The budget has set the fiscal deficit target at 3.3 percent of GDP for the current fiscal but the steeply falling GST collections and the historic cut in corporate taxes have raised concern over the maintainability of the target.
“There is no closure of banks. No banks are being asked to do anything different from what they were doing. In fact, we are giving them more capital to do what they were doing,” Nirmala Sitharaman said at a press conference.
The CEA has good reason to be worried about the insufficiency of domestic resources. Government/ public investment can be made only out of tax revenues and public sector surpluses. Of these, tax revenues are under pressure. 2018-19 was a particularly dismal year; yet the government has set aggressive targets for tax revenues in 2019-20. Evidently, the CEA does not share the government’s optimism.
Can there be any excuse to just reproduce the interim budget figures in July when the Ministry had the data given to the CGA? Further, the data was presented in the Economic Survey, so why not in the budget?
In this edition of the Idea Exchange, Former Chief Economic Adviser Arvind Subramanian talks about demonitisation, defends GST, explains the reasons why growth has not been robust and reflects back on his tenure as Chief Economic Adviser of India.
Post-demonetisation, the GDP data has showed growth of India’s economy declined to 6.1 per cent in the January-March quarter. With a gross domestic product growth of 6.1 per cent in the fourth quarter, India has lost the tag of the world’s fastest growing major economy to China . For the full 2016-17 fiscal, GDP growth […]
New Delhi, Feb 25 (ANI): Former railways minister Dinesh Trivedi wished Railway Minister Suresh Prabhu all the best for the upcoming Railways Budget. He said he was little worried about the railways because railways is a basic system anywhere in the world, which adds to half percent to the GDP. If the railways doesn’t do well, you cannot contain even your food inflation.
In this Idea Exchange, World Bank India – Country Director Onno Ruhl speaks about the state of social indicators in India, dealing with the Maoist issue, on the ease of doing business here, fund cuts to NGOs and the difference between the previous and the current governments