Latest news with #MMT
Fibre2Fashion
28-05-2025
- Business
- Fibre2Fashion
India to operationalise 76 waterways by 2027, targets cargo surge
India's Ministry of Ports, Shipping and Waterways has announced plans to make 76 inland waterways operational by 2027 during a Consultative Committee meeting held in Mumbai. Cargo volumes through these routes are expected to increase by 156 million tonnes per annum (MTPA) by the end of fiscal 2026 (FY26). The Inland Waterways Authority of India (IWAI), the nodal agency under the ministry, presented a comprehensive review of major projects, future projections, and the roadmap ahead. India aims to make 76 inland waterways operational by 2027, with cargo volumes expected to rise by 156 MTPA by FY26. Key initiatives include the Jal Marg Vikas Project, Maritime India Vision 2030, and a ₹5,000 crore (~$586.27 million) Northeast development roadmap. Major terminals and corridors are being developed on NW-1, NW-2, NW-16, and NW-31 to boost economic activity and transport efficiency. 'Inland waterways are emerging as the watershed moment in India ' s logistics and transport ecosystem. We are witnessing a transformational shift with policy interventions like the National Waterways Act, 2016, the Inland Vessels Act, 2021 and supplemented by multiple programmes like Jal Marg Vikas Project, Arth Ganga, Jalvahak scheme, Jal Samriddhi scheme, Jalyan and Navic among others. Through Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047,' Indian Minister of Ports, Shipping and Waterways, Sarbananda Sonowal said in a press release. 'These roadmaps are not just policy documents—they are catalysts driving India toward becoming a global maritime powerhouse. Today ' s meeting with esteemed Members of Parliament reflects a unified commitment to boost infrastructure and unlock the immense economic potential of our rivers and coasts. With enhanced budgetary support and cooperative federalism, we are building a greener, more efficient, and future-ready waterway network across the country,' added Sonowal. The Regional Waterways Grid is designed to enhance economic activity by enabling seamless vessel movement along a 4,067 km corridor connecting Varanasi to Dibrugarh, Karimganj, and Badarpur via the IBP route. A traffic study and detailed project report (DPR) for the renovation of the Jangipur navigation lock are currently underway. The corridor is projected to handle cargo volumes of 32.2 million metric tonnes per annum (MMTPA) by 2033. On National Waterway 1 (Ganga), a 1,390 km dedicated corridor is under development to facilitate smooth vessel movement and improve the efficiency of inland water transport. The capacity enhancement of NW-1 aims to support vessels of 1,500–2,000 DWT, alongside the establishment of key cargo terminals at Varanasi (MMT), Kalughat (IMT), Sahibganj (MMT), and Haldia (MMT). The Inland Waterways sector is also undertaking major infrastructure initiatives in the Northeast. A ₹5,000 crore (~$586.27 million) development roadmap has been laid out for the next five years. On NW-2 (Brahmaputra), four permanent terminals—Dhubri, Jogighopa, Pandu, and Bogibeel—and 13 floating terminals are being supported through fairway and navigation improvements. A ₹208 crore ship repair facility at Pandu and a ₹180 crore alternative road are slated for completion by 2026 and 2025, respectively. On NW-16 (Barak), the terminals at Karimganj and Badarpur are operational, while development of NW-31 (Dhansiri) is underway to support the expansion of Numaligarh Refinery Limited (NRL). Fibre2Fashion News Desk (SG)
Daily Maverick
27-05-2025
- Business
- Daily Maverick
Now more than ever South Africa needs to practise fiscal prudence
To paraphrase Ronald Reagan, 'this time is different' are the four most dangerous words in economics. And yet, in a recent op-ed for Business Day, Ziyanda Stuurman invokes precisely this logic. She argues that while 'budget cuts have become conventional wisdom in South Africa in the past decade… we are no longer living in conventional times.' Surely however, it is exactly during turbulent and unpredictable economic conditions such as those we are living through that — particularly for emerging markets like South Africa — fiscal discipline becomes more critical, not less? Stuurman makes an impassioned plea to the National Treasury to break from economic orthodoxy and embrace the principles of Modern Monetary Theory (MMT) — essentially, spend freely in the hope that growth and welfare dividends will follow. However, her central claim — that countries across Africa like Kenya are successfully applying this approach — is not only misleading, but is also just wrong. Across the continent, governments are conversely