The AGR (Adjusted Gross Revenue) woes has come back to haunt the telecom companies with the Supreme Court refusing to grant any relief to the companies. While Airtel appears reasonably well placed, things looks quite tough for Vodafone Idea. Here is a look at the company, its financials and why things could be tough for … Continue reading Vodafone Idea – Braving the AGR Crisis…
A term being deliberated upon a great deal after this year’s budget is “extra budgetary resources (EBR)”. Essentially, it is an accounting adjustment which helps government take some of its expenses off the annual budget and thus, show a lower deficit. So, what exactly is EBR, how government gets it and how it helps. Here … Continue reading Extra Budgetary Resources (EBR) – Who Foots the Bill?
The report of 15th Finance Commission, tabled in the parliament on the day of the budget, was lost in the din of budget. The Finance Commission (FC) is an important constitutional body which helps preserve the federal structure of the nation. Its basic objective is to recommend allocation of funds from total tax revenue between … Continue reading Finance Commission Report – Understanding the Formula for Devolution to States
Real estate sector is among the most hit and most talked about sector amidst the current slowdown. However, property prices haven’t corrected sufficiently despite the stress across all the affected segments, banks, NBFCs and the developers themselves. The stalemate has forced the Economic Survey to advise developers to take a ‘hair-cut’ to revive the market. … Continue reading Real Estate Sector – Down but Not Out!
The first and the most important figure economists and all analysts look at while analyzing the budget is the fiscal deficit (FD) as a percent of GDP. For FY20, FD has been revised up sharply from 3.3% to 3.8%, a result of significantly lower revenue mop-up. For FY21 also, it is projected to remain high … Continue reading Understanding Deficit Terminologies
Against total receipt of Rs 22.4 lakh crore, government is projected to spend nearly Rs 30.4 lakh crore in FY21. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. Here is a look at the details of various government expenses. Government’s expenditure classification is possibly … Continue reading Budget – Revenue & Expenditure Analysis (Part II)
The Budget proposal for year 2020-21 projects total expenditure of Rs 30.4 lakh crore against receipt of Rs 22.4 lakh crore. This implies shortfall of Rs 8.0 lakh crore corresponding to 3.5% of projected GDP. For 2019-20, budget has been off the mark by a huge margin, with fiscal deficit estimated to be 3.8% of GDP … Continue reading Budget – Revenue & Expenditure Analysis (Part I)
The budget proposals for the year 2020-21 has foxed the markets with Sensex declining by almost 1,000 points. This is so because even though it has taken several measures which would benefit the investors and profitability of domestic companies, it hasn’t made any big bang announcement to boost consumption or even investment. While the budget has certainly not lived up to the expectation, it has taken several structural measures to remove leakages and improve the ease of compliance/ ease of doing business. Here is a look at some of these. Continue reading Budget 2020-21 – Reason for Cheer or for Disappointment??
The Economic Survey 2019-20, presented in the Parliament today, seeks to give respectability to the process of wealth creation and to the wealth creators. This looks contradictory to the focus of the government on rooting out corrupt business practices over last five years. However, looked closely, the entire narrative of the Economic Survey is interspersed with discourse on ethical wealth creation so that it leads to, as stated by Adam Smith, “universal opulence which extends itself to the lowest ranks of the people.” Here is a look at some of the dimensions of Indian economy and their impact on growth. Continue reading The Economic Survey – Food for Thought..
The pre-budget deliberations are largely focused on how much would be the fiscal slippage for the current year (FY20) and what would be the extent of borrowings projections for FY21. The exercise this year is probably the toughest in recent years, a delicate balancing act trying to demonstrate commitment to fiscal discipline on one hand … Continue reading Budget – Five Decades of Public Finance..