×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 26 January, 2021

  • 9 Min Read

Budget during COVID-19

Budget during COVID-19

  • India’s GDP is estimated at ?200 lakh crore.
  • The first priority for spending should be health and infrastructure.
  • India has only five beds for 10,000 Indians and ranks 155th on bed availability in the Human Development Report of 2020.
  • Experts opine that the government should increase healthcare spending from 1.5% of the GDP to 2.5%.
  • The National Infrastructure Pipeline https://www.aspireias.com/daily-news-analysis-current-affairs/National-Infrastructure-Pipeline aims to invest ?111 lakh crore by 2025 in over 6,800 projects.
  • The proposal to set up a Development Finance Institution is still on the anvil.
  • The Chinese government has entered into building social housing projects. As pointed out by the economists in India Today, expenditure on infrastructure can have a large multiplier effect on economic output.
  • Suggestions have been made for the introduction of an urban employment guarantee scheme on the lines of the Mahatma Gandhi National Rural Employment Guarantee Scheme. This will be far better than direct cash transfers.
  • The stumbling block to budgetary efforts to spend can be the resource crunch.
  • Despite historic lows in fuel prices, the government chose to increase fuel prices to record levels.
  • The Goods and Services Tax has been a big source of revenue.
  • There is a strong case for reducing GST tariff.
  • Cess or surcharge can be levied on the super-rich.
  • Disinvestment must go on at high speed.
  • The average tariff must come down to 10% from its current level of 14% by 2024, as suggested by Professor Arvind Panagariya.
  • He wrote: “With several key reforms – new labour codes, new farm laws, Insolvency and Bankruptcy Code, low corporate profit tax, single nationwide GST and widespread digitisation – already in place, the addition of privatisation and trade liberalisation would nearly guarantee a double digit growth and millions of additional well-paid jobs for the masses in the post-Covid-19 decades.”
  • Ms. Sitharaman has left significant imprints in the Budgets she has presented. The lowering of corporate tax rates, the introduction of the option to choose the tax rate both for companies and for individuals up to fixed monetary limits, the introduction of the Vivad se Vishwas scheme without sacrificing revenue, and the structured infusion of fiscal stimulus without accelerating inflation all point to a right approach to Budget-making.
  • We can expect a never-before Budget to be presented to meet the crisis created by COVID-19. The super-rich must co-operate without insisting on tax concessions.

Source: TH


THE ABSURDITY OF THE ANTI-DEFECTION LAW

THE ABSURDITY OF THE ANTI-DEFECTION LAW Uddhav Thackeray’s government facing internal dissent from a block of 22 MLA led by Eknath Shinde, has brought the anti-defection law again into the spotlight. Such events were also witnessed in Puducherry, Madhya Pradesh, and Karnataka. ANTI-DEFECTION LAW The anti-defection law was included in

12TH WTO MINISTERIAL CONFERENCE

12TH WTO MINISTERIAL CONFERENCE The 12th Ministerial Conference of the World Trade Organization (WTO) concluded, recently in Geneva. The main areas of discussion were: WTO’s response to the pandemic.  Fisheries subsidies negotiations. Agriculture issues including Public Stockholding for Food Security. WTO Reforms and M

Bangladesh’s Rohingya Problem

Bangladesh’s Rohingya Problem What is the issue? The population of Rohingyas in Bangladesh as of now is 8,85,000 and the refugee population is increasing rapidly by 35,000 every year, which is a serious security implication for countries mainly in South Asia. What is the Rohingya issue? Rohingya are an

FINANCIAL ACTION TASK FORCE

FINANCIAL ACTION TASK FORCE  Pakistan got a respite from the Financial Action Task Force (FATF) as FATF announced that the country could be removed from the grey list. FATF is going to decide whether to take Pakistan off the ‘grey’ list at the end of its plenary session in Berlin in October. Pakistan has been on the Financia

The Situation of Government Jobs

The Situation of Government Jobs PM has ordered, million central government posts to be filled in a mission mode over the next one and a half years.  The Current Picture of Employment in India  The unemployment rate is defined as the percentage of unemployed persons in the labