ias100.in Official Website for Civil Services Chronicle IAS 100 IAS 100
GS Mains Test series 2017Prelims GS Online Course 2017
You are here: Daily Dose
No big-bang reforms in budget 2017

The demonetization drive in India has to be one of the biggest management disasters in its history. The International Monetary Fund (IMF) has estimated a 1% reduction in the GDP growth rate as the demonetization effect in India. Advancing the date of the Budget presentation by a month when the government did not have firm estimates   of growth  rate of the economy or the amount of  tax revenues as well as the introduction of the uniform Goods and Services Tax (GST) made the matters worse.

With Assembly elections to be held in several States, the  political atmosphere  was also not propitious for good Budget-making.  The Finance minister has resisted the temptation to introduce populist measures in the budget. One of the small populist act was the reduction of the income tax rate for the first slab from 10% to 5%. This is a bad decision. Not only has it led to a discontinuous rate structure where the marginal tax rate for the next slab jumps to 20%, but the total tax revenue in India is very low at 11% of GDP The government has achieved the fiscal deficit target of 3.5% of GDP. One good move  in the right direction was the introduction of electoral bonds for political funding and to propose a ceiling of Rs.2,000 on cash donations to political parties. This was not a big-bang budget.  But demonetisation exercise was shocking enough for the health of the economy, budget will help to nurse it back to health.

Share Button
Advertisement

Subscribe IAS100 Newsletter

  UPSC Daily Dose : Current Affairs
Governments aadhar link to social welfare
Poor votes or demon EVM
The need for a different time zone for north east
Health care and Indias new policy
Deriving water from waste water
How to go right about Indian health expediture
A new world, a bolder foreign policy
The future that u.p. election results behold
Figment of polluted minds
Campuses in India and raging debates
Is raddul fasaad going to end up like zarb-e-azb
The Wrong in Idea Of Universal Basic Income
Indias bits and protection of rights of tribals
The quandary of diverging india
The pakistan establishment, terror groups and geopolitics
More..» 
Name* :   
  E-mail* :   
  Mobile* :   

  Your Query* :

  
  
Home | About Us | Contact Us | Terms & Conditions | Refund Policy | Delivery Policy | Disclaimer | Copyright Policy | Privacy policy |
Partner sites :chronicleias.com | chronicleindia.in | cgmantra.in
 
GS Mains Test series 2017 View Details Prelims GS Online Course 2017View Details Prelims CSAT Online Course 2017View Details

Feedback

Please Give Your Valuable FEEDBACK To Serve You Better.

  *
  *
  *
  *
  *
Please enter security code, displayed below !
(Note: code should be entered in small letters)