Expert Zone
Straight from the Specialists
Obama’s corporate tax reform
(The views expressed in this column are the author’s own and do not represent those of Reuters)
On February 22, U.S. President Barack Obama’s administration brought out a white paper on corporate tax reform which, if enacted, will make a significant difference not only to America but also to many other countries.
The white paper offers the first major tax reform since 1986 when the corporate tax rate was increased to 35 pct. This reform has two main components. First, it proposes to reduce the rate of corporate taxation to 28 pct while knocking down some of the tax breaks; second, earnings from abroad will be subjected to tax.
The underlying singular objective is job creation, a penchant for which Obama had displayed right from his campaign days four years back. Over time, he has perhaps been more convinced that U.S. companies should invest to create jobs in America.
Cost of a rate cut delay in India
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The RBI took the first step to ease monetary policy by reducing CRR by 50 basis points on Jan. 24. However, it postponed an interest rate cut, in spite of the advice by the special committee, only to confirm its reputation of being cautious. But excessive caution can also cost the country a pretty penny.
Sensex on the bounce
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The year 2012 has begun well for the stock market. In just six weeks, the Sensex was up 13 percent which made up more than a half of the fall in the previous 52 weeks. Will this trend survive the rest of the year?
Why the budget is under stress
(The views expressed in this column are the author’s own and do not represent those of Reuters)
In the first seven months, the fiscal deficit crossed three-fourths of the target set for the year. This was entirely because the liberal expenditure on current account was not covered by the revenue the exchequer earned. It is quite on the cards that fiscal deficit for the year will exceed the target.
Fallout of recession in euro zone
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It will not be before February that the euro zone GDP numbers are out. The available information so far indicates the economy is already in recession. This will have serious consequences for all countries, including India.
Fiscal deficit to kick up growth
(The views expressed in this column are the author’s own and do not represent those of Reuters)
In the first quarter of 2012, the government will be over-crowding the financial market to mop up nearly a trillion rupees. It is forced to borrow mainly because the expected revenue did not come in while the expected expenditures had been met.
Stock market under stress
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The first big jolt to the market after the 2008 crisis had come last August when FIIs disinvested 95 billion rupees worth of equity and moved into liquid assets. That brought the Sensex down by 1500 points and pulled the dollar up by 4 rupees.
Critical steps for a faster recovery
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The economy seems to be heading for a hard landing. The problem is not entirely of our making; partly it is the spillover of the crisis in Europe. Other Asian countries have also been affected but we were hit the hardest.
Remittances support to balance of payments
(The views expressed in this column are the author’s own and do not represent those of Reuters)
For quite some time now, exports of goods have trailed behind imports leaving a huge deficit which has been partly made up by the surplus in services trade, an important component of which is remittances from overseas.
When will the rupee recover?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The rupee sank to its lowest on Tuesday with pressures from the market and absence of support from the RBI. The fall really began in August and in the last four months took the rupee down 18 percent against the dollar.
