Tag: economy

Bangla no. 1 in growth rate

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In a Facebook post written today, Chief Minister Mamata Banerjee put up the news that according to a report by the Central Government, Bangla has achieved the highest growth rate in the country – 12.58 per cent, in financial year (FY) 2018-19.

Sharp contrast to the national scene

Congratulating everyone concerned, she also noted that this was in sharp contrast to the deep recession and policy paralysis that has engulfed the country, courtesy the policies of the Union Government.

As a result, there has been a significant decline in the overall growth rate in the country as well as the highest rate of unemployment in 45 years.

In recent months, the automobile and leather sectors saw job losses to the tune of 3 lakh.

Disinvestment dampener

On top of so much unemployment, the Centre is actively pursuing the disinvestment of 45 public sector companies. This will lead to further loss of jobs for lakhs of people.

Investments going down

And on the other hand, she wrote, investment in new projects has plunged to a 15-year low in the quarter ending June 2019.

Implementation of new projects worth Rs 13 trillion has stalled, according to the well-respected business and economic data research company, Centre for Monitoring Indian Economy (CMIE). This is the highest value since it began compiling data in 1995.

Foreign Direct Investment (FDI) has shown a negative growth rate of 1.09 per cent in FY 2018-19, as compared to 2017-18.

Figures prove the desperate state of economy

Figures put up in her post point to the desperate state of the Indian economy:

GDP growth: 5.8% in Q4 of 2018-19, lowest in last five years (from FY 2014-15)

Industrial Output growth: 2% in June 2019, against 7% in June 2018

Growth: 3.6% in Q1 of 2019-20, compared to 5.1% in Q1 of 2018-19

Index of Industrial Production: 1.2% in June 2019, compared to 6.9% in June 2018

Capital Goods Sector growth: -6.5% in June 2019, compared to 9.7% in June 2018

Mining Sector growth: 1.6% in June 2019 , compared to 6.5% in June 2018

Unemployment rate: 6.1% in FY 2018-19, the highest in the last 45 years

Number of new projects announced: In Q1 of FY 2019-20, 87% lower compared to Q1 of FY 2018-19 and 81% lower in compared to Q4 of the same FY

Politics trumps development

Mamata Banerjee ended her post saying, for the new government at the Centre, it is all about “politics, politics and only politics” now, rather than economy and development.

She exhorted the people of the country to realise the true situation India has been dragged into by this government.

 

Bangla’s economy surging ahead

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Thanks to the tremendous efforts put in by the Trinamool Congress Government, Bangla has become one of the best-performing States with respect to economy.

Primary achievements of the State:

Gross state domestic product (GSDP): From Rs 4.74 crore in May 2011 to Rs 11.55 crore in FY 2019 (as per advanced estimates (AE))

GSDP growth: In terms of GSDP growth (AE), Bangla is no. 1

Industrial Growth: In FY 2018, State’s industrial growth was almost three times that of India’s – 16.29% (AE) against 5.54%

Revenue deposit: Revenue deposit as percentage of GSDP down from 3.75 in FY 2011 to 0.96 in FY 2018

Fiscal deposit: Fiscal deposit as percentage of GSDP down from 4.24 in FY 2011 to 2.83 in FY 2018

Tax revenue: More than 2.5 times increase, from Rs 21,128 crore in FY 2011 to Rs 57,700 crore in FY 2018

From 2011, state plan expenditure of Rs 3.45 lakh crore and capital expenditure of Rs 92,000 crore spent on creating infrastructural assets and social assets

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Economy of Bangla has improved despite huge debt burden

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Placing hard facts before the Assembly, the State Finance and Industry Minister, Dr Amit Mitra highlighted the improvement in the last seven years in Bangla with regards to the economic and financial parameters. He was answering a question put to the government by an opposition MLA.

With Chief Minister Mamata Banerjee as the driving force, the Trinamool Congress Government has increased the revenue through fiscal discipline and e-governance.

