Pranab is all set to play Magic to reset Policy making Process to change the Traditional Budget which would have impact on Planning, Legislation and day to day Governance! Be Aware
Mulnivasi Bahujan! Be Aware ! Budget Ahead! The Master Manipulater FM Pranab Mukherjee, the Kayastha Brahamin has already discussed with the India Incs and MNC heads beside getting dictations from Washington.This time Renewal reform Agenda is topmost priority on his agenda. DTC and GST would change the Taxation and Excluded Communities would lose everything.The powerhouse for the Brahaminical system OBC Communities would lose most as the LPG Mafia rule has Denied OBC headcount violating Parliamentary Consensus and Constitution!Finance Minister Pranab Mukherjee will attempt to nudge entrepreneurs to invest more by unveiling a raft of investor-friendly policies in the budgetto be presented in March, as the government looks to revive the economy without raising fiscal deficit.These policies include sops for infrastructure and labour-intensive industries and incentives to attract investment in sectors such as urea, a commonly-used fertiliser, and cold chains and supply chains that help maintain the quality of food produce.
It is very positive that we are addressing Economic issues and the problems of Working Class on Mulnivasi Bamcef Forum. Rashtriya Mulnivasi Sangh, Mahila Sangh and Bharat Mukti Morcha do follow the guidelines set by National President Waman Meshram Ji. The Budget should aim at raising the Gross Domestic Product (GDP) growth rate to 8% in 2012-13 from the expected 7% in the current fiscal, according to Planning Commissiondeputy chairman Montek Singh Ahluwalia. "We should be aiming at 8% (growth) next year and from then onward, we can build on to a more rapid growth. Most important thing is this regard, in my view, would be a Budget that signals a return to fiscal consolidation," Ahluwalia said in an interview with Karan Thapar on CNBC TV-18. "The government's objective in the Budget should be to recover the momentum of growth," he said, adding that the Union Budget, to be presented in mid-March, will be a very important and critical signal. The media and Economists argue that combination of high interest rates and slow decision-making by the government, widely referred to as policy paralysis, had stalled investments. Gross fixed capitalformation, a measure of investments, contracted 0.7% in the second quarter of the current fiscal from a year ago.
The Union Budget for 2012-2013 will be an interesting one to watch, not just for the local audience but for foreign observers as well. India's gross domestic product threatens to expand by a lowly 7 percent in the fiscal year ending March 2012 and investors, businesses and consumers will be watching to see if the government takes any confidence-boosting steps to reverse that trend. According to a report in The Economic Times, they won't be disappointed. It predicts Finance Minister Pranab Mukherjee will introduce a reforms-studded budget to spur investments and economic activity. The measures will, in particular, include sops for infrastructure, as well as incentives for investments in sectors such as fertilisers, cold chains and agricultural supply chains. "Driving investments will be one of the key areas. The focus would be on measures for sectors such as infrastructure and those that benefit agriculture and employment generation," a government official is quoted as saying by the newspaper. About time too. Large-scale investments have practically stalled in the country due to a toxic mix of regulatory hurdles, environmental and land acquisition issues and high interest rates. Investments in agriculture will be particularly welcome because they will go a long way in reducing wastages, improving output and most importantly, curbing food inflation, which, notwithstanding the current and possibly temporary dip in food prices, seems like it will be around for quite a while.
Earlier, the government had sought to improve the agricultural supply chain by allowing foreign retail giants like Wal-Mart and Carrefour to open shops in India if they invested a certain portion of their funds in back-end (supply) infrastructure. However, that proposal backfired after intense political opposition to foreign entry in India's multi-brand retail sector forced the government to retreat on the idea. Nevertheless, the fact remains that agriculture is crying out for investments and reforms for the sector will be a big plus for the economy — and the government, which, in recent times, has been accused of being 'policy comatose.' Ditto for any measures to promote infrastructure, which has felt the brunt of a drop in investment proposals (they dropped to a five-year low recently). There is absolutely no argument over the fact that India needs more roads, ports and railways. Of course, this possibly reformist zeal to further throw open the doors to private investments is, no doubt, being stoked by the fact that on its own, the government has very little to spend to prop up the economy.
