Brazil, India deficits leads to ‘inevitable’ crisis warns China

[Mowgli]

These analysis by Chinese is just to showcase its own supremacy (over BRIC nations) to its human rights deprived citizens and perhaps to the world,

 

[kawaraj]

China indeed is best situated in a project crisis. you can't convince they don't.

India is heavily on service sectors, and Brazil is relying on resource export. In the wake of en economic crisis. these are less important.

China's huge surplus can make it more choices. China can make huge capital investment to keep it away from recession.

So it's not supermacy as you mentioned, it's the fact saying.

 

[indianpatriot]

India should concentrate on Manufacturing..and for that build infrastructure....

 

[rcrmj]

These analysis by Chinese is just to showcase its own supremacy (over BRIC nations) to its human rights deprived citizens and perhaps to the world,

if you lot can come up with india is shining and india is technology power house nonsenses then why can we have something like this which is more reasonable than the 'shining' thing??

it is just an article read it or drop it, why so many indian memebers here so 'fired-up'``?

 

[prototype]

but india supposed to be 'democractic' so how about the people, they dont demand those corrupted politicians to return the money otherwise through them out of the power, or maybe democracy is just a lable?

Its completely funny for me to think how some Chinese like you are concerned about Indian black money and its public.

India is democratic thats why Ashokh Chavan lost his CM position,Raja and Kalamadi is in jail,kanimozhi will be the next and Amar Singh being exposed,as being a rank amateur on Indian political setup you must be unaware about this names.

This is the the land were a Communist part is selected to rule the state through democratic process,their bad luck they lost this time.

 

[hembo]

Is not posting international topic is bared in this sub-forum??

 

[rcrmj]

Its completely funny for me to think how some Chinese like you are concerned about Indian black money and its public.

India is democratic thats why Ashokh Chavan lost his CM position,Raja and Kalamadi is in jail,kanimozhi will be the next and Amar Singh being exposed,as being a rank amateur on Indian political setup you must be unaware about this names.

This is the the land were a Communist part is selected to rule the state through democratic process,their bad luck they lost this time.

not concerned, but discuss the topic, democracy or communism has nothing to do about sending corrupted people into jail but good governance does``and good governance isnt something you can have just to be democratic

 

[prototype]

not concerned, but discuss the topic, democracy or communism has nothing to do about sending corrupted people into jail but good governance does``and good governance isnt something you can have just to be democratic

So what and by the way what exactly you want to prove,U were the first one who brought words like democracy,Indian black money and corruption in a thread which deals with none of the above

And now more obscure comparisons between democracy and communism,good governance and bad governance.

 

[nForce]

Li Daokui told a forum that emerging economies such as Brazil and India face fiscal and current account deficits and a crisis was “inevitable,” Caijing Magazine reported on its website ????? - CAIJING.COM.CN. “China will play a very important role during the financial consolidation”.

But there will be no such crisis in China because it is quite different from most other developing and developed countries,” he said. In February, the Indian government raised “serious concern” about a trade deficit that could more than double to 278.5 billion USD in three years and may cause an unquestionable current account deficit.

Brazil's current account deficit ballooned to a record for the month of March as foreign companies in Brazil sent more profits home and Brazilians spent more on travel and goods overseas. In January, the International Monetary Fund warned fiscal balances in Brazil, China and India were weaker than it had earlier projected.

Li Daokui also expects the US dollar, Euro and Yen to face downward pressure over the medium and long term.

The IMF had projected Brazil's debt-to-GDP ratio at 66.8% and India's at 71.8% while for China it had projected a debt-to-GDP ratio of 19.1%, warning of deterioration in the fiscal accounts of India and Brazil.

The Brazilian government had since announced budget cuts, but the country still need to do more to earn an upgrade on its sovereign debt rating, according to analysts.
For India, however, it could easily bridge the deficit if its government manages to bring at least part of the black money stashed away by Indian citizens in overseas tax havens.


Brazil, India current account deficits leads to

Looking at india trade deficit instead on keep predicting china economy bubble going to burst in so and so year i suggest india should take a look at her own problems.

any explanation for what will cause the fiscal deficit??

 

[rcrmj]

So what and by the way what exactly you want to prove,U were the first one who brought words like democracy,Indian black money and corruption in a thread which deals with none of the above

And now more obscure comparisons between democracy and communism,good governance and bad governance.

``this is forum about discussing stuff in a civil way, anything wrong with that?

 

[prototype]

``this is forum about discussing stuff in a civil way, anything wrong with that?

What a clear cut circumvention,first you bring topics no way related with the thread,either you consider yourself too smart or we people too fool who think that your trolling go undetected.

