentioned Zimbabwe to highlight inflation.

but in real terms, India is no cloose to Zimbabwe or wotever.It is all about the monetary and control/regulation system you are talking about.

US was printing $ to tide up with its bailouts and all.but we didnt see any inflation touching skies or wotever.

People often confuse with the bare meaning for inflation which is printing of excess money.

But in real terms,Inflation is not all about printing money. Its more about supply and demand.It is more about the mentality to spend and to save. you spend more when you get less interest and save when you get good returns.

 

[yuba]

I mentioned Zimbabwe to highlight inflation.

but in real terms, India is no cloose to Zimbabwe or wotever.It is all about the monetary and control/regulation system you are talking about.

US was printing $ to tide up with its bailouts and all.but we didnt see any inflation touching skies or wotever.

People often confuse with the bare meaning for inflation which is printing of excess money.

But in real terms,Inflation is not all about printing money. Its more about supply and demand.It is more about the mentality to spend and to save. you spend more when you get less interest and save when you get good returns.

i was eplying to post that said debt no problem just print more money and pay it back zim got alot of other problems causing inflation i was not trying to say printing excess money the only cause of inflation

 

[TechLahore]

LOL r u sure mr.think tank. RBI cannot print money when they want sir. Adding extra money to the system decreases the value of the currency and increases inflation. Its a simple demand-supply equation really. Printing money to pay debt is what Germany did after WW2 and you can go research on what happened to them after that. Lets just say that they were taking

No? really???

 

[desiman]

No? really???

r u asking a question brother or is it in a sarcastic way lol

 

[yuba]

India will become another zimbambe by printing a billion Rs note )

But the other poster is right as well.
External debt has more significance than internal debt.

If a country has more external debt, it has to compromise its national security virtually.It has to lean towards his creditor. And the situation will become more worse if your debt to GDP ratio keeps on increasing and you putting your eggs in his basket.

But on the other hand,internal debt is of insignificant concern.Though the inflation can be tamed in as many ways while amortising wisely.

sorry mate had not read this post when posting mine was not trying to copy you