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

Budget

Budget
The opportunity provided by high growth and a comfortable revenue situation to make a serious attempt to boost allocations for education and agriculture has been allowed to slip away. The high...
cess has been increased from 2 to 3 per Implications for Education cent this year, the implications of which Budget 2007 has increased allocation for basic education and initiated some fresh...
article examines the fiscal adjustment that the Union Budget 2007-08 aims at. It also looks at how the growth momentum of the economy can be maintained by, among other things, easing infrastructure...
Finance minister P Chidambaram claims that Budget 2007 addresses the challenges confronting Indian agriculture. How true is this claim?
By not paying attention to the wish lists of business and industry groups, P Chidambaram has done the right thing. The measures related to tax reform in Budget 2007 are the correct ones, but fiscal...
The Union Budget 2007-08 utterly fails to appropriately respond to the social needs of a situation of profit inflation. The situation demanded an increase in government expenditure relative to gross...
This article first argues why independent taxation of corporate profits and dividend incomes has ill-effects on equity and efficiency and then considers the merits and drawbacks of tax alternatives...
The tax expenditure statement or the statement of revenue foregone presented for the first time in the 2006-07 union budget deserves to be welcomed for its efforts to impart greater transparency to...
India's defence spending keeps rising - for internal and external operations, on manpower and armaments - and yet little of this is subject to much interrogation.
Reforms of indirect taxes in the budget amount to almost nothing. Customs tariffs have remained about the same while the number of exemptions have increased. In the case of CENVAT, rules remain...
Many more incentives, programmes and policy corrections than have been announced in the budget are required if yearly agricultural growth is to accelerate from 1.5 per cent to 4 per cent.
The emphasis on better utilisation of existing capacity in the Indian railways has obviously come to stay, though the railway budget of 2006-07 also outlines investment possibilities that are to be...
What kind of Goods and Services Tax is under contemplation? Will it only replace CENVAT and the service taxes levied by the centre, leaving, the state VATs untouched? Or will it also displace the...
There is nothing special in the union budget for the education sector, but for a noticeable increase in budgetary outlays for elementary education, possible because of the education cess. Adult as...
This article attempts to judge the fiscal performance of the UPA and NDA governments from the point of view of broad macro-fiscal indicators. On the tax front, the UPA deserves credit for improved...
This article examines the allocations for health in the budget in the light of the commitments made in the National Common Minimum Programme and the trend in state governments' expenditures. The...
The fringe benefits tax and the tax on cash withdrawals has attracted controversy, but it is the abolition of the category of 'Standard Deduction' in income tax law which is a faux pas. The finance...
The announcement of the National Rural Health Mission and the commitment in the recent budget to increase allocations for health are necessary steps in the right direction to correct India's...
An attempt is made here to evaluate recent reform of the non-corporate tax structure by examining its current base, the rate structure, selected administration reforms and likely implications of...
Budget 2005-06 seeks to paint a picture of a government committed to pushing the development of sectors that have been neglected during the process of economic reforms. Unfortunately, it wishes to do...
The finance minister has tried to balance economic reforms and social justice in tune with the Common Minimum Programme. However, given the degree of agrarian distress and problem of low wages and...
The reform packages that the different governments have come up with might have varied in terms of the language used, but have been identical in content. Not much public debate has ever taken place...
In a democracy many of the measures that are necessary for mass employment generation and of utility to the masses are branded as being populist. This budget is populist only because it proposes...
The budget appears to be a balancing act between conflicting interests, and appears to be carrying forward the reform process.
Its obvious importance notwithstanding, the power sector seems to have been overlooked in the budget proposals. Despite the fact that power cuts and poor quality of supply are rampant across the...
The macroeconomic situation is likely to remain challenging in the coming months. Some of the assumptions behind the budget may turn out to be overly optimistic and require adjustments in plans.
Expanding the insurance services without considering whether medical services are available or not is a sure way of making the scheme dysfunctional from the beginning. Who will regulate the practices...
