Budget 2016 Quotes

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Budget 2016 Quotes

By Somali K Chakrabarti

Budget Haiku

Market commotion

cools as budget scrutiny picks

devil is in the fine print

A day post Budget, newspapers  are rife with Budget analysis, the uncertainty is over and market is up again.

With India having been hailed as a ‘bright spot’ amidst a slowing global economy by IMF, the budget focus has been on

  • Ensuring macro-economic stability and prudent fiscal management.
  • Boosting on domestic demand
  • Continuing with the pace of economic reforms and policy initiatives to change the lives of people for the better.

Budget has different impact for different people. Here are some Budget Haiku to highlight a few key features of the Budget 2016. 

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10 Key Facts about India’s Economy in 2014

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By Somali K Chakrabarti

 

The year 2014, has been an unprecedented year for India in terms of election results. In the last quarter of the year, here are some key facts about India’s economy.

 

1. India ranks 10th in terms of nominal GDP

 

Nominal GDP Ranking 2013

India’s nominal GDP has been stuck in the USD 1.8 – 1.9 trillion range for the last three years, and is expected to cross the USD 2-trillion mark this fiscal, according to a Nomura report. Nomura expects nominal GDP to reach nearly USD 3 trillion by FY17.

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4 charts show why South Africa earned the reputation of ‘Safe Haven’ for investors

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In 2014, South Africa came to be known as the ‘safe haven’ for investors among the Emerging Markets. A comparison of the BRICS nations with developed nations on parameters of corporate governance, as reported in the World Economic Forum Global Competitiveness Report 2013-14, shows us why.

Good corporate governance and ethical practices by companies are considered essential for well functioning capital markets all over the world. Ethical practices, transparency in dealings, better investor protection and efficient boards boost investor confidence and lead to capital inflows in markets.

 

Ethical Behavior of Firms

 

Ethical behavior is assessed by company policies on bribery, kickbacks, protection money, facilitation payments, gifts, fraud, money laundering, and political and charitable contributions. Management systems and procedures outlining frameworks for risk assessment, sanctions, whistle-blowing, continuous internal self-review and external reporting also fall under the purview of ethical behavior.

In 2013, South Africa ranked at No37 on ethical behavior, ahead of other BRICS nations, with China at a distant 54th rank. India & Brazil ranked 86th and 87th and Russia ranked the lowest among BRICS nations on this parameter.  

Source : Global Competitiveness Report WEF 2013
Source : Global Competitiveness Report WEF 2013

   

Strength of Auditing and Reporting Standards

 

Fair practices and transparency in dealings are critical to attracting foreign investments. The use of auditing and accounting practices ensure transparency against fraud and mismanagement and so are particularly important for investors to invest in foreign markets. Read more

CAG audit of private telecom companies – Governance or Interference?

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CAG audit

 

In a verdict yesterday, the Delhi High Court allowed the Comptroller and Auditor General (CAG) of India to audit the accounts of private telecom companies under the Telecom Regulatory Authority of India (TRAI) Act.

This his kind of ruling was unthinkable even a few years back as CAG was and is still largely seen as an auditor of companies owned by the government.

As natural resources such as spectrum, gas/oil fields, coal, etc cannot be easily priced,  the government has a big stake in these sectors and many of these companies that are involved in the production sharing of natural resources or profit sharing from natural resources  enter into a public-private partnership (PPP) with the Government of India, so it appears logical that industries and sectors that deal with precious natural resources come under the ambit of CAG.

CAG doing audit of such private companies will have the several ramifications on the overall dynamics of the industry.

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Salary Comparison for Project Management Professionals in 2013

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The median salary of Project Management Professionals has been found to vary with a number of key demographic factors, as per a ‘2013 Salary Survey’ report published by Project Management Institute, PMI, US.  These include factors such as:

  • Country of employment
  • Number of years experience in project management
  • Position / Role
  • Average size of projects managed, including average project budget and average project team size

We present the comparison of salary information for 10 countries from the PMI report.

Country of Employment

The median salary for project management professionals vary widely from country to country.  The country with the highest median salary ($134,658 USD) is Australia, whereas India and China are amongst the countries with the lower range of median salary (around $27,000 USD).

Country

Position

Within the various levels of project managers, salary appears to increase with added responsibility as a person proceeds from being a Project Manager, to a Program Manager, to Portfolio Manager, to the Director of a Project Management Office. There are some exceptions to this order though. In Germany the salary of Director of PMO is less than the salary of Portfolio Manager. The differential salary increase between different levels appears to be low in Japan, China and India.

Position

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Number of Years Experience in Project Management

The number of years a person has worked within the project management profession has a direct positive correlation with the salary. Again the difference in median salary varies by country.  A dramatic increase is seen in Nigeria.  The median salary ranges from $19,231 (USD) for those just starting out in the project management field to $61,538 (USD) for those who have been in the field for 10 -15 years.  This represents an increase of nearly 230% from low-to-high experience in the field.  The difference in median salary is not as striking in China.

Experience

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Project Size (Average No of Team Members and Project Budget)

The size of projects managed, in terms of average number of team members and average project budget, also appears to have a positive correlation with annual salary.

In Nigeria, those managing projects with budgets of $10 million or more earn 96% more than those with projects under $100,000. In Japan and India the figure is around 50% more. In Japan, China and India those managing projects with larger teams (20 or more people) have a median salary that is 30 – 34% higher than those managing teams of 1 to 4 people.

TeamMem
Budget
The detailed report gives the salary information of Project Management Professionals for 33 countries.
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I thank Mukund Sathe for sharing the ‘2013 PMI Salary Survey Report’.

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Beginning of Fed Taper – Impact on India and other Emerging Markets

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Two major events scheduled on the 18th of December, were seen as deciding factors for the stock market movement in India by the end of 2013.

First was the announcement of monetary policy by the Reserve Bank of India (RBI) governor. Raghuram Rajan beat the market expectations of a hike in interest rates and surprised the markets pleasantly with no changes to the current monetary policy. RBI kept the repo rate unchanged at 7.75 % , the reverse repo at 6.75%, the cash reserve ratio at 4% and the marginal standing facility and the bank rate at 8.75%. Markets reacted favorably to the announcement.

Later on the same day, US Federal Reserve Chairman Ben Bernanke initiated pullback from Quantitative Easing (QE) before the end of his term in 2014, with Janet Yellen taking over as the Chairperson of Federal Reserve. As the size of the taper, $10 bn was in line with what the market had expected back in September, 2013,  the announcement saw the US markets shooting up.

 

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