tightening their belts in response to severe economic pressure. In the past week alone, Kenya, Mozambique and Botswana have all announced plans to reduce spending. Ghana made similar announcements in March. The reason for these draconian cuts to expenditures is the darkening economic outlook. Kenya, for example, has announced austerity programmes to drastically shrink its budget deficit by June 2026 as it negotiates a new bailout programme with the International Monetary Fund. The government intends to make 'substantial revisions' to its previously expansionary budget of 4.3-trillion shillings ($33-billion), in an effort to drastically cut its deficit. Clouding it all is a gloomy growth outlook, with the economy expanding in 2024 by 4.7%, its slowest since the pandemic. 'The cabinet has resolved to implement significant budget realignments in line with the government's policy of fiscal consolidation and commitment to living within its means,' read a statement from the Kenyan presidency. Post-election unrest In Mozambique, post-election unrest and a slump in the price of coal, the nation's biggest export, have led to job losses and a financing crunch. The government slashed its 2025 budget by 9%, approving a 512.75-billion meticais ($8bn) spending plan, down from 567.86-billion in 2024. Yet, the budget deficit is still expected to reach 8.2% of GDP. With debt servicing and a ballooning state wage bill consuming state resources, Mozambique faces mounting fiscal strain amid political instability and falling growth projections. The worst election-related protests the country has yet seen — after opposition presidential candidate Venâncio Mondlane disputed the October election outcome that placed him second — have also hit growth and revenues, exacerbating the situation. Meanwhile Botswana — the world's leading diamond exporter by value — is suffering from a prolonged drop in global demand for the gems. It previously relied on precious stones for most of its exports and about a third of its fiscal revenue. Collapsing diamond demand has led to dwindling government revenue streams and reserves, with its budget deficit projected to widen to 9% of GDP. The country is also forecasting a 3% economic contraction this year. Compounding Africa's challenges is a shifting global environment. The abrupt end of billions in dollars in aid and a major reordering of global trade under US President Donald Trump are already having ripple effects. Reduced demand for key commodities and diminished preferential access to the US market will worsen the economic downturn for many of Africa's poorest countries, precisely when they need it least. It is with this backdrop that South Africa's Finance Minister Enoch Godongwana last week calmed a months-long political crisis that had threatened the stability of its governing coalition, presenting a fiscally cautious Budget that won praise from lawmakers and investors alike. In his third stab at getting the Budget signed off by Parliament, Godongwana announced cuts to spending, lowered growth forecasts, and acknowledged a slightly higher debt peak than before. Markets cheered the Budget. Despite the fraught meeting between presidents Cyril Ramaphosa and Donald Trump in the White House that happened to be on the same day, the rand surged toward its sixth consecutive weekly advance, hitting a five-month high against the dollar on Friday. It is now trading at well under R18 to the greenback, which has seen general weakness against major currencies. South African bonds have also barely moved this year, shrugging off the volatility incurred by the debates over the Budget. The 10-year yield is under 10.5%, its lowest since February (bond yields move inversely to prices). Instead of using this moment to supposedly question economic orthodoxy, we should commend the National Treasury and coalition government for their firm stance on either raising taxes or cutting expenditure. As previously argued in this column, any worsening of the outlook for the US economy will have major repercussions on emerging markets such as South Africa. Aid cuts and higher tariffs will hurt, regardless of whatever kind of slightly improved deal may be forthcoming from the meetings in the White House. The National Treasury and indeed the South African Reserve Bank are right that this is a time for maximum prudence and caution. Sadly, beset with State Capture and energy crises, South Africa did not make the most of the amenable conditions for emerging markets over the past few years. Yet, that is not an argument to jettison the sensible economic policy that has been the one thing keeping South Africa from going the way of Venezuela and Zimbabwe over the past few decades.