Well-accepted epidemiological, managerial and social dimensions of a health service system need to be factored in if the financing of healthcare is to yield commensurate results. There is no evidence...
The finance minister had clear evidence supported by a mass of data that there was an urgent need to propose strategic measures on healthcare and fund these programmes adequately. The proposals on...
While the finance minister is motivated primarily by revenue considerations in his approach to transaction tax by providing exemption on long-term capital gains and slashing the rate on short-term...
The budget is an attempt to endow the reforms initiated in 1991, and carried further by Chidambaram in his earlier incarnation as union finance minister, with a human face. But the humanity of the...
The budget offers no measures to alleviate the debt burden of farmers. Meagre amounts have been promised for investment in infrastructure and for employment generation. In fact, the central plan...
There is no escaping the fact that the finance minister was under severe constraints in making this budget. Not much in the way of fiscal consolidation or redeployment of resources to socially...
Budget 2004-05 promises towards ensuring attention to neglected sectors appear based on optimism as well as coalition compromise. Direct tax collections appear over-projected and a shortfall could...
The union budget seems to have been drafted keeping in mind the stability of the government, while the Karnataka budget has tackled a few of the real problems affecting farmers. Clearly Karnataka's...
The budget proposals, instead of introducing a 'tariff with only a few exceptions', have actually complicated the tariff structure in customs and excise, and burdened it with even more exemptions. If...
As an analysis of previous budgets reveals that there has always been a wide divergence between the government's promises and its performance. Overall there is very little connection between planned...
This is after all a coalition budget and so unless the finance minister is strong and has strategic dominance over the coalition, large debt and deficits are inevitable. However even within those...
The focus of this article is not so much the quantitative or specific aspects of the budget as some qualitative issues regarding the economy. It touches on some developing trends and, since the...
In the Budget for 2003-04 the government has sought to underwrite risks faced by different segments of the population. When governments assume additional risks it is necessary to ask whether the mode...
The lifetime concerns of individuals, though a key focus of the Budget for 2003-04, are nevertheless addressed in such a way that human capital - the engine of growth - will not be accumulated in an...
The 2003-04 Budget fails to address the major problems of agriculture, employment generation and the social sector.
The Budget for 2003-04 expects that the softening of interest rates will continue. However, the analysis here suggests while demand for funds both from a revival of normal economic activities and...
The growth impetus that is hoped for in the 2003-04 Budget is to come not from any structural changes in the economy or through pushing up infrastructure investment, but is expected to be consumption...
Fiscal consolidation is a desirable goal in itself and would also facilitate the attainment of the other four objectives of the 2003-04 Budget. Such consolidation would require, primarily, a...
The tax proposals are weak and smack of scattershot populism of the years prior to 1991. A saving grace is the strong commitment to reform of procedures but at present this is only a statement of...
The finance minister has sought to convey, however subtly, that we can live with the present level of the fiscal deficit without getting killed, meaning, we can still achieve a growth rate of around...
The finance minister has claimed that his objective is to "eliminate procedural complexities, reduce paperwork, simplify tax administration�enforce efficiency�[and] move away from a...
This essay seeks to provide a framework for evaluating budgets in the context of the economic reform programme. The seven effective tests of a good budget proposed are: (i) How well does the budget...
A number of concessions in the form of reduced excise, customs, or income tax exemptions have been announced for the healthcare industry. However, healthcare also needs to be viewed as a service...
As a corollary of market reforms, monetary policy and particularly interest rates have become the most important policy instrument, though the Reserve Bank of India's actions receive far less public...
In the last two years there has been a decline in the tax/GDP ratio but this year the finance minister intends to reverse that mainly through mopping up more corporation and income and service taxes...
How are budgets to be judged? Judgments are often made from specific viewpoints. However, focusing on a single criterion such as the fiscal or the revenue deficit is unsatisfactory, as it does not...
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