And this increase has occurred, as the minister rightly pointed out, despite the huge burden left behind by the Left Front regime because of the huge loan taken. For the repayment of the Rs 1,91,835 crore loan, the State had to borrow Rs 1,53,741 crore, taking the total loan to Rs 3,45, 577 crore. The State Government has a debt repayment burden of Rs 47,000 crore in the current fiscal.

The debt to GSDP (gross state domestic product) ratio has gone down by almost 5 per cent in seven years from 2010-11 to 2017-18, from 40.65 per cent to 35.63 per cent. The revenue deficit to GSDP ratio has also dropped during the same period, from 3.75 per cent to 0.96 per cent while the fiscal deficit has halved, from 4.24 per cent to 2.83 per cent.

Putting out other crucial statistics, Dr Mitra asserted that the planned expenditure has grown over five-fold, from Rs 11,837 crore in 2011-12 to 56,604 crore in 2017-18, and the capital expenditure has grown over eight-fold, from Rs 2,225 crore to 19,368 crore.

Source: Millennium Post

Bengal means business – Economy surges ahead

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Bengal is the fourth largest economy in India, and on many economic parameters, is ahead of the all-India average.

During 2016-17, before demonetisation, that is, for the period from April to September 2016, the growth rate of the State Index of Industrial Production (IIP) was (+)4.8 per cent as compared to (–)0.1 per cent for India.

And the growth rate of the State Index of Industrial Production (General) for the period from April 2016 to January 2017 was 6.97 per cent, when that for the period from April 2016 to even March 2017 was just 4.8 per cent.

As compared to 2010-11, the State Plan of Expenditure in 2016-17 is expected to be four times. Similarly, the Capital Expenditure in 2016-17 as compared to 2010-11 is expected to be seven times.

Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Scheme, the State Government has achieved employment generation to the tune of 128 per cent of proportionate labour budget. Expenditure incurred by the State Government in the scheme of more than Rs 5,600 crore was the highest in the country.

The revenue of the state in 2015-16 as compared to 2010-11, has grown by 103 per cent. This increase is unprecedented in the country.

In the area of e-taxation and reforms, Bengal has achieved number one position in the country on the basis of comparative valuation of performance with other states.

In spite of the tsunami of demonetisation, Bengal was able to create employment opportunities for 13,27,000 people during financial year 2016-17.

 

এগিয়ে চলেছে বাংলার অর্থনীতি

বাংলা দেশের চতুর্থ বৃহত্তম অর্থনীতি, এছাড়া আরও অনেক অর্থনৈতিক ক্ষেত্রে দেশের গড়কে পেছনে ফেলে দিয়েছে এই রাজ্য।

২০১৬-১৭ অর্থবর্ষে সর্বনাশা নোটবাতিলের আগে, মানে এপ্রিল থেকে সেপ্টেম্বর ২০১৬ পর্যন্ত রাজ্যের স্টেট ইনডেক্স অফ ইন্ডাস্ট্রিয়াল প্রোডাকশন (আইআইপি) ছিল (+)৪.৮ শতাংশ, যেখানে দেশের এই পরিসংখ্যান ছিল (-) ০.১ শতাংশ।

এপ্রিল ২০১৬ থেকে জানুয়ারি ২০১৭ পর্যন্ত স্টেট ইনডেক্স অফ ইন্ডাস্ট্রিয়াল প্রোডাকশন (জেনারেল)-এর বৃদ্ধির হার ছিল ৬.৯৭ শতাংশ, এপ্রিল ২০১৬ থেকে মার্চ ২০১৭ তে যা হয় ৪.৮ শতাংশ।

স্টেট প্ল্যান এক্সপেন্ডিচার ২০১০-১১ সালের তুলনায় ২০১৬-১৭ সালে প্রায় চার গুন বেড়েছে। পাশাপাশি ক্যাপিটাল এক্সপেন্ডিচার ২০১০-১১ সালের তুলনায় ২০১৬-১৭ তে বেড়েছে প্রায় সাত গুন।

