The Union Finance Minister Shri Arun Jaitley tabled the Economic Survey 2016-17 today, the first day of the Budget Session of the Parliament. The Economic Survey says that the adverse impact of demonetisation on GDP growth will be transitional and the economy will recover with remonetisation. The Survey states that once the cash supply is replenished, which is likely to be achieved by end of March 2017, the economy would revert to normal. The GDP growth in 2017-18, as per the survey, is projected to be in the range of 6¾-7½ percent.
The Survey suggests a few measures to maximise long-term benefits and minimise short-term costs. One, fast remonetisation and early elimination of withdrawal limits. This would reduce GDP growth deceleration and cash hoarding. Two, continued impetus to digitalisation while ensuring that this transition is gradual and inclusive, and appropriately balances the costs and benefits of cash versus digitalisation. Three, following up demonetisation by bringing land and real estate into the GST. Four, reducing tax rates and stamp duties.
Dig what’s for you in the Union Budget 2020 amidst the economic slowdown. From direct to indirect taxes and policy updates. The Economic Survey 2020 expects growth to rebound in H2 of FY2021 and annual growth to be in the range of 6-6.5 percent. See More : https://www2.deloitte.com/in/en/pages/tax/topics/union-budget2020-2021.html
The document summarizes Bangladesh's fiscal policy and 2014-2015 budget. Key points include:
- Revenue collection in 2013-2014 was only 62.89% of revised targets due to political turmoil.
- The proposed 2014-2015 budget totals 250,506 crore taka, a 15.9% increase over revised 2013-2014 budget.
- Revenue targets were increased 16.8% but may be difficult to achieve given economic sluggishness.
- The budget deficit is projected to increase 26.97% and foreign financing will likely be difficult.
- Some sectors like pharmaceuticals and textiles may benefit from tax changes while real estate and telecom could be negatively impacted.
- The analyst notes
The document summarizes the key points of India's Economic Survey 2017-2018. The survey is presented annually in Parliament by the Finance Minister to review the economic development of the previous fiscal year and outline the short to medium term economic outlook. Some of the major highlights from Economic Survey 2017-2018 include: the successful launch of the Goods and Services Tax; progress made in resolving the twin balance sheet problem of stressed corporate and bank balance sheets; improved ratings and rankings for India; GDP growth of 6.75% for FY2018 and a projected 7-7.5% for FY2019; and fiscal deficit of 3.2% of GDP for FY2018. The survey also discusses inflation trends, tax base expansion, external
The budget aims to boost rural development and infrastructure spending. It increases allocation for agriculture and rural development. It also raises spending on railways and roads to strengthen infrastructure. However, the fiscal deficit target was higher than expected and long-term capital gains tax was introduced for equities.
The document provides a market review of 2017 and outlook for 2018 for India. It summarizes that the Indian market outperformed global markets in 2017. Key domestic indices like Nifty returned 28.6% led by outperformance in realty, telecom and metal sectors, while pharma and IT underperformed. Equity raising through IPOs reached record levels. Inflation increased in the second half of 2017. The outlook expects corporate earnings to drive the equity market while bond yields may remain range-bound.
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 document discusses several challenges facing the Indian economy, including uncertainties from developments in the US and Europe, rising commodity and oil prices, and short-term effects of demonetization. It analyzes pros and cons of cash vs. digital transactions and suggests the budget should aim for 8% GDP growth, lower taxes, increase infrastructure investment, reduce subsidies, and support SMEs and individuals affected by demonetization. It also proposes creating a Railway Infrastructure Development Fund through passenger fares to mobilize ₹720,000 crore over 10 years for rail projects.
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.
Dig what’s for you in the Union Budget 2020 amidst the economic slowdown. From direct to indirect taxes and policy updates. The Economic Survey 2020 expects growth to rebound in H2 of FY2021 and annual growth to be in the range of 6-6.5 percent. See More : https://www2.deloitte.com/in/en/pages/tax/topics/union-budget2020-2021.html
The document summarizes Bangladesh's fiscal policy and 2014-2015 budget. Key points include:
- Revenue collection in 2013-2014 was only 62.89% of revised targets due to political turmoil.
- The proposed 2014-2015 budget totals 250,506 crore taka, a 15.9% increase over revised 2013-2014 budget.
- Revenue targets were increased 16.8% but may be difficult to achieve given economic sluggishness.
- The budget deficit is projected to increase 26.97% and foreign financing will likely be difficult.
- Some sectors like pharmaceuticals and textiles may benefit from tax changes while real estate and telecom could be negatively impacted.
- The analyst notes
The document summarizes the key points of India's Economic Survey 2017-2018. The survey is presented annually in Parliament by the Finance Minister to review the economic development of the previous fiscal year and outline the short to medium term economic outlook. Some of the major highlights from Economic Survey 2017-2018 include: the successful launch of the Goods and Services Tax; progress made in resolving the twin balance sheet problem of stressed corporate and bank balance sheets; improved ratings and rankings for India; GDP growth of 6.75% for FY2018 and a projected 7-7.5% for FY2019; and fiscal deficit of 3.2% of GDP for FY2018. The survey also discusses inflation trends, tax base expansion, external
The budget aims to boost rural development and infrastructure spending. It increases allocation for agriculture and rural development. It also raises spending on railways and roads to strengthen infrastructure. However, the fiscal deficit target was higher than expected and long-term capital gains tax was introduced for equities.
The document provides a market review of 2017 and outlook for 2018 for India. It summarizes that the Indian market outperformed global markets in 2017. Key domestic indices like Nifty returned 28.6% led by outperformance in realty, telecom and metal sectors, while pharma and IT underperformed. Equity raising through IPOs reached record levels. Inflation increased in the second half of 2017. The outlook expects corporate earnings to drive the equity market while bond yields may remain range-bound.
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 document discusses several challenges facing the Indian economy, including uncertainties from developments in the US and Europe, rising commodity and oil prices, and short-term effects of demonetization. It analyzes pros and cons of cash vs. digital transactions and suggests the budget should aim for 8% GDP growth, lower taxes, increase infrastructure investment, reduce subsidies, and support SMEs and individuals affected by demonetization. It also proposes creating a Railway Infrastructure Development Fund through passenger fares to mobilize ₹720,000 crore over 10 years for rail projects.