Canada Standard
27-05-2025
- Business
- Canada Standard
What is modern monetary theory? An economist explains how it could help Canada
Few words spark more anxiety in public debate than "national debt" and "government deficit." National debt is the total amount of money the government owes, accumulated over years of running deficits. Government deficit is when the government spends more money than it collects in taxes and other revenues. Dating back at least to the 1930s, the idea that government budgets should mimic household finances continues to dominate public discourse. Politicians, pundits and even some economists routinely warn that deficits are inherently dangerous and must be minimized - arguing that, like households, governments must ensure their spending does not exceed their income, or else bankruptcy looms. But what if this analogy is completely wrong? According to a dissenting school of economic thought known as modern monetary theory (MMT), governments that issue their own currency aren't like households at all. MMT argues that a government with full monetary sovereignty - meaning it issues its own currency, does not peg it to another currency or commodity and does not borrow in foreign currency - faces no hard financial limits on its spending. Unlike individuals, who must earn or borrow money before they can spend, a government with currency sovereignty creates money as it spends, meaning it can always meet its financial obligations. This theory has significant implications for how Canadians understand public debt and deficit spending. MMT draws on a diverse range of intellectual traditions, including Chartalism, functional finance and the post-Keynesian school. Its foundational ideas were first articulated by figures such as Warren Mosler, a financial practitioner whose writings sparked early debates, and later developed by academic economists including L. Randall Wray, Stephanie Kelton and Bill Mitchell. Once dismissed as "voodoo economics," MMT has in recent years moved from the margins of economic thought into the public arena, gaining increasing attention. As Kelton has noted, ideas that challenge conventional wisdom follow a predictable trajectory: they are first ignored, then ridiculed and eventually met with fierce opposition. MMT is now firmly in the "resistance" phase. The question of how governments finance public spending is not just an academic dispute, but also one that shapes the future of economic policy, democratic governance and social priorities. Economic frameworks are debated and contested in the public arena. The way they are framed determines public understanding, political support and ultimately, real-world policy directions. Canada's federal government, through its partnership with the the Bank of Canada, has the authority to issue Canadian dollars "as needed." MMT emphasizes that a country like Canada doesn't need to collect dollars before it can spend them. Instead, it creates money by effectively "marking up" or crediting bank accounts - essentially through keystrokes - when making payments. This process underpins government spending for procurement of goods and services, public transfers (pensions and employment insurance), interest payments on government debt, Bank of Canada asset purchases (quantitative easing) and emergency responses. However, this does not mean governments can spend without limits or consequences. Nor does it eliminate the need for taxes. Instead, MMT shifts the focus from arbitrary fiscal rules to real economic constraints. The key limitation on government spending is not whether it has enough money - because it can always create more - but whether the economy has the capacity to absorb that spending without causing inflation. While the government does not need tax revenue to "pay for" spending, taxes play a crucial role in controlling inflation by removing money from circulation, managing inequality and affecting how people work, invest, spend money and innovate. Critics of MMT often argue that expansionary fiscal policies - such as large-scale government spending or stimulus packages - inevitably lead to inflation. A common explanation for the recent inflationary surge in Canada and elsewhere is that government programs injected excess purchasing power into the economy. However, MMT argues that inflation only becomes a problem when government spending pushes the economy beyond its capacity - when there are not enough workers, materials or resources to meet rising demand. Until that point, government spending can be used to invest in public goods, create jobs and ensure economic stability. From an MMT viewpoint, the main constraint is not where to get money but whether those newly created dollars can be absorbed by unused capacity without creating unsustainable price pressures. Government spending can work if it's well-timed and directed toward productivity-enhancing projects. By targeting idle resources and improving the supply side, government spending can increase output, boost employment and promote stable economic growth. One of MMT's key contributions is democratizing money itself by demystifying the idea that money is inherently scarce. It emphasizes that government spending is constrained by the availability of real resources, not finances. If more people understood this, it could shift the terms of public debate from questions like, "How will we pay for it?" to more practical and meaningful ones like: "Do we have the people, materials and technology to make this happen without sparking inflation?" and "Is this