১০০ দিনের কাজের অন্তর্গত, রাজ্য সরকার ১২৮ শতাংশ কর্মসংস্থান করেছে। এই খাতে রাজ্য ব্যয় করেছে ৫৬০০ কোটি টাকা যা দেশে সর্বোচ্চ।
২০১০-১১ সালের তুলনায় ২০১৫-১৬ সালে রাজস্ব বেড়েছে ১০৩ শতাংশ। এই পরিমান রাজস্ব বৃদ্ধি দেশে অভূতপূর্ব।

ই-ট্যাক্সেশন ও সংস্কারের ক্ষেত্রে বাকি রাজ্যের তুলনায় এরাজ্য প্রথম স্থান অধিকার করেছে।

নোটবাতিলের কালো প্রভাব থাকা সত্বেও ২০১৬-১৭ সালে রাজ্য ১৩,২৭,০০০ টি কর্মসংস্থান তৈরীতে সক্ষম হয়েছে।

 

Economy in one big mess due to demonetisation – Hard numbers tell the story

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Bengal Chief Minister Mamata Banerjee had voiced her concern within an hour of the announcement of ‘demonetisation’ on November 8, 2016, that the country would have to face severe loss of jobs and drastic decline in productivity due to demonetisation. She had been leading the protest ever since. The recent figures announced by the RBI on Wednesday, June 7 are clear indicators that the Bengal Chief Minister had been right:

Here are the figures:

  • Real GVA pegged at 6.6% for 2016-17, lower than second advance estimates released in February 2017. This despite good monsoon and record foodgrain production.
  • Fall in GVA due to underperformance in construction, financial and professional services, and real estate during Q4 (Oct-Dec ’16).
  • Slowdown in activity in both industry and services set in as early as Q1 of 2016-17 and became pronounced in Q4.
  • Components of aggregate demand reflect a contraction in gross fixed investment, and production of capital goods in Q4.
  • Prices of vegetables fell markedly from July and bottomed out in January 2017, with fire sales during the demonetisation period accentuating the fall. RBI is admitting that demonetisation was behind the hardship faced by farmers.
  • All Mandis have reverted back to cash transactions. So what was the point in forcing people to go digital?
  • Monetary Policy Committee noted that effects of demonetisation have lingered on in price formations with respect to fruits and vegetables, pulses and cereals. Farmers not getting proper value for their produce.
  • Manufacturing purchasing managers’ index (PMI) moderated sequentially in May ’17 as employment contracted and new orders, both domestic and exports, slowed down.
  • Sales of commercial vehicles, two-wheelers and three-wheelers contracted.
  • Both steel consumption and cement production sluggish, pointing to continuing weakness in construction activity.

 

 

Restrictions & sufferings not over even after three months of demonetisation: Mamata Banerjee

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Three months are over since demonetisation was announced by the Prime Minister on November 8, 2016. Bengal Chief Minister Mamata Banerjee today took to Twitter to say that restrictions and sufferings of people due to demonetisation is still not over.

“Citizens have lost economic freedom. When economic freedom is lost, main freedom is lost,” she said. The CM added, “Only few rich capitalists are not suffering. Commoners, middle class, downtrodden, poorest of the poor continue to suffer.”

“The economy has slowed down tremendously. The nation is facing acute economic crisis. How much longer?” she asked.

Calling “Demonetisation-Remonetisation” as “visionless, missionless, directionless” Mamata Banerjee said the step has derailed the nation.

 

নোট বাতিলের তিন মাস পরেও মানুষের দুর্ভোগ শেষ হয়নিঃ মমতা বন্দ্যোপাধ্যায়

গত ৮ নভেম্বর, ২০১৬ নরেন্দ্র মোদি নোট বাতিলের সিদ্ধান্ত ঘোষণা করেছিলেন। আজ তার তিন মাস পূর্ণ হল। আজ আরও একবার এই ইস্যুতে ক্ষোভ প্রকাশ করে মুখ্যমন্ত্রী মমতা বন্দ্যোপাধ্যায় বলেন, “নোট বাতিলের তিন মাস সম্পূর্ণ, তবু সাধারণ মানুষের দুর্ভোগ, ভোগান্তি এখনও শেষ হয়নি”।

“মানুষ আর্থিক স্বাধীনতা হারিয়েছে। আর্থিক স্বাধীনতা হারিয়ে গেলে মূল স্বাধীনতাও খর্ব হয়”। তিনি আরও বলেন, “শুধুমাত্র কিছু ব্যবসায়ীরাই এতে লাভবান হচ্ছেন ৷ গরিব-মধ্যবিত্ত-অতি গরিবরা এখনও নোট সমস্যায় ভুগছেন ৷”

তিনি আরও বলেন, “অর্থনৈতিক কাঠামো ভেঙে পড়ছে, দেশ প্রবল আর্থিক সংকটের মুখে। আর কতদিন এই যন্ত্রণা ভোগ করতে হবে?”