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 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.
India Budget 2018 ...Changing Landscape - An Analysis by K. C. Mehta & Co.Prashant Kotecha
This document provides an overview and summary of the key aspects of the Indian economy based on the Economic Survey of 2017-18. Some of the main points covered in the 3 sentences are:
1) The Economic Survey analyzed the Indian economy using big data from sources like GST, EPFO, ESIC to provide new perspectives on economic indicators and issues like the gender gap.
2) Key findings included that over 30% of non-agricultural jobs were in the formal sector based on social security enrollment, states' prosperity correlated more strongly with international trade than domestic trade, and the agricultural sector is becoming more feminized.
3) The document also summarizes fiscal trends like tax revenue growth and deficits,
The document discusses key concepts related to fiscal policy and government budgets in India. It defines fiscal policy as the use of government spending and taxation to influence the economy. It outlines the different types of fiscal policy including expansionary, contractionary, and neutral fiscal policy. It also discusses important budget concepts like revenue budget, capital budget, revenue receipts, revenue expenditure, capital receipts, capital expenditure, budget deficit, fiscal deficit, primary deficit, and public debt. The document emphasizes the need for fiscal discipline and tax reforms in India to address issues like high fiscal and revenue deficits.
The document summarizes key aspects of Bangladesh's fiscal year 2016-17 budget, including:
- Total budget of Tk 3,40,605 crore, a 29% increase over the previous year.
- Major allocations include Tk 50,017 crore for education, Tk 39,951 crore for interest payments, and Tk 35,920 crore for transportation and communication.
- Tax revenue from the NBR contributes 60% of the budget, while non-tax revenue, foreign loans, and domestic financing make up the remaining sources of funds.
- Key expenditures include Tk 34,370 crore for education and technology and Tk 18,383 crore for defense services.
It is widely accepted that Indian economy is recovering, albeit slowly, from the disruptions created by demonetization (November 2016) and implementation of GST (July 2017). The GDP growth is forecast to recover from below 6% in FY17 to more than 7% in FY19. At this rate, India will be the fastest growing economy amongst all major global economies.
The positives are all well known and appreciated by markets and global agencies, as the entire government machinery is busy marketing these.
Nonetheless, for investors, it is important to take a note of the red flags that are too conspicuous and could have serious repercussions on the sustainability of the economic recovery and hence corporate earnings.
On the basis of an assessment of the current and evolving macroeconomic situation, RBI after the Monetary Policy Committee (MPC) meeting today on released Monetary Policy Statement, 2022
.
The underlying decisions has been set out in the statements below;
The document provides an executive summary and analysis of the Union Budget of India for fiscal year 2019-20. It highlights key policy announcements, tax proposals, and sectoral impacts. The budget aims to make India a $5 trillion economy by 2024-25 through measures to boost infrastructure, ease of doing business, and rural development. It lowers the fiscal deficit target to 3.3% of GDP and outlines plans to raise revenues through privatization and dividends from public sector companies.
As a part of monetary policy statement for julyTayyaba Tariq
The document provides an analysis of the State Bank of Pakistan's new monetary policy by the governor. It discusses current economic imbalances like fiscal and current account deficits and high inflation. The governor increased the discount rate by 1% to 13% to contain credit demand, but noted this depends on the government retiring Rs84 billion in debt as promised. However, the document casts doubt on this, as the targeted tax revenue increase is unrealistic. It argues monetary policy effectiveness is limited given high import and food inflation, and that fiscal policy cooperation is needed to meaningfully address inflation.
The Union Budget 2018-19 is going to be the last full Budget of the incumbent government and will be keenly watched for the twin provisions of driving investment and growth on one hand while maintaining fiscal discipline on the other. CII expects Budget 2018-19 to focus on four key areas: investment revival, job creation, growth of the agricultural sector and development of the social sectors of education and healthcare. CII has recommended that the government stick to fiscal prudence which in turn will help in softening interest rates and boosting GDP growth in the near to medium-term. While a slippage from the budgeted target of 3.2 per cent of GDP fiscal deficit for FY18 looks imminent now, an attempt should be made to raise additional resources so as not to diverge from the targeted deficit level by a large magnitude. This month issue of CII Economy Matters focuses on Pre-Budget Expectations: 2018-19.
Union Budget Preview - Reinforcement of Fiscal Stimulusemkayglobal
The Union Budget is round the corner and as it comes closer, speculation is getting rife. In this report we bring to you a preview into what you can expect from this year's budget and its impact in the ensuing period
The Union Budget 2018-19 had some excellent measures to ease the lives of the common people with emphasis on the farm sector, education, healthcare and social protection. A pick up in agricultural growth together with adequate price realisation by farmers is required for rural livelihoods to stabilise. Small and medium enterprises received a boost through tax measures as well as access to credit. The introduction of fixed term employment has been a long pending demand from industry. In a difficult year, the Finance Minister has done well to contain the fiscal deficit at 3.5 per cent of GDP, a deviation of 0.3 per cent from the Budget estimate. The plan to move towards fiscal consolidation in the coming year would maintain macro stability and enhance investor confidence.
The budget aims to boost economic growth through a large increase in capital expenditure of 35% to INR 7.5 lakh crore. It focuses on an investment-led growth strategy of using public investment to crowd-in private sector capex. The fiscal deficit target of 6.4% provides space to support economic recovery without over-consolidation. Direct support measures include extension of credit guarantee schemes and increased support for COVID-hit sectors like hospitality. Revenue targets are achievable given expectations of strong GST collection growth and a pickup in economic activity.
This document provides a weekly media update from various news sources mentioning Balmer Lawrie and related topics. It includes articles summarizing that India's core sector growth slowed to an 18-month low in December 2018 due to declines in coal, crude and fertilizers. It also outlines the government's plans to simplify the process for strategic sales of CPSEs and aims to raise Rs. 90,000 crore from CPSE divestments in 2019-2020. Additionally, it mentions that public sector investments and capital spending are expected to see muted growth in the next fiscal year.