socially beneficial?" For example, when large-scale investments in green energy, health care, child care or affordable housing are dismissed as "too expensive," MMT reframes the issue around real-world capacity and social benefit. Do we have the people, skills and infrastructure to carry them out effectively and sustainably? By shifting the focus from financial constraints and the government's bank account to real economic potential and democratic priorities, MMT opens new pathways for policy discussions that are grounded in material reality rather than outdated fiscal dogma. Canada is well-positioned to benefit from an MMT-informed approach to fiscal policy, which offers a valuable lens for rethinking and prioritizing economic policy. As a country with currency sovereignty and substantial natural and human resources, Canada has the ability to use targeted public spending to address pressing challenges such as housing affordability, health-care and child-care expansion, and climate change mitigation. MMT encourages us to shift the conversation from artificial fiscal constraints to real-world economic possibilities. Instead of asking, "Can we afford it?" we should be asking, "What do we need, and how can we mobilize our resources to achieve it?" Read more: Economic growth tops the priority list for Canadian policymakers - here's why As economic challenges from climate change to growing inequality mount, Canada cannot afford to be held back by outdated myths about government finances. By embracing a more flexible and realistic approach to fiscal policy, Canada can create an economy that works for everyone, not just the wealthiest few. MMT is not a one-size-fits-all policy directive, but a framework that emphasizes how governments with currency sovereignty operate. It highlights that real constraints lie in available resources, not in arbitrary budget limits, offering the government new way to think about economic possibilities.
Yahoo
26-05-2025
- Business
- Yahoo
What is modern monetary theory? An economist explains how it could help Canada
Few words spark more anxiety in public debate than 'national debt' and 'government deficit.' National debt is the total amount of money the government owes, accumulated over years of running deficits. Government deficit is when the government spends more money than it collects in taxes and other revenues. Dating back at least to the 1930s, the idea that government budgets should mimic household finances continues to dominate public discourse. Politicians, pundits and even some economists routinely warn that deficits are inherently dangerous and must be minimized — arguing that, like households, governments must ensure their spending does not exceed their income, or else bankruptcy looms. But what if this analogy is completely wrong? According to a dissenting school of economic thought known as modern monetary theory (MMT), governments that issue their own currency aren't like households at all. MMT argues that a government with full monetary sovereignty — meaning it issues its own currency, does not peg it to another currency or commodity and does not borrow in foreign currency — faces no hard financial limits on its spending. Unlike individuals, who must earn or borrow money before they can spend, a government with currency sovereignty creates money as it spends, meaning it can always meet its financial obligations. This theory has significant implications for how Canadians understand public debt and deficit spending. MMT draws on a diverse range of intellectual traditions, including Chartalism, functional finance and the post-Keynesian school. Its foundational ideas were first articulated by figures such as Warren Mosler, a financial practitioner whose writings sparked early debates, and later developed by academic economists including L. Randall Wray, Stephanie Kelton and Bill Mitchell. Once dismissed as 'voodoo economics,' MMT has in recent years moved from the margins of economic thought into the public arena, gaining increasing attention. As Kelton has noted, ideas that challenge conventional wisdom follow a predictable trajectory: they are first ignored, then ridiculed and eventually met with fierce opposition. MMT is now firmly in the 'resistance' phase. The question of how governments finance public spending is not just an academic dispute, but also one that shapes the future of economic policy, democratic governance and social priorities. Economic frameworks are debated and contested in the public arena. The way they are framed determines public understanding, political support and ultimately, real-world policy directions. Canada's federal government, through its partnership with the the Bank of Canada, has the authority to issue Canadian dollars 'as needed.' MMT emphasizes that a country like Canada doesn't need to collect dollars before it can spend them. Instead, it creates money by effectively 'marking up' or crediting bank accounts — essentially through keystrokes — when making payments. This process underpins government spending for procurement of goods and services, public transfers (pensions and employment insurance), interest payments on government debt, Bank of Canada asset purchases (quantitative easing) and emergency responses. However, this does not mean governments can spend without limits or consequences. Nor does it eliminate the need for taxes. Instead, MMT shifts the focus from arbitrary fiscal rules to real economic constraints. The key limitation on government spending is not whether it has enough money — because it can