ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Search

Advanced Search

Budget 2017-18Subscribe to Budget 2017-18

Erroneous Understanding of Macroeconomic Challenges

Vol. 52, Issue No. 9, 04 Mar, 2017
C P Chandrasekhar

The government chose not to adequately expand budgetary expenditure to stimulate aggregate demand due to an erroneous understanding of India’s macroeconomic challenges. It relies heavily on imagined fiscal gains from demonetisation and the introduction of the Goods and Services Tax regime. The Union Budget 2017–18 was a missed opportunity for the government and our economy.

Emerging Issues in Union–State Fiscal Relations

Vol. 52, Issue No. 9, 04 Mar, 2017
Pinaki Chakraborty

The restructuring of non-Finance Commission Grants is an improvement when it comes to scheme-related transfers. However, when 10 schemes constitute 90% of core grants, there is further scope for rationalisation of these schemes. The implications of following a sustainable debt path under the new Fiscal Responsibility and Budget Management framework in the budget indicate a larger fi scal correction at the state level vis-à-vis the union government.

Business as Usual

Vol. 52, Issue No. 9, 04 Mar, 2017
M Govinda Rao

The global situation is tense, marked with protectionism. The domestic environment is constrained by the twin balance sheet crisis. The dull investment climate was further jeopardised by the note ban. The budget has failed to create a policy environment to kick-start a virtuous investment cycle. It has failed to address critical issue of accelerating employment.

What Does the Rural Economy Need?

Vol. 52, Issue No. 9, 04 Mar, 2017
Amit Basole

The agricultural sector has performed worse than the other sectors over the years. The shares of non-agricultural employment and output have increased, while70% of agricultural householdscannot meet their low consumptionneeds even after diversification of sources of income. An analysis of budgetary provisions for the rural economy suggests that the government has not done enough to address some of these well-documented problems, and does not have the required vision to substantially increase rural employment opportunities.

An Examination of Revenue Generation

Vol. 52, Issue No. 9, 04 Mar, 2017
Ajit Karnik, Mala Lalvani

The revenue side of the budget is scrutinised to understand if the government is being realistic about revenue generation in 2017–18. Clearly, there is over-optimism, given that economic growth will be slow. Too much is expected from voluntary disclosure and penalties, while incentives are not in place. It would make sense to allow some slippage in the deficit targets in order to revive the economy. In addition, the increasing problem of cesses is discussed with reference to the Krishi Kalyan Cess to assess whether cesses serve the purpose for which they are introduced.

Back to Top

EPW

Term & Policy

Circulation

Advertisement

Connect with us