The document discusses fiscal policy in India. It defines fiscal policy and its objectives of ensuring rapid economic growth and development through mobilizing financial resources via taxation, public savings, and private savings. It then analyzes causes of fiscal imbalance such as increasing subsidies, interest payments, defense spending, poor public sector performance, tax evasion, and government borrowing. It concludes by outlining approaches to reduce expenditure and raise funds to address fiscal imbalance under India's new fiscal policy framework.
India's GDP growth slowed to 7% in the first quarter of the current fiscal year, below expectations of 7.4% growth and lower than the previous quarter. This adds pressure on the central bank to cut interest rates to boost the economy. Other data also showed weak growth in infrastructure output and a worsening monsoon raises concerns about rural demand. The rate cut hopes will increase pressure on the Reserve Bank of India to ease monetary policy further at its next announcement in September.
This document provides a summary of the Union Budget 2022 and its implications from an investment perspective. It notes that the budget focuses on long-term growth through investments in infrastructure, education, banking, agriculture and other sectors. Key initiatives highlighted include the PM Gati Shakti master plan for multi-modal connectivity and a digital push for financial services. The budget also emphasizes renewable energy, green bonds and other climate-friendly policies. Overall, the budget is assessed to provide opportunities for long-term investors in sectors like IT, banking, infrastructure, manufacturing and others.
This document summarizes the findings of a survey conducted in Pakistan to gauge public perceptions about key economic reforms, particularly in taxation and energy sectors. The survey found:
1) There is a lack of understanding among the public about the importance of taxes for funding infrastructure, social services, and addressing issues like energy shortages.
2) Most respondents viewed Pakistan's taxation system as unfair and non-transparent, and did not think their taxes were being effectively utilized.
3) Pakistan has one of the lowest tax-to-GDP ratios in the world, with a very narrow tax base that fails to tax many sectors of the economy including agriculture and some services.
4) Around 42% of respondents agreed
The document summarizes key points about Indonesia's Omnibus Law on Job Creation. It was passed by the House of Representatives to simplify regulations and encourage economic growth. The law aims to help Indonesia achieve 6-8% annual growth to create jobs and exit the middle income trap by 2045. It consolidates over 70 laws and over 1000 articles focusing on simplifying business licensing, enhancing investment, employment protections, and empowering small businesses. The law faces some opposition from labor groups but is intended to revive Indonesia's economy amid the pandemic.
The document provides an overview of monetary and fiscal policy in India. It discusses the objectives and key instruments of monetary policy implemented by the Reserve Bank of India, including open market operations, cash reserve ratio, statutory liquidity ratio, and repo and reverse repo rates. It also covers inflation targeting and factors affecting monetary policy. For fiscal policy, it outlines the role of the central government budget in taxation and expenditure. It discusses fiscal deficit, changes in the 2013-14 budget to curb the deficit, and reviews fiscal and monetary policy challenges in India like high deficit, currency depreciation and lower growth.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
The Finance Minister presented the Union Budget on 1st February 2017. This is our analysis of the implications of the budget on the Indian Economy and the Markets. We have also shared the stocks that will be the Budget Winners & Losers. We hope you enjoy going through our analysis.
Rsm india budget_2018_key_aspects_in_a_nutshellCA.Amit Sharma
The key aspects of the India Budget 2018 document are:
1. GDP growth is projected to be 6.75% in the current fiscal year and rise to 7-7.5% in 2018-19 due to major reforms. Inflation has hit a 6-year low of 3.3% in 2017-18.
2. For companies with revenues up to Rs. 250 crores, the corporate tax rate has been reduced to 25%. No change in personal income tax rates.
3. Exemption on long term capital gains from equity investments is being withdrawn and such gains will be taxed at 10%. Scope of dividend distribution tax has also been expanded.
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.
India Budget 2018 ...Changing Landscape - An Analysis by K. C. Mehta & Co.Prashant Kotecha
This document provides an overview and summary of the key aspects of the Indian economy based on the Economic Survey of 2017-18. Some of the main points covered in the 3 sentences are:
1) The Economic Survey analyzed the Indian economy using big data from sources like GST, EPFO, ESIC to provide new perspectives on economic indicators and issues like the gender gap.
2) Key findings included that over 30% of non-agricultural jobs were in the formal sector based on social security enrollment, states' prosperity correlated more strongly with international trade than domestic trade, and the agricultural sector is becoming more feminized.
3) The document also summarizes fiscal trends like tax revenue growth and deficits,
The document discusses key concepts related to fiscal policy and government budgets in India. It defines fiscal policy as the use of government spending and taxation to influence the economy. It outlines the different types of fiscal policy including expansionary, contractionary, and neutral fiscal policy. It also discusses important budget concepts like revenue budget, capital budget, revenue receipts, revenue expenditure, capital receipts, capital expenditure, budget deficit, fiscal deficit, primary deficit, and public debt. The document emphasizes the need for fiscal discipline and tax reforms in India to address issues like high fiscal and revenue deficits.
The document summarizes key aspects of Bangladesh's fiscal year 2016-17 budget, including:
- Total budget of Tk 3,40,605 crore, a 29% increase over the previous year.
- Major allocations include Tk 50,017 crore for education, Tk 39,951 crore for interest payments, and Tk 35,920 crore for transportation and communication.
- Tax revenue from the NBR contributes 60% of the budget, while non-tax revenue, foreign loans, and domestic financing make up the remaining sources of funds.
- Key expenditures include Tk 34,370 crore for education and technology and Tk 18,383 crore for defense services.
It is widely accepted that Indian economy is recovering, albeit slowly, from the disruptions created by demonetization (November 2016) and implementation of GST (July 2017). The GDP growth is forecast to recover from below 6% in FY17 to more than 7% in FY19. At this rate, India will be the fastest growing economy amongst all major global economies.
The positives are all well known and appreciated by markets and global agencies, as the entire government machinery is busy marketing these.
Nonetheless, for investors, it is important to take a note of the red flags that are too conspicuous and could have serious repercussions on the sustainability of the economic recovery and hence corporate earnings.
On the basis of an assessment of the current and evolving macroeconomic situation, RBI after the Monetary Policy Committee (MPC) meeting today on released Monetary Policy Statement, 2022
.
