Tags Posts tagged with "Part 1"

Part 1

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Modi government has advanced the presentation of the Budget by one month

Modi government has advanced the presentation of the Budget by one month, it has removed the separate Railways Budget and it has merged the two categories of “planned” and “non-planned” spending.

According to the Part I of the Economic Survey presented at the beginning of Budget session, growth for fiscal year 2016-17 was 7.1%. Its deflated value is due to demonetisation. Survey implicitly blames the high interest policy of the RBI for thwarting industrial growth.

According to it, the continuing deflationary trends rise from:

  • Lower investment ratio.
  • Low farm prices.
  • The cutting back on development spending by State governments.
  • The twin balance sheet problem.

The Survey mentions Uttar Pradesh which had to slash its development spending by 13% in order to waive the farm loan.

However, the situation at the Centre is improving. Exports are positive. Four major reforms are taken:

  • GST.
  • A new insolvency and bankruptcy code to deal with NPAs.
  • A new monetary policy framework.
  • Aadhaar linkage.