Budget 2012-13 has invited more criticisms than appreciations from the various stakeholders of the country. Given the unanticipated difficult situation the global markets are currently in, and the multiple problems that the Indian economy is facing, such as weakening of Rupee against US Dollars, High cost of funds, Inflationary pressures, and High unemployment levels to name a few, the finance ministry has opted for a stringent budget to defy these problems and bring the economy back on a sustainable growth path. I would like to conclude the analysis with my view that the key lies in implementation of the plans. Having observed in the past, that implementation of various initiatives have seen multiple road-blocks stalling them abruptly, we shall try to learn from our past to ensure growth and prosperity of the world’s largest democracy!
The Economic Survey of India 2008-2009 makes several predictions and assessments:
1) It predicts GDP growth of 7.75% if the global economy improves, or 6.25% if the global recession persists.
2) It claims high savings and investment, rural growth, and resilient services exports have protected India's economy despite global conditions.
3) It argues the worst effects may be over and recent measures could facilitate a quick "U-shaped recovery", subject to some factors outside India's control.
The key features of the Budget 2012-2013 document outlines India's economic growth slowing to 6.9% in 2011-2012 due primarily to deceleration in industry. It aims to improve the macroeconomic environment and strengthen domestic growth drivers through the Twelfth Five Year Plan. The budget targets reducing the effective revenue deficit and central subsidies while increasing capital spending and investment in critical sectors through policy reforms like the Goods and Services Tax and increased foreign direct investment.
The document summarizes key features of India's Budget for 2012-2013. It notes that GDP growth is estimated to slow to 6.9% for 2011-2012 due to global economic issues. Inflation is expected to moderate in the coming months. The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through the launch of the Twelfth Five Year Plan. It focuses on reducing the fiscal deficit and subsidies as a percentage of GDP while increasing capital expenditures. Major reforms include implementing the Goods and Services Tax and allowing more foreign investment.
The Union Budget was presented on 28th February, 2013 in the Parliament. It was being touted as a good mix of growth and reform. The major challenges outlined by the Economic Survey, RBI as well as by the FM were in respect of considerably reduced estimated growth of GDP, increase in fiscal deficit, mounting current account deficit and high inflation rate.
The document provides a weekly media update containing news related to the Indian economy, public sector undertakings (PSUs), and skills development initiatives. Key points from the articles include:
- The IMF has said India's economic growth is slowing significantly and urgent policy actions are needed to reverse the slowdown.
- Industry body CII expects the Indian economy to rebound in 2020 due to government and RBI measures, as well as easing global trade tensions.
- The government may target Rs. 1.5 lakh crore for divestment in FY21, with BPCL and Concor stake sales likely in the first half.
- Several PSUs are becoming more agile
The document discusses India's fiscal deficit target for the upcoming year and whether it is sensible, audacious, or foolhardy. It analyzes the government's claims about meeting past deficit targets and expenditures exceeding budgets. It argues the deficit target will be difficult to achieve due to risks of higher oil prices and food subsidies. Meeting the target would require strong revenue generation and expenditure control, which the government has not consistently demonstrated in the past.
The document discusses India's foreign direct investment (FDI) trends and policies. It notes that FDI provides non-debt capital for India's economic development and means achieving technical know-how and jobs. India has attracted large FDI totals due to its favorable business environment and policy reforms relaxing restrictions across sectors. Major receiving sectors include services, software, telecom and trading. Significant recent foreign investments have been made in Jio Platforms, gas distribution, e-commerce and other sectors. The government continues to liberalize FDI limits and ease business regulations to achieve its goal of $100 billion annual FDI inflows and establish India as a top destination for global investment.
The document summarizes key points from India's Union Budget for 2013-2014. It notes that the economy has slowed and the key challenges are returning to 8% growth, reducing fiscal and current account deficits, and controlling inflation. The budget aims to boost inclusive development through increased allocation to social sectors. It outlines a new fiscal consolidation path and encourages foreign investment. The budget prioritizes job creation and education/skills training for youth while increasing allocations for scheduled castes, tribes, women and children.
The Economic Survey of India 2008-2009 makes several predictions and assessments:
1) It predicts GDP growth of 7.75% if the global economy improves, or 6.25% if the global recession persists.
2) It claims high savings and investment, rural growth, and resilient services exports have protected India's economy despite global conditions.
3) It argues the worst effects may be over and recent measures could facilitate a quick "U-shaped recovery", subject to some factors outside India's control.
The key features of the Budget 2012-2013 document outlines India's economic growth slowing to 6.9% in 2011-2012 due primarily to deceleration in industry. It aims to improve the macroeconomic environment and strengthen domestic growth drivers through the Twelfth Five Year Plan. The budget targets reducing the effective revenue deficit and central subsidies while increasing capital spending and investment in critical sectors through policy reforms like the Goods and Services Tax and increased foreign direct investment.
The document summarizes key features of India's Budget for 2012-2013. It notes that GDP growth is estimated to slow to 6.9% for 2011-2012 due to global economic issues. Inflation is expected to moderate in the coming months. The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through the launch of the Twelfth Five Year Plan. It focuses on reducing the fiscal deficit and subsidies as a percentage of GDP while increasing capital expenditures. Major reforms include implementing the Goods and Services Tax and allowing more foreign investment.
The Union Budget was presented on 28th February, 2013 in the Parliament. It was being touted as a good mix of growth and reform. The major challenges outlined by the Economic Survey, RBI as well as by the FM were in respect of considerably reduced estimated growth of GDP, increase in fiscal deficit, mounting current account deficit and high inflation rate.
The document provides a weekly media update containing news related to the Indian economy, public sector undertakings (PSUs), and skills development initiatives. Key points from the articles include:
- The IMF has said India's economic growth is slowing significantly and urgent policy actions are needed to reverse the slowdown.
- Industry body CII expects the Indian economy to rebound in 2020 due to government and RBI measures, as well as easing global trade tensions.
- The government may target Rs. 1.5 lakh crore for divestment in FY21, with BPCL and Concor stake sales likely in the first half.
- Several PSUs are becoming more agile
The document discusses India's fiscal deficit target for the upcoming year and whether it is sensible, audacious, or foolhardy. It analyzes the government's claims about meeting past deficit targets and expenditures exceeding budgets. It argues the deficit target will be difficult to achieve due to risks of higher oil prices and food subsidies. Meeting the target would require strong revenue generation and expenditure control, which the government has not consistently demonstrated in the past.
