Just a cliff
- Vote for Supriya Sule or lose water, âthreatensâ Ajit Pawar
- Nobel laureate Gabriel Garcia Marquez dies at 87
- 5th phase of elections: Moderate to high turnout on biggest voting day
- Dhowan takes over as Navy Chief, superseded Sinha resigns
- Election Commission lifts ban on BJP leader Amit Shah after he promises to behave
For the first time this year, optimistic domestic signals could balance negative global concerns
The US fiscal cliff, shorthand for an economic double whammy of higher tax rates and spending cuts that sets in from the New Year, will test the weary global markets through December. India will be not be insulated from the financial convulsions, which means some fairly tough challenges ahead for the disinvestment programme and the Rs 60,000 crore borrowing plan by leading public sector institutions. Reports on Thursday said the US treasury secretary, Timothy Geithner, had opened talks with Congress leaders from both Republican and Democratic parties to work out a compromise. While the predicament is provoked by the expiry of the Bush era tax cuts of about $500 billion, the Republican-dominated US Congress has demanded that the Obama administration also implement the spending cuts of $1.2 billion that it had agreed to last year. If there is no agreement on the cliff, the impact of the two could push the US economy into another round of recession.
While analysts are hopeful about a compromise before the January deadline, the recent tendency in the world's largest economy to go to the wire for major deals puts the rest of the world in a difficult place. The decision to allow the Obama administration to raise its debt ceiling was also taken just hours before the deadline last year. For India, the timing of the cliff is particularly poor. The economy has already plummeted to a 5.5 per cent rate of growth in the first quarter, and the second quarter figure on Friday is expected to be no different. This means a lot will ride on the performance of the economy in the last two quarters of the year.
- As EC website crashes due to overload, party workers use apps to locate voters
- An entire society in Kothrud could not vote
- Chaos, anger across city over missing names
- Mulayam pushes third front, says will stake claim to PM post
- Don’t look at my candidates, votes for me: Maya to Dalits
- AAP biggies focus on Vishwas, Kejri seats, other units suffer