Budget – Revenue & Expenditure Analysis (Part II)

Against total receipt of Rs 19.8 lakh crore, government is projected to spend nearly Rs 34.8 lakh crore in FY22. 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 more … Continue reading Budget – Revenue & Expenditure Analysis (Part II)
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Buget 2021-22 – Not A ‘Never Before’ Budget

The budget for the year 2021-22, presented in the Parliament today, wasn’t quite the ‘never before’ budget as stated by the Finance Minister a few days back. To qualify for that, the minister should have found innovative ways to raise resources or ways to reduce expenditure while managing the same outcome. Or even, any path-breaking initiative to comprehensively monitor, review and audit all major government schemes and progressively reduce allocation on ineffective schemes. Yet, the budget has soothed nerves by not imposing any additional tax or Covid cess which gets reflected in the stock market movement. Here is a look at some of the highlights. Continue reading Buget 2021-22 – Not A ‘Never Before’ Budget

The Economic Survey 2020-21 – Highlights

The Economic Survey, tabled in the Parliament today, makes a sombre reading with narrative woven around the ‘once in a century’ pandemic. The Survey projects the economy to shrink from Rs 145.7 lakh crore to Rs 134.4 lakh crore in the current financial year (FY21), a decline of about 7.8% (constant price). However, the bigger concern is that GDP is projected to reach only Rs 149.2 lakh crore in FY22, only 2.4% higher than FY20 level. Here is a look at some of the issues raised in the Survey. Continue reading The Economic Survey 2020-21 – Highlights

The Year That was – Economy & Policy

The year 2020 is possibly the most horrible year since the end of second world war. The all-pervasive influence of the pandemic made the turbulence of last few years a breeze. However, that was not the only crisis India, as a nation had to face with China creating another trouble spot on the borders. Here is a look at some of the far-reaching events of the year. Continue reading The Year That was – Economy & Policy

Food Processing Industry – An Overview

Covid-19 seems to have brought greater attention to food processing industry, with most of the population having increased their spending on the same. For the nation, the challenge was to produce enough to feed its people fifty years ago, the objective now is to help agri-producers move up the value chain. India, at the moment, … Continue reading Food Processing Industry – An Overview
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State of the Economy – Analysing the Liquidity Condition

Indian economy, indeed, global economy is going through an extraordinary loose monetary policy phase to minimise the impact of Covid-19. While the policy hasn’t yet led to the intended outcome of higher borrowing, it certainly has led to sharp increase in market liquidity. This poses another set of risks, although not immediately. But what exactly … Continue reading State of the Economy – Analysing the Liquidity Condition
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EPFO Payroll Data – Estimating the Recovery After Covid-19

While Covid-19 led to unprecedented job losses, the latest EPFO (Employees’ Provident Fund Organisation) data provide considerable hopes of reversion to normalcy. As per the latest release, Indian economy added close to 15 lakh new jobs during Sept’20. This has not only compensated for jobs lost during April-May but helped total jobs added during first … Continue reading EPFO Payroll Data – Estimating the Recovery After Covid-19
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GDP, Sept’20 Quarter – Analyzing the Performance

The GDP for quarter ended Sept’20 (Q2’FY21) recorded a decline of 7.5%, as per the data released by NSO (National Statistical Office) today. While the contraction would have been a cause of great worry, it is actually quite comforting in the current circumstances. Another positive for the quarter is growth recorded by manufacturing sector, although marginally, which had declined for three successive quarters even before COVID-19. However, what is intriguing is that government curtailed its expenditure during the quarter without waiting for the full recovery. Looking at the performance, it is quite likely that the economy may be able to restrict full year contraction to about 6-7%, lower than projections of close to 10% made so far. Here is a brief analysis of GDP and its constituents. Continue reading GDP, Sept’20 Quarter – Analyzing the Performance