The document discusses India's foreign direct investment (FDI) trends and policies. It notes that FDI provides non-debt capital for India's economic development and means achieving technical know-how and jobs. India has attracted large FDI totals due to its favorable business environment and policy reforms relaxing restrictions across sectors. Major receiving sectors include services, software, telecom and trading. Significant recent foreign investments have been made in Jio Platforms, gas distribution, e-commerce and other sectors. The government continues to liberalize FDI limits and ease business regulations to achieve its goal of $100 billion annual FDI inflows and establish India as a top destination for global investment.
The document summarizes key points from India's Union Budget for 2013-2014. It notes that the economy has slowed and the key challenges are returning to 8% growth, reducing fiscal and current account deficits, and controlling inflation. The budget aims to boost inclusive development through increased allocation to social sectors. It outlines a new fiscal consolidation path and encourages foreign investment. The budget prioritizes job creation and education/skills training for youth while increasing allocations for scheduled castes, tribes, women and children.
Household savings in India have the potential to increase if policy environment is improved. Currently, household savings rates have fallen and Indians save relatively little in financial assets and long-term savings products. There are issues with the tax incentives for pension schemes and clarity is needed to encourage more household financial savings. Studies have found that tax breaks must be carefully designed to avoid distortions and regulations should provide more flexibility for insurance and pension funds to invest. Improving policies around household savings can help channel more funds into productive investments needed to support higher economic growth targets in India.
The government's fiscal deficit for April-June 2020 touched ₹6.62 trillion, already reaching 83.2% of the annual budget due to a collapse in tax revenues from the economic slowdown caused by COVID-19. Total government expenditures have remained relatively stable while earnings decreased significantly. To finance the deficit, the government is considering disinvesting public sector stakes and may increase borrowing levels. However, the Reserve Bank of India is unlikely to directly purchase government bonds in the first half of the year due to adequate investor demand. The Fiscal Responsibility and Budget Management Act allows for increased slippage in deficit targets during economic crises.
The Indian economy experienced its worst slowdown in nearly a decade in 2012 due to global contractionary forces, domestic macroeconomic imbalances, and reversals in fiscal policy. Key issues included high fiscal and current account deficits, low GDP growth below 5%, and policy uncertainty that weakened business confidence. However, the government implemented reforms in the second half of 2012 to reduce subsidies and attract investment, and inflation declined, signaling prospects for economic recovery, but short-term challenges around deficits and exports remain.
This document discusses 10 major challenges confronting the Reserve Bank of India and opportunities for commercial banks to address some of these challenges. The challenges include propelling domestic growth, controlling persistent inflation, mitigating external sector vulnerabilities, and improving various aspects of the financial system. It outlines how inflation impacts household savings and investment. It also discusses opportunities for banks in sectors like MSME, agriculture, housing, and infrastructure to help boost growth. Banks can play a role in curbing food inflation through financing supply chains and providing short-term credit to vendors. Addressing these challenges will require balancing monetary policy objectives of growth and inflation.
Catharsis & Crises in government finances in IndiaShantanu Basu
Briefly analyses the rising indebtedness of governments in India, illustrates the formation of worthless ministerial empires that are no more than brokers and makes a strong case for separating policy from implementation to minimise waste and rent-seeking in government expenditure.
Stalling Investments in Infrastructure and the Expanding Infra Debt Burden in...Dharish David
Infrastructure investments have recently been stalling in India, this has been mainly because the companies operating in the infra space have relied excessively on debt financing. With PPP projects peaking in 2010, there has been a steady decline in private sector investments in infrastructure, as companies struggle with higher debt loads. The high financial leverage of these companies have also put pressure on public sector banks that are reaching their exposure limits, with rising NPAs and stressed loans. The government is urgently trying to revive investments in infrastructure to sustain economic growth, by removing regulatory hurdles and providing opportunities for refinancing, while also cleaning up the banking system.
The document provides highlights of new policy reforms announced by the Prime Minister of Sri Lanka. The reforms focus on generating employment, increasing incomes, developing rural economies, ensuring land ownership, and creating a strong middle class. Key areas of focus include reducing the budget deficit, reforming taxes, boosting education and health spending, increasing foreign investment, and developing industries, infrastructure, and tourism through public-private partnerships. The reforms aim to transition Sri Lanka to a knowledge-based, globally competitive economy.
- Global equity markets rose as central banks emphasized growth over inflation, though manufacturing data was weak. Bond yields were largely unchanged.
- In Asia, regional markets were up except Japan and Indonesia. China's PMI fell slightly. Taiwan's economy grew slower due to weaker trade. India cut rates further.
- European stocks rose as the ECB cut rates and Italy formed a new government. Growth forecasts for Europe were lowered. UK data beat expectations.
- US stocks outperformed on strong jobs and consumer confidence data. The Fed maintained asset purchases but may adjust the amount based on conditions.
The document provides an overview of recent economic, business, banking and international news. It discusses that the ADB trimmed growth forecasts for Asia due to slower growth in the US and China. It also notes that the IMF painted a dim picture for Europe and suggested more monetary stimulus may be needed as growth is projected to average only 1% over the medium term. Additionally, it summarizes that Moody's views Sri Lanka's credit profile as supported by strong growth but constrained by high government debt, though the stable outlook reflects an expectation that ongoing economic challenges will not lead to medium-term deterioration.
Banking Sector Q4FY15 preview: Asset quality will remain under pressureIndiaNotes.com
- Loan growth for state-owned banks is expected to be moderate at 10-11% YoY due to weak corporate demand and capital conservation efforts, while private banks may see higher growth of 18-20% due to strong retail loans.
- Asset quality is likely to remain under pressure with high slippages of 2.4% and increased restructuring as the RBI forbearance period ends. Stress additions will be a key factor for state-owned bank earnings.
- Net interest margins are expected to be stable for most banks, while treasury gains from falling bond yields and provision reversals may support earnings. However, retail fees growth and high operating expenses will impact state-owned bank profits.
- The
OBJECTIVE
In these times of economic and financial distress owing to COVID-19 pandemic, we would like to stress upon the central bank's relentless efforts to revive the Indian economy. The sizeable rate cut and few other regulatory policies will ease the functioning of the banking system and make sure there is enough liquidity in the economy to promote growth.
In this webinar, we shall analyse the array of financial weapons brought into play by RBI through its Development and Regulatory Policy, and the impact they would have on the economy when they are put to use.
The document discusses four investment themes in Indian equities over the next few years:
1. Falling inflation will likely lead the RBI to lower interest rates, boosting credit growth and sectors like banks and autos.
2. Lower interest rates will spur demand for loans and revive industrial production and GDP growth, benefiting cyclical sectors like infrastructure, cement, and capital goods.
3. Implementation of key government reforms in areas like land acquisition, mining, and labor will boost sectors like power, steel, and cement.