Mukherjee has conceded that the government is likely to miss the fiscal deficit target of 4.6% of GDP in the current fiscal, increasing pressure to rein in spending.
The budget could announce easing of norms governing foreign investment in infrastructure and set up a dedicated infrastructure debt fund to provide support to public-private projects. It may also attempt to spur ureaproduction by subsidising use of imported natural gas. The subsidy will be limited to the difference between imported and cheaper domestic gas and is intended to protect the investor and government from large fluctuations in gas prices. * The cold chain policy in the works may allow the operator of the chain to source farm products from anywhere in the country rather than from the state where it is located. "Sentiments are down... They must take measures in the budget and make it a policy statement," said Rajiv Kumar, secretary general, FICCI. But some experts said attention should also be paid to fiscal consolidation. "They will have to make pro-investment noises.
Fiscal deficit is key because that will determine cost of funding...," said Abheek Barua, chief economist, HDFC Bank. Unlike 2008, the government does not have the leeway to step up spending to generate demand and is looking to spur private spending through policy impetus. A senior World Bank official today said that the country can return to achieving nine percent growth if the government removes uncertainties in policy-making and go for early implementation of some of the long pending tax laws. "The worst thing for investment is not knowing what is coming next. And if that can be tackled by the government, its going to restart the process of 8-9 percent growth," World Bank's Chief Economist forSouth Asia Region Kalpana Kochhar told reporters here on the sidelines of a CII event.
As an immediate solution on the fiscal side, Kochhar suggested early implementation of long pending reforms like the Goods and Services Tax and Direct Tax Code on the revenue side and reducing subsidies to control the expenditure. Vijay Kelkar, chairman of National Stock Exchange and former Finance Secretary was more critical and blamed 'bad policies' for low growth and the resultant impact on employment. Uncertainties in policies result in investors staying off from the country, he said and pointed out to the retrospective nature of tax laws and non-conformity of contracts in the country as severe constraints faced by investors. "That's not the way to encourage investment, not the way to encourage growth because you are increasing cost of risk capital. Nothing hurts investor (more) than not knowing what his tax burden is going to be," he said. Due to global problems like slowdown in the euro zone and domestic issues like widening fiscal deficit, depreciating currency, inflation and the consequent rate hikes by the Reserve Bank, the government has been forced to downwardly revise its FY12 growth forecast.
As against the budgeted 9 percent, it now estimates FY12 GDP growth will be around 7.5 percent while a slew of analysts have pegged it at 7 percent. The industry has been vociferously attacking the government for its policy paralysis which is resulting in the slower growth, pointing out specifically to rollback on allowing multi-brand foreign direct investment, targeting corporate honchos in 2G spectrum scam and delays in environmental clearances for projects. Kelkar drew parallels between the country and other emerging economies and said India discourages employment-intensive manufacturing sector like no other country by heavily taxing the units. A step like GST is urgently required, he observed. The government last month revised the growth forecast for the current fiscal downward to 7.5% on domestic concerns like high inflation and slowing industrial output, besides a global slowdown. The Indian economy had expanded by 8.5% in 2010-11.
During the first half this fiscal, economic growth stood at 7.3%. In the second quarter (July-September) of 2011-12, growth slipped to a two-year low of 6.9%. "How much we can do to uncork the bottlenecks in infrastructure depends on the confidence that the Budget can bring in. But I think it would be reasonable for us to try to try to take the economy back to 8% (growth)," Ahluwalia said. Ahluwalia said the aim in the near-term should be to create conditions for greater investment by both the private and public sector. "Public Sector Undertakings (PSUs) have a lot of cash and they should be investing in energy or infrastructure. I think those are the things we should be focusing (on)...," he said.
According to Ahluwalia, it would be possible to signal international investors that India's growth fell to around 7%, but is on the way up again. "There would not be too many countries doing that, other than China," the Plan panel deputy chief said. He pegged growth in the current fiscal at around 7%. "I think we are going to end the year with around 7% growth. We are going to end the year without the panic about inflation... That's a good time to look at what the next year is going to look like," Ahluwalia said. He said in a time when sovereign ratings of many euro zone countries have been downgraded and global uncertainty, markets in India and abroad are looking to see which countries are positioning themselves well.
