Budget Essay

7518 Words May 3rd, 2012 31 Pages
Prelude The Union Budget for 2012-13 (FY13) is to be presented in the Parliament on 16th March. As every year, the budget will be an event that would signal the direction set forth for the growth path of the economy. Global as well as the domestic investors would also be looking for signals.
The attempt of the government to push for higher growth without sound economic fundamentals has further resulted in higher inflation, increased current account deficit, tighter inter-bank liquidity, and sub-optimal utilization of the tax payers’ money.
The major expectations that
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A focus on the following should enable the government to set forth an environment for more inclusive, balanced, and sustainable growth:
Giving direction for the Goods and Services Tax (GST) Act;
Encouraging greater participation in long gestation projects such as infrastructure, power, etc.;
Energy and food security measures;
Policy implementation;
Rise in new productive capacity; and
Divestments/ Disinvestments from non-critical public owned enterprises. Budget Highlights:

GDP is estimated to grow by 6.9 percent in 2011-12, after having grown at 8.4 percent in preceding two years.
Key reasons for the interruption of Indian economy: euro zone crisis, economy, political turmoil in Middle East and rise in crude oil price.
Growth moderated due to tight monetary policy.
Economy is

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