Subhash Garg’s Post

Believe it or not, India risks losing a significant number of investors due to the 2024 budget. To truly attract investment in sectors like real estate, gold, and silver, we need to reinstate the indexation benefit. It's not fair to rely heavily on the middle and upper-middle classes for taxes when they are already shouldering a large burden through various taxes—direct, indirect, road tax, toll tax, property tax, and more. The removal of indexation feels like adding insult to injury, and restoring it is crucial for India’s economic health. The rich, super rich and ultra super rich class should be taxed more for the growth of middle class and upper middle class. Additionally, the government’s push to attract more Foreign Direct Investment (FDI) from China is contentious. Given our strained relations with China, this could jeopardize our financial stability, geopolitical position, and long-term growth. It also seems like the deliberate focus has been put on some states, which appears to be driven by political motivations. As it stands, only a few people seem satisfied with the budget. The dream and vision of developed India is put far away because of this decision. These opinions are personal and intended to spark discussion, not to offend anyone. #budget2024 #indexation #financialgrowth #developedindia

Analyzing the Evolution of Market Borrowings by Central and State Governments in India We often discuss how fiscal deficits are financed, and a significant part of this financing comes from market borrowings. The attached visualization offers a comparative look at the market borrowings of India's central versus state governments, highlighting a notable shift in borrowing patterns over the years. Before FY13, state market borrowings fluctuated between 12% to 27%, with FY13 itself recording 20% of the total. Post-FY13, from FY14 to FY24, this range expanded dramatically, reaching between 22% to 41%, with FY24 projected at 39%. This illustrates that nearly 40% of India's market borrowing is now attributable to the states. In absolute terms, the center's market borrowing has more than doubled since FY14. However, the states have seen an even more significant increase, with borrowings quadrupling during the same period. This shift underscores the growing fiscal pressures on state governments and their increasing reliance on market borrowings. Insights like these are crucial for understanding the broader economic landscape and the evolving dynamics of fiscal management within India. #FiscalPolicy #EconomicAnalysis #GovernmentFinance #MarketBorrowing #PublicEconomics #StateEconomics #FinancialManagement

Ever wondered why India's financial year starts on April 1st? Here's why: 1. Historical Alignment: April 1st coincides with the harvest season, aligning with India's agricultural cycle. 2. Global Synchronization: It matches the international financial calendar, easing global transactions and economic planning. 3. Budget Preparation: Starting afresh allows ample time for government budget planning after the closure of the previous financial year on March 31st. 4. Administrative Convenience: It streamlines financial activities, tax planning, and reporting for businesses, government, and individuals. 5. Tradition and Stability: April 1st has become a symbol of renewal and fiscal responsibility, maintaining consistency in financial governance. In summary, April 1st serves as a practical and traditional starting point for India's financial year. Blending historical significance with modern administrative needs. #FinancialYear #April1st #India #Finance

How #India can frame its fiscal architecture to realize Narendra Modi's #ViksitBharat @ 2047 as per EY India must achieve and sustain a minimum of 7%+ potential real GDP growth until FY48. India's primary expenditure should increase from 23.8% to 31.4% of GDP, consistent with a developed country per capita GDP threshold Raising tax-GDP ratio to 25%, boosting non-tax revenues, and reducing fiscal deficit are critical to sustain India’s growth closer to its potential. https://lnkd.in/gjnTNPJy

🌟 Understanding Monetary Policy vs. Fiscal Policy in India 🌟 Navigating the economic landscape of India involves understanding the nuances of both monetary policy and fiscal policy. While both are crucial for economic stability and growth, they are driven by different goals and mechanisms. Here's a brief overview: 🔹 Monetary Policy 🔹 ◻ Objective: Primarily focuses on managing inflation, controlling interest rates, and ensuring financial stability. ◻ Implementing Body: The Reserve Bank of India (RBI) is responsible for formulating and executing monetary policy. ◻ Tools: Includes setting repo rates, reverse repo rates, and open market operations. The RBI adjusts these tools to influence money supply and interest rates. 🔹 Fiscal Policy 🔹 ◻ Objective: Aims to influence the economy through government spending and taxation, addressing issues like economic growth, employment, and income distribution. ◻ Implementing Body: The Government of India (primarily the Ministry of Finance) crafts and implements fiscal policy. ◻ Tools: Encompasses adjustments in government spending and changes in tax policies to influence overall economic activity. 💡 Key Differences: ◻ Control: Monetary policy is managed by the RBI and focuses on the financial sector, while fiscal policy is handled by the government and targets broader economic activity. ◻ Mechanisms: Monetary policy uses interest rates and money supply adjustments, whereas fiscal policy leverages budgetary allocations and tax changes. Both policies play complementary roles in steering India's economic trajectory. Understanding their distinctions helps in grasping how they collectively shape our economic environment. #EconomicPolicy #MonetaryPolicy #FiscalPolicy #IndiaEconomy #RBI #FinanceMinistry #EconomicGrowth #PolicyMaking

