Government hints at increased public spending:
The government could look to increase its public spending with higher budgetary allocation towards economic recovery and employment creation.
The Finance Minister has hinted at increased public spending in Union Budget 2021-22; even at the risk of ballooning fiscal deficit. The deficit for the current financial year is expected to swell to 7.5-8% as against the targeted 3.5%.
"At present, I am not going to allow the fiscal deficit number to worry me because there is a need, and a clear need, for me to spend the money,” Sitharaman said in an interview with Bloomberg TV.
Supporting growth is the prime focus of all the wings of the government at the moment. We have seen RBI neglecting inflation and supporting growth. Now, the government is also hinting at increased public spending. The fiscal deficit is bound to shoot up further with higher public spending. But that doesn't seem to be a major concern at the moment.
5G in India by the 2nd half of 2021?
Reliance Industries chairman Mukesh Ambani is confident to launch the 5G services in the second half of 2021. Speaking at India Mobile Congress, Ambani called for urgent policy steps to ensure the early availability of 5G technology in India. He has further claimed that Jio is ready with the indigenous-developed network, hardware, and technology components to launch the services.
While Jio may have been well ahead in its preparations for 5G, the rest of the players are lagging way behind in developing the 5G infrastructure. The government is also running behind the schedule in terms of determining the framework. The government is not able to make up its mind on the participation of Chinese vendors. Even auction dates are yet to be finalized.
Apart from this, all existing players, including Jio, have termed 5G spectrums as expensive and vouched for the price reduction.
Citing this, India's 5G plan is facing too many roadblocks. Hence, the claims of Mr. Mukesh Ambani sounds a little too ambitious to us.
OPEC's production rise, the impact on India:
OPEC and non-OPEC allies have agreed to increase production by 5,00,000 barrels per day beginning in January.
The decision of OPEC+ came as a surprise as they were widely expected to extend the production cut. It has been learned that Saudi Arabia, the strongest of the OPEC+ member was in favor of keeping the current production restrictions in place. However, some producers wanted to increase the production following a sustained rally in oil prices last month.
Following the rally in the international market, fuel prices have hit a new high in India. Petrol and diesel now cost Rs 90.30 and Rs 80.47 per liter, in Mumbai respectively.
Now, if the International crude prices stabilize due to the increased production, India could see a positive impact of it in terms of stable fuel prices.
