Latest News

GST won't put any pressure on GDP growth: Rangarajan

eTelangana.org | Published: 11th August 2017 | Posted Date: Friday 11th August 2017 07:03 PM

Hyderabad: Former Reserve Bank Governor C Rangarajan on Friday said the GST rollout has been smooth barring some initial hick ups and maintained the new regime is just an extension of Value-Added Tax (VAT) and will not put any pressure on GDP growth figures.

"I don't think it (GST) will put any pressure on the GDP growth. There are always teething problems when a far- reaching scheme is introduced. "But it appears so far things have moved rather smoothly and GST, in some sense, is an extension of VAT, which is already an ongoing scheme in India," he said.

"Therefore, some new things have emerged and new things have to be done because of the all-India character of the GST like the transshipment of goods from one state to another. But otherwise, I think so far my impression is it has gone through reasonably well," Rangarajan told PTI on the sidelines of a programme at the University of Hyderabad.

Earlier in his speech at the programme, he stressed on the need to workout a mechanism to complete the "viable" stalled projects and opined the banking system is under stress as non-performing assets (NPAs) are on the rise.

"This (rise in NPAs) has squeezed the profitability of banks with some showing loss. More distressing is the minimal flow of new credit. The problem os often referred to as twin balance sheet problem.

"If corporate balance sheets are weak, automatically the banks' balance sheets also become weak," said the former chairman of the Prime Minister's Economic Advisory Council.

The noted economist said some of the bad loans are due to a slowdown in the economy and asset restructuring companies are part of the solution.

"The solution to clean up the balance sheet of banks lies in taking some hair cut. Even though hair cut can not be avoided, wilful defaulters must not go unpunished."

Rangarajan, who was the helm of the RBI from December 1992 to November 1997, said it is necessary for India to grow at 8 to 9 per cent annually to reach per capita GDP of USD 8,000 by 2030 from the current levels of USD 1,600.

Referring to a recent study, he said the total cost of projects initiated by the corporate sector has come down to Rs 0.95 lakh crore (Rs 95,000 crore) in 2015-16 from Rs 5.6 lakh crore in 2009-10.  

Courtesy:http://www.deccanchronicle.com/business/economy/110817/gst-wont-put-any-pressure-on-gdp-growth-rangarajan.html

 

K Chandrasekhar Rao ignored noted state poets: Dr Dasoju Sravan

He said that during the statehood movement, Mr Rao had ridiculed Telugu Talli and proposed demolition of statues.

TRS legislator terrorises toll plaza staff

MLAs gunman slaps staff members, mobile of person recording it snatched

GHMC loses Rs 100 crore revenue from cell towers

The civic body has been collecting property tax of just 500 cell towers when there are more than 6,000 towers across the city.

Power utilities fixing last-mile needs

24 X 7 power supply to agriculture sector from January 1

Telangana: Two ambulance drivers held for drunk driving

Two ambulance drivers were on Tuesday arrested for drunken driving near a toll plaza on Chottupal-Vijayawada National Highway.

Techies to make merry in year-end break

Employees are going to get paid leave from December 25 to January 1

State to ply 550 RTC buses for World Telugu Conference

K. Chandrasekhar wanted people from all parts of the state to attend the inaugural and concluding meetings.

K Chandrasekhar Rao wants auto starters removed

Rao said in the past farmers had installed auto starters due to non-availability of power; these will not be needed now.

Hyderabad High Court gives cop recruits a reprieve

In the trial, the complainant failed to identify the accused, and the matter ended in acquittal.

Telangana tries to lower growth for GST fund

Telangana tries to beat norm linking growth, compensation.

Hyderabad: Devotees take to the road to visit Sabarimala

South Central Railway has announced 156 special trains for the Shabarimala season.

GHMC shelves multi-level parking at Charminar

With the Charminar pedestrian project gaining momentum after a lull, the authorities are getting into action.

comments powered by Disqus