Posted at 3:22 PM , on February 28, 2015
The Union Budget will be assessed on the basis of the promises inflation, fiscal deficit and growth. The government has done well on all these fronts. Inflation is likely to be held at around 5% and the fiscal deficit has been slightly raised for 2016 from 3.6% to 3.9% and for 2018 from 2% to 3% to keep additional level buffer for pump priming.
Financial inclusion seems to be the major theme of the Union Budget with the JAM combination (Jan Dhan, Aadhar and Mobile) to be leveraged to focus on financial inclusion and ensure direct transfer of subsidy benefits. The government has also committed to stick to its commitment of implementing the GST on April 1st 2016. Continue reading
Posted at 8:28 PM , on February 27, 2015
The Economic Survey presented today, effectively, forms the backdrop for the Union Budget that will be presented tomorrow. In fact, the broad theme of the Union Budget will be determined by the Economic Survey. Hence it is essential to understand the kind of growth, inflation, fiscal deficit and expenditure numbers that the government is talking about. These projections will set the tone for the Union Budget. Continue reading
Posted at 4:01 PM , on February 27, 2015
by- Sunil Godhwani, MD & Chairman, Religare Enterprises Ltd .
The annual budget exercise is always a keenly watched event. But this year’s Union Budget, which will be tabled in Parliament on February 28 is already generating lot of expectation and curiosity. This will be the first full budget of the Narendra Modi-led government, which won a handsome mandate nine months ago on the promise of kick starting the economy. The budget is expected to take steps to simplify norms, cut red tape, further ease FDI rules, and make it more convenient to set up businesses and factories. Importantly, the budget comes in the backdrop of a slump in energy prices, particularly oil, even as economic growth continues to be anemic and way below its true potential of 8-9%. Continue reading
Posted at 2:23 PM , on February 26, 2015
The rail budget was presented by Mr. Suresh Prabhu on the back of a few apparent expectations. Firstly there was the expectation of a rail fare hike, as the railway budget was already under strain. Secondly, the total freight subsidy of passenger fares had gone as high as $4 billion. Thirdly, there were expectations on some of the broad announcements made last year like bullet trains, public private partnerships (PPP) and railway infrastructure and safety. Continue reading
Posted at 12:35 PM , on February 24, 2015
“Four Themes the Finance Minister must seriously consider”
As the Union Budget approaches, what should the Finance Minister focus on? A budget after 12 months of hope, euphoria and expectations has to be special. There are 4 key themes for the finance minister to focus on.
No to austerity, yes to growth…
That has to be the principal theme of the budget. Cutting costs and tightening the belt is ok. With strong foreign inflows and the deficit in control, the government must get a little more ambitious. For a $1.8 trillion economy, the key lies in boosting investments. Private investments are waiting for the state to take the initiative on major infrastructure projects. It is the right time for the FM to take that initiative. Continue reading