Official Budget 2015 Thread

[SrNair]

@SrNair and other baniyas pay attention here.

What is this banyan ?
You mean banyan tree ?Please enlight us

 

[definitelynotIndian]

GST by April 2016 is something to cheer about all by itself. That's a 0.7-1.2% addition to GDP growth when fully implemented!


But only 1.7% of GDP which is very low by international standards, for comparison your country spends 5-6% of its GDP and over 25% of the national budget on defence.

how does implementation of GST increase growth by 1%? Can you please explain bro

 

[Abingdonboy]

how does implementation of GST increase growth by 1%? Can you please explain bro

Ah man, I was just reading an article on this the other day, I'll see if I can locate it again for you....

 

[SrNair]

Umm, what? Firstly the $20 billion figure is far too inflated, ti is closer to $15-16 billion. You are then assuming no growth in the Indian economy which we know is being unduly pessimistic given last year say 7% growth, this year will see 8%+ and this is before the full force of the reforms can begin to take hold and positively benefit the GDP growth rate. So it is more than fair to assume the defence budget is going to be increasing year on year and by a healthy amount.

And where do you get the idea that the payments for the Rafale consume 100% of the available IAF capital expenditure budget??

And after the implementation of GST.It would touch 10% mark in coming years.

 

[Abingdonboy]

And after the implementation of GST.It would touch 10% mark in coming years.

Hopefully but let's not get carried away, first get GST implemented, see the 8%+ GDP growth target achieved for this year and take it from there. No point in predicting 10%+ growth rates right now, that is certainly looking achievable but no need to get carried away...

 

[definitelynotIndian]

Hopefully but let's not get carried away, first get GST implemented, see the 8%+ GDP growth target achieved for this year and take it from there. No point in predicting 10%+ growth rates right now, that is certainly looking achievable but no need to get carried away...

I read about it in past as well. I thought you knew the inner details the mechanics as to how & why the growth rate would increase. Thanks tho

 

[utraash]

To me it looks like first keeping the house in order before a big leap in future .....
I expected change in individual income tax slab though it could not happen....
Lets wait for another year for that....
I would rate it ok ok budget.. As per me budget was aimed to boost corporate sector also reviving rural n agricultural economy by allocating moderate funds ..... I am little disappointed budgetary allocation for education sector ......
*I am not expert here on economy...

 

[Abingdonboy]

I read about it in past as well. I thought you knew the inner details the mechanics as to how & why the growth rate would increase. Thanks tho

I can't find the exact article so I'll explain to you how the GST will boost the GDP growth rate of India. GDP is the value of all goods and services in an economy, the way one increases it (GDP growth rate) is by expanding the productive capacity of the economy i.e. more exports, build more roads, more trained/skilled workers etc. The way GST works is to create a uniformed tax code for trucks carrying goods across India who currently are plagued by archaic taxes which vary state to state as a result India's goods trucks are amongst the least productive in the world (IIRC only covering 1/2th of the distance trucks in the EU do a year and 1/3rd of the distance US trucks manage to do). By removing this, largely, bureaucratic, hurdle the productivity of India's goods carries will increase manifold and thus cheaper goods, more efficient transport etc etc


Some claim this could add as much as 2% of GDP growth:

GST rollout to boost growth by 2 pc: Godrej - The Times of India


Not sure I buy that, 0.7-1.2% is a more credible figure I have heard and even still this is a HUGE amount in actual dollar terms being added to the economy every year that will naturally have a compounding effect.

 

[Abingdonboy]

@MokshaVimukthi mate, watch this:

Chetan Bhagat Quizzes Arun Jaitley on Budget 2015

Explains why the GoI's budget for education hasn't increased this year (the Govt is giving more revenue to the states) but India's spending on education is far higher.

 

[MokshaVimukthi]

To be honest I think the calculations are overly alarmist and on the pessimistic side.

Anyway, assuming very healthy growth GDP rates the situation is fine either way (using your calculations or mine), if GDP growth slumps below 6% again though things could get bad.

No its not, Its based on current spending pattern. Its just factual.

If anything I was generous assuming 2 billion $ every year for Rafale. Reality is LCA will take away half a billion. Lets see how it all pans out.

@MokshaVimukthi mate, watch this:

Chetan Bhagat Quizzes Arun Jaitley on Budget 2015

Explains why the GoI's budget for education hasn't increased this year (the Govt is giving more revenue to the states) but India's spending on education is far higher.

I am aware of the GoI good work in providing funds to the states, but GoI needs to take up education in a Mission Mode. Its more important than "Swatch Bharat" and "make in India". I find that purpose missing.

 

[Indian_Patriot]

Army got a big Capex increase in comparison to the Navy and Airforce. I think raising the Mountain strike corps with all the equipment needed isn't going to be cheap..but absolutely necessary.

They are planing to base Arjun 2 MBTs on the eastern sector, wow what a beast that will be.

 

[MokshaVimukthi]

Army got a big Capex increase in comparison to the Navy and Airforce. I think raising the Mountain strike corps with all the equipment needed isn't going to be cheap..but absolutely necessary.

They are planing to base Arjun 2 MBTs on the eastern sector, wow what a beast that will be.

If that is true, then it may very well mean No to Rafale.

Do you have a link ?

 

[Indian_Patriot]

If that is true, then it may very well mean No to Rafale.

Do you have a link ?

Its from the defence section.

 

[MokshaVimukthi]

View attachment 197761

Its from the defence section.

Interesting, this shows that IAF has been the largest beneficiary of Capital expenditure.

Assuming an average of 40% for IAF, they might have between 6-7 Billion $ per year to spend on Cap ex.

 

[by78]

This budget is a failure because it didn't touch on land and labor reforms.

Land acquisition is extremely difficult for infrastructure projects and building factories. Socialist labor laws are hostile to large-scale manufacturing.

It's disappointing that the new budget hasn't touched on these crucial areas.

India will never take off without completely overhauling her arcane labor and land laws.