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  • Final

    Diunggah oleh

    Akshay Bhogra
    9 tayangan10 halaman
    Fiscal DEFICIT = 3% of GDP Public debt = 60% of GDP fiscal Responsibility and Budget Management Act, 2003 (FRBMA) FISCAL DEFICIT to 3% by 2008. Fiscal policy used to transfer private savings to cater to the growing consumption and investment needs of the public sector.

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    Fiscal DEFICIT = 3% of GDP Public debt = 60% of GDP fiscal Responsibility and Budget Management Act, 2003 (FRBMA) FISCAL DEFICIT to 3% by 2008. Fiscal policy used to transfer private savings to cater to the growing consumption and investment needs of the public sector.

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    9 tayangan10 halaman

    Final

    Diunggah oleh

    Akshay Bhogra
    Fiscal DEFICIT = 3% of GDP Public debt = 60% of GDP fiscal Responsibility and Budget Management Act, 2003 (FRBMA) FISCAL DEFICIT to 3% by 2008. Fiscal policy used to transfer private savings to cater to the growing consumption and investment needs of the public sector.

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    © All Rights Reserved
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    dari 10

    FISCAL

    DEFICIT
    crisis
    GROUP 1
    SECTION D

    A B H I N AV M A N C H A N D A
    A K S H E Y B H O G RA
    A L K A N E H RA
    DEEPIKA PV
    DEVDHAS KISHEN DANIEL
    G A RV M A N C H A N D A

    Concerns
    Theoretical Perspectives
    Neoclassical
    Keynesian View
    Ricardian
    Equivalence
    Rules and Targets for controlling Debt and Deficit
    Maastricht Treaty 1992
    Budget deficit <= 3% of GDP
    Public debt <=60% of GDP
    Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)
    Fiscal deficit to 3% of GDP by 2008
    Rangarajan C & D.K. Srivastava, 2005. Fiscal deficit and government debt: Implications for growth and
    stabilization Economic and Political Weekly

    FISCAL DEBT SUSTAINABILTIY

    Rangarajan C & D.K. Srivastava, 2005. Fiscal deficit and government debt: Implications for growth and stabilization
    Economic and Political Weekly

    Will rise in the fiscal deficit lead


    to the crowding out of the
    private investment ?
    Fixed pool of saving view
    Aggregate saving function of aggregate income
    Saving and finance
    Endogenous Money
    Empirical data : Money banking and Finance India

    Contd.
    2008 Onwards
    Conclusions

    Savings and Income


    Money supply
    Govt. Securities
    Interest rate
    Crowding out ?

    FRAMEWORKS
    India has a three tired federal form of govt.

    Central government
    State government
    Local level
    Planning commission- divides expenditures into planed and non-planed
    components between state and central govt.
    FRBMA-2003
    Taxes

    Direct
    Indirect

    FISCAL POLICY TILL


    1990
    Fiscal policy is used to transfer private savings to cater to the
    growing consumption and investment needs of the public sector
    Before 1975

    High tax rates


    Kaldors recommendations
    Complex system
    Central excise duty, Customs duty
    1985-86 the government presented its Long-Term Fiscal Policy
    Balance of payment crisis

    Supriyo De, 2012. Fiscal policy in India: Trends and Trajectory. Ministry of Finance (Government of India)

    Liberalization and fiscal


    consolidation
    Tax Reforms Committee provided a blue print for reforming both direct and
    indirect taxes.
    Introduction of a VAT in 21 states in 2005
    Global Financial Crisis of 2008
    Affected financial sector, exports, exchange rate
    GDP declined to 5.8 in second half of 2008-09 from 7.8 in first half
    Excise duty cuts, fiscal support to selected export industries and ramping up public
    expenditure

    Thirteenth Finance Commission - targeted fiscal deficit of 5.5% of GDP in


    2010-11

    Supriyo De, 2012. Fiscal policy in India: Trends and Trajectory. Ministry of Finance (Government of India)

    Analysing trends in fiscal


    deficit

    Source:RBI Handbook of Statistics on Indian Economy

    Latest News
    October 1,
    2014

    November 27,
    2014

    15% budget cut


    suggested for some
    ministries

    November 27,
    2014

    April-August fiscal deficit at 75% of full-year


    target
    The government has pegged the fiscal deficit
    at 4.1 per cent of GDP in the current financial
    India's credit trend in 2015
    year

    hinges on reining fiscal deficit:


    Moody's

    14 November,
    2014

    Oil duty hike to shore up govt


    revenue by Rs 11,000 crore:
    India Ratings (14 Nov, 2014)

    THANK YOU

    Questions?

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