4. Recovery in the global economy and commodity prices will help commodity-linked sectors as demand increases.
The author believes positioning a portfolio across these themes can generate strong returns
The document is a monthly report by MNI Indicators on consumer sentiment in India for July 2014. Some key points:
- The MNI India Consumer Indicator fell slightly from June as consumers were less optimistic about current conditions and future expectations.
- Five of the six components that make up the indicator declined, with personal finances seeing the largest drop.
- Respondents were less confident about their current and future personal finances despite tax measures in the recent budget.
- Sentiment on real estate fell for the fifth straight month while the car purchase indicator rose after an extension of tax cuts.
The organized sector in India created 346,000 jobs between July and September 2011 and is expected to add another 326,400 by end 2011, according to the latest findings of Ma Foi Randstad Employment Trends Survey – Wave 3.
The survey was conducted among 676 companies across 13 industry segments panning 8 Indian cities. The feedback was gathered from the top HR personnel and senior management of companies, who shared valuable insights on the job creation during the last (July – September) and the current (October – December) quarters of 2011.
The current slowdown in the economy and increasing domestic inflation has resulted in sectoral variation in the employment outlook among sectors and although new jobs continue to be added, it is at a slower pace. According to the survey, the Healthcare sector continues to lead in job generation by adding 60,400 jobs in Q3 (July – September) 2011, followed by Hospitality sector with 48,400 jobs and IT & ITeS sector with 46,600 jobs during the same period.
This is however lesser than the numbers (Healthcare - 63,800 / Hospitality - 54,400 / IT & ITeS - 55,500) predicted at the beginning of the quarter three. These sectors are expected to continue as the lead job generators in the coming quarter with Healthcare expecting to add 58,700 jobs followed by Hospitality & ITeS adding 40,000 plus jobs each.
Among the cities, Mumbai added 28,500 jobs, followed by Delhi & NCR adding 27,000 and Chennai adding 15,500. However, the total job generation by these 3 cities was lower by 6,100 jobs, against the original prediction (Mumbai - 32,300 / New Delhi & NCR – 27,900 / Chennai – 16,900) at the beginning of Q3. These cities are expected to generate a total of 69,200 jobs in the current quarter.
OBJECTIVE
Global economic activity has come to a near standstill as Covid-19 related lockdowns are imposed across a widening swathe of affected countries. Financial markets have been facing high volatility due to panic sell-offs resulting in destruction of equity markets. Financial institutions have started encountering liquidity constraints and lags in credit flow, thereby putting debt servicing at risk. The need for strong fiscal measures has become the voice of the banking sector to revive. In this webinar, we shall be focusing on the various spheres of the banking sector which has the hard hit due to the pandemic’s intensity, the RBI’s measures to cope up with the current slack and the way forward for revival of the coveted sector.
The document provides an overview of recent economic and business news from around the world. It discusses the weak global economic growth outlook according to the IMF, with risks shifting to emerging markets. It also summarizes that China's economic growth was the slowest in 25 years at 6.9% in 2015. Additionally, it covers topics such as the lifting of economic sanctions on Iran and the falling oil prices to oversupply. Global foreign direct investment reached an eight-year high of $1.7 trillion in 2015 according to UNCTAD.
The document provides an economic capsule covering topics in banking and finance, the economy and business, and international and industry news. It discusses Sri Lanka's GDP growth, external sector performance, and deflation. It also analyzes views from the IMF on Sri Lanka and forecasts rising core inflation and monetary policy tightening risks.
This document summarizes Indonesia's economic outlook for Q1 2019. It finds that GDP growth was 5.1% in Q4 2018 and is projected to be 5.1-5.2% for FY2018 and 5.2-5.3% for FY2019. Inflation was 3.13% in December 2018 and the current account deficit was 3.37% in Q3 2018. Overall, external pressures on the economy are expected to be lower in Q1 2019 due to improved capital flows, lower oil prices, and US-China trade negotiations.
The document summarizes the Indian government's approach to the 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The document summarizes the Indian government's approach to the fiscal year 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The document summarizes the Indian government's approach to the fiscal year 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The Union Budget for 2012-2013 aims to promote domestic demand-led growth, private investment, and infrastructure development while addressing issues like inflation, fiscal deficit, and corruption. Key highlights include increasing direct tax exemption limits, implementing the Goods and Services Tax, using Aadhaar for welfare schemes, allocating more funds for agriculture, education, and skill development, and introducing measures to curb black money and improve governance. However, lower GDP growth, high subsidy spending, and a widening fiscal deficit pose challenges to achieving fiscal consolidation targets.
Household savings in India have the potential to increase if policy environment is improved. Currently, household savings rates have fallen and Indians save relatively little in financial assets and long-term savings products. There are issues with the tax incentives for pension schemes and clarity is needed to encourage more household financial savings. Studies have found that tax breaks must be carefully designed to avoid distortions and regulations should provide more flexibility for insurance and pension funds to invest. Improving policies around household savings can help channel more funds into productive investments needed to support higher economic growth targets in India.
The government's fiscal deficit for April-June 2020 touched ₹6.62 trillion, already reaching 83.2% of the annual budget due to a collapse in tax revenues from the economic slowdown caused by COVID-19. Total government expenditures have remained relatively stable while earnings decreased significantly. To finance the deficit, the government is considering disinvesting public sector stakes and may increase borrowing levels. However, the Reserve Bank of India is unlikely to directly purchase government bonds in the first half of the year due to adequate investor demand. The Fiscal Responsibility and Budget Management Act allows for increased slippage in deficit targets during economic crises.
The Indian economy experienced its worst slowdown in nearly a decade in 2012 due to global contractionary forces, domestic macroeconomic imbalances, and reversals in fiscal policy. Key issues included high fiscal and current account deficits, low GDP growth below 5%, and policy uncertainty that weakened business confidence. However, the government implemented reforms in the second half of 2012 to reduce subsidies and attract investment, and inflation declined, signaling prospects for economic recovery, but short-term challenges around deficits and exports remain.
This document discusses 10 major challenges confronting the Reserve Bank of India and opportunities for commercial banks to address some of these challenges. The challenges include propelling domestic growth, controlling persistent inflation, mitigating external sector vulnerabilities, and improving various aspects of the financial system. It outlines how inflation impacts household savings and investment. It also discusses opportunities for banks in sectors like MSME, agriculture, housing, and infrastructure to help boost growth. Banks can play a role in curbing food inflation through financing supply chains and providing short-term credit to vendors. Addressing these challenges will require balancing monetary policy objectives of growth and inflation.