Dear Indians , Two Question :- 1) What Narendra Modi and Amit Saha did in Last 10 years for INDIA ? Answer is I don't Know . 2) What Prime Minister and Home Minister did in last 10 years ? Answer :- a)They made INDIA Proud at International Level . b)National Logistics Policy is a big Step for GDP Growth which contribute 13% of Total GDP c) Product linked Incentive Scheme will empower India to be a Manufacturing HUB in future . d) Sovereign Gold bond is also a Good Scheme . e) Unified Payments Interface is a big boost for Economy . f) Demonetisation improve tax payers . g) Cleanliness Improved . h) India never Expect Vande Bharat train but it's Reality now . I) More emphasis on development of Infrastructure j) NPA Problem steps taken . k) Ease of doing Business promoted . l) Long standing issue- Article 370 , Action has been taken . m) Previously terrorist Attack was a Fear in head but now Indian Defence know well how to answer . n) Many Investment came in India , it's all Prime Minister Credit . o)Prime Minister Re- introduced Horizontal Meeting culture across PAN INDIA . p) From 10 largest economy to 5th largest Economy it's Prime Minister Credit . q) Crores of Indian Population has Bank Account in today's date . r) MAKE IN INDIA project empower leaders s) MOST IMPORTANT PM MODI SAID " TRUST INDIA , INDIANS WILL CONTRIBUTE IN GLOBAL GROWTH " Today International Country Support and Invest in India because Government support Development . It's a WORLD OF COMPETITIVE EDGE , THE BEST RETURN WITH EASE OF DOING BUSINESS AND GOVERNMENT SUPPORT BRINGS WORLD's BEST COMPANIES IN INDIAN MARKET . *Huge Loop holes are there in Strategic Decision and policy * - That's why opposition are there to protest and that's the Beauty of DEMOCRACY #India

The chart provides a clear historical perspective of India's gross fiscal deficit (GFD) as a percentage of total receipts (revenue receipt + non-debt capital receipts). Key economic events such as the early 1990s economic reforms, the 2008 global financial crisis, and the COVID-19 pandemic are evident in the peaks of the GFD percentage. Recent trends suggest a recovery from the pandemic's economic impact, but the fiscal deficit remains above the average of 55%, indicating a need for careful budgetary management. This situation demonstrates that the government has limited room to provide substantial tax benefits or freebies in the upcoming Budget without worsening the fiscal deficit. While some benefits will be present, they are likely to be modest. #indianeconomy #unionbudget #indiabudget #economy #budget #financeminister #fiscaldeficit #policy #nda #India #modi3

https://lnkd.in/gqcNJyDr How is core inflation maintained in the demand side or higher side? How can the government give options to spend money? Which are the sectors that need to be developed? How can people consume more of Indian art and music while learning more about India - edutainment and creative economy? How do we create future brand ambassadors? How do we create more soft power while also improving the economy? How do we re-invigorate the economy as well as work on #amritkaal with #atmanirbharta towards #vasudevakautimbikam How can we improve security or reduce cost of national security? During her visit to Kalakshetra - The Indian Dance Society, SRCC Kalakshetra Foundation she mentioned that a #budget for Ministry of External Affairs, India Ministry of Environment, Urbanization and Climate Change #budgetamritkaal for #amritmahotsav will be provided Can Bhartiya Janta Party (BJP) Narendra Modi ji and the FM Ministry of Finance share this update? Ram Madhav books are so good and inspiring.

Policy number 2. What should be the economic policies of the new Indian Union government? In my 2021 book on India 2047, I wrote that the Union government must do at least the 5 things I listed there. I have already discussed Policy 1. Today I discuss Policy 2. *************** 2.  Making sure (along with the RBI) that India’s financial system provides adequate debt, equity, venture capital, and modern financial services to all firms and households. This is possibly the most significant change issue facing the Indian economy, as finance supports production in all sectors. Repeat of Policy 1 below. 1.     Strengthening meta-economic drivers such as reducing external threats, maintaining internal harmony, delivering good governance, ensuring a free press, maintaining an independent judiciary, and professionally run economic institutions. ************************************ There has not been much progress on point 2 in recent years. And people don’t even discuss it. Wake up. It is key – it is the most important economic reform. It affects all production of goods and service in India. Lack of reforms makes it easier for conglomerates to dominate the economy – as they can get the needed funds. And lack of reform squeezes out startups, MSMEs, farmers, etc. What we have is: ·      focus on digitalization of payments. Good, but it does not spur production. ·      Opening bank account. Good, but where is the loan or equity?