Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

ET Explains: Six ways in which the Budget can turn the economy around.


Date: 25-01-2020
Subject: ET Explains: Six ways in which the Budget can turn the economy around
The upcoming Budget is being presented in the backdrop of a slowing economy and rising inflation. Concerns over India slipping into stagflation have taken centre stage. The first advance estimates put India's economic growth at 5 per cent for the current fiscal. Government has pinned hopes on the economy turning a corner in the second half after growth slipped to 4.5 per cent in the second quarter.

Government responded promptly to the deteriorating growth numbers and cut the corporate tax along with other measures to bolster a flagging economy. Come February 1, all eyes will be on finance minister Nirmala Sitharaman, who will present her second Budget at a time when concerns over government meeting its fiscal deficit target have mounted as revenue collection has taken a hit.

What can Sitharaman do to present a Big-Bang Budget? Here is a six-point solution:

1. Forget fiscal consolidation for the time being
To start with the government can come clean on the fiscal deficit numbers by reporting the off-Budget numbers and redraw the glide path taking into consideration the present state of the economy. Many experts, including the former finance secretary S C Garg, have said that India's deficit is larger than what is reported. A report in this paper said that the government is planning to report the true extent of India's fiscal def ..

2. Cut personal income tax, give more to consumers
Another major intervention will be to go for a cut in personal income tax following up on the earlier announcement of reduction in corporate tax. While the latter will spur investment in the economy which has crashed to just one per cent growth in the current fiscal from ten per cent in the previous year, the former can boot the economy in the short term. The government can implement the Akhilesh Ranjan committee's report on  ..

3. Ease credit flow to boost demand
India's consumption economy took a hit post the NBFC crisis deepened. The government had announced a partial credit guarantee scheme for NBFCs in December. According to a report in this paper, the government could come up with a Troubled Assets Repurchase Programme (TARP)-like solution for India's beleaguered NBFC sector to provide more lending room to the shadow lenders.

4. Stick with the asset monetisation plan
The government is likely to complete the strategic sale of Air India, BPCL, Concor and Shipping Corporation in the next fiscal. That, along with a stake sale in Axis Bank and ITC held through SUUTI, can bolster the disinvestment programme for the next fiscal providing funds for increased investments on creating key capital assets.


5. Booster shot for Markets: Abolish LTCG and DDT
With a cut in corporate tax, calls for similar concessions on LTCG and Dividend Distribution Tax have become louder. If the government abolishes the LTCG and the DDT, it could come as a huge sentiment booster for the markets and put more money in the hands of the industry for investment. Another proposal is to tax the dividend income at the hands of the investor rather than the company.

6. Ramp up infra spending, rural allocations
The government can increase allocation on its schemes targeted at those living in rural areas. The government can increase allocation in MGNREGS and PM Kisan to lift rural demand. Clarity on funding for the Rs 102 lakh crore National Infrastructure Pipeline (NIP) announced by finance minister Nirmala Sitharaman will stimulate private investment. The government can raise the Rs 2 lakh cap on interest deduction for home loans to revi ..

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 09-05-2025
Notification No. 29/2025-Customs
Seeks to exempt works of art and antiques from Basic Customs Duty

Date: 30-04-2025
Notification No. 02/2025-Customs (CVD)
Seeks to amend Notification No. 05/2024-Customs (CVD) dated the 11th September, 2024 so as to align with changes made vide Finance Act, 2025

Date: 30-04-2025
Notification No. 26/2025-Customs
Seeks to rescind Notification No. 04/2025-Customs dated the 1st February, 2025

Date: 30-04-2025
Notification No. 27/2025-Customs
Seeks to amend Second Schedule to the Customs Tariff Act, to align it with changes made in the First Schedule to the Customs Tariff Act vide Finance Act, 2025.

Date: 30-04-2025
Notification No. 28/2025-Customs
Seeks to amend Notification no. 27/2011-customs dated 1 st March, 2011 and Notification No. 22/2024-Customs, dated 2 nd April, 2024 to align them with the changes made in the Second Schedule to the Customs Tariff Act.

Date: 30-04-2025
Notification No. 33/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

Date: 28-04-2025
Notification No. 24/2025-Customs
Seeks to amend List 34A and 34B of the Notification No. 50/2017-Customs dated 30.06.2017

Date: 24-04-2025
Notification No.31/2025-Customs (N.T.)
Goods Imported (Conditions of Transshipment) Regulations, 2025

Date: 23-04-2025
Notification No. 28/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 17-04-2025
Notification No. 26/2025 – Customs (N.T.)
Amendment to Notification No. 77/2023-Customs (N.T.) dated 20.10.2023 - Revision of rate of duty drawback of Gold jewellery and silver jewellery/articles



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001