The underlying decisions has been set out in the statements below;
The document provides an executive summary and analysis of the Union Budget of India for fiscal year 2019-20. It highlights key policy announcements, tax proposals, and sectoral impacts. The budget aims to make India a $5 trillion economy by 2024-25 through measures to boost infrastructure, ease of doing business, and rural development. It lowers the fiscal deficit target to 3.3% of GDP and outlines plans to raise revenues through privatization and dividends from public sector companies.
As a part of monetary policy statement for julyTayyaba Tariq
The document provides an analysis of the State Bank of Pakistan's new monetary policy by the governor. It discusses current economic imbalances like fiscal and current account deficits and high inflation. The governor increased the discount rate by 1% to 13% to contain credit demand, but noted this depends on the government retiring Rs84 billion in debt as promised. However, the document casts doubt on this, as the targeted tax revenue increase is unrealistic. It argues monetary policy effectiveness is limited given high import and food inflation, and that fiscal policy cooperation is needed to meaningfully address inflation.
The Union Budget 2018-19 is going to be the last full Budget of the incumbent government and will be keenly watched for the twin provisions of driving investment and growth on one hand while maintaining fiscal discipline on the other. CII expects Budget 2018-19 to focus on four key areas: investment revival, job creation, growth of the agricultural sector and development of the social sectors of education and healthcare. CII has recommended that the government stick to fiscal prudence which in turn will help in softening interest rates and boosting GDP growth in the near to medium-term. While a slippage from the budgeted target of 3.2 per cent of GDP fiscal deficit for FY18 looks imminent now, an attempt should be made to raise additional resources so as not to diverge from the targeted deficit level by a large magnitude. This month issue of CII Economy Matters focuses on Pre-Budget Expectations: 2018-19.
Union Budget Preview - Reinforcement of Fiscal Stimulusemkayglobal
The Union Budget is round the corner and as it comes closer, speculation is getting rife. In this report we bring to you a preview into what you can expect from this year's budget and its impact in the ensuing period
The Union Budget 2018-19 had some excellent measures to ease the lives of the common people with emphasis on the farm sector, education, healthcare and social protection. A pick up in agricultural growth together with adequate price realisation by farmers is required for rural livelihoods to stabilise. Small and medium enterprises received a boost through tax measures as well as access to credit. The introduction of fixed term employment has been a long pending demand from industry. In a difficult year, the Finance Minister has done well to contain the fiscal deficit at 3.5 per cent of GDP, a deviation of 0.3 per cent from the Budget estimate. The plan to move towards fiscal consolidation in the coming year would maintain macro stability and enhance investor confidence.
The budget aims to boost economic growth through a large increase in capital expenditure of 35% to INR 7.5 lakh crore. It focuses on an investment-led growth strategy of using public investment to crowd-in private sector capex. The fiscal deficit target of 6.4% provides space to support economic recovery without over-consolidation. Direct support measures include extension of credit guarantee schemes and increased support for COVID-hit sectors like hospitality. Revenue targets are achievable given expectations of strong GST collection growth and a pickup in economic activity.
This document provides a weekly media update from various news sources mentioning Balmer Lawrie and related topics. It includes articles summarizing that India's core sector growth slowed to an 18-month low in December 2018 due to declines in coal, crude and fertilizers. It also outlines the government's plans to simplify the process for strategic sales of CPSEs and aims to raise Rs. 90,000 crore from CPSE divestments in 2019-2020. Additionally, it mentions that public sector investments and capital spending are expected to see muted growth in the next fiscal year.
The document discusses fiscal policy in India. It defines fiscal policy and its objectives of ensuring rapid economic growth and development through mobilizing financial resources via taxation, public savings, and private savings. It then analyzes causes of fiscal imbalance such as increasing subsidies, interest payments, defense spending, poor public sector performance, tax evasion, and government borrowing. It concludes by outlining approaches to reduce expenditure and raise funds to address fiscal imbalance under India's new fiscal policy framework.
India's GDP growth slowed to 7% in the first quarter of the current fiscal year, below expectations of 7.4% growth and lower than the previous quarter. This adds pressure on the central bank to cut interest rates to boost the economy. Other data also showed weak growth in infrastructure output and a worsening monsoon raises concerns about rural demand. The rate cut hopes will increase pressure on the Reserve Bank of India to ease monetary policy further at its next announcement in September.
This document provides a summary of the Union Budget 2022 and its implications from an investment perspective. It notes that the budget focuses on long-term growth through investments in infrastructure, education, banking, agriculture and other sectors. Key initiatives highlighted include the PM Gati Shakti master plan for multi-modal connectivity and a digital push for financial services. The budget also emphasizes renewable energy, green bonds and other climate-friendly policies. Overall, the budget is assessed to provide opportunities for long-term investors in sectors like IT, banking, infrastructure, manufacturing and others.
This document summarizes the findings of a survey conducted in Pakistan to gauge public perceptions about key economic reforms, particularly in taxation and energy sectors. The survey found:
1) There is a lack of understanding among the public about the importance of taxes for funding infrastructure, social services, and addressing issues like energy shortages.
2) Most respondents viewed Pakistan's taxation system as unfair and non-transparent, and did not think their taxes were being effectively utilized.
3) Pakistan has one of the lowest tax-to-GDP ratios in the world, with a very narrow tax base that fails to tax many sectors of the economy including agriculture and some services.
4) Around 42% of respondents agreed
The document summarizes key points about Indonesia's Omnibus Law on Job Creation. It was passed by the House of Representatives to simplify regulations and encourage economic growth. The law aims to help Indonesia achieve 6-8% annual growth to create jobs and exit the middle income trap by 2045. It consolidates over 70 laws and over 1000 articles focusing on simplifying business licensing, enhancing investment, employment protections, and empowering small businesses. The law faces some opposition from labor groups but is intended to revive Indonesia's economy amid the pandemic.
