The set of policies which deal with managing the downside of systemic risk is known as macro prudential policy. Macroprudential policies primarily use prudential tools to limit systemic risk and thereby minimize disruptions in the provision of key financial services that can have serious consequences for the economy by (i) dampening the buildup of financial imbalances; (ii) building defenses that contain the speed and sharpness of subsequent downswings and their effects on the economy; and (iii) identifying and addressing common exposures, risk concentrations, linkages and inter-dependencies that are sources of contagion and spillover risks that may jeopardize the functioning of the system as a whole2. While the third objective of macroprudential policy [(iii) above] is concerned with the cross-sectional dimension, the first two objectives [(i) and (ii) above] are concerned with the procyclicality issues.
The Income Tax Department is targeting an 18% jump in collection from the financial capital in FY12 to Rs 1,85,000 crore, a top official said on Wednesday.The department, which surpassed its target last fiscal by Rs 3,000 crore by collecting Rs 1,53,000 crore, has set itself the ‘fairly challenging’ target of Rs 1,85,000 crore for 2011-12, Chief Commissioner of Income Tax PP Srivastava told reporters.
Despite unrest consuming nearly five months of business in the valley last year, the Income Tax department has registered a growth of 27% in its revenue collection in Jammu and Kashmir at Rs 1,197 crore for the fiscal ended March 31, 2011.
The government has initiated a probe into alleged dumping of digital plates, used in the printing industry, from Japan and China to protect domestic players from cheap imports. Acting on an application of domestic producers on the alleged dumping of ‘Digital Offset Printing Plates’ from Japan and China, the Directorate General of Anti-dumping and Allied Duties (DGAD) has initiated the probe.
In our country, the employment challenges in coming years are immense which range from generating productive employment at an accelerated rate to improving the quality of employment through skill development. Generation of Productive Employment and decent working conditions is crucial for inclusive growth. India has a large percentage, 58% of population in the working age group (15-59 years). We are concerned about making employment opportunities accessible to the poor and weaker sections of our society. We have initiated many schemes and are working to provide skills and training to our vast labour force which is largely in the unorganized sector. However, in India we have more of structural unemployment which is more prevalent in developing countries whereas the developed countries have more of cyclical unemployment. It has to be discussed as to how we can have a coordinated policy on employment because though our objectives are the same but the action plan adopted to promote full employment and quality jobs may have to be different. We strongly support international efforts to encourage and facilitate mobility of labour. India strongly feels that over emphasis on indicators/standards/Policy recommendation should not appear in the G-20 prescription to the developing countries/ and to Least Industrialized Countries (LICs) lest it should result in protectionism.
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (collectively, the Boards) have elected to formally expose their joint revenue recognition proposal for a second time because they have made significant changes to the model they proposed last year. Their decision will delay the project, possibly until September 2012, according to the staff paper presented to the Boards, but will give constituents a chance to comment on the changes.
The Reserve Bank of India (RBI) today cautioned rising interest rate and high cost of funds could hurt the profitability of the banking sector. ‘Going ahead, with hardening interest rates and the imminent increase in cost of funds, the credit growth is expected to slow down, which could adversely affect the profitability,’ the RBI said in Financial Stability Report released today.
Market regulator the Securities and Exchange Board of India (Sebi) today asked credit rating agencies (CRAs) to adopt standard symbols and definitions devised by it within four months, a move that will help investors to better understand financial health of firms. ‘It has been felt that there need to be common rating symbols and definitions for easy understanding…By investors and to achieve high standards of integrity and fairness in ratings,’ the regulator said.
The Ministry of Corporate Affairs (MCA) will probe management and auditors of 12 listed companies, including Raj Television Network and Surya Lakshmi Cotton Mills, for allegedly providing false information about the shareholding pattern. ‘MCA believes the 12 companies under scanner furnished false info regarding their share breakup to Regional Directors (RDs)’, an official said. The ministry is likely to soon ask the Regional Directors concerned to probe role of auditors of the companies and also of their top management.
The government today created an email id for public to send their ideas and inputs to tackle issues arising out of blackmoney. The email — bm-feedback@nic.in — has been created on the server of the National Informatics Centre and the public can send their responses on the subject with immediate effect, a senior Finance Ministry officer said.
