A very subtle aspect focused on by the budget was on financial markets and institutions. These have larger implications for the integrity of the markets. Here are some of the key institutions that the budget addressed… Continue reading
A very subtle aspect focused on by the budget was on financial markets and institutions. These have larger implications for the integrity of the markets. Here are some of the key institutions that the budget addressed… Continue reading
While the broad theme of the Union Budget focused on putting more money in the hands of the people and giving a push to rural incomes, the budget also had important provisions for other areas like Infrastructure, Financial Markets, Fiscal discipline etc There were some key announcements pertaining to the Financial Markets with the broad goal of making these markets and financial institutions more transparent and effective in discharging their role… Continue reading
The core of the government’s fiscal policy in the Union Budget will depend on how it treats its fiscal deficit. For the coming year, the Union Budget may keep the fiscal deficit target in the range of 3-3.5%. One of the problems of the FRBM is that it tends to be cyclical rather than counter-cyclical. Ideally, Fiscal Deficit should come down in times of high growth and be allowed to go up in terms of low growth. However, the FRBM insists that the discipline of fiscal deficit control be maintained irrespective of the pump-priming that the economy will require. While we believe that the government in this budget will focus largely on pump-priming the economy to a higher growth trajectory, it will also take care to ensure that the fiscal deficit does not spiral out of control. Indian Rupee tends to be vulnerable to higher levels of Fiscal Deficit and CAD and the government will be keen not to repeat the experience of 2013. Broadly, we expect the following line of thinking in terms of government revenues in the Union Budget…
In his speech at Mumbai, the prime minister hinted at taxing capital market profits. While the exact contours of the plan are not available, there are a variety of possibilities. More importantly, what are the arguments for and against taxing the capital markets? And will it really work in practice? Continue reading
