An 11-Point Agenda for the Union Budget
Weighed down by internal pressures from the party to present a Budget that gets accolades from a large voter constituency in the face of General Elections 2019, Finance Minister Arun Jaitley,  has a few ready options to pep up the economy.
 
1. Go all out to clear the misgivings on the Financial Resolution and Deposit Insurance (FRDI) Bill by incorporating oral assurances given in the Parliament into the proposed Bill.
 
2. Announce a winding up plan for the sinking PSBs instead of piling them on to those that are working efficiently.
 
3. Insist on all the banks to stick to banking work instead of selling third party products that carry hefty commissions as these products are invariably dumping unknown and unannounced risks on the unsuspecting users. Restart development banks to finance Infrastructure. Turn banks into growth engines.
 
4. Announce withdrawal of government funded programmes that failed to take off or made only a symbolic entry. Over 110 schemes launched for the Micro, Small & Medium Enterprises (MSMEs) failed to reach even 0.5% of the eligible enterprises. These resources can be earmarked to finance those schemes that showed performance. 
 
5. Re-engineer financial incentives to go online only with appropriate safeguards also announced. Fiscal incentives have more transparency than financial incentives. 
 
6. Scrap all the cess hat have no specific account of expenditure earmarked for them.
 
7. Appoint a committee to amend the treasury code with its rules formulated during the British Raj. This is the root cause of corruption and delays in the release of funds for government expenditure. 
 
8. Announce the date for incorporating the related Rules whenever the Parliament passes a particular Bill, so as to remove ambiguity and ensure compliance. Every Act must have priority do-ables for all the stakeholders as an Abstract. 
 
9. Introduce a modicum of agricultural tax, with a threshold of income over Rs25 lakh per annum. All the small and marginal farmers, as well as tenant farmers will be exempt as they would have not earned this much even for a five year period. The rate for them can be 10% over the Rs25 lakhs. Multiple slabs need not exist for them.
 
10. Manufacturing start ups should be tax exempt for five years or till their turnover crosses Rs2 crore.
 
11. All corporations spending a minimum of 5% on research and development or incubation centres recognised by the governments shall be exempt for such spend, treating it as Investment.
 
The FM would do well to make specific allocations for agriculture, education and social services that make good sense not just from the viewpoint of electoral benefits but as overall economic benefits. It is obvious that the Fiscal Responsibility and Budget Management Act, 2003 (FRBM) will be thrown overboard but for some jugglery with numbers. There are a few states like Telangana, AP and Karnataka that have introduced agricultural budgets. It will be necessary for the Union government to go in sync with the states in its ideal of cooperative federalism to ensure the outcomes. 
 
(The author is Adviser, Telangana Industrial Health Clinic, Government of Telangana. Views in this article are personal.) 
 
Like this story? Get our top stories by email.

User

India's wholesale price inflation eases to 3.58% in December
India's annual rate of inflation based on wholesale prices eased to 3.58 per cent in December, official data showed on Monday.
 
According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI), with the revised base year of 2011-12, was 3.93 per cent in November.
 
However, the WPI-based inflation rate was higher than 2.10 per cent reported for the corresponding month of the previous year.
 
"Build up inflation rate in the financial year so far was 2.21 per cent compared to a build up rate of 3.71 per cent in the corresponding period of the previous year," the ministry said in a statement.
 
On a sequential basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI's total weightage, edged higher by 3.86 per cent, from an increase of 5.28 per cent in November.
 
The prices of food articles rose by 4.72 per cent from an acceleration of 6.06 per cent in the previous corresponding month.
 
On a year-on-year (YoY) basis, food prices in December rose by 4.72 per cent from a rise of only 0.07 per cent.
 
In terms of individual items, onion prices soared higher by 197.05 per cent, whereas for potatoes it plunged by (-)8.40 per cent.
 
In contrast, the overall vegetable prices in November rose by 56.46 per cent, against a fall of (-)26.88 per cent in the same month a year ago.
 
As per data, wheat became cheaper by (-) 8.47 per cent on YoY basis and the prices of pulses came down by (-) 34.60 per cent, but paddy became dearer by 3.19 per cent.
 
On the other hand, protein-based food items such as eggs, meat and fish became expensive by 1.67 per cent during the month.
 
Prices of the other major group under the WPI, manufactured products, which comprise nearly 64.23 per cent of the index, recorded a 2.61 per cent rise.
 
The sub-category of manufactured food products registered a decline of (-) 0.23 per cent.
 
Fuel and power prices accelerated by 9.16 per cent.
 
Product-wise, the price of high-speed diesel rose by 12.68 per cent during December while that of petrol climbed by 8.80 per cent and for LPG by 21.14 per cent.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

User

India's retail inflation in December shoots up to 5.21%
Continuing rise in food and fuel prices pushed India's annual retail inflation rate over the five per cent mark in December, official data showed on Friday.
 
According to the data furnished by the Ministry of Statistics and Programme Implementation, December's consumer price index (CPI) inflation rose to 5.21 per cent, from 4.88 per cent in November.
 
On a year-on-year (YoY) basis, the CPI inflation last month was higher than the 3.41 per cent recorded in December 2016.
 
The Consumer food price index (CFPI) in December stood at 4.96 per cent compared to the 4.42 per cent of November 2017.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

Like this story? Get our top stories by email.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)