Tag: NK Singh

WEF 2024: Indian states ready to harness world’s faith in our overall macro stability, says NK Singh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s competitive federalism is on full display at the World Economic Forum in the Swiss resort town of Davos, as states from Tamil Nadu, Telangana, Maharashtra, and more are ready to woo investors, said NK Singh, Chairman of the country’s 15th Finance Commission.

Speaking with CNBC-TV18 Managing Editor Shereen Bhan, Singh said, “That is a very positive sign. Not a populist federal compact, but a competitive federal compact, which wants to take advantage of the world’s belief in India’s overall macroeconomic stability.”

Speaking about the reforms for the World Bank and other multilateral development institutions, Singh said he is more positive than ever. They have put together a two-volume report in record time, addressing several issues on the architecture of the financial module, which should serve the world well. Singh also lauded Prime Minister Narendra Modi’s leadership in pushing the reform agenda much before India assumed the presidency of the G-20 and afterward.

“Nobody expected that progress would be so rapid at the G-20. The annual meeting of the IMF and World Bank in Marrakesh adopted our recommendations—30 important recommendations.”

On his expectations from the upcoming interim budget, particularly on any big-ticket announcements such as the PM Kisan Yojana in 2019, Singh expressed optimism that the ongoing reform momentum will continue with the symmetry that has been achieved between a sound fiscal policy coupled with a monetary policy that has been conducive to growth.

On the appointment of Arvind Panagariya as the chairperson of the 16th Finance Commission, Singh said the prime minister has “as usual made an impeccable choice.”

On the challenges that Panagariya could face, Singh said, “I think his challenges are as high as all challenges, namely not only the distribution of resources between the union and the states, but among the states in terms of the parameters which he selects and which the commission chooses to select under him, particularly with the fact that the issues of global warming and climate change are going to certainly occupy not only the attention of the Indian states and the central government but have a global focus. And that’s an area that has been added as a new additional dimension, really to the 16 Finance Commission.”

Singh also pointed out that the 16th Finance Commission will submit its report on October 31, 2025, and until then, the 15th Finance Commission will continue its work under him.

On whether he will give some guidance to the 16th Finance Commission, Singh pointed out that it would be “presumptuous to give this guidance to the successor commission.”

“I think that each of the Finance Commissions in India has been selected with people of impeccable reputation and impeccable domain knowledge, and it is entirely up to the commission to put together this kind of normative formula. Certainly, the classic ones that the Indian Constitution provides, namely, the distribution, as I said, between the union and the states, and the formula for the distribution within the states. And of course, the third tier of government, namely the municipality, the urban local bodies, and the Panchayat, as well as disaster management, have classically now become part of the terms of reference of any Finance Commission.”

For the full report, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NK Singh panel’s 30 recommendations set to transform multilateral development banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The G20 Expert Panel, led by N.K. Singh, Chairman of the 15th Finance Commission, has unveiled a set of 30 far-reaching recommendations that are poised to bring significant changes to multilateral development banks (MDBs). These recommendations are specifically designed to strengthen and modernise the operations of MDBs, and their potential impact is substantial.

Central bankers and finance ministers gathered in Marrakesh, Morocco, on the sidelines of the IMF-WB Annual Meetings, and amid a rise in geopolitical tensions, with a declared war the Middle East.

Singh expressed his concerns over how these developments might hit oil prices and urged the world to factor this into their economic strategies.

He stressed that the recommendations put forth by the commission are ambitious but necessary to navigate the current global landscape successfully.

“We’ve not only proposed ambitious recommendations but have also provided a credible financing plan to support these endeavours,” Singh stated in an exclusive interview with CNBC-TV18.

The core focus of these recommendations revolves around capital mobilisation within MDBs. The report calls for a threefold increase in non-concessional lending by institutions like the World Bank and the IMF, with a target of $300 billion annually by 2030. It also advocates for a substantial boost in private capital mobilisation from the current $60 billion to an impressive $240 billion.

One of the key aspects discussed was optimising the existing balance sheets of MDBs, which, according to Singh, could provide a substantial financial cushion.

“First and foremost, we are harnessing and optimising the balance sheets of these multinational organisations. There’s a huge leverage potential.”

He went on to highlight the World Bank’s growing prominence as the largest multilateral institution in the world.

Additionally, the report calls for a reimagining of policies, emphasising innovative financial strategies and a more active role for the private sector. Collaboration between various MDBs, such as the African and Asian Development Banks, is expected to play a crucial role in achieving these ambitious targets.

“We are emphasising policy priorities, innovative finance, using guarantees, changing operational models, making data available, encouraging private sector investment, and mitigating financial risks in the private sector,” he said.

The report also addresses the pressing issue of debt sustainability. It recommends the creation of new guidelines for debt sustainability assessment in coordination with the International Monetary Fund (IMF). These guidelines are designed to mitigate the impact of global economic shocks, which is an urgent response to the growing concerns about global debt levels.

Singh highlighted the need for MDBs to work closely with the IMF in addressing these concerns and called for a renewed focus on sustainability. The recommendations are aimed at equipping countries with the tools to manage their debt effectively, with a strong emphasis on macroeconomic stability and resource optimisation.

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Budget 2023 responsible, adhering to the path of fiscal consolidation, says NK Singh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former chairperson of the 15th Finance Commission NK Singh called the Union Budget 2023 presented by Union Finance Minister Nirmala Sitharaman a “responsible budget” that has adhered to the path of fiscal consolidation. This budget represents the interests of multiple stakeholders, ensuring that every section of society benefits from the government’s financial plans, he said.

Singh especially appreciated the fact that the states were being given Rs 1.2 lakh crore but unfortunately they were not able to spend it. He also lauded the thrust on technology in economic activity in education, health and agriculture.

This is Sitharaman’s fifth budget and the last full budget before the 2024 Lok Sabha Election. While presenting the Union Budget in Lok Sabha, FM said the Indian economy is on a “right track and heading towards a bright future”.

Also Read: Budget 2023 | Entire expenditure under ‘PM Garib Kalyan Anna Yojana’ to be borne by centre: FM

Rathin Roy, MD of Overseas Development Institute, noted that the budget was shrinking every year but he appreciated the modesty in numbers shown in the budget. He however pointed out that the government has not been able to raise the revenue it planned.

“Forget taxes, even when it tries to disinvest, it is not able to do it,” he said, adding that as a result, the government has cut down expenditures in order to maintain fiscal prudence.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Interactions with NK Singh have been enriching and rewarding, says FM Nirmala Sitharaman

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chairman of the 15th Finance Commission NK Singh’s autobiography is being launched today. Finance Minister Nirmala Sitharaman, Reliance Industries Chairman and Managing Director Mukesh Ambani and Minister of Social Policies at Singapore Tharman Shanmugaratnam were prominent guests in attendance.

Speaking at the event, FM Nirmala Sitharaman said, “That one visit to Japan, which he literally led all the way to attract Japanese investment to India… I saw and felt the affection and regard everybody in the establishment in Japan had for him.”

She added, “The sequence of interactions have been so enriching and rewarding.”

Meanwhile, Ambani said, “I was introduced to him [NK Singh] as one of the brightest IAS officers and I had just come back from Stanford and my first impression was that IAS guys have style. He was a champion to my mind of economic reforms that have actually happened.”

Speaking about Singh, Shanmugaratnam said, “The one thing about NK to highlight is that he is not just a person of considerable erudition, he is also a pragmatist. He is someone who has through the course of this career — like most of us has aspire to be — he has found a way of navigating through the changing currents to achieve the right objectives.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow