Though the Union Budget is essentially a Statement of Account of public finances, it has historically become a significant opportunity to indicate the direction and the pace of India’s economic policy. The 2017-18 Union Budget was presented amidst a somewhat wobbly backdrop of the world economy facing considerable uncertainty, increasing signs of a retreat from globalization of goods the world over, and high expectations from people back home relating to good governance. Amidst all these developments, India has stood out as a bright spot in the world economic landscape. India‟s macro-economic stability continues to be the foundation of economic success. Continue reading “Decoding Union Budget 2017-18”
Economic Survey says economic growth to return to normal as new currency notes in required quantities come back into circulation and follow-up action on demonetisation is taken.
The CPI based core inflation remained stable in the current fiscal year averaging around 5 per cent.
The Economic Survey says that the rupee performed better than most of the other emerging market economies.
The total area coverage under Rabi crops as on 13.01.2017 for 2016-17 is 616.2 lakh hectares which is 5.9 per cent higher than that in the corresponding week of last year.
The area coverage under Gram (Channa Dal) as on 13.01.2017 for 2016-17 is 10.6 percent higher than that in the corresponding week of last year. Continue reading “Key Highlights of Economic Survey 2016-17”
The Union Budget for the year 2017-18 was presented by the Finance Minister Mr. Arun Jaitley in the Parliament on 1 st February 2017.
- Agricultural credit during the year 2017-18 is targeted at Rs.10 lakh crores, with 60 days interest waiver.
- The government intends to double the NABARD fund (for long term irrigation) corpus from Rs. 20,000 crore to Rs. 40,000 crore.
- A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 crore initial corpus.
- Dairy processing infrastructure fund will be initially created with a corpus of Rs. 2000 crore.
- Soil testing: The government will set up mini labs in Krishi Vigyan Kendras for soil testing.
On November 8, in an urgent move, Prime Minister Narendra Modi announced the ‘Demonetisation’ of Rs. 500 and Rs. 1000 currency notes. The swiftness of execution was such that these currency bills were effectively rendered useless within a couple of hours of the announcement. The reasoning behind such a move has been summed up in the official statement. A striking observation to be made out here is the lack of data numbers provided for by the Government and the connection made to national security. Let’s think about this policy action to analyse it to a certain extent. Continue reading “Critical Analysis on Demonetisation”
The decision to raise the limit for issue of bonds under MSS (Market Stabilization Scheme) is a prudent move and brings this innovative scheme in focus again. The arrangement also shifts the burden of holding cash from the Banks and RBI on to the government and would help stabilise the money market. A look at the scheme and how money is flowing after it is being deposited in the banks as a result of demonetization. Continue reading “Demonetisation – Absorbing the Excess Liquidity”