The document provides an overview of monetary and fiscal policy in India. It discusses the objectives and key instruments of monetary policy implemented by the Reserve Bank of India, including open market operations, cash reserve ratio, statutory liquidity ratio, and repo and reverse repo rates. It also covers inflation targeting and factors affecting monetary policy. For fiscal policy, it outlines the role of the central government budget in taxation and expenditure. It discusses fiscal deficit, changes in the 2013-14 budget to curb the deficit, and reviews fiscal and monetary policy challenges in India like high deficit, currency depreciation and lower growth.
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
Dear Reader, India Budget 2016 was delivered by the Finance Minister, Mr. Arun Jaitley on February 29,2016. This Budget appears a sincere attempt to deliver on key expectations and address major challenges within the economic constraints. The budget has been spelt with fiscal consolidation at the core defining the pillars for growth of the economy and leaves a lot of the year to unfold. BDO India LLP brings together an analysis of key changes set out in the Union Budget in their proprietary: INDIA UNION BUDGET 2016 - An Overview.
The Finance Minister presented the Union Budget on 1st February 2017. This is our analysis of the implications of the budget on the Indian Economy and the Markets. We have also shared the stocks that will be the Budget Winners & Losers. We hope you enjoy going through our analysis.
Rsm india budget_2018_key_aspects_in_a_nutshellCA.Amit Sharma
The key aspects of the India Budget 2018 document are:
1. GDP growth is projected to be 6.75% in the current fiscal year and rise to 7-7.5% in 2018-19 due to major reforms. Inflation has hit a 6-year low of 3.3% in 2017-18.
2. For companies with revenues up to Rs. 250 crores, the corporate tax rate has been reduced to 25%. No change in personal income tax rates.
3. Exemption on long term capital gains from equity investments is being withdrawn and such gains will be taxed at 10%. Scope of dividend distribution tax has also been expanded.
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.
Factsheet for Axis Mutual Fund- WishfinAnvi Sharma
The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity related securities. The Scheme Will invest in companies with strong growth & a sustainable business model.
The Union Budget 2015 proposed several key reforms including:
(a) Reducing the corporate tax rate to 25% over the next four years while withdrawing exemptions, (b) Introducing a goods and services tax (GST) planned for April 2016, and (c) Enacting a new bankruptcy code and financial sector reforms such as a public debt management agency. The budget also aimed to boost investment, ease business regulations, and increase spending on infrastructure and social programs through measures like setting up a national investment fund. However, the budget faced some criticism for not providing enough relief for individuals and leaving many still wanting more substantial reforms.
The budget document provides details on key fiscal highlights including a GDP growth target of 9% and a fiscal deficit target of 4.6% of GDP. It outlines plans to lower the corporate tax surcharge and increase the MAT rate. Revenue deficits remain a concern. Spending on infrastructure will increase substantially while social sector spending will rise by 17%. Key reforms are planned for the insurance, pension, and banking sectors. However, concerns remain around achieving deficit targets given the underestimation of subsidies. Overall, the markets reacted modestly to the budget.
The budget document provides details on key fiscal targets and highlights from the Indian budget. The fiscal deficit target for the current year is 4.6% of GDP, which is better than the previous target but may be aggressive given other factors. Revenue deficit is a continuing concern. Some key points include reduced corporate tax surcharges, increased exemption limits for individual taxpayers, and changes to indirect taxes that will make some consumer goods cheaper and some services more expensive. Infrastructure spending saw a large increase but financing remains a challenge. Allocations to social sectors also increased substantially.
The interim budget for 2019 had some positives for farmers and the salaried class but also increased concerns about fiscal stability. Key points announced include a Rs. 75,000 crore package for small farmers, full tax rebate for income up to Rs. 500,000, and higher tax deductions. However, the budget revised the fiscal deficit target to 3.4% of GDP and announced new spending measures, which could put pressure on government finances going forward and impact inflation. The markets reacted cautiously to the budget announcements.
SBI Mutual Fund provides you with the complete overview of the Union Budget 2017-18.
This presentation mainly focuses on the equity market and fixed income market conditions post the Budget.
Visit https://www.sbimf.com to learn more!
The current issue of Economy Matters focuses on “Financial Sector in India”. In Domestic Trends, we present an Economy Overview along with an analysis of the latest data on IIP, Inflation, Fiscal situation, Monsoon and Trade performance. In Policy Focus, we present the highlights of the key policies announced by the Government/RBI during October 2017. Analysis of Canada’s GDP, IMF’s latest global forecast and US Non-Farm Payroll data is covered in Global Trends.
This 3 sentence summary provides the high level information from the document:
The document discusses India's Budget for 2016-17, noting that it maintains the government's commitment to fiscal consolidation while implementing important reforms like reducing corporate tax rates. It also initiates reforms to improve public expenditure management and transition to a medium-term fiscal framework. However, the budget continues practices like increasing cesses and maintaining a high number of tax exemptions that impact revenue collection.
The finance minister maintained a commendable balance between the evenly stronger and mostly diverging compulsions of economic growth, fiscal discipline and political expediency.
Most of the budget provisions are inarguably aimed at ensuring inclusive growth, and bringing in equity in taxation and provisions.
A record number of measures have been introduced, to bring predictability, transparency and conciliation in the tax regime of the country.
The document discusses the Union Budget of India for 2013-2014 that was presented by the Finance Minister P. Chidambaram. Some key points:
- The budget aimed to narrow the fiscal deficit to 4.8% of GDP while raising spending through higher revenues. However, the 2014 shortfall target of 5% may be optimistic.
- Investors were disappointed by the higher-than-expected net borrowing target of Rs. 17,000 crore as it hit market sentiment and the rupee.
- The three month forecast for the USD/INR exchange rate is 55, with risks of further depreciation beyond 55 in the near term. Longer term, the rate is expected to reach
The document discusses expectations for the upcoming 2016 Indian budget across multiple sectors. Key points include:
- Providing tax relief and incentives for sectors like real estate, healthcare, renewable energy, and startups to encourage growth.
- Improving infrastructure and trade conditions by lowering import/export duties and simplifying regulations.
- Addressing education issues like increasing funding, improving accessibility of loans, and encouraging skill development.
- Continuing efforts to improve ease of doing business by reducing corporate taxes and simplifying laws.
- Providing clarity on implementing the Goods and Services Tax (GST) and reforming service tax policies.
