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 …show more content…
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;
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.