What is new
FM Shuns Risks & Innovation in the Growth-Centric Budget
- Published on 18 July 2014
FM Weighing Risks? Image Courtsey: PIB
The Modi Government’s maiden budget has been hailed as please-all, investment friendly, growth-oriented, non-inflationary budget and in other positive descriptions by different stakeholders.
Even critics of NDA Government would privately agree that the Budget would stimulate savings and investments in economy especially in sectors such as housing that have been hand-picked for tax and non-tax favours.
The Finance Minister Arun Jaitley’s strategy to manage fiscal deficit through enhanced plan investments and increase revenue through growth is commendable. It is better than his predecessor’s approach to squeeze plan and non-plan expenditure that results in lower revenue receipts and jobless growth.
Now that the claptrap bandwagon has moved on, it is time to judge the Union Budget for 2014-15 against yardsticks other than the immediate objectives of rescuing the economy from downslide and restarting the investment cycle.
The Budget scores poor marks when judged against the norms of political will to take fiscal risks or initiate non-populist measures. It is bereft of taxation reforms including non-controversial ones such as merging surcharge and additional levies into the main tax. The Budget suffers from credibility deficit, which can be measured by the failure to implement the Government’s intent as stated in the pre-Budget Economic Survey, Election Manifesto and the budget documents.
The Budget, of course, scores high marks when judged against the yardstick of populism, announcement of new schemes with measly allocations and capability to pass off old wine in the new bottle.
Path to Defence Exports
- Published on 18 July 2014
(Published by Gfiles Magazine July 2014 issue)
Modi Govt should opt for 5-yrs tax hike-free, innovative budget
- Published on 06 July 2014
Sniffing innovation in budget-image courtesy: PIB
The Narendra Modi Government is treading the path laid down by the UPA Government. It is also working in the same fashion as any previous government-proceed as advised by the bureaucrats and make select deviations necessitated by political compulsions.
The new Government has so far done nothing creative in its first month of operation. It has not made any worthwhile announcement. Even the organizational restructuring of the Government achieved through clubbing of certain ministerial portfolios is nothing but slipshod implementation of certain recommendations made by Administrative Reforms Commission (ARC) during the UPA regime.
With monsoon set to be deficient, the Government faces an uphill task of taming inflation and accelerating growth without putting additional burden on the common man.
The new Government has to think imaginatively to usher in Acche Din (good days) for all – work opportunities for all, growth for all, essential amenities for all, peace for all and happiness for all. The annual budget to be presented by the Minister for Finance, Defence and Corporate Affairs, Arun Jaitley, on 10th July would indicate whether the Government has the political will to embrace innovative and good governance.
Before suggesting a few ideas for tax-free and imaginative budget, let us see how the Government has so far failed to live up to the public expectations. It did not bring out a white paper, listing the major socio-economic challenges faced by the country and suggesting the way forward.
It did not put in public domain numerous reports and studies on national development and social welfare that UPA Government kept under the wraps, making a mockery of the Right to Information Act.
GREEN SIGNAL TO GROWTH: growth got mired in environmental clearances under the UPA regime.
- Published on 06 July 2014
(Published by India Legal Magazine dated 30th June 2014)