So far I am also behaving in civilized way,so that one more obscure question from you?

Finally I am asking one more what are you exactly trying to prove here.

This is your first post in the thread

but india supposed to be 'democractic' so how about the people, they dont demand those corrupted politicians to return the money otherwise through them out of the power, or maybe democracy is just a lable?

For which i replied post number 20.

India is democratic thats why Ashokh Chavan lost his CM position,Raja and Kalamadi is in jail,kanimozhi will be the next and Amar Singh being exposed,as being a rank amateur on Indian political setup you must be unaware about this names.

This is the the land were a Communist part is selected to rule the state through democratic process,their bad luck they lost this time.

Again through a clear cut evasion you posted this

not concerned, but discuss the topic, democracy or communism has nothing to do about sending corrupted people into jail but good governance does``and good governance isnt something you can have just to be democratic

So once again what are you trying to prove here

 

[nForce]

all I have seen in this thread so far is an obscure prediction that there is going to be a fiscal deficit in near future.Can the OP or anybody else tell us how exactly that is going to happen??What may lead to this inevitable condition??What are the reasons??

 

[ramu]

Reaching deficit target more challenging for India: IMF

The International Monetary Fund (IMF) today said reaching a deficit target for 2011-12 would be a more challenging task for the Indian government.

The government, which stepped up expenditure to battle economic slowdown after financial crisis, had to streamline and contain spending in key spending targets, Anoop Singh, director of Asia and Pacific at IMF, told reporters after interaction with the Reserve Bank of India. The government has set target to bring down the fiscal deficit to 4.6 per cent of gross domestic product (GDP) for 2011-12, down from the estimated 5.1 per cent for 2010-11.

In India, as in many other economies, fiscal policy can play a very helpful role in stabilising the economy and inflationary expectations. The Budget for this year (2011-12), seeking further consolidation, would significantly help to address overheating and demand pressures, he said.
Referring to task to manage inflation, IMF said against backdrop of strong growth and signs of overheating, the need to tighten macroeconomic policy stances in Asia has become more pressing now than it was six months ago.

The Washington-based international funding agency said further monetary tightening was necessary in economies that were facing generalised inflation pressures, as interest rates remain generally below levels that are consistent with stable growth and low inflation. In many cases, interest rates were still negative in real terms, IMF said.

 

[ramu]

Good rains necessary to help government achieve fiscal deficit of 4.6% of GDP for FY-12

NEW DELHI: Just over a month into the new financial year and the finance ministry is worried of its budget calculations going awry because of a likely economic slowdown.

"It is beginning to worry us," a finance ministry official said. "Much will depend on the monsoon."

A fall in growth could hurt the government's revenue mobilisation, forcing it to borrow more and making its fiscal deficit target even more difficult to achieve.

"The government's calculations would have to change in the face of a slowdown," said Sunil Sinha, head of research and senior economist at ratings agency Crisil. "Even if the absolute deficit number does not change, the ratio (fiscal deficit-to-GDP) would be higher than 4.6%."

The government is targeting a fiscal deficit of 4.6% of GDP in 2011-12, down from 5.1% in the previous fiscal.

Mandarins in the North Block are pinning their hopes on monsoon. Good showers can help the government weather a marginal drop in growth. "Rural spending is usually high in good monsoon years, which boosts indirect tax collections," the finance ministry official said.

The India Meteorological Department has forecast a normal monsoon, but the unusually mild summer around this time of the year is adding to the concerns.

Most analysts have pared the GDP growth forecast for the fiscal to around 8%, as against the government estimate of 9%, after the Reserve Bank of India announced a 0.5 percentage point increase in its short-term lending rate last week. Pegging the 2011-12 GDP growth at 8%, the bank made it clear it wants to combat inflation even if it is at the cost of growth.

Slower growth will result in lower direct tax mopup as high commodity prices will hurt the margins of big manufacturing companies.

The finance ministry would wait for the monsoon before deciding on a mid-course correction. By the time the rains arrive, the ministry will have data on the first advance tax collections for the year. This would allow it a peek into likely corporate performance.

Economists say a worsening economic outlook and rising interest rates will severely hit investments, impacting the government's excise and customs revenue.

"Trends in gross fixed capital formation, a key proxy for investments, have seen a steady deceleration through FY11 with growth likely turning negative in Q4 FY11," Rohini Malkani, economist with Citibank, said in a note last month.

 

[ramu]

But guys, have you read this. This will set the cat in the pigeons so as to say. The tax collection in India has been outstanding and hence the fiscal deficit will be brought down to 4.6% of GDP. Which by any standard for a developing economy is the right way forward.

Read the article below...