ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India's Macroeconomy

Market, Regulations and Finance: Global Meltdown and the Indian Economy edited by Ratan Khasnabis and Indrani Chakraborty; New Delhi and New York: Springer India, India Studies in Business and Economics, 2014; pp 266, price not indicated.

Gold Monetisation Scheme for India

Currently India is the largest consumer and importer of gold in the world. Monetising the gold within the country is, therefore, important for macroeconomic stability, and requires a credible scheme for valuing, storing, and tracking the metal.

Food Subsidy

This paper counters negative advocacy about the food subsidy, the public distribution system, and farm price supports. It argues that the public food supply chain for market intervention has a favourable impact on the cost-benefit ratio, poverty reduction, calorie consumption by the poor and productivity-led agricultural growth. The paper proposes reforms for the six pillars of the public food supply chain. These include: an alternative poverty line concept that is linked to the minimum "norms" for calorie intake enabling a reduction of the exclusion and inclusion errors, procurement just for the PDS and buffer stocks to be purchased at a farm price that is fully cost-based, fair price shops with fixed and adequate time of operations, "indent" of the demand, doorstep delivery, and so on.

Sharper Instruments and Objectives

This is after all a coalition budget and so unless the finance minister is strong and has strategic dominance over the coalition, large debt and deficits are inevitable. However even within those constraints, there is little indication where the resources will come from for the various promises that have been made. The budget mentions thrust areas in agricultural development that require moving the agricultural economy in a commercial direction. But there is no vision about this in the budget. As for transaction tax, there are many reasons why it is problematic and also bad conceptual public finance.
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