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

GDPSubscribe to GDP

A New Global Minimum Corporate Tax

Consensus on corporate tax rates can boost India’s revenue mobilisation prospects.

A Performance Appraisal of the Inflation Targeting Regime

The recently published Report on Currency and Finance, 2020–21 of the Reserve Bank of India reviewed the performance of the flexible inflation targeting regime in India. In the light of stylised facts, cross-country experience, and detailed econometric results, the report seemed to suggest that despite several shocks (like demonetisation or introduction of the goods and services tax), a combination of good policy and luck have worked in favour of the success of the FIT regime in India. Going forward, while advocating some nuanced, subtle changes in the operation and administration of the FIT regime, the report called for its continuation as a strategy of monetary policy in India.

Fifty Years of Independent Bangladesh

The Bangladesh model shows how mutually reinforcing economic and social policies foster inclusive growth.

The State of State Finances

Only a generous award by the Fifteenth Finance Commission can restore fiscal balance. */ */

Issues of Compliance in GST

Debates on compliance audits of the goods and services tax will have to move beyond mere “invoice matching” to more holistic approaches for data reconciliation that can enable effective tax enforcements, and compliance risk assessment and mitigation.

Changing Dynamics of Inflation in India

Using the latest consumer price index (combined) series, it is found that the dynamics underlying India’s inflationary process have changed substantially. Significant reduction found in the inflation persistence reflects anchoring of inflationary expectations. Moreover, it is the headline inflation that reverts to the core and not vice versa, as was assumed so far. It implies the absence of any significant second-round effects. These features need to be taken into account for any policy analysis. Attempting to forecast inflation using various econometric techniques, it is found that a combination of alternative models based on mean square errors improves forecast accuracy as compared to any individual model.

Quarterly GDP Estimation

The latest quarterly estimates of gross domestic product by the new National Accounts Statistics methodology are once again in the news for the wrong reasons. With inadequate accurate information available on a quarterly basis, the estimates hardly represent the state of the economy and reflect the effects of demonetisation over the October–December 2016 period.

Regional Divergence and Inequalities in India

The question of regional development holds special significance for India, given that the regions are not entirely homogeneous. The high growth rate of the economy as a whole has not led to a similar growth pattern for its regions. An analysis on regional convergence across 15 major states in India suggests that there is divergence of the aggregate economy for the period 1970–71 to 2013–14. The findings therefore do not lend support to the expectations of the neoclassical convergence hypothesis according to which poor regions tend to catch up with the advanced regions in the long run leading to regional convergence.

Pages

Back to Top