The interim budget focused on supporting farmers and the middle class. It allocated Rs. 800 billion for income support to small farmers and increased tax exemptions for individuals. However, it revised the fiscal deficit target to 3.4% of GDP for FY2019 and announced new spending programs, which could put pressure on government finances. The markets reacted cautiously to the increased spending proposals in an otherwise populist budget aimed at the upcoming elections.
The document summarizes the key points of the Indian Economic Survey 2017-18. It was presented by the Finance Ministry to the parliament on January 29, 2018. The survey has two volumes, reviewing India's economic performance in the previous year and outlining new policies and ideas. It highlights major reforms such as the Goods and Services Tax and the bankruptcy code, and expectations of higher growth. The survey forecasts GDP growth of between 7-7.5% for FY2018-19 and inflation to remain below 4%.
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.
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.
The 2012-13 Union Budget aims to cut the fiscal deficit from 5.9% to 5.1% while raising GDP growth to 7.6% through fiscal consolidation and raising additional taxes. Key measures include raising excise and service tax rates, increasing infrastructure investment, allowing foreign dividend repatriation, and introducing new tax-saving investment schemes. However, fiscal targets may be difficult to achieve if revenue falls short, crude oil prices rise substantially, or growth does not recover as projected. Overall the budget focuses on boosting key sectors like infrastructure, health, education, and rural development to support economic growth.
Similar to India Economic Survey 2017 by Edelman India (20)
Edelman India Analysis
Standing in for Mr Arun Jaitley, Finance Minister (FM), Piyush Goyal presented the Union Budget of India earlier today. Highlighting achievements of various Government schemes, Mr Goyal stated that the Government led by Prime Minister Modi has been the most decisive and transformational in executing structural reforms.
Focused on rural and inclusive development over the next 5-10 years, the Budget included significant announcements ahead of the General Elections while also outlining ten dimensions of the Government’s Vision for India’s development by 2030. The launch of, “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN),” which aims to supplement rural income, captured the limelight of this year’s budget. The middle class has also benefited with higher gratuity, broadening of the tax-exempt bracket and waivers on income tax on notional rent. A mega pension scheme for workers in the unorganised sector was also announced along with health coverage under the ‘Ayushman Bharat’ scheme.
The Government has budgeted for overall expenditure of INR 27.8 trillion in 2019-20, an increase of 13% over the previous year’s estimates, while targeting a fiscal deficit of 3.4% in 2019-20 and 3% in 2020-21.
Crisis Management: Practice and PrinciplesAklanta Kalita
“A crisis is an opportunity riding the dangerous wind” --A Chinese proverb
A graphical representation of practice and principles of issues and crisis management.
India Retail Reforms: A saga of uncertainitiesAklanta Kalita
The document discusses India's current policy on foreign direct investment in retail, which only allows up to 51% FDI in single-brand retail. It notes international retailers are expanding in India within this policy. It also outlines different options used by foreign companies to enter the Indian retail market like cash-and-carry wholesale, franchising, joint ventures, and manufacturing. However, the government faces a dilemma in fully liberalizing FDI in multi-brand retail due to concerns about impacts on small retailers and employment.
The document provides details about the 2009 Indian general election results and formation of the new government led by Prime Minister Manmohan Singh and the United Progressive Alliance. Some key points:
- The incumbent UPA won a landslide victory, winning 262 of 543 seats, giving PM Singh a second term.
- Singh was sworn in along with a new 79-member cabinet, with both experienced veterans and younger faces.
- The document outlines the portfolios and priorities of several key ministers, including Finance Minister Pranab Mukherjee focusing on economic growth and reforms.
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The Indian healthcare industry is growing due to factors such as a rising middle class and increasing income and life expectancy. However, there is a mismatch between healthcare demand and supply, with most services concentrated in urban areas while most of the population lives in rural areas. This document outlines several opportunities in the Indian healthcare industry, including expanding infrastructure through public-private partnerships, increasing access through telemedicine, promoting medical tourism due to lower costs, expanding health insurance coverage, and growing the medical devices market through both imports and local production.
According to an assessment India has wind potential of 65,000 MW;
There are land areas with excellent wind project potential where wind speeds exceed 9.0 m/s at 80 meter hub height in some of the higher elevations;
Lower elevation areas also show promise with speeds at 100 m height ranging from 6.5 m/s - 8.0 m/s;
The significant resource coupled with continued government support makes India a very attractive location for wind development;
The document discusses the key elements and factors of communication. It explains that communication is necessary to fulfill 90% of our needs by allowing us to reach out to others. The core elements of communication are identified as a sender, a message, a medium to convey the message, and a receiver. Additional factors that can influence communication are identified as language barriers, cultural differences, noise interference, selective biases, and conflicting ideas.
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Lao Tzu
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While negotiating with the Taxi operators in the Pathankot railway station, we ended up charting out a plan to first visit places in McLoad Ganj and Dharamshala (the land of Buddhist monks) and explore the vast green lands of Palampur on the way back. Though we maintained this travel plan till the end, the tit bits were changed many times in between with many omissions and additions. And at the end of the journey, when we were back to square one, there was consensus amongst us, it was a journey well made.
“I see my path, but I don't know where it leads. Not knowing where I'm going is what inspires me to travel it.” Rosalia de Castro
Travelling on the misty roads to Mcload Ganj, I realized the saying, ‘the journey, not the arrival that matters’. The suns playing ‘hide and seek’ among the trees in the foggy forests on both the sides of the road, touch of the ‘seemingly chilled but no not so cold’ fog on the face, rain drops lashing…it was a path to rejuvenation. Every moment I kept struggling to keep content my heart seeking to jump out and to vanish in the other side of the white vile of fog. The time was short and we had “milesto go before…”
On the way back, I made a promise to the misty land. “I’ll talk about you a lot. I’ll nourish you in the coziness of my heart. I’ll come back to you again.”
The document discusses how things often go wrong in humorous ways. It notes that the presentation is intended for fun and not advice. It also states that the presenter takes no responsibility for any insights gained from it. The document suggests that the universe has a sense of humor and sometimes finds amusement in things going wrong, such as waiting in a long queue only for the counter to close for lunch when it is your turn.