তাঁর কথায়, “ডিমনিটাইজেশন-রিমনিটাইজেশনের এই পরিকল্পনাহীন / গতিহীন , উদ্দেশ্যহীন, দিশাহীন পদক্ষেপে দেশকে চরম দুর্ভোগের সম্মুখীন হতে হয়েছে”।

 

India could lose as much as Rs 4.7 lakh crore in its GDP: Amit Mitra

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Criticing the governments move to demonetise old Rs 500/1,000 notes, Bengal Finance Minister Amit Mitra on Thursday said India could lose as much as Rs 4.7 lakh crore in its GDP.

The old high denomination notes were demonetised from November 9. Since then long queues are being witnessed at bank branches and outside ATMs for cash withdrawal.

“Just imagine for Rs 400 crore of supposedly fake money, according to the government itself, you kill or demonetise over Rs 14.5 lakh crore or may be Rs 15 lakh crore.

“I mean what kind of policy is this. Another serious question, we recently saw some new fake money, I am told according to reports. What does this mean. This is horrendous,” the West Bengal minister said.

Calling demonetisation “the biggest scam that is about to happen”, Dr Mitra said it will provide no gain, but only acute pain.

“If these figures (deposits of old notes in banks) are right because what it seems to me is if all the money comes back there was not enough black money… This has two serious implications. One, it could be that the government was purely ignorant because it does not consult anybody…or they have in effect facilitated some people from converting black into white, effectively ending up with no RBI surpluses,” he said.

Dr Mitra also slammed the Centre for trying to enforce cashless economy without preparing grounds for it. “Doesn’t the PM know 86% people have no means to go to cashless economy? 92% villages are unbanked as per RBI figures. There are 21000 unorganised mandis in the country, 383 lakh unorganised units in MSME, which obviously use cash. A major part of any big economy is in cash. To move them into cashless economy is a major task. This cannot be done by destabilising the economy,” he said.

The Bengal Finance Minister, who is also the Chairman of the Empowered Committee of State Finance Ministers on GST, said, “The whole tax architecture will have to change, which is a huge challenge in the form of destabilisation. Can we not move GST a little bit on so that when the economy stabilises (and) people come back to normal living conditions, you bring in another disruption?”

 

নোট বাতিলের ফলে ৪.৭ লক্ষ কোটি টাকা ক্ষতি হতে পারে দেশের জিডিপির: অমিত মিত্র

কেন্দ্রীয় সরকারের হঠকারী নোটবাতিলের সিদ্ধান্তের সমালোচনা করে বাংলার অর্থমন্ত্রী আমিত মিত্র বৃহস্পতিবার বলেন, এই তুঘলকি সিদ্ধান্তের ফলে দেশের জিডিপির ক্ষতি হবে চার লক্ষ ৭০ হাজার কোটি টাকা।

৮ই নভেম্বর ৫০০ ও ১০০০ টাকার নোট বাতিল করার পর থেকে আজ অবধি প্রতি এটিএম ও বাঙ্কের বাইরে সুদীর্ঘ লাইন দেখা যাচ্ছে টাকা তোলার জন্য।

“ভেবে দেখুন, কেন্দ্রীয় সরকার আনুমানিক ৪০০ কোটি টাকা নকল নোটের জন্য সাড়ে ১৪ বা ১৫ লক্ষ কোটি টাকা বাতিল করল। এটা কি ধরনের সিদ্ধান্ত?” তিনি আরও বলেন যে পরিস্থিতি খুবই ভয়াবহ।

