‘Departure from slavery of Western thought’: India’s finance minister ditches ‘colonial’ briefcase

[mastaan]

Understandable but,
Their should be a policy difference between UPA & NDA and not just about implementation and less corruption.
India needs to move away from this welfare economics trap if we don't intend to stuck in the middle income group.India needs true right wing economic policies.
I still feel if they really intend to grow at 8% and 5 trillion they should hit the ground running and not waste time.
Economic survey predicted growth at 7 % ,which looking at history we won't be able to hit.
it all seems to appear govt plan to keep with welfare schemes and increase inflation to try and reach 5 trillion.

Not that easy when you have 65% plus people in rural or semi rural areas, no real industry and lot and lots of sacrosanct topics that can't be touched.. And welfare scheme will eventually need to end as there won't be enough cash to fund that.. And that is arguably one of the reasons why i don;t like disinvestments.. the buggers will put that money back into welfare.. so better keep it safe.

I do believe that insolvency code is a huge thing and now opening aviation to FDI, along with insolvency code will help solve a lot of problems...\

How Air India will be solves.. Man, i have no idea.. but would love to take a hack at that problem one day, from a restructuring perspective

 

[Arulmozhi Varman]

I think they want to get the broad liquidity flows in order with the re-capitalisation and merging of banks etc given credit crunch...which is really the biggest hold back I would say (in current structural snapshot of indian economy)

Big instrumental sectoral push (exporters, job producing companies) will be theme next year I think. They want to do things sequentially somewhat. Let us see.

It will mark one more year of GST, EPFO and any other formalisation data streams etc...at that point to use underlying analysis and form best policy on it.

In interim they should push whatever legislative reform they can....state level where possible too.

True. Formalisation is a must. But I am wondering where they will get money from next year for Bing bang reforms. With social schemes in full effect with target till 2022 which will benefit the country in the long term, just wondering if it will cost the country in revenue and job employment stream in the long term as well. Social welfare is just one aspect of the economy. Balancing is the key. Even Defence has gone down to around 1.52% of GDP compared to 1.6% of GDP. Veterans complain that money allocated for budget has come down from 45% of total outlay to 30% this year. We are taking a huge risk in everything in short term. Bank capitalisation is just one positive aspect of this year budget.

 

[Spectre]

How much disinvestment has happened yet ?
how does mentioning labor reforms and not doing anything worth even discussion ?
why should tax payers sustain Air India ?
Is it a great achievement that she has allowed aadhar to be used at Tax payment ? if yes you have very low expectations.
what happened to consolidation of banks ?
what happened to labor laws ?
What happened to real estate issues ?
Land pooling ?
none of these are called major reforms they are expected when you intend to grow at 8%.

Which ministry do labor, land and real estate laws come under? Certainly not finance. FM can atmost mention these things, legislation has to be done seperately and hence budget has no business with them.

FM has already said AI has to be disinvested. No ifs and buts. Its just the matter of finding the buyer. You dont expect us to sell it for free and shoulder all the debt do you.

COnsolidation of banks is happening. Perhaps at slower pace but you cant rush it when it concerns so many jobs. It takes time

Liked your post a lot, thanks for the summary!

But bumping down from 30 to 25% (if thats what you mean here) corporate tax rate for small + medium is not that big a deal esp if you look at what the collection is in first place.

If you ask me, they should just have a tax free threshold (for businesses) just like done with income tax....and that can just define "large" companies above that in first place.

Govt really has no business to tax small + medium companies if you ask me.

Even large companies, as far as possible should be as low tax as possible especially in growth industries that can really provide wealth/jobs or both.

LoL India is not ready for that. Babus will have heart failure if this is seriously considered.

One has to look at things from all perspective, purpose of taxation is not only income from budget. Taxation servers lots of other purposes. Tax free status will suddenly lead to lot of exploitation - I am sure you can think of many. You will see millions of MSMEs forming in thin air but their actual purpose will be tax evasion.

 

[Nilgiri]

Which ministry do labor, land and real estate laws come under? Certainly not finance. FM can atmost mention these things, legislation has to be done seperately and hence budget has no business with them.

FM has already said AI has to be disinvested. No ifs and buts. Its just the matter of finding the buyer. You dont expect us to sell it for free and shoulder all the debt do you.

COnsolidation of banks is happening. Perhaps at slower pace but you cant rush it when it concerns so many jobs. It takes time



LoL India is not ready for that. Babus will have heart failure if this is seriously considered.

One has to look at things from all perspective, purpose of taxation is not only income from budget. Taxation servers lots of other purposes. Tax free status will suddenly lead to lot of exploitation - I am sure you can think of many. You will see millions of MSMEs forming in thin air but their actual purpose will be tax evasion.

Nice to see you posting again in forum

I agree keeping regular yearly paper trail for compliance is necessary. So I mean more like effective tax free....can have say the X% listed rate (25 now)....but have large portion of this rebated/deductible....preferably all of it.

Priority of course is keep improving the bureaucracy and standards as much as possible.

 

[TheBlackCoat]

- Opening up India to international Debt (Most here won't even start to comprehend the enormity of that)

euphemism for selling your country to the highest bidder and return of the east India company... Poor Indians with low IQ cannot even comprehend this plan of their government...

On the top of my head why should super rich pay 42.7% tax ? developed countries like US has lesser tax burden .

What choice do people who have achieved this has ?

Either move to a different country where they have better roads,cleaner air,24 hrs water etc or go pay this our country where govt. is busy sustaining failed PSU's rather than privatizing them ?

