Few hopes, few questions, few numbers, few sectors, few decisions, few days for Mr. FM.
Before Mr. FM announce his much awaited Union Budget
on 28th February 2015, let me write a letter to him about the
questions which arises in the minds of the people.
My questions would be very specific like how well
can you shape our economy which wants to grow like other developing nations?
Some of my questions are:-
Will you give more priority to infrastructure?
Will you give more focus on the consumption need?
Will you tilt towards the fiscal deficit situation or you tweak from this and will look after the ways to boost the growth of this economy?
Will you give more focus on the consumption need?
Will you tilt towards the fiscal deficit situation or you tweak from this and will look after the ways to boost the growth of this economy?
Well, to give answers to these questions, Mr. FM needs to look after the
current estimated of GDP (Chinese govt. thinks that India can actually grow
faster than China in the coming decades.) which shows that Private Consumption
(PFCE) at constant 2011-12 prices is estimated to grow at a rate of 11.8% in
the current quarter.
Mr. Jaitley would take few decisions on the budget day on the basis of data which are not appropriate. Let me put some facts and suggestions in front of him so that he can draw and focus on many things instead of few.
Mr. Jaitley would take few decisions on the budget day on the basis of data which are not appropriate. Let me put some facts and suggestions in front of him so that he can draw and focus on many things instead of few.
Mr. FM should need to focus more on investments which can reap benefits to this
economy. If India wants to grow @ 8% growth rate then there is a need of sharp
rise in Investments.
In March 2008 quarter alone, investments were made
up close to one third of economic output. After that, it had plummeted by four
percent since then.
Mr, FM needs to revive public investments and it should be replaced by private investment with a suitable PPP (Public Private Partnership) Model. There is a need to push Infrastructure as well.
To make this into reality, government can play crucial role by bringing private players for investment through speeding up stalled projects which have been stranded in the middle of somewhere, increase capital expenditure so that it can create more jobs in the economy.
To control the burgeoning Fiscal Deficit numbers, government has been reducing public investments from many years. (During 1980s time public investments were 37% which is now plummeted to 12% only)
Capital Expenditure has also been decreasing from past many years.
Government needs to curtail its Non discretionary expenses(Partially first) or check the frauds which usually happens in the Non- Discretionary expenses which accounts close to one-third of its expenses like defense, subsidies, salaries, pensions, interest payment etc.
Mr, FM needs to revive public investments and it should be replaced by private investment with a suitable PPP (Public Private Partnership) Model. There is a need to push Infrastructure as well.
To make this into reality, government can play crucial role by bringing private players for investment through speeding up stalled projects which have been stranded in the middle of somewhere, increase capital expenditure so that it can create more jobs in the economy.
To control the burgeoning Fiscal Deficit numbers, government has been reducing public investments from many years. (During 1980s time public investments were 37% which is now plummeted to 12% only)
Capital Expenditure has also been decreasing from past many years.
Government needs to curtail its Non discretionary expenses(Partially first) or check the frauds which usually happens in the Non- Discretionary expenses which accounts close to one-third of its expenses like defense, subsidies, salaries, pensions, interest payment etc.
Mr. FM should take more steps like coal auctions (
monopoly of CIL ) through which private players can enter into this sector,
Spectrum sale (Grappling with corruption charges) through this, government gets
more and more funds from telecom operators which are sitting on the coffers of
huge cash and last but not least divestment of sick PSUs.
He should also focus on growth of other sectors as well like agriculture, forestry and fishing sector which is estimates to be a mere 0.4% in the current quarter.
He should also focus on growth of other sectors as well like agriculture, forestry and fishing sector which is estimates to be a mere 0.4% in the current quarter.
If Mr. Jaitley read this suggestions carefully and
look out the actual numbers, then his priorities might change before he can
finalize his steps which he will take on the budget day.
After looking at the favorable conditions ( Huge drop in the prices of Brent Crude Oil since August 2014, bank credit growth at 11% (Approx) i am quite sure that this time Mr. FM has many choices with him which he needs to look after.
We will wait and watch…!!
After looking at the favorable conditions ( Huge drop in the prices of Brent Crude Oil since August 2014, bank credit growth at 11% (Approx) i am quite sure that this time Mr. FM has many choices with him which he needs to look after.
We will wait and watch…!!
