The budget proposal for the year 2019-20, presented in the parliament today, didn’t enthuse the market as seen by the decline in Senses. It does seem to lack tangible proposals and the ones which it had were largely negative such as increase in tax/cess on fuel & gold, increase in tax rates for high income group etc. More importantly, the market expected some specific stimulus such as rebate on investment, specific direction to banks to lend etc to kick start the economy even if it led to higher fiscal deficit. Some of the specific initiatives related to economic and business issues are listed below. Continue reading Budget 2019-20 – Highlights..
The week (including the last weekend) was quite eventful with release of some macro numbers and several developments on the corporate front. Among the major events are release of WPI inflation data, disappointment for FPIs as there is no change in their tax status, release of results by DHFL, promoters’ feud at Indigo and China’s … Continue reading Weekly Round Up – Week 29
Even though the market remains roiled by instances of default by NBFCs and their impact on other financial institutions, risk faced by the entire financial sector has actually come down. This is as per the financial stability report (FSR) released by RBI a few weeks back. While that looks difficult to believe, it is due … Continue reading How Stable is the Financial Market?? – RBI Report
Among the issues covered by the Economic Survey this year are the gains arising out of technological intervention in MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme). The scheme has received even greater push with the technological interventions such as direct benefit transfer (DBT), Aadhar and more recently, Geo-tagging of assets. Even though MGNREGS has … Continue reading Efficiency and Efficacy of MGNREGS – The Economic Survey
The budget proposal to tap global market to raise debt for the government is a marked reversal from the policy followed over last three decades. While the decision has raised considerable debate and voices express concern, the move is actually a very wise one. Other than helping government meet its funding needs at lower cost, … Continue reading Analyzing India’s External Debt Movement
Against total receipt of Rs 20.8 lakh crore, government is projected to spend nearly Rs 27.9 lakh crore in FY20. This implies a budget or fiscal deficit of Rs 7.1 lakh crore or 3.3% of GDP. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. … Continue reading Budget 2019-20 – Revenue & Expenditure Analysis (Part II)
The Budget proposed for year 2019-20 projects total expenditure of Rs 27.9 lakh crore against receipt of Rs 20.8 lakh crore. This implies shortfall of Rs 7.1 lakh crore corresponding to 3.3% of GDP. The budget figures have an additional dimension of analysis as they would need to be compared with the figures projected in … Continue reading Budget 2019-20 – Revenue & Expenditure Analysis (Part I)
The Economic Survey for the year 2018-19, presented in the parliament today, puts forward a prescription for India to become $5 trillion economy by 2024-25. However, the survey acknowledges the current headwinds which would continue to affect the growth for 2019-20 and therefore, makes the target a distant dream. Even though the survey provides some … Continue reading The Economic Survey, 2018-19 – Highlights
The employment survey report for the year 2017-18 released late last month paints a grim picture of the employment scenario in the country. While employment situation has never been satisfactory in the country, the report this time has received greater attention as it has been mired with certain controversies. Other than that, report also gives … Continue reading Status of Employment in India – Government Report..
Dewan Housing Finance Corporation Ltd (DHFL) had a bad last month with series of defaults/delayed payments, downgrade of debt papers to default grade, sale of some of the assets and talks on transfer of ownership to save the company. So, what all is happening to the company with total assets of over Rs 1.25 lakh … Continue reading DHFL – Understanding the Crisis