always create more — but whether the economy has the capacity to absorb that spending without causing inflation. While the government does not need tax revenue to 'pay for' spending, taxes play a crucial role in controlling inflation by removing money from circulation, managing inequality and affecting how people work, invest, spend money and innovate. Critics of MMT often argue that expansionary fiscal policies — such as large-scale government spending or stimulus packages — inevitably lead to inflation. A common explanation for the recent inflationary surge in Canada and elsewhere is that government programs injected excess purchasing power into the economy. However, MMT argues that inflation only becomes a problem when government spending pushes the economy beyond its capacity — when there are not enough workers, materials or resources to meet rising demand. Until that point, government spending can be used to invest in public goods, create jobs and ensure economic stability. From an MMT viewpoint, the main constraint is not where to get money but whether those newly created dollars can be absorbed by unused capacity without creating unsustainable price pressures. Government spending can work if it's well-timed and directed toward productivity-enhancing projects. By targeting idle resources and improving the supply side, government spending can increase output, boost employment and promote stable economic growth. One of MMT's key contributions is democratizing money itself by demystifying the idea that money is inherently scarce. It emphasizes that government spending is constrained by the availability of real resources, not finances. If more people understood this, it could shift the terms of public debate from questions like, 'How will we pay for it?' to more practical and meaningful ones like: 'Do we have the people, materials and technology to make this happen without sparking inflation?' and 'Is this socially beneficial?' For example, when large-scale investments in green energy, health care, child care or affordable housing are dismissed as 'too expensive,' MMT reframes the issue around real-world capacity and social benefit. Do we have the people, skills and infrastructure to carry them out effectively and sustainably? By shifting the focus from financial constraints and the government's bank account to real economic potential and democratic priorities, MMT opens new pathways for policy discussions that are grounded in material reality rather than outdated fiscal dogma. Canada is well-positioned to benefit from an MMT-informed approach to fiscal policy, which offers a valuable lens for rethinking and prioritizing economic policy. As a country with currency sovereignty and substantial natural and human resources, Canada has the ability to use targeted public spending to address pressing challenges such as housing affordability, health-care and child-care expansion, and climate change mitigation. MMT encourages us to shift the conversation from artificial fiscal constraints to real-world economic possibilities. Instead of asking, 'Can we afford it?' we should be asking, 'What do we need, and how can we mobilize our resources to achieve it?' Read more: As economic challenges from climate change to growing inequality mount, Canada cannot afford to be held back by outdated myths about government finances. By embracing a more flexible and realistic approach to fiscal policy, Canada can create an economy that works for everyone, not just the wealthiest few. MMT is not a one-size-fits-all policy directive, but a framework that emphasizes how governments with currency sovereignty operate. It highlights that real constraints lie in available resources, not in arbitrary budget limits, offering the government new way to think about economic possibilities. This article is republished from The Conversation, a nonprofit, independent news organisation bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Mohsen Javdani, Simon Fraser University Read more: Explainer: what is modern monetary theory? Canada's federal election must grapple with the limits of neoliberal economics Modern monetary theory: the rise of economists who say huge government debt is not a problem Mohsen Javdani does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Daily Record
21-05-2025
- Daily Record
Hoofddorp stabbing sees multiple casualties and left cars covered in blood
The carnage unfolded this morning in the Netherlands. Two people are said to have died after a knife rampage in the Netherlands this morning. A police officer was among those injured in the incident, which took place around 6am. Police received reports of an attack at Fanny Blankers Koenlaan in Hoofddorp, with officers racing to the scene to investigate, leading to the officer in question being taken to hospital. The Mirror reports police said in a statement on X: "We received a report of a stabbing incident at Fanny Blankers-Koenlaan in Purmerend around 6:00 AM. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. "There are multiple victims, including a colleague. Multiple ambulances and the MMT are on site. PD has been set up. The investigation into the incident is ongoing. More later." Two people are said to have died in the stabbing, but police have not confirmed the claims, which were reported by Dutch news agency ANP. Local media reported that one of the police cars at the scene was found "smeared with blood". The emergency services said that multiple ambulances and two trauma teams arrived and took the injured police officer to hospital.