Catharsis & Crises in government finances in IndiaShantanu Basu
Briefly analyses the rising indebtedness of governments in India, illustrates the formation of worthless ministerial empires that are no more than brokers and makes a strong case for separating policy from implementation to minimise waste and rent-seeking in government expenditure.
Stalling Investments in Infrastructure and the Expanding Infra Debt Burden in...Dharish David
Infrastructure investments have recently been stalling in India, this has been mainly because the companies operating in the infra space have relied excessively on debt financing. With PPP projects peaking in 2010, there has been a steady decline in private sector investments in infrastructure, as companies struggle with higher debt loads. The high financial leverage of these companies have also put pressure on public sector banks that are reaching their exposure limits, with rising NPAs and stressed loans. The government is urgently trying to revive investments in infrastructure to sustain economic growth, by removing regulatory hurdles and providing opportunities for refinancing, while also cleaning up the banking system.
The document provides highlights of new policy reforms announced by the Prime Minister of Sri Lanka. The reforms focus on generating employment, increasing incomes, developing rural economies, ensuring land ownership, and creating a strong middle class. Key areas of focus include reducing the budget deficit, reforming taxes, boosting education and health spending, increasing foreign investment, and developing industries, infrastructure, and tourism through public-private partnerships. The reforms aim to transition Sri Lanka to a knowledge-based, globally competitive economy.
- Global equity markets rose as central banks emphasized growth over inflation, though manufacturing data was weak. Bond yields were largely unchanged.
- In Asia, regional markets were up except Japan and Indonesia. China's PMI fell slightly. Taiwan's economy grew slower due to weaker trade. India cut rates further.
- European stocks rose as the ECB cut rates and Italy formed a new government. Growth forecasts for Europe were lowered. UK data beat expectations.
- US stocks outperformed on strong jobs and consumer confidence data. The Fed maintained asset purchases but may adjust the amount based on conditions.
The document provides an overview of recent economic, business, banking and international news. It discusses that the ADB trimmed growth forecasts for Asia due to slower growth in the US and China. It also notes that the IMF painted a dim picture for Europe and suggested more monetary stimulus may be needed as growth is projected to average only 1% over the medium term. Additionally, it summarizes that Moody's views Sri Lanka's credit profile as supported by strong growth but constrained by high government debt, though the stable outlook reflects an expectation that ongoing economic challenges will not lead to medium-term deterioration.
Banking Sector Q4FY15 preview: Asset quality will remain under pressureIndiaNotes.com
- Loan growth for state-owned banks is expected to be moderate at 10-11% YoY due to weak corporate demand and capital conservation efforts, while private banks may see higher growth of 18-20% due to strong retail loans.
- Asset quality is likely to remain under pressure with high slippages of 2.4% and increased restructuring as the RBI forbearance period ends. Stress additions will be a key factor for state-owned bank earnings.
- Net interest margins are expected to be stable for most banks, while treasury gains from falling bond yields and provision reversals may support earnings. However, retail fees growth and high operating expenses will impact state-owned bank profits.
- The
OBJECTIVE
In these times of economic and financial distress owing to COVID-19 pandemic, we would like to stress upon the central bank's relentless efforts to revive the Indian economy. The sizeable rate cut and few other regulatory policies will ease the functioning of the banking system and make sure there is enough liquidity in the economy to promote growth.
In this webinar, we shall analyse the array of financial weapons brought into play by RBI through its Development and Regulatory Policy, and the impact they would have on the economy when they are put to use.
The document discusses four investment themes in Indian equities over the next few years:
1. Falling inflation will likely lead the RBI to lower interest rates, boosting credit growth and sectors like banks and autos.
2. Lower interest rates will spur demand for loans and revive industrial production and GDP growth, benefiting cyclical sectors like infrastructure, cement, and capital goods.
3. Implementation of key government reforms in areas like land acquisition, mining, and labor will boost sectors like power, steel, and cement.
4. Recovery in the global economy and commodity prices will help commodity-linked sectors as demand increases.
The author believes positioning a portfolio across these themes can generate strong returns
The document is a monthly report by MNI Indicators on consumer sentiment in India for July 2014. Some key points:
- The MNI India Consumer Indicator fell slightly from June as consumers were less optimistic about current conditions and future expectations.
- Five of the six components that make up the indicator declined, with personal finances seeing the largest drop.
- Respondents were less confident about their current and future personal finances despite tax measures in the recent budget.
- Sentiment on real estate fell for the fifth straight month while the car purchase indicator rose after an extension of tax cuts.
The organized sector in India created 346,000 jobs between July and September 2011 and is expected to add another 326,400 by end 2011, according to the latest findings of Ma Foi Randstad Employment Trends Survey – Wave 3.
The survey was conducted among 676 companies across 13 industry segments panning 8 Indian cities. The feedback was gathered from the top HR personnel and senior management of companies, who shared valuable insights on the job creation during the last (July – September) and the current (October – December) quarters of 2011.
The current slowdown in the economy and increasing domestic inflation has resulted in sectoral variation in the employment outlook among sectors and although new jobs continue to be added, it is at a slower pace. According to the survey, the Healthcare sector continues to lead in job generation by adding 60,400 jobs in Q3 (July – September) 2011, followed by Hospitality sector with 48,400 jobs and IT & ITeS sector with 46,600 jobs during the same period.
This is however lesser than the numbers (Healthcare - 63,800 / Hospitality - 54,400 / IT & ITeS - 55,500) predicted at the beginning of the quarter three. These sectors are expected to continue as the lead job generators in the coming quarter with Healthcare expecting to add 58,700 jobs followed by Hospitality & ITeS adding 40,000 plus jobs each.
Among the cities, Mumbai added 28,500 jobs, followed by Delhi & NCR adding 27,000 and Chennai adding 15,500. However, the total job generation by these 3 cities was lower by 6,100 jobs, against the original prediction (Mumbai - 32,300 / New Delhi & NCR – 27,900 / Chennai – 16,900) at the beginning of Q3. These cities are expected to generate a total of 69,200 jobs in the current quarter.
OBJECTIVE
Global economic activity has come to a near standstill as Covid-19 related lockdowns are imposed across a widening swathe of affected countries. Financial markets have been facing high volatility due to panic sell-offs resulting in destruction of equity markets. Financial institutions have started encountering liquidity constraints and lags in credit flow, thereby putting debt servicing at risk. The need for strong fiscal measures has become the voice of the banking sector to revive. In this webinar, we shall be focusing on the various spheres of the banking sector which has the hard hit due to the pandemic’s intensity, the RBI’s measures to cope up with the current slack and the way forward for revival of the coveted sector.
