Source: The Hindu Gs2: Parliament and State Legislatures- Budgeting Synopsis: A close analysis of Budget 2021 reveals that the Government is following the principle of fiscal conservatism. The policy of Fiscal spending was the need of the hour. Why the government resorts to fiscal conservatism? Falling revenues had forced the government to restrict its aggregate… Continue reading Budget 2021: Continues with fiscal conservatism
Tag: ECO_0
Budget 2021: Despite some hits, the Budget has crucial misses
Synopsis: The recently released budget 2021 has got a few things right, but there are some issues as well. Introduction The government’s response to distress in the economy was below expectations. Public spending was just over 1% of GDP. It was in a situation when GDP growth was in the negative zone and the unemployment… Continue reading Budget 2021: Despite some hits, the Budget has crucial misses
Retrospective Taxation: Cairns Issue
Why in News? Cairn Energy has asked the Government of India to resolve the retrospective taxation case. It has threatened to begin attaching Indian assets including bank accounts in different world capitals in case of non-resolution. Background: The Permanent Court of Arbitration ruled in Dec. 2020 that the Indian government was wrong in imposing a… Continue reading Retrospective Taxation: Cairns Issue
What is disinvestment?
Disinvestment It means sale or liquidation of the public assets by the government. These are usually Central and state public sector enterprises, projects or other fixed assets. The government can sell its shares, where it is the majority shareholder (Owns more than 51% of shares). For example, Air India, Bharat Petroleum, Delhi Metro Rail Corporation,… Continue reading What is disinvestment?
What are off-budget borrowings?
Off Budget Borrowings: These are loans that are taken not by the Centre directly and are not calculated under the budget. These loans are taken by PSUs or other public institutions on the directions of the central government. Such borrowings are used to fulfill the expenditure needs of these institutions. Are these borrowings included in… Continue reading What are off-budget borrowings?
Issue of K-shaped recovery: How government budget can deal with it?
Synopsis –The macro-implication of K-shaped recovery and labour market pressure. How the government budget will deal with it? Introduction- COVID Vs Economic Mobility – India has broken the link between COVID virus proliferation and mobility earlier and more successfully. India’s GDP estimates for 2020-21 show that the economy is expected to perform much better than earlier projections. However, the present economic recovery is a… Continue reading Issue of K-shaped recovery: How government budget can deal with it?
Government ropes in I-T department to crack down on GST fraud
News: Government has roped in the Income Tax Department to tap illicit incomes as part of a crackdown against fraud companies rigging the Goods and Services Tax (GST) regime. Facts: How did fraudsters cheat the Government? They have floated multiple dummy firms, obtained GST registrations, issued fake GST invoices without actual supply of services and passed on… Continue reading Government ropes in I-T department to crack down on GST fraud
Importance path How to increase economic recovery of India
Synopsis: Government should adopt a fiscal stimulus Path for the economic recovery of India, to make our economy grow at 9% GDP in the coming years. Background The impact of the pandemic has pushed India to impose stringent lockdown measures to save millions of lives of Indian citizens but it’s after effect has caused massive economic disruption. This has resulted in… Continue reading Importance path How to increase economic recovery of India
Lack of fiscal support could stoke inequality
Context- India’s low level of fiscal spending could leave behind other problem and leads to inequality. India has stood out in three distinct ways. Firstly, India seems to have broken the link between rising levels of mobility and COVID-19 cases. As of now the fear of increased mobility around the festive season stoking cases has not… Continue reading Lack of fiscal support could stoke inequality
Issue of Retrospective tax cases; what should India do next?
Context: After Vodafone, India has lost its 2nd case to Cairn Plc at Permanent Court of Arbitration over a retrospective tax demand. Now, what are the options left with India and which one should it chose? WHAT ARE THE CASES IN QUESTION? Very recently, Cairn Plc has won a case of retrospective tax against India at Permanent Court of Arbitration. Court has… Continue reading Issue of Retrospective tax cases; what should India do next?