The document discusses the experiences of multinational companies like P&G, Kellogg's, and Fiat in entering and establishing themselves in the Indian market. It notes that many companies initially failed to succeed because they did not properly understand differences in Indian consumer behavior and applied theories and strategies directly from other markets without adapting to the local context in India. Over time, companies that learned to truly localize their products, marketing, and distribution were able to achieve better results in the Indian market. The document also highlights examples of successful localized strategies adopted by companies like ITC, Unilever, and LG Electronics.
The document discusses innovations in the Indian economy and business. It describes how India liberalized its economy in 1991 after a balance of payments crisis, deregulating many industries and encouraging foreign investment and trade. This led to strong economic growth. The document also provides examples of innovative Indian companies like ITC's e-Choupal rural marketing initiative and LG Electronics and HUL adapting products for rural and low-income consumers.
The document discusses India's pharmaceutical industry, including its current size and growth rate. It notes that formulations make up 79% of the industry while bulk drugs account for 21%. The background section outlines how India's Patents Act of 1970 only recognized process patents and led to increased domestic production. It also discusses how India transitioned to a product patent regime in 2005 to comply with TRIPS and how this has impacted multinational companies investing in India.
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Recent Indian investments on the African continent have been made in apparel, food processing, retail ventures, fisheries, commercial real estate and transport construction, tourism, power plants, and telecommunications, among other sectors
- Japan is one of India's top trading partners, with trade growing from $2.2 billion in 2001 to $4.1 billion in 2005. Japanese FDI in India has also increased significantly over this period, from $150.8 million in 2001 to $254.9 million in 2005.
- Major Japanese companies like Maruti Suzuki, Toyota, and Honda have large investments planned in India through 2012 that will total over $2546 million.
- Several Japanese companies have found great success in India, including Maruti Suzuki (largest car maker), Asahi India Glass (largest automotive glass), and Hero Honda (largest two-wheeler maker).
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1. The Economic Survey 2016-17 tabled today in the Parliament by the Union Finance
Minister Shri Arun Jaitley reflects the Indian economy’s resilience to turbulent
external environment, as well as extreme governance measures. In accordance with
projections that real GDP growth rate would range between 7.0 and 7.5 percent, the
economy has recorded a growth rate of 7.0 percent during the fiscal year 2016-17.
GDP growth rate is now targeted at 6.75 percent-7.5 percent for 2017-18, with the
International Monetary Fund also revising its growth projection for India downwards
to 6.6 percent for 2016-17 and 7.2 percent in 2017-18.
Much of the deceleration in India’s GDP growth rate has been attributed to the
November 8, 2016 note ban by the Government, which has shaved off the economic
growth for the current fiscal by 0.25 per cent to 0.50 per cent. The demonetisation
efforts, although reducing discretionary consumer spending and cash money supply
in the short term, are expected to bolster economic activity in the medium and long-
terms. Transparency through greater digitalisation and tax compliance will increase
tax-based revenue collection, with these benefits expected to be evident by as early
as April 2017 with remonetisation coming into effect. The impact on the informal
sector is expected to normalise by year-end, with currency in circulation expected to
align with demand, and, allow growth to converge to a trend by FY 2017-18.
Volatility in the international economic environment, coupled with increased capital
expenditure and governance efforts by the government last year had encouraged
predictions that India would be amongst the world’s fastest growing economies in
2016-17. With speedy remonetisation measures, incentivisation to create a robust
digital economy, early elimination of withdrawal limits, inclusion of land and real
estate in GST, and reduction of tax rates and stamp duties, the country can be
expected to continue to maintain its momentum as one of the world’s fastest growing
economies.
As per the Economic Survey, there has been an improvement in the financial
position of the States over the last few years. The average revenue deficit has been
eliminated, while the average fiscal deficit was curbed to less than 3 percent of
Gross State Domestic Product (GSDP).
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2. The average debt to GSDP ratio has also fallen. However,
the fiscal challenges are likely to mount for the states
owing to the Pay Commission recommendations, and
increasing payments from the UDAY bonds. Therefore,
the Survey recommends to continue fiscal prudence both
by the Centre as well as the States and to incentivise
good fiscal performance, to maintain overall fiscal health
of the economy.
The Survey has suggested setting up of a centralised
Public Sector Asset Rehabilitation Agency (PARA) to solve
the stressed asset problem. It suggests that the PARA
could be given the charge of working out the largest and
most complex cases in a centralised manner. This
approach, as per the Survey could eliminate most of the
obstacles currently plaguing loan resolution. It could solve
the coordination problem, since debts would be
centralised in one agency; it could be set up with proper
incentives by giving it an explicit mandate to maximise
recoveries within a defined time; and it would separate the
loan resolution process from concerns about bank capital.
On PARA’s functions, broadly, the Survey suggests that it
could purchase specified loans (for example, those
belonging to large, over-indebted infrastructure and steel
firms) from banks and then help resolve it. This could be
done either by converting debt to equity and selling the
stakes in auctions or by granting debt reduction,
depending on professional assessments of the value-
maximising strategy.
3.5% fiscal deficit, down
from 3.9%
0.3% CAD, down from
1.5%
3.4% WPI inflation, up
from -2.5%
3.4% CPI inflation, down
from 4.9%
Net INR 23,079 cr FPI
outflow
4.1% agri growth, up
from 1.2%
5.2% industry growth,
down from 7.4%
8.8% service sector
growth, down from 8.9%
4.6% trade deficit,
improved from 7.6%
3.2% net FDI growth, up
from 1.7%
Nominal growth, of USD
11.8 bn forex reserve
16.4% Revenue Expenditure
growth up from 3.2%
-10.4% Capital Expenditure
growth, down from 30.8%
Annual GDP Growth
2014-15 2015-16 2016-17
7%
7.6%
7.2%
The government would then recapitalise them, thereby
restoring financial health and allowing them to shift their
resources – financial and human – back towards the
critical task of making new loans. Similarly, once the
financial viability of the over-indebted enterprises is
restored, they will be able to focus on their operations,
rather than their finances. And they will finally be able to
consider new investments.