Which free market economy hurts its money generators ?

No wonder US companies are looking at Vietnam as their future destination rather than India.

But I am wondering where they will get money from next year for Bing bang reforms.

The money would be funded through international loans. The reforms are to allow the GoI to take foreign loans. India following Pakistan's model.

 

[TheBlackCoat]

- 7% or so increase in Defense budget

What is the increase (or should I say decrease) in the capital portion?

- Opening up of few more sectors to FDI

Yeah you need more FDI from the foreign media.. That's right... I pity low IQ Indian people being taken for a ride...

 

[mastaan]

What is the increase (or should I say decrease) in the capital portion?

Go read it yourself to figure it out.. You have better IQ than most Indian people.. You will figure it out quickly

Yeah you need more FDI from the foreign media.. That's right...

Yeah, why should they open up as they deem fit - governance is not their job.. should have asked you.. there was more than media, but am sure you ignore all of that for a reason.

Debt is needed to grow any economy as home grown equity is simply not enough and no amount of FDI in the current environment will make up to 8% growth without international money in more secured fashion (not equity therefore) plus the interest rate environment internationally (specially in US and Europe) is pretty benign and is chasing yield - so why not benefit from them. But, pease continue to scare people without telling them how it hurts.

You would not read the point that I made that 'a lot of unanswered questions, but a start', however you want to pick only a few points and make em the centre of the world.. then please continue.. after all we are all behind a screen with our fantasy knowledge.

 

[srshkmr]

Is democracy not a western thought too?

https://www.tamilnadu.ind.in/tamilnadu_history/chola/chola_kudavolai_system.php

 

[TheBlackCoat]

Go read it yourself to figure it out.. You have better IQ than most Indian people.. You will figure it out quickly

I know the figures. I was checking if you were posting crap knowingly or unknowingly.

Yeah, why should they open up as they deem fit - governance is not their job.. should have asked you.. there was more than media, but am sure you ignore all of that for a reason.

I know Modi's ego will not allow him to seek any advise from the experts in the field. He has demonstrated that he is capable of overriding expert advise and ordering strikes under cloud cover to evade the enemy radars.

Debt is needed to grow any economy as home grown equity is simply not enough and no amount of FDI in the current environment will make up to 8% growth without international money in more secured fashion (not equity therefore) plus the interest rate environment internationally (specially in US and Europe) is pretty benign and is chasing yield - so why not benefit from them. But, pease continue to scare people without telling them how it hurts.

So now Modi will be covering up his failure to implement policies that would have attracted increased FDI by taking Foreign loans? Great way to destroy the nation and your economy.

Interest rates may be lower for foreign loans but you cannot print money and pay off the loans like domestic loans.

Foreign loans need to be paid in dollars and when Rupee depreciates against the dollar like it did all through the history, your low interest rate fallacy & policy will come a cropper.

You would not read the point that I made that 'a lot of unanswered questions, but a start', however you want to pick only a few points and make em the centre of the world.. then please continue.. after all we are all behind a screen with our fantasy knowledge.

Yes. I have intentionally made the most dangerous step of the Budget as my central point.

 

[mastaan]

Thanks for 'checking' for my crap posting habits. I was missing mom anyways

Interest rates may be lower for foreign loans but you cannot print money and pay off the loans like domestic loans.

Foreign loans need to be paid in dollars and when Rupee depreciates against the dollar like it did all through the history, your low interest rate fallacy & policy will come a cropper.

- So, if you are raising debt locally (and not in international markets - like one has to raise today and take the full currency risk), because the loans were made in india - why would it be any different to any other loan? No one has given more details, but you have made a clear view that money is available only in dollars, so am curious.. Like American money is available in Europe for debt in USD..right?

- And sure, constant long term rupee depreciation has nothing to do with an increasingly opening economy and an increasing trade balancing to the real PPP terms and relative differences in inflation..

Yep, sure, we can have debate on macroeconomics on pdf where everyone is an economics professor with high IQ

Yes. I have intentionally made the most dangerous step of the Budget as my central point.

Great.. Good on you. Carry on... I go get my dinner meanwhile

 

[TheBlackCoat]

Thanks for 'checking' for my crap posting habits. I was missing mom anyways


- So, if you are raising debt locally (and not in international markets - like one has to raise today and take the full currency risk), because the loans were made in india - why would it be any different to any other loan? No one has given more details, but you have made a clear view that money is available only in dollars, so am curious.. Like American money is available in Europe for debt in USD..right?

- And sure, constant long term rupee depreciation has nothing to do with an increasingly opening economy and an increasing trade balancing to the real PPP terms and relative differences in inflation..

Yep, sure, we can have debate on macroeconomics on pdf where everyone is an economics professor with high IQ



Great.. Good on you. Carry on... I go get my dinner meanwhile

Yeah I know NS has worked and has a close relationship with the government of the UK but I hope she is not raising loans in British pounds or Euros. What is the use of raising the international loan money in non- US dollars when you have to pay all your Oil & most Defence bills in US dollars?

All this drama of ditching British Suitcase is to keep her close ties to UK under wrap and fool the low IQ Indians.

With fiscal deficit at 3.3 per cent of the GDP, there was no need for India to go to foreign shores. In the past, You have managed to survive at 6.5 per cent deficit. You didn’t suffer from the credit crisis because the sovereign bond was not held by foreign investors who could short sell the bonds and create panic in the domestic market.