After a landslide victory in the 2014 Lok Sabha elections, the entire nation waited with bated breathe for “Ache Din” or rather the Budget 2014, the first budget of the Modi Government by our Finance Minister Mr. Arun Jaitley. Being a budget for just 7 months, it did quite live up to its expectations . There were a lot of positives in this Budget, with the increase in the slab for income tax payment from 2 lacs to 2.5 lacs and other reforms to increase investments.
The PSU`s have been in the news for likely disinvestment and also the revival of sick units, which will be helpful in restructuring the economy. The FII’s have pumped in nearly US$ 25 billion in the stocks and bond markets this year and the markets have rallied nearly 35% due to a possible reform oriented government. There are expectations from various analysts that this is just a beginning of a multi year Bull market. Many companies have posted better results in the first qurter of 2014.
On the other hand, the young Indians who voted for NDA hoping that they would solve job shortage, there’s not much help on the horizon judging by the government’s own projections for economic growth, mainly due to the slowdown, macro-economic conditions and the pathetic work of the previous UPA Government.
Taxes and subsidies are a part of every government’s toolkit for tinkering with prices and economic activity. But India tinkers more, or rather most, i.e., approximately 2.5% of GDP or 15 % of the total spending. Inflation is not coming under control inspite of measures by the UPA as well as the NDA government, with possibilities of higher inflation in October-November period.
With a US Visit this September of our PM, and many other companies and countries willing to invest in India considering the pro-development, good governance agenda of NDA, and a clear mandate by the general public, this is just a beginning of a growth story and if the promises are kept, “Achche Din Zaroor Ayenge”.
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