Indian Government contains fiscal deficit at 4%; beats its own target

[Chanakya's_Chant]

According to Morgan Stanley estimates, India’s current account will swing into a minor surplus of 0.3% of GDP in 2015 on improving terms of trade and decline in gold imports.

India’s Current Account to swing into surplus for the first time since 2004 - Moneylife

 

[uparyupari]

According to Morgan Stanley estimates, India’s current account will swing into a minor surplus of 0.3% of GDP in 2015 on improving terms of trade and decline in gold imports.

India’s Current Account to swing into surplus for the first time since 2004 - Moneylife

No no no ..... its all lies. Its all because of Oil.

After all, Modi is a Teli

 

[WAR-rior]

I am not sure what made you say the bold part however will this link help?? This is July 10, 14 when he was going for interim budget

Expert views: Jaitley sticks to fiscal deficit target of 4.1 pct| Reuters

As said no doubt oil played its part but denying fiscal prudence by the govt. is intellectual dishonesty...Raising taxes on oil products was a masterstroke by the govt., no?? Low oil prices saved lot of money however a substantial amount of it has been used for manufacturing gains, no?? Can we deny the role of exorbitant amount of money that has been pumped into Indian markets because of India's prospective growth story?? $3.65 billion is the amount that we got by auctioning coal mines...spectrum also in the similar ranges...

I will repeat once again...oil prices gave an opportunity, however that was not the only factor..also getting an opportunity is one thing en-cashing it is another, no??

Dude. what are u saying? Temme, had the oil prices not fallen, can the govt had decreased the oil proces for consumers and increase the excise duty all at the same time?

Obviously, govt took actions and thats what u are focussing on. I only say that the reason govt was able to take action was because of the favorable circumstances.

Do u really think if oil proces wud have not fallen any of these steps was possible? Opposition wud have killed the govt in the liu of state elections in past one year if govt had increased the excise duty without decreasing the consumer price of petroleum products. The buffer for these low consumer prices was only coz of decreased oil prices.

On other words let me ask u, if international oil prices wudnt have decreased cud the govt had reached 4.1% fis def considering the all important state elections it had to go thru. Calculate and say.

No no no ..... its all lies. Its all because of Oil.

After all, Modi is a Teli

No No No. Its all coz of Modi coz he is God. A magician to undo all the UPA sins in one year all of his own. Hail Na Mo Na Mo Na Mo..........

 

[HariPrasad]

Dont give this to Modi. It's all coz of oil prices.

But domestic petrol prize decreased with international price too resulting in low tax collection and increase in deficit. Had it been trade deficit, your point wold have been valid. What you are saying is contrary to economic principles.

 

[WAR-rior]

But domestic petrol prize decreased with international price too resulting in low tax collection. Had it been trade deficite, your point wold have been valid.

Nopes. Recollect again. Govt was smart enuf to decrese the consumer price but increase the excise duty. Remember? Now this excise duty increase was only possible coz of the window provided by decreased oil prices.

People here are only focussing on steps taken by govt. But frankly, steps cant be taken until and unless external opportunities arent provided that too within one year of taking control.

You tell me, do u believe that good governance only brought this decreased fisc def? That too within one year whereas any govt needs time to revert the undoings of previous ones if the conditions are constant.

 

[HariPrasad]

Indirect tax collections jumped 46.2% in April - The Economic Times

Oh My god!!!!!!! this is mind boggling. 46.2% hike is indirect taxation is beyond my imagination.

Nopes. Recollect again. Govt was smart enuf to decrese the consumer price but increase the excise duty. Remember? Now this excise duty increase was only possible coz of the window provided by decreased oil prices.

All right so we have to see the balance. On one hand there is a rise in duty and on other hand there is a down fall in price resulting in lower duty collection. They are to opposite phenomena. We can precisely say what is the effect if we have those DATA available. Let us assume that deficite in duty collection made up by increase in duty rate resulting in no major deficite/surplus. So 4% is very good.

You tell me, do u believe that good governance only brought this decreased fisc def? That too within one year whereas any govt needs time to revert the undoings of previous ones if the conditions are constant.

This mind boggling 112% increase in Excercise came from 3 factors.
1) Increase in Excercise duty.
2) Picking up in manufacturing sector.
3) Effective duty collection.

First 2 are certainly not enough to Hike excercise duty beyond 22 to 25%. Rest came from effective collection. i.e good governance.

 

[WAR-rior]

Oh My god!!!!!!! this is mind boggling. 46.2% hike is indirect taxation is beyond my imagination.



All right so we have to see the balance. On one hand there is a rise in duty and on other hand there is a down fall in price resulting in lower duty collection. They are to opposite phenomena. We can precisely say what is the effect if we have those DATA available. Let us assume that deficite in duty collection made up by increase in duty rate resulting in no major deficite/surplus. So 4% is very good.



This mind boggling 112% increase in Excercise came from 3 factors.
1) Increase in Excercise duty.
2) Picking up in manufacturing sector.
3) Effective duty collection.

First 2 are certainly not enough to Hike excercise duty beyond 22 to 25%. Rest came from effective collection. i.e good governance.

U know, this effective duty collection was becase of the infrastructure placed already by the bueraucracy under the previous govt. U are talking bout the vehicle and its efficiency which I agree is the major factor. But what good wud be the vehicle if there is no excise available? The reason of the 3rd one being effictive is the availability of 1st option. Hope u understand what i am saying.

 

[HariPrasad]

U know, this effective duty collection was becase of the infrastructure placed already by the bueraucracy under the previous govt. U are talking bout the vehicle and its efficiency which I agree is the major factor. But what good wud be the vehicle if there is no excise available? The reason of the 3rd one being effictive is the availability of 1st option. Hope u understand what i am saying.

Yes, All the governments did good jobs in plugging those loopholes of revenue drainage. So credit goes to all but BJP government had always been good on administration of policy front.

This happens.

In chandrashekhar government, Dr. subramanian swamy draw a plan of economic revival of India as a trade and commerce minister. Chandrashekhar government fell down and Narsimha rao appointed MM as FM . He implemented swamy's plan and got the credit of economy revival.

 

[WAR-rior]

Yes, All the governments did good jobs in plugging those loopholes of revenue drainage. So credit goes to all but BJP government had always been good on administration of policy front.

Yes they are and that can be seen in other aspects of administration. But regarding fiscal deficit decrease only because of magic of Modi govt is hilarious and uneducated. thats the whole argument.

Frankly, I do believe Modi will be a true magician but pragmatically that can be possible only after some years. Trees arent grown immediately after sowing seeds.

 

[HariPrasad]

Yes Agree. We have witnessed his magic in Gujarat. His magic is there from day one but effect shall be visible after some time.

 

[luoshan]

That's greater news. Thanks a lot to low oil prices.

 

[saurav]

A new FM is needed. We need a Swamy/Shourie/Sinha type FM as economy is now ripe to take off.

 

[WAR-rior]

A new FM is needed. We need a Swamy/Shourie/Sinha type FM as economy is now ripe to take off.

Jaitelys good. And more important his subordinate (MoS-Finance) is the best we can get. So everythings good. And Modi will never replace Jaitely coy hes a team. Modi dont like people outside his team.U know what i mean.

 

[uparyupari]

No No No. Its all coz of Modi coz he is God. A magician to undo all the UPA sins in one year all of his own. Hail Na Mo Na Mo Na Mo..........

But ..but but ... he is not "secular".

That means he cannot bring inflation down. Its all because of OIL.

 

[WAR-rior]

But ..but but ... he is not "secular".

That means he cannot bring inflation down. Its all because of OIL.

Dude. Just coz u have problem with secularism doesnt mean Modi becomes God. He was utter lucky to see his 4.1% target achieved only in a year no matter how good governance he produced. Even good initiatives take couple of years to reap in results.

Anyways, u live with ur Modi is God attitude. I wud be judging him on his actions. Unlike u Bhakts on one side or AdarshLiberal Seculars on other side. I am an NRI so for me actions matter, allegiance to any ideology doesnt.