অমিত মিত্র বলেন নোট বাতিল দেশের সব থেকে বড় কেলেঙ্কারি যার ফলে জনসাধারনের অপরিসীম কষ্ট ছাড়া আর কিছুই লাভ হল না।

“যে সংখ্যক পুরোনো নোট বাঙ্কে ফিরে এসেছে, সেই সংখ্যাটি যদি যথাযথ হয়, তার থেকে দুটি ব্যাপার বোঝা যায়। প্রথম, কেন্দ্রীয় সরকারের কাছে এই ব্যাপারে কোনও তথ্যই ছিল না, কারন, তারা কাওর সঙ্গে কোনও আলোচনাই করেননি। অথবা, তারা কিছু মানুষকে কালো টাকা সাদা করার সুযোগ করে দিল যে কারনে রিজার্ভ বাঙ্কের কাছে কোনও অধিক টাকা জমা পড়ে নি।”

আমিত মিত্র ক্যাশলেস ইকোনমির ব্যাপারেও কড়া সমালোচনা করে বলেন, কোনও প্রস্তুতি না নিয়েই সরকার ক্যাশলেস ইকোনমির ওপর জোর দিচ্ছেন। “প্রধানমন্ত্রী কি জানেন না যে ৮৬ শতাংশ মানুষের কাছে ক্যাশলেস ইকোনমির সামর্থ নেই। রিজার্ভ বাঙ্কের নথি অনুযায়ী ৯২ শতাংশ গ্রামে বাঙ্ক নেই। দেশে ২১০০০ অসংগঠিত মান্ডি আছে। ৩৮৩ লক্ষ অসংগঠিত ক্ষুদ্র ও মাঝারি শিল্প প্রতিষ্ঠান আছে যারা পুরোপুরি ভাবে নগদ টাকায় লেনদেন করেন। এই দেশের সিংহভাগ ব্যাবসাই চলে নোটের ওপর। এই সমস্তকে ক্যাশলেস ইকোনমির দিকে নিয়ে যাওয়া একটি বিশাল কাজ, দেশের অর্থনীতির মেরুদণ্ড ভেঙে সেদিকে এগোনো যায়না,” আমিত মিত্র বলেন।

বাংলার অর্থমন্ত্রী, যিনি অর্থমন্ত্রীদের জিএসটি বিষয়ক এম্পাওয়ার্ড কমিটির চেয়ারম্যানও বটে, আরও বলেন, “জিএসটি লাগু করতে গেলে দেশের কর পরিকাঠামো নতুন করে সাজাতে হবে। নোট বাতিলের জন্য দেশের অর্থনীতি ইতিমধ্যেই সংকটে। তাই, আমরা কি কিছুদিন পরে জিএসটি লাগু করতে পারি না যখন দেশের অর্থনীতি স্বাভাবিক অবস্থায় ফিরে আসবে?”

Sugata Bose speaks in Lok Sabha during Question Hour on Fiscal Deficit | Full Transcript

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Full Transcript

I was very glad to hear when the Finance Minister said in his Budget speech that he is going to give himself three, instead of two, years to reach the fiscal deficit target. He might as well have taken four years; we would not have minded.

The subsidy bill is not the only expenditure that impacts his ability to reach the fiscal deficit target. Even though we all agree that subsidies, specially fertilizer subsidies, must be better targeted. Austerity measures alone will not help either.

We have to understand the finance minister’s predicament. What he is facing is this. Unfortunately, the government’s corporate friends are not a very public-spirited lot. Therefore, they will not adequately invest in infrastructure. So, the government will have to invest in infrastructure.

The finance minister has an excellent Chief Economic Advisor. I hope this is the advice he is getting.

So, I would like to ask the finance minister whether he will give an assurance to this House that he will continue the upward trend in government investment in infrastructure for the next four years, until the end of the term of this government, so that we achieve the need for a solid foundation for the economic development of this country.

Bengal’s debt conditions improve under Trinamool

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West Bengal’s public finance and debt conditions were under adverse conditions when Mamata Banerjee took over the Government. However under the leadership of Mamata Banerjee, Chief Minister of West Bengal and Amit Mitra, Finance Minister of West Bengal along with a dedicated teams of officials the situation has improved in the last 3 years.

