The Budget for year 2017-18 projects a total shortfall of Rs 5.5 lakh crore with total expenditure projected at Rs 21.5 lakh crore against receipt (excluding states’ share) of Rs 16 lakh crore . A look at the different components of the budget.
Continue reading “Budget – Revenue and Expenditure Analysis..”
Greece debt crisis seems to have divided Euro area and IMF with fresh warning coming from IMF of potential debt default by Greece. The crisis which began in 2009, causing erosion of as much as 25% of GDP, unemployment rate at nearly the same percent, refuses to provide any comfort to the nation as also … Continue reading Understanding Greece Debt Crisis…
Belying the expectations of a rate cut, the monetary policy committee (MPC) has not only decided to keep the rates unchanged in its meeting today but more importantly, has shifted its stance from “accommodative” to “neutral’. This is “to assess the transitory effects of demonetization on inflation and the output gap”. The shift marks a significant … Continue reading Monetary Policy – From "Accommodative" to "Neutral" stance..
With various announcements in the budget for 2017-18, two important trends that emerge are the thrust on increasing tax/GDP ratio and increasing capital expenditure. For the first time after FY08, tax/GDP ratio is expected to cross 11%. More importantly, a large part of this would come from increase in income tax collection, more distributive method … Continue reading Budget Trends – Increasing Tax/GDP Ratio and Capital Expenditure..
The most important and the first number any economist looks at while analyzing the budget is the fiscal deficit which has been projected to be 3.2% of GDP for 2017-18. However, other than that, budget also throws up other deficit numbers such as primary deficit, revenue deficit and effective revenue deficit..! So what all are these … Continue reading Budget – Understanding Deficit Terminologies…
The union budget for the year 2017-18, presented today by the finance minister makes no big bang announcements but the undercurrent is loud and clear. The society – individuals and corporate – has to become more transparent and more accountable; in FM’s words, a move towards ‘clean India’. The Finance Minister announced a series of … Continue reading Budget 2017-18 – From 'Swachh Bharat' to 'Clean India'..!