Indian Economy-News & Updates

[Levina]

@ranjeet @Levina @Skull and Bones @Rain Man @Abingdonboy @nair @Nair saab @Brahmaputra Mail @JanjaWeed @Parul @LaBong @Echo_419 @[Bregs] @IndoCarib @The Huskar @magudi @Sky lord @itachii @TejasMk3 @Jai Bharat @Tridibans @mpk1988 @noksss @zebra7 @Ind4Ever @anant_s @Srinivas @HariPrasad @MilSpec @AUSTERLITZ @SpArK @SR-91 @Kickstarter101

It hurts the common man most.

 

[Echo_419]

If its the truth then that would serve the nation in a big way with the rolling of our economic engines. But if i understand such numbers in terms of taxes collected to investments have to show in some place. You think Budget when figures are quoted could throw some light about utilization of these funds? also since we have not gone very aggressive with our disinvestment drive, i think this collection may not serve the purpose of infra investments but albeit it may be for adjusting fall of other sources of income where we practically failed to meet or achieve our target.



Thats true.. anything in the range of 55-65 is now the new normal and i guess every monthly budget for transport considers such a price avg

This government has massively increased it's spending in Infra specially Roads & Railways.Do check the press information bureau for more info

 

[PARIKRAMA]

It will be in Defence and it will not show fully in Budget.

Sir, are you hinting towards procurement, capex opex type use of funds.. ? or towards uses like OROP

 

[ranjeet]

Will offer attractive VRS: Geete on Hindustan Cables shutdown | Business Standard News

 

[HariPrasad]

View attachment 284533

@ranjeet @Levina @Skull and Bones @Rain Man @Abingdonboy @nair @Nair saab @Brahmaputra Mail @JanjaWeed @Parul @LaBong @Echo_419 @[Bregs] @IndoCarib @The Huskar @magudi @Sky lord @itachii @TejasMk3 @Jai Bharat @Tridibans @mpk1988 @noksss @zebra7 @Ind4Ever @anant_s @Srinivas @HariPrasad @MilSpec @AUSTERLITZ @SpArK @SR-91 @Kickstarter101

this is really a great step by Modi government. We can get at least 1 lakh Rs of additional money which we may use in infrastructure and supporting poor of India. I recommend some tax on Mobile communication also. Out of around 2 lakh crores, we can link rivers, provide irrigation, build roads and highways.

 

[anant_s]

View attachment 284533

@ranjeet @Levina @Skull and Bones @Rain Man @Abingdonboy @nair @Nair saab @Brahmaputra Mail @JanjaWeed @Parul @LaBong @Echo_419 @[Bregs] @IndoCarib @The Huskar @magudi @Sky lord @itachii @TejasMk3 @Jai Bharat @Tridibans @mpk1988 @noksss @zebra7 @Ind4Ever @anant_s @Srinivas @HariPrasad @MilSpec @AUSTERLITZ @SpArK @SR-91 @Kickstarter101

Strange as it may sound, Government is actually using RBI's Red line to increase Petrol prices.
Governor Rajan said that he'll target 5-6% range for inflation. Since most commodity prices are low coupled with low crude prices, government is ramping taxes and levies on petrol, keeping final price same. What it translates to is more money goes to goverments kitty than fuel companies.
So far so good. the important point is how well government will use this money.

 

[magudi]

this is really a great step by Modi government. We can get at least 1 lakh Rs of additional money which we may use in infrastructure and supporting poor of India. I recommend some tax on Mobile communication also. Out of around 2 lakh crores, we can link rivers, provide irrigation, build roads and highways.

So far so good. the important point is how well government will use this money.

@PARIKRAMA

Rs. 1.4 lakh crore cess money lies idle - The Hindu

Cess you pay often unused or diverted: CAG - Times of India

 

[anant_s]

@PARIKRAMA

Rs. 1.4 lakh crore cess money lies idle - The Hindu

Cess you pay often unused or diverted: CAG - Times of India

Cutting of CAD even further and heavy push for infra sector and banks recapitalization, i think this time government will not miss.
Important thing is not to spend on populist schemes.

 

[magudi]

Cutting of CAD even further and heavy push for infra sector and banks recapitalization, i think this time government will not miss.
Important thing is not to spend on populist schemes.

I think with Bihar loss the 2016 budget might see a populist turn

 

[H.B.]

Sir, are you hinting towards procurement, capex opex type use of funds.. ? or towards uses like OROP

This is at the moment a conjecture on my part.

 

[anant_s]

I think with Bihar loss the 2016 budget might see a populist turn

That would be tragic!
Government and RBI will have to follow a policy of fiscal prudence and discipline for atleast 6-7 years to bring back economy in shape.
Most think that GDP growth rate is sole indicator of economic health, whereas how government manages its revenue and expenditure is far more important.
Luckily India didnt indulge in deficit spending during recession years and generate unmanageable debt.
Now its all a question of how we improve agriculture and manufacturing sector. If things go well here, coupled with GST bill, i dont think there is anything stopping us from 10+% growth rate in a sustainable manner with low borrowings and deficit on goverments account.

 

[PARIKRAMA]

pls no populist budget measures.. its gonna be 2 years soon post May win in elections.. If they do populist measures now for state elections then when will they do anything for the country..

Jaitley will go bald if he chooses to do another "chidambaram"... !!!

 

[magudi]

pls no populist budget measures.. its gonna be 2 years soon post May win in elections.. If they do populist measures now for state elections then when will they do anything for the country..

Jaitley will go bald if he chooses to do another "chidambaram"... !!!

I am wondering why Jaitley asked for defence ? We haven't seen anything groundbreaking in his 6 months tenure as Def Min.Parrikar was supposed to be the man to clean up everything ,change procurement modalities and infuse some pro activeness into lazy babudom.Where would parrikar go then ?Who willbe the new Fin Min

 

[H.B.]

If indeed Jaitley is moved out, possible candidates outside the know ones can be Piyush Goyal or Sushil Modi

 

[magudi]

That would be tragic!
Government and RBI will have to follow a policy of fiscal prudence and discipline for atleast 6-7 years to bring back economy in shape.
Most think that GDP growth rate is sole indicator of economic health, whereas how government manages its revenue and expenditure is far more important.
Luckily India didnt indulge in deficit spending during recession years and generate unmanageable debt.
Now its all a question of how we improve agriculture and manufacturing sector. If things go well here, coupled with GST bill, i dont think there is anything stopping us from 10+% growth rate in a sustainable manner with low borrowings and deficit on goverments account.

I don't think GST is as much a Saviour as it is touted to be ,at least not in its current form.The real catalyst for economy will be being able to pass - the real estate bill,land bill, bankruptcy code,various labour reform bills, and the small factories bill that seeks to exempt small companies from the heavy burden of regulation -IMHO congress will do everything in its power to scuttle these - already there are rumors that only budget presentation will be allowed in the next session and rest will be a washout on DDCA issue.