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3. Outlook for 2017-18
As per the Survey, India’s exports are likely to recover,
based on an uptick in global economic activity. This is
expected to continue in the aftermath of the US elections
and expectations of a fiscal stimulus. The Economic
Survey also projects that given the high elasticity of Indian
real export growth to global GDP, exports could contribute
to higher growth next year, by as much as 1 percentage
point. The estimate for private consumption is less clear
as international prices of crude oil have started to trend up
after remaining stable for much of the last two years. This
along with rise in the prices of other commodities like coal,
etc. could exert inflationary pressure and have the
potential to adversely impact the trade and fiscal balance,
considering the significant reform measures initiated by
the government.
The fiscal outlook for the central government for next year
will be marked by three factors. First, the increase in the
tax to GDP ratio of about 0.5 percentage points in each of
the last two years, owing to the oil windfall will disappear.
Second, there will be a fiscal windfall both from the high
denomination notes that are not returned to the RBI and
from higher tax collections because of increased
disclosure under the Pradhan Mantra Garib Kalyan Yojana
(PMGKY). These are likely to be one-off in nature, and in
both cases the magnitudes are likely to be uncertain.
A third factor will be the implementation of the GST, which
is likely to be implemented later in the fiscal year. The
transition to GST, admittedly, is complicated from an
administrative and technology perspective. Therefore,
revenue collection will take some time to reach full
potential. Combined with the fact that government is
committed to compensate the states for any shortfall in
their own GST collections, the Survey indicates that the
outlook must be cautious with respect to revenue
collections. The fiscal gains from implementing the GST
and demonetisation is likely to take time to be fully
realised.
The Survey has also advocated the concept of Universal
Basic Income (UBI) as an alternative to the various social
welfare schemes to reduce poverty. The suggestion for a
universal income assumes that the two prerequisites for a
successful UBI are in place i.e., (a) functional JAM (Jan
Dhan, Aadhar and Mobile) system as it ensures that the
cash transfer goes directly into the account of a
beneficiary and (b) Centre-State negotiations on cost
sharing for the programme. The Survey says that the UBI
is a powerful idea whose time even if not ripe for
implementation, is ripe for serious discussion.
Global events, like the Brexit referendum and anticipated
protectionist measures by US President Donald Trump are
expected to significantly affect global trade.
India is well positioned to take advantage of China’s deteriorating competitiveness due to lower wage costs in most Indian
states. The Survey suggests that the Apparel and Leather & Footwear sectors are eminently suitable for generating jobs that
are formal and productive, providing bang-for-buck in terms of jobs created relative to investment and generating exports and
growth.
The Survey suggests a few measures to maximise long-term benefits and minimise short-term costs. One, fast remonetisation
and early elimination of withdrawal limits. This would reduce the GDP growth deceleration and cash hoarding. Two, continued
impetus to digitalisation while ensuring that this transition is gradual, inclusive, based on incentives rather than controls and
appropriately balancing the costs and benefits of cash versus digitalisation. Three, following up demonetisation by bringing
land and real estate into the GST. Four, reducing tax rates and stamp duties. And finally, an improved tax system could
promote greater income declaration and dispel fears of over-zealous tax administration.
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4. Anticipated Key Initiatives
Universal Basic Income
Public Sector Asset Rehabilitation
Agency
➡ Poverty and vulnerability will be reduced in one broad stroke
➡ Beneficiaries treated as agents, citizens entrusted with using
monetary welfare benefits as per their preferences
➡ All individuals targeted, exclusion error of poor being left out is
minimal, although 60 percent inclusion error of rich gaining access to
the scheme
➡ Income floor to provide a safety net against health, income and other
shocks
➡ Encourage greater use of bank accounts, endogenous improvement
in financial inclusion
➡ Increased income will enable access to credit to those with low
income levels
➡ Guaranteed income will reduce pressures of finding basic living on a
daily basis
➡ Replaces plethora of separate government schemes, reducing
administrative burden on the state
➡ Address Twin Balance Sheet problem of
overleveraged companies and bad-loan-
encumbered banks
➡ Make politically difficult decisions to
reduce debt
➡ Maximise recoveries within a defined
time through resolution of a small
number of large, complex cases in a
centralised manner
➡ Separate loan resolution process from
concerns about bank capital
➡ Purchase specified loans from banks
and then help resolve debt
• Cut in individual income tax and real estate stamp duty
• Gradual widening of income tax net
• Harness property tax potential to increase city incomes
• Accelerate cuts in corporate tax
• Inclusion of land & real estate in Goods & Service Tax
• Improve tax administration to reduce discretion & improve accountability
Tax Reform
Incentive for digital
economy
Rapid remonetisation & early removal of cash
withdrawal limits
Labour & tax reform to make Indian apparel & leather
industry globally competitive
• GDP can grow and economy stabilise with remonetisation
• Corporate taxes can increase with formalization and compliance requirements
• Cash shortage to resolve, but at lower levels
• Decline in loan rates anticipated on condition of deposit increases
• Reduced corruption and flow of unaccounted income if compliance adequately incentivized
• Decline in personal wealth expected if real estate sector does not recover
• Public sector liabilities will reduce, increasing overall wealth of government/RBI
• Digital transactions expected to maintain momentum; cash-based transactions expected, but at lower levels
• Real estate prices expected to fall with a higher tax liability if real estate sector included in GST
• Reduced tax arbitrarinessFuture impact of
demonetisation
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5. Edelman India’s Public Affairs (PA) practice combines industry, regulatory affairs and communications knowledge to develop
and execute PA campaigns based on solid research and insights that inform impactful strategies.
We work with our clients to anticipate issues; plan and respond to the emerging challenges at national, state and local levels
At the core of the offering, is the ability to develop long term relationships and maintain constant engagement instead of an
ad-hoc approach.
Our team of 30 personnel includes senior industry professionals, domain experts, researchers and writers from a wide
range of backgrounds. We have access to an extended group of advisors from civil service, media and NGO circles who
help us navigate the vast and complex stakeholder universe in India.
Edelman India has offices in Mumbai, Delhi, Bangalore and a vast network of representatives in state capitals.