"In my view, India is in a position where we could give signals that position us well," he said. The World bank today launched a report titled "More and better jobs in south Asia" which points out the need for reforms across sectors to create and sustain multi-sectoral jobs. In the future, the region will have to create enough jobs to absorb up to 1.2 million new entrants into the labour force, it said.
It is very positive that we are addressing Economic issues and the problems of Working Class on Mulnivasi Bamcef Forum. Rashtriya Mulnivasi Sangh, Mahila Sangh and Bharat Mukti Morcha do follow the guidelines set by National President Waman Meshram Ji. The Budget should aim at raising the Gross Domestic Product (GDP) growth rate to 8% in 2012-13 from the expected 7% in the current fiscal, according to Planning Commissiondeputy chairman Montek Singh Ahluwalia. "We should be aiming at 8% (growth) next year and from then onward, we can build on to a more rapid growth. Most important thing is this regard, in my view, would be a Budget that signals a return to fiscal consolidation," Ahluwalia said in an interview with Karan Thapar on CNBC TV-18. "The government's objective in the Budget should be to recover the momentum of growth," he said, adding that the Union Budget, to be presented in mid-March, will be a very important and critical signal. The media and Economists argue that combination of high interest rates and slow decision-making by the government, widely referred to as policy paralysis, had stalled investments. Gross fixed capitalformation, a measure of investments, contracted 0.7% in the second quarter of the current fiscal from a year ago.
The Union Budget for 2012-2013 will be an interesting one to watch, not just for the local audience but for foreign observers as well. India's gross domestic product threatens to expand by a lowly 7 percent in the fiscal year ending March 2012 and investors, businesses and consumers will be watching to see if the government takes any confidence-boosting steps to reverse that trend. According to a report in The Economic Times, they won't be disappointed. It predicts Finance Minister Pranab Mukherjee will introduce a reforms-studded budget to spur investments and economic activity. The measures will, in particular, include sops for infrastructure, as well as incentives for investments in sectors such as fertilisers, cold chains and agricultural supply chains. "Driving investments will be one of the key areas. The focus would be on measures for sectors such as infrastructure and those that benefit agriculture and employment generation," a government official is quoted as saying by the newspaper. About time too. Large-scale investments have practically stalled in the country due to a toxic mix of regulatory hurdles, environmental and land acquisition issues and high interest rates. Investments in agriculture will be particularly welcome because they will go a long way in reducing wastages, improving output and most importantly, curbing food inflation, which, notwithstanding the current and possibly temporary dip in food prices, seems like it will be around for quite a while.
Earlier, the government had sought to improve the agricultural supply chain by allowing foreign retail giants like Wal-Mart and Carrefour to open shops in India if they invested a certain portion of their funds in back-end (supply) infrastructure. However, that proposal backfired after intense political opposition to foreign entry in India's multi-brand retail sector forced the government to retreat on the idea. Nevertheless, the fact remains that agriculture is crying out for investments and reforms for the sector will be a big plus for the economy — and the government, which, in recent times, has been accused of being 'policy comatose.' Ditto for any measures to promote infrastructure, which has felt the brunt of a drop in investment proposals (they dropped to a five-year low recently). There is absolutely no argument over the fact that India needs more roads, ports and railways. Of course, this possibly reformist zeal to further throw open the doors to private investments is, no doubt, being stoked by the fact that on its own, the government has very little to spend to prop up the economy.
Mukherjee has conceded that the government is likely to miss the fiscal deficit target of 4.6% of GDP in the current fiscal, increasing pressure to rein in spending.