The document provides an overview of recent economic and business news from around the world. It discusses the weak global economic growth outlook according to the IMF, with risks shifting to emerging markets. It also summarizes that China's economic growth was the slowest in 25 years at 6.9% in 2015. Additionally, it covers topics such as the lifting of economic sanctions on Iran and the falling oil prices to oversupply. Global foreign direct investment reached an eight-year high of $1.7 trillion in 2015 according to UNCTAD.
The document provides an economic capsule covering topics in banking and finance, the economy and business, and international and industry news. It discusses Sri Lanka's GDP growth, external sector performance, and deflation. It also analyzes views from the IMF on Sri Lanka and forecasts rising core inflation and monetary policy tightening risks.
This document summarizes Indonesia's economic outlook for Q1 2019. It finds that GDP growth was 5.1% in Q4 2018 and is projected to be 5.1-5.2% for FY2018 and 5.2-5.3% for FY2019. Inflation was 3.13% in December 2018 and the current account deficit was 3.37% in Q3 2018. Overall, external pressures on the economy are expected to be lower in Q1 2019 due to improved capital flows, lower oil prices, and US-China trade negotiations.
The document summarizes the Indian government's approach to the 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The document summarizes the Indian government's approach to the fiscal year 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The document summarizes the Indian government's approach to the fiscal year 2012 budget. Key points include:
1) The Indian economy's growth slowed in 2011-12 due to global factors but remains one of the fastest growing.
2) The budget aims to improve the macroeconomic environment and strengthen domestic growth drivers through fiscal and monetary policy changes.
3) Reforms to subsidies, taxation, investment policies, and infrastructure development are outlined to support inclusive and sustainable growth goals.
The Union Budget for 2012-2013 aims to promote domestic demand-led growth, private investment, and infrastructure development while addressing issues like inflation, fiscal deficit, and corruption. Key highlights include increasing direct tax exemption limits, implementing the Goods and Services Tax, using Aadhaar for welfare schemes, allocating more funds for agriculture, education, and skill development, and introducing measures to curb black money and improve governance. However, lower GDP growth, high subsidy spending, and a widening fiscal deficit pose challenges to achieving fiscal consolidation targets.
The document summarizes key features of India's Budget for 2012-2013. It discusses the state of the Indian economy, subsidies, tax reforms, infrastructure development, agriculture, inclusion programs, and other policy areas. The budget aims to boost growth while improving fiscal sustainability through measures like reducing the effective revenue deficit and bringing down subsidies.
The document summarizes key features of India's Budget for 2012-2013. It discusses the state of the Indian economy, subsidies, tax reforms, infrastructure development, agriculture, inclusion programs, and other economic priorities. The budget aims to boost growth while improving fiscal stability and increasing investment in infrastructure and social programs.
The document provides an overview of the Union Budget of India for 2012-2013, which was presented by the Finance Minister Pranab Mukherjee on March 16, 2012. It discusses key highlights of the budget including tax proposals, the impact on various sectors like agriculture, infrastructure, and education, and the overall budget estimates for fiscal year 2012-2013 with a projected fiscal deficit of 5.1% of GDP.
The document summarizes key points from the Indian Union Budget for 2012-13. It discusses estimates for GDP growth, fiscal deficits, revenues and expenditures. It outlines proposals to increase investment in infrastructure, manufacturing, rural development and social sectors. Taxation measures are also highlighted, including increases in excise duties and service tax rates, while personal income tax exemptions are raised. The budget aims to boost growth while reducing fiscal deficits.
Deloitte India: What the union budget 2021 brings?aakash malhotra
The document provides an overview of key aspects of the Union Budget 2021, including:
1. Economic indicators such as GDP contraction, inflation rates, growth drivers, monetary policy actions, FDI flows, credit growth, and current account trends.
2. Direct tax proposals including tax exemption for cash allowance in lieu of LTC, taxation of interest on PF contributions over Rs. 250,000, and no tax exemption on ULIPs with premium over Rs. 250,000.
3. Corporate tax rates remaining unchanged with incentives for affordable housing projects and notified rental housing projects.
The document summarizes key aspects of the India Budget 2016, including:
1) It focuses on 9 pillars to transform India including agriculture, rural employment, social sectors, infrastructure, financial reforms, and ease of doing business.
2) Key allocations include Rs. 36,000 crores for agriculture and farmer welfare, Rs. 38,500 crores for MGNREGS, and Rs. 2,21,246 crores for infrastructure development.
3) Reforms aim to boost startups, manufacturing, and increase FDI in various sectors such as insurance and pension funds.
Current State of the Indian EconomyCautious optimism for the.docxfaithxdunce63732
Current State of the Indian Economy
Cautious optimism for the future
February 2013
www.deloitte.com/in
2
The Big Picture
The Indian Economy has experienced
its worst slowdown in nearly a decade
on the back of global contractionary
headwinds, domestic macro-economic
imbalances and policy reversals on the
fiscal front, 2012 has been a challenging
year for the economy. The year started
with news that the previous fiscal’s
fourth quarter GDP had dropped to
5.5%. That coupled with low growth,
macro-economic issues such as high
fiscal deficit, expansionary subsidies and
worsening current account balance has
added to the slowdown.
The 2011-12 Budget had proposed
to amend the 1961 income tax
law by introducing retrospective
tax adjustments and General Anti-
Avoidance Rules (GAAR). These steps
were viewed negatively by foreign
investors. Subsequent downgrading
of the Indian economic outlook from
‘stable’ to ‘negative’ by a major rating
agency, led to continued downward
pressure on the investment climate.
Additionally, as fiscal conditions
worsened over the year, export
numbers were revised in light of data
discrepancies leading to a widening of
the current account deficit.
In the second half of the fiscal, the
Government proactively intervened
with phased reforms to stabilize the
economy. Measures were taken to
reduce subsidies (oil, fertilizers) which
would in turn lower the fiscal deficit.
The Government also took concrete
actions to attract foreign direct
investment (FDI) and strengthen the
rupee. However, the impact of these
policy reforms remains uncertain in
the short term. Concerns continue
to exist over the current account
deficit scenario, prevailing supply side
constraints, inadequate infrastructure
investments and long term policy
directions.
In face of a perceivably weak macro-
economic climate, a well-planned
economic revival policy is required to
steer the Indian Economy back on the
growth path. Even though the long
term prospects of the economy look
promising, cautious optimism is the
tone in the short to medium term.
Global Linkages
Performances of advanced economies
continue to weigh on India’s growth
story.
