Ishan Bakshi writes: There are several uncertainties surrounding states’ revenues and expenditures. This makes it hard to assess general government fiscal boost to economy for the coming financial year.
Union Budget 2022-23 Explained: Finance Minister Nirmala Sitharaman Tuesday presented the Union Budget 2022-23 in Parliament. Here are the highlights from Sitharaman’s Budget speech, and an explanation and analysis of it.
🔴 Ishan Bakshi writes: It has adversely affected chances of social mobility. This could combine with already high levels of inequality of opportunities and precipitate greater demands for income redistribution.
Ishan Bakshi writes: Increasing push towards solar energy, shifting of hitherto cross-subsidising private entities to renewable energy has compounded perilous position of utilities making need for reforms more urgent.
While job creation typically tends to follow economic recovery, surely, by now, given that value added by almost all sectors is around 90 per cent of last year’s levels, the distress in the labour market should also be showing signs of easing.
The central bank must develop a clear strategy on what to do. At the one end, it is legally bound to an inflation target. Yet, at this juncture, there is a strong argument to look past the current spurt in inflation, and test the limits of both conventional and unconventional monetary policy.
Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise.
In other words, despite the Modi government’s emphasis on digital payments and a less-cash economy, the official printing presses are churning out more currency notes than before, both in volume and value terms.
The Centre has asked the 15th Finance Commission to examine whether a separate mechanism for funding of defence and internal security should be set up. What are the implications for the finances of the states?