The budget could announce easing of norms governing foreign investment in infrastructure and set up a dedicated infrastructure debt fund to provide support to public-private projects. It may also attempt to spur ureaproduction by subsidising use of imported natural gas. The subsidy will be limited to the difference between imported and cheaper domestic gas and is intended to protect the investor and government from large fluctuations in gas prices. * The cold chain policy in the works may allow the operator of the chain to source farm products from anywhere in the country rather than from the state where it is located. "Sentiments are down... They must take measures in the budget and make it a policy statement," said Rajiv Kumar, secretary general, FICCI. But some experts said attention should also be paid to fiscal consolidation. "They will have to make pro-investment noises. Fiscal deficit is key because that will determine cost of funding...," said Abheek Barua, chief economist, HDFC Bank. Unlike 2008, the government does not have the leeway to step up spending to generate demand and is looking to spur private spending through policy impetus. A senior World Bank official today said that the country can return to achieving nine percent growth if the government removes uncertainties in policy-making and go for early implementation of some of the long pending tax laws. "The worst thing for investment is not knowing what is coming next. And if that can be tackled by the government, its going to restart the process of 8-9 percent growth," World Bank's Chief Economist forSouth Asia Region Kalpana Kochhar told reporters here on the sidelines of a CII event.
As an immediate solution on the fiscal side, Kochhar suggested early implementation of long pending reforms like the Goods and Services Tax and Direct Tax Code on the revenue side and reducing subsidies to control the expenditure. Vijay Kelkar, chairman of National Stock Exchange and former Finance Secretary was more critical and blamed 'bad policies' for low growth and the resultant impact on employment. Uncertainties in policies result in investors staying off from the country, he said and pointed out to the retrospective nature of tax laws and non-conformity of contracts in the country as severe constraints faced by investors. "That's not the way to encourage investment, not the way to encourage growth because you are increasing cost of risk capital. Nothing hurts investor (more) than not knowing what his tax burden is going to be," he said. Due to global problems like slowdown in the euro zone and domestic issues like widening fiscal deficit, depreciating currency, inflation and the consequent rate hikes by the Reserve Bank, the government has been forced to downwardly revise its FY12 growth forecast.
As against the budgeted 9 percent, it now estimates FY12 GDP growth will be around 7.5 percent while a slew of analysts have pegged it at 7 percent. The industry has been vociferously attacking the government for its policy paralysis which is resulting in the slower growth, pointing out specifically to rollback on allowing multi-brand foreign direct investment, targeting corporate honchos in 2G spectrum scam and delays in environmental clearances for projects. Kelkar drew parallels between the country and other emerging economies and said India discourages employment-intensive manufacturing sector like no other country by heavily taxing the units. A step like GST is urgently required, he observed. The government last month revised the growth forecast for the current fiscal downward to 7.5% on domestic concerns like high inflation and slowing industrial output, besides a global slowdown. The Indian economy had expanded by 8.5% in 2010-11.
During the first half this fiscal, economic growth stood at 7.3%. In the second quarter (July-September) of 2011-12, growth slipped to a two-year low of 6.9%. "How much we can do to uncork the bottlenecks in infrastructure depends on the confidence that the Budget can bring in. But I think it would be reasonable for us to try to try to take the economy back to 8% (growth)," Ahluwalia said. Ahluwalia said the aim in the near-term should be to create conditions for greater investment by both the private and public sector. "Public Sector Undertakings (PSUs) have a lot of cash and they should be investing in energy or infrastructure. I think those are the things we should be focusing (on)...," he said.
According to Ahluwalia, it would be possible to signal international investors that India's growth fell to around 7%, but is on the way up again. "There would not be too many countries doing that, other than China," the Plan panel deputy chief said. He pegged growth in the current fiscal at around 7%. "I think we are going to end the year with around 7% growth. We are going to end the year without the panic about inflation... That's a good time to look at what the next year is going to look like," Ahluwalia said. He said in a time when sovereign ratings of many euro zone countries have been downgraded and global uncertainty, markets in India and abroad are looking to see which countries are positioning themselves well.
"In my view, India is in a position where we could give signals that position us well," he said. The World bank today launched a report titled "More and better jobs in south Asia" which points out the need for reforms across sectors to create and sustain multi-sectoral jobs. In the future, the region will have to create enough jobs to absorb up to 1.2 million new entrants into the labour force, it said.
Posts
No comments:
Post a Comment