$ Denominated External Debt & Debt's to GDP Ratio Overshooting the Roof

India’s external debt rose by almost 13 per cent to $390 billion at the end of March 2013, higher than $345.5 billion a year earlier. This  according to an official statement is mainly due to an increase in short-term trade credit and external commercial borrowings amid a high current account deficit.   

  

The International Debt Statistics 2013 of the World Bank, which contains data for 2011, shows India in fourth position in terms of absolute debt stock among the top 20 developing debtor countries. However, in terms of the ratio of external debt to Gross National Income, India's position was the third-lowest, though it added that the external debt has remained within manageable limits, as indicated by the external debt-GDP ratio of 21.2 per cent in the last year.

But the important point that now must be questioned; where the increased level of debt at present will stand at the end of this fiscal ? And where will be $ denominated debt's ratio will stand in the end, when the rupee is already depreciated by more then one fifth in the middle of this fiscal ?

Will not the ratio over shoot  hereafter remain manageable level of 21 %, when the GDP growth is fast declining,simultaneously the CAD, fiscal deficit, annual subsidy bills and inflation are fast touching the roof ? Will it be still manageable ? 

Do Indian Government have a clear visionary road map for the situation fast unfolding ? Will they issue a White Paper or Status Report on the currency related economic health of the country, that may be essential for the knowledge of the people as well for the restoration of the lost confidence of investors ? Don't you understand and accept that any Economy  needs a clear picture away from the haze or suspicion, for its time bound future planning and actions ?

Inflation Goes Viral : Rajya Sabha Seat to Cost 100 Crore

Congress leader Choudhary Birender Singh, a Rajya Sabha MP stirs a debate with his controversial rather shameful claim that a Rajya Sabha seat  can be got for Rs 100 crore.

The controversy started when the Rajya Sabha MP from Hariyana, while addressing a rally in Jind , said that once someone had told him that while he had a budget of Rs 100 crore for a Rajya Sabha membership, but actually ended up paying only 80 crore and hence made a saving of 20 crore. We presume this may not be the same in 2014 with steep rise in inflation, the saving may be gone.

The opposition embarked  on to this controversial comment and the BJP accused the UPA government as “deal strikers” and bringing the dirty politic in Indian democracy. The whole of last UPA Govt. indulged in major corruptions scams, which were propagated by their members with  such evil money minded ideology.

Of course  the MP was forced to change his version as the practice now a days prevalent and he indulged in damage control and accused the media of giving an "entirely wrong version" to the public of what he had said.

The MP gladly accepted that there is a new trend of the MP’s in the both houses that more wealthy politicians are entering the houses with a vision of buying anything and everything at a cost and of course they can afford to pay for that. He confirmed  to a 2009 Lok Sabha election report which stated that  there were 360 crorepati and 20 arabpati winning candidates .