Note: Figures for 2012-13 are Revised Estimates and for 2013-14 are Budget Estimates. The averages used in the RBI Publication include the estimates.

In the RBI publication “State Finances-Study of Budgets 2013-14”, the ‘Debt Sustainability Indicators’ and ‘Debt Servicing Indicators’ have improved  for Bengal.  The results are here for everyone to see:

economy files

The Debt-GSDP ratio was 44% in 2008-09 and 2009-10 has decreased sharply over the years. It stands at 40.1% in 2011-12, 37.5% in 2012-13 and at 34.6% at 2013-14.

economy files

Interest payment to GSDP ratio has fallen down from 3.8% (2005-06 to 2009-10) to 2.8% (2010-11 to 2013-14).

economy files

Interest payment to revenue receipts has also decreased from 37.9% (2005-06 to 2009-10) to 25.8% (2010-11 to 2013-14). Revenue receipts means the taxes, duties and fees levied by the government and also includes interests on investments made by the government or dividends earned by the state.

economy files

The growth of GSDP (g) is higher than the effective rate of interest (i), ie g-i >0. In WB, g-i, is now at 8.3(2010-11 to 2013-14) and has increased from 4.6 (2005-06 to 2009-10).  If GSDP grows at a higher rate than the effective rate of interest, then it reflects a better situation of public finance. The surplus has grown sharply over the years.

biswa bangla

MSME Sector: Backbone of Bengal’s Growth

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Mirco Small Medium Enterprise (MSME) sector contributes nearly 8% of the GDP nationally, 45% of manufacturing outputs and 40% of exports. They provide the highest employment after agriculture.

West Bengal has the second largest number of MSME enterprises. It has 36.64 lakh enterprises which constitute about 10% of total Indian MSME enterprises. With an output of Rs 78,880 lakh crore it represents an important sector of West Bengal’s economy.

During the last 30 months, 29,735 new industries have been set-up, with an investment of Rs 2,595 crore, This has resulted in employment generation to the tune of 2,02,245 jobs.

Actions speak louder than words:

  • Policy for medium, micro and small-scale, and textile, industries, 2013-18 has been announced.
  • More than 29 thousand new enterprises have been set up with and investment in 2595 crore and expected employment generation of more than 2 lakh people.
  • Incentives of worth of Rs 191 crore have been provided. In terms of credit allotment by banks the amount stands at 8900 crore in the first month of the FY 2013-14. Both in terms of growth (105%)of bank credit and in terms of amounts, West Bengal stands first in the nation.
  • More than 5 lakhs identity card has been issued for both weavers and artisans. More than 3.8 lakh weavers have been register in health insurance schemes.
  • Various Marketing hubs, clusters, common facility centers have been set up. Biswa Bangla Haats have been opened in Durgapur and Rajarhat and in Santiniketan, Purulia, Bishnupur, Alipurduar, Siliguri and Jhargram more haats are in the process of opening.
  • Three new industrial hubs have been opened and construction work going on for Mega Textile Park in Belur, Silk Park in Malda, Eco-tourism Park in Banarhat and World Micro Market in Santiniketan.
  • 16 Common Facility centres (CFC) have been created and 17 clusters have been created.
  • 20 lakh man days have been generated in handloom sector and Rs 194 crore has been invested for 5 lakh handloom weavers.
  • A programme has been initiated under National Fibre Mission (NFM) to invest Rs 257 crore for 17,000 artisans and weavers in 11 underdeveloped districts.
  • Technology Facilitation Centre (TFC) has been started with co-operation of CSIR in Kolkata for MSME. Design Facilitation Centre (DFC) has been created in Kolkata for handloom weavers.

 

While the country performed abysmally with a 0.7% growth rate in the industrial sector, constant focus on the MSME sector has been a major factor in West Bengal’s achievement of a 9.58% industrial growth rate in the financial year 2013-14.

Come to Bengal… Ride the growth: bengalglobalsummit.com