The World Economic Forum’s annual
meeting for 2013 was held in Davos,
Switzerland in January 2013, bringing
together more than 2,000 top business
leaders, international political leaders,
Current State of the Indian Economy Cautious optimism for the future 3
Economic opportunity is dwindling. While reforms have
been initiated, further action to create infrastructure, boost
savings and generate growth will be welcome
selected intellectuals and journalists to
discuss the most pressing issues facing
the world. The IMF, in its update of
World Economic Outlook, lowered the
world GDP growth projections by 0.1%
each for 2013 & 2014 as compared to
the October 2012 projections. This is on
account of downside risks that continue
in light of renewed s.
Long on aspirations and short on action - A monograph on the Union Budget 201...D Murali ☆
Long on aspirations and short on action - A monograph on the Union Budget 2015-16 - B. Yerram Raju - Article published in Business Advisor, Budget 2015 special issue http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
National Conference on “Infrastructure Finance – Building for Growth” - INDIA...Resurgent India
Indian economy after registering a robust growth of more than 9% during the period 2005-08, moderated to a growth of 6.7% in 2008-09 on the back of the global financial crisi
The document summarizes the key features of the Indian budget for 2011-2012. It outlines opportunities and challenges for the Indian economy, including strong GDP growth in 2010-2011 and inflation concerns. It discusses the government's plans to sustain growth through fiscal consolidation, tax reforms, expenditure reforms, and other policies. It also covers initiatives and allocations related to agriculture, infrastructure, industry, exports, social inclusion, education, health, and other sectors. The budget aims to transition India towards more transparent and result-oriented economic management.
INDIA is one of the oldest civilizations in the world
with a kaleidoscopic variety and rich cultural heritage.
It is the seventh-largest country by area, the second-most
populous country with over 1.2 billion people, and the
most populous democracy in the world. In the present
scenario, India’s economy is the fourth largest by purchasing
power parity (PPP) and 10th largest by nominal
gross domestic product (GDP), globally.
India has seen a systematic transition from being a
closed door economy to an open economy since the beginning
of economic reforms in the country in 1991.
These reforms have had a far-reaching impact and have
helped India unleash its enormous growth potential.
Today India is one of the fastest growing economies in
the world and has emerged as a key destination for foreign
investors in recent years. According to UNCTAD’s
World Investment Prospects Survey 2012–2014, India is
the third-most attractive destination for FDI (after China
and the US) in the world.
India’s GDP has also grown at around 7.9 per cent between
2003 and 2012. This trend, according to the International
Monetary Fund (IMF), is likely to continue for
the next five years with an average GDP growth rate of
7.7 per cent per annum till 2017. India’s GDP for 2015,
valued at US$ 2.183 trillion at current prices is the 10th
largest in the world1.
The IMF conducted its first review of Bangladesh's performance under the Extended Credit Facility (ECF) and found that Bangladesh had made progress on most targets but fell short on some structural reforms. Bangladesh stabilized its fiscal position, strengthened foreign reserves, and improved its trade and investment climate. However, delays occurred in implementing a new VAT law and banking sector reforms. The IMF sees risks from a worsening eurozone crisis and recommends Bangladesh focus on tax revenue generation, priority spending, and fiscal sustainability.
The document summarizes the key features of the Indian budget for 2011-2012. It identifies opportunities like strong economic growth and progress on institutional reforms. Challenges include inflation, implementation gaps in public programs, and corruption. The economy is estimated to have grown 8.6% in 2010-2011. Key areas discussed include sustaining growth through fiscal consolidation, tax and expenditure reforms, subsidies, investment in infrastructure, exports, curbing black money, and strengthening social inclusion through education, health, and skill development initiatives.
The document summarizes the key features of the Indian budget for 2011-2012. It identifies opportunities like strong economic growth and institutional reforms that will enable double digit growth. Challenges include inflation, implementation gaps in public programs, and the need for improved governance. The budget aims to sustain growth through fiscal consolidation, tax reforms, subsidies, and investment in infrastructure, agriculture, rural development, education, health, and skills. It also addresses issues like black money, food security, and strengthening social inclusion.
The Economic Survey 2017-18 provides an overview of India's economic performance and outlook. It summarizes that GDP growth averaged over 7.5% from 2015-2016 to 2016-2017, driven primarily by consumption. However, growth is estimated to slow to 6.5% in 2017-2018 due to demonetization and GST implementation. Notable reforms improving the business environment include the Insolvency and Bankruptcy Code, GST tax unification, and a large bank recapitalization package to address the twin balance sheet crisis in banking and corporations. The Survey also highlights issues like gender imbalance and the need for infrastructure investment to sustain growth.
Similar to India Budget 2012-13 - Analysis by Prabhu Srinivasan (20)
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
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Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
How Non-Banking Financial Companies Empower Startups With Venture Debt Financing
India Budget 2012-13 - Analysis by Prabhu Srinivasan
1. P r a b h u T S r i n i v a s a n @ g m a i l . c o m Page 1
ANALYSIS OF BUDGET 2012-13
(By Prabhu T Srinivasan)
SIGNS OF RECOVERY AFTER A DIFFICULT YEAR
2011-12 would stand out, as one of the toughest years in history, that witnessed several momentous events, such as
downgrades of sovereign ratings of The USA and France, restructuring of leading multinational firms, and monetary
tightening by several central banks which shook the foundations of major global economies, making growth difficult not
only for India, but also for the world at its entirety. Greece debt crisis in Europe, political uncertainty in middle-east, and
the great north-east earth-quake in Japan, tested the strengths of various global economies. Amidst these, India, although
managed to put on a remarkable growth, was not fully isolated from their negative impact.
India’s current estimated GDP growth rate of 6.9% for 2011-12 is relatively low when compared to the 8.4% CAGR
(Compound Annual Growth Rate) seen during 2009-11. The historically high headline inflation level which was
witnessed in 2011-12, caused an environment of tightened monetary policy which eventually affected investments and
consumption during the year, ultimately leading to such slower growth. However, signs of recovery are seen in coal,
fertilizer, cement, and electricity sectors as we enter the first year of ‘India’s 12th five year plan’, which aims at ‘faster,
sustainable and more inclusive growth’.
SERVICE SECTOR & DIVERSIFIED TRADE PARTNERS KEEPS ECONOMY AFLOAT
Growth in India’s GDP is at present contributed largely by the services sector, which is estimated to grow at 9.4% for
2012, along with a 3.9% growth in industrial output and a 2.5% growth in agriculture. We saw a slow-down in industrial
output growth, because of deceleration in private investment, especially due to rising cost of credit. Structural aspects
that led to prolonged food inflation in 2011-12, are now addressed through strengthened food supply chain. Diversified
trade partners, with ASEAN region contributing to 57.3% in 2011-12, (33.3% in 2000-01) is a notable achievement that
protects the country from the difficult situation in the US and Europe. The estimated current account deficit is at 3.6%,
for 2011-12, suggesting a steep deterioration in net-trade movements in the last few years.
Apart from these, there are various other factors and assumptions with which the government has stated its expected
GDP growth of 7.6% +/- 0.25%, for 2012-13.
LOWER SUBSIDIES & HIGHER TAXES TO CONTROL FISCAL DEFICIT
In 2011-12, lower direct tax revenues (chart 1) and increased subsidiaries (chart 2) caused slippage from the government’s
ambitious fiscal deficit target of 3% (chart 3). This has prompted the finance ministry’s decision to call for a rise in
indirect tax and a lower expenditure, mainly through a controlled and systematic reduction of subsidies. Major subsidies
of Indian government are allocated to food, fertilizer, and petroleum industries.
Target is to reduce these subsidies to less than 2% in 2012-13, and subsequently to less than 1.75% in the next 3 years,
which could only be achieved through directed targeting of subsidies, thereby preventing leakages. Newly proposed for
this, is the use of Mobile-based Fertilizer Management System (m-FMS), recommended by the task force headed by
Nandan Nilekani, the chairman of Unique Identification Authority of India (UIDAI). Pilot projects for direct transfer of
subsidy to beneficiary’s bank account have been conducted for LPG, and Kerosene, in various parts of the country.
Much anticipated tax reforms such as DTC (Direct Tax Code) and GST (Goods and Services Tax) are yet to be
implemented and the government remains optimistic about employing these reforms in the next few months. More
interestingly, the government’s plan to set up GST network (GSTN) as a ‘National Information Utility’ is also expected
to become operational by August 2012.
2. P r a b h u T S r i n i v a s a n @ g m a i l . c o m Page 2
Divestment of CPSEs
One of the innovative tools to generate revenues, recently put into
practice is the disinvestment/divestment of GoI’s shareholding in the
Central Public Sector Enterprises (CPSEs). Target for 2011-12
lowered to INR14,000 crore from the original target of INR40,000
crore, as the government did not find the market conditions attractive
enough to justify sale of shares. For 2012-13, the government has cut
down the budget and expects to raise INR30,000 crore, which still
looks optimistic given the prevailing economic situation. However, at
any point in time, at least 51% ownership and management control
would rest with the government, thus providing the firms with
stability and at the same time, necessary financial flexibility, at par
with the private counter-parts.
FDI in Multi-brand Retail
Although the centre has faced strong opposition from various state
governments for proposing to allow Foreign Direct Investment (FDI)
in Multi-brand retail, the budget still restates the centre’s hope to
achieve consensus among all the political parties with regards to the
issue. But, given the political structure prevailing in the country and
the coalition ruling party system in place, the centre is likely to face
several delays and disagreements while going forward with this.
Nevertheless, it is also valid that the reform can make the food supply
chain much more efficient than the present unorganized model,
addressing the inflationary pressure to some extent.
Rajiv Gandhi Equity Savings Scheme
As a new tax saving investment scheme, the government has
announced that new investors, with annual income less than INR10
lakhs can now enjoy a tax deduction of 50% with a lock-in period of
3 years. However, the investment amount up to which this benefit
can be availed is capped at INR50,000 while investing directly in
equity markets. This will incentivize higher participation of small retail
investors directly in equity markets.
Central KYC Depository
Another stride in the reforms is the scheduled implementation of a
single, central Know Your Customer (KYC) depository to avoid
multiplicity of registration and data-upkeep. If this is implemented,
the hassles on of opening various bank accounts, mutual funds, de-
mat accounts, mobile, internet & cable service provider accounts can
be effectively handled and governance processes would become faster
and easier.
CHART 1: SPLIT-UP OF TOTAL REVENUE TO
GOVERNMENT, SHOWING A DIP IN NON-
TAX REVENUES IN 2011-12 (Y: INR1000 crores)
CHART 2: CHART SHOWING REVENUE
EXPENDITURE (SUBSIDIES) FORMING THE
MAJOR PORTION OF TOTAL EXPENDITURE
CHART 3: CHART SHOWING BOTH ‘REVENUE’
AND ‘FISCAL’ DEFICIT WIDENING IN 2011-12
● ● ●
Did you Know?
Provision for Defense sector at INR193,407 crore
in this budget, is less than two-third of what is
recommended by industry experts
● ● ●
3. P r a b h u T S r i n i v a s a n @ g m a i l . c o m Page 3
Core Banking Solutions in RRBs
With 81 of 82 Regional Rural Banks (RRBs) successfully migrating to core banking solutions, they have also joined the
National Electronic Fund Transfer (NEFT) system. The government plans to continue capitalization of weak RRBs for
the next two years, thereby ensuring financial inclusion and high integration with the banking system.
INFRASTRUCTURE AND INDUSTRY
India’s long-term focus on infrastructure development is growth oriented as it should be for any developing economy.
The 12th five year plan infrastructure spending projected at INR50 lakh crore also shows the importance and emphasis
the country places on infrastructure, as this is the first and fore-most aspect that catalyzes and enables increase in
production, consumption, employment and hence the over-all economic activity in the country. As a short-term
objective the government has announced a target of ‘Tax-free infrastructure bonds’ of INR60,000 crore in 2012-13
(2011-12: INR8,000 crore). Further, India Infrastructure Finance Company Ltd (IIFCL) will act as the nodal agency to
ensure easy credit for infrastructure projects, through-out the country.
As we aim to create 10 crore jobs in manufacturing sector within a decade, by increasing its contribution to the Total
GDP to 25%, infrastructure adequacy to meet the expansion requirements is a crucial aspect, that if ignored can be a
bottle-neck for the country’s growth aspirations.
Notable Infrastructure Targets Mentioned In This Budget
Additional 8,800 kilometer roads are to be constructed, under National Highways Development Project
(NHDP) within a year.
Delhi-Mumbai Industrial Corridor is to be completed within 5 years. The project receives $4.5 billion funding
from Japan, apart from INR18,500 crore of central assistance.
The government also announced that INR3,900 crore of loans for handloom weavers and their co-operative
societies would be waived.
INR5,000 crore ‘India Opportunities Venture Fund’ to be set up by Small Industries Development Bank of
India (SIDBI) would provide funding for small scale infrastructure projects across the country
AGRICULTURE
As always called the back bone of the Indian Economy, the Agricultural sector’s
importance cannot be ignored, and rightly so, agricultural credit target has been
increased by INR100,000 crore in this budget, to INR575,000 crore for 2012-13.
Credit facilities through the Kisan Credit Card Scheme (KCC), has received positive
response from various groups across the country. The government plans to extend
smart card features to these cards, which would then also be used for ATM
transactions in rural areas.
Another notable aspect related to agriculture is the promotion of Accelerated
Irrigation Benefit Program (AIBP) through an allocation step up by 13%, to approx.
INR14,250 crore. With these various initiatives and priority lending schemes, India is
heading to the second phase of green revolution, yet many agriculture-related
infrastructure requirements are lacking at present to enable a sustainable fast growth
in agricultural production.
● ● ●
Did you Know?
If the primary bread-winner of a
BPL family passes away in the age-
group of 18-64, the family is now
eligible for a government grant
INR20,000, twice as much as what
was awarded previously
● ● ●
4. P r a b h u T S r i n i v a s a n @ g m a i l . c o m Page 4
INCLUSION
The need for Inclusive growth, in the highly populated and largely rural based
economy of India, has been to some extent addressed through various
initiatives. Some of them discussed in the budget include,
Rural Infrastructure Development Fund (RIDF), which has been
enhanced to INR20,000 crore, with INR5,000 crore exclusively for
warehousing facilities
6000 schools to be set-up in rural parts of the country under the 12th
five year plan
Allocations to Integrated Child Development Service (ICDS), Mid-
Day Meal Scheme and other child-welfare schemes saw strong
growth, as well
GOVERNANCE
The finance minister touched upon the flagship governance project of India, The UID Scheme (Aadhaar), as he
announced completion of issuance of UID cards to 20 crore people till 2011-12 and expects additional 40 crore people
to come under the UID system by the end of 2012-13. In addition to this, the government has also announced a
proposal to lay a White Paper on Black Money in the upcoming parliament session.
TAXES
Direct Tax
Modest Rise in Tax Slabs were announced in this budget, with the exemption limit being raised by INR20,000, to
INR200,000 and 20% tax slab being widened from INR5-8 lakhs to INR5-10 lakhs. This means that an individual with
an income of INR200,000, will now save INR2000 annually and an invidual with an income of INR1,000,000 would
save INR22,000 annually through lower direct taxes, as compared to last year. However, the public had expected a much
steeper rise in slabs, and the budget came as a disappointment to vast majority of the population.
Some of the announcements received a positive response from the investors. One such aspect is, the rise of
‘Compulsory Tax Audit Limit’ to INR1 crore from INR60 lakhs, which is expected to reduce the burden of tax auditing
expenses for many Small scale industries. Another announcement seen favorably, is reduction of Withholding tax on
interest payments to ECBs, from 20% to 5% for certain stressed infra-related industries for 3 years. These direct tax
proposals are estimated to result in a Net Revenue Loss of INR4,500 crore to the government in the year 2012-13.
Indirect Tax
This year, the government has chosen the indirect taxes route to boost its revenues to meet the various planned and
non-planned expenditures, and also reach the fiscal deficit target. This is the reason why we see a rise in service tax rate
from 10% to 12%, with corresponding changes in rates for individual services. (Merit rate, 5% to 6%; Lower merit rate,
1% to 2%)
With the government’s decision to hike the indirect taxes, receiving severe criticisms from the Investor community, the
table below shows some of the sector specific announcements and the market reaction each of them has received.
● ● ●
Did you Know?
‘Himayat’ scheme, introduced in
J&K is estimated to provide skill
training to 1 lakh youths in next 5
years. Entire cost of the initiative will
be borne by Centre.
● ● ●
5. P r a b h u T S r i n i v a s a n @ g m a i l . c o m Page 5
(In Thousand Crore Rupees)
Revenues & Expenditures 2010-11 A 2011-12 E 2012-13 B
Revenue Receipts 788 767 935
Tax Revenue 569 642 771
Non Tax Revenue 218 124 165
Capital Receipts 409 551 555
Recoveries of Loans 12 14 12
Other Receipts 23 15 30
Borrowings and Other Liabilities 373 522 513
Total Receipts 1197 1319 1491
Non Plan Expenditures 818 892 970
On Revenue Accounts 726 815 866
Interest Payments 234 275 320
On Capital Account 92 76 104
Plan Expenditure 379 427 521
On Revenue Account 314 346 421
On Capital Account 64 80 101
Total Expenditure 1197 1319 1491
Revenue Expenditure 1041 1162 1286
Grants for creation Capital Assets 87 138 165
Capital Expenditure 157 157 205
Revenue Deficit 252 395 350
(3.3) (4.4) (3.4)
Effective Revenue Deficit 165 257 186
(2.1) (2.9) (1.8)
Fiscal Deficit 374 522 514
(4.9) (5.9) (5.1)
Primary Deficit 140 246 194
(1.8) (2.8) (1.9)
Industry Investor Sentiment
Agriculture & Related Sectors Positive
Infrastructure Positive
Mining Nuetral
Railways Nuetral
Roads Nuetral
Manufacturing Positive
Health and Nutrition Nuetral
Environment Negative
Proposed tax relief for labour-intensive sectors
producing items of mass consumption
Lower customs and excise duty on Soya products,
Iodine and Probiotics
Rise in basic customs duty on imports of gold and
other precious metals
Indirect Tax Announcement
Exemption from basic customs duty for setting up
fertilizer projects upto March 2015
Exemption from basic customs duty and
concessional CVD of 1% to steam coal
Exemption from basic customs duty for coal mining
projects
Proposed upgradation of track structure for high
speed trains
Exemption of import duty for certain road
construction material
The various proposed Indirect taxes are estimated to result in a net revenue gain of INR45,940 crore. Therefore, on an
aggregate basis, all the tax reforms announced in this budget are estimated to result in a net gain of INR41,440 crore for
the country.
SUMMARY
Budget 2012-13 has invited more criticisms than
appreciations from the various stakeholders of the
country. Given the unanticipated difficult situation the
global markets are currently in, and the multiple problems
that the Indian economy is facing, such as weakening of
Rupee against US Dollars, High cost of funds, Inflationary
pressures, and High unemployment levels to name a few,
the finance ministry has opted for a stringent budget to
defy these problems and bring the economy back on a
sustainable growth path. I would like to conclude the
analysis with my view that the key lies in implementation
of the plans. Having observed in the past, that
implementation of various initiatives have seen multiple
road-blocks stalling them abruptly, we shall try to learn
from our past to ensure growth and prosperity of the
world’s largest democracy!
● ● ●
Did you Know?
Short-term crop loans will now be
available at 7% per year to farmers,
and at 3% per year to prompt-paying
farmers through ‘Interest-subvention
scheme’
● ● ●