Economy News Notes

Corporate gift manufacturers in the city are headed for a dull Diwali.
thanks to profit-starved private companies drastically shri nking their gift budgets.
On this list are not just IT firms but also pharmaceutical companies, textile traders and other local commercial establishments that have trimmed their budgets for 'Diwali goodies'.
even the few that have decided to spend on corporate gifts have opted for inexpensive items such as T-shirts, diaries or small electronic products that cost not more than Rs 500

While there may be some moderation in growth in the current fiscal, the fundamentals of the economy are intact and the medium-term growth prospects remain buoyant.
With the country becoming increasingly globalised, it means that “when the world sneezes, India runs risk of catching a cold.
Path of fiscal consolidation to bring down the fiscal deficit to 4.6 per cent of the GDP (gross domestic product) in 2011-12
The States' finances in recent years had been improving steadily, tax revenues continued to be an area of concern
The States' tax to GSDP ratio, he said, showed wide variations. While the average tax to GSDP ratio was 6.7 per cent in 2008-09, the top two States had tax to GSDP ratio of 9 per cent and 8 per cent and the bottom two had 4.1 per cent and 4.2 per cent
Turning to the power sector, the main plank of infrastructure development, Mr. Mukherjee asked the States to raise electricity charges to improve the financial health of power distribution companies which were facing difficulty in raising fund from banks owing to poor balance sheet.

Planning Commission Deputy Chairman pitched for a cut in subsidies and higher revenue generation to facilitate increased funding of priority areas such as education, health, infrastructure and skill development during the 12th Plan (2012-17).
Mr. Ahluwalia stressed that higher resources could be mobilised for the priority areas “only if the Centre can raise the ratio of tax revenues to GDP [gross domestic product] and cut untargeted subsidies
The States, too, must reduce fiscal deficit since the debt position has become very difficult in many States
The country was “deeply distressing” as distribution losses stood pegged at about Rs. 70,000 crore. Funded by the banking system, these losses could not be treated as indefinite “evergreen” loans
With demand for water outstripping supply, it was leading to serious shortages and “unsustainable” withdrawal of groundwater
Water use in agriculture can be cut to half with known technology... Water availability can be improved by treating sewage water before it enters our fresh water system… Future assistance under Accelerated Irrigation Benefit Programme should be linked to moves which ensure more rational use of water.