The most awaited full fledged budget of NDA government will kick off from February 23. This budget is important from the viewpoint of new political regime that have received a massive electoral victory in general election of 2014. People of India across every social strata have very high hope and expectation from the government on economic platform.
However what is most important point to observe here is, it will be a showcase of Narendra modi vision with Arun Jaitely presenting finance budget and Sadanand Gowda presenting railway budget.
The budget will be presented at time when GDP growth has picked up and retail inflation is lowest in last 5 years. At the same time whole world has slipped into slow economic depression impacting demand of goods and services. However what matters most to country like India is steep fall in crude oil prices to below $50 per barrel.
The government seemed very serious in reforms in industry by "MAKE IN INDIA" programme and changing the way the subsidies are distributed. In initial stages it has shown a good trend but it have to go miles in correcting all these things. Government is showing keen interest in GOODS AND SERVICES TAX and may push this bill in current upcoming session.
The issue to worry is cut in social sector expenditure across various schemes such as ICDS, MID DAY MEAL, FOOD SECURITY ACT, MGNREGA etcetera. From the past records of government there might be cut in health , education sector and subsidies as well.
The logic behind slashing subsidies and social sector expenditure is that most of the part goes to undeserved people. The solution to this problem is revamping the system through these services are delivered and this may be done by clean and efficient third tier of government. India should take forward the issue of co operative federalism and make it happen.
The government should focus on increasing capital expenditure i.e. to build road, railways, power plants etcetera so that in short term it generate employment in infrastructure sector and in long term it start yielding to boom the economy. To increase capital expenditure government should focus on the revenue foregone in the form various tax incentives.
Another issue that is very important here is to revive investment cycle that has slowed down in past decade. For that to happen overall confidence in investor has to be enhanced by removing the bottleneck of slow clearances of files.
However what is most important point to observe here is, it will be a showcase of Narendra modi vision with Arun Jaitely presenting finance budget and Sadanand Gowda presenting railway budget.
The budget will be presented at time when GDP growth has picked up and retail inflation is lowest in last 5 years. At the same time whole world has slipped into slow economic depression impacting demand of goods and services. However what matters most to country like India is steep fall in crude oil prices to below $50 per barrel.
EXPECTATION ON REFORMS
The government seemed very serious in reforms in industry by "MAKE IN INDIA" programme and changing the way the subsidies are distributed. In initial stages it has shown a good trend but it have to go miles in correcting all these things. Government is showing keen interest in GOODS AND SERVICES TAX and may push this bill in current upcoming session.
The issue to worry is cut in social sector expenditure across various schemes such as ICDS, MID DAY MEAL, FOOD SECURITY ACT, MGNREGA etcetera. From the past records of government there might be cut in health , education sector and subsidies as well.
The logic behind slashing subsidies and social sector expenditure is that most of the part goes to undeserved people. The solution to this problem is revamping the system through these services are delivered and this may be done by clean and efficient third tier of government. India should take forward the issue of co operative federalism and make it happen.
The government should focus on increasing capital expenditure i.e. to build road, railways, power plants etcetera so that in short term it generate employment in infrastructure sector and in long term it start yielding to boom the economy. To increase capital expenditure government should focus on the revenue foregone in the form various tax incentives.
Another issue that is very important here is to revive investment cycle that has slowed down in past decade. For that to happen overall confidence in investor has to be enhanced by removing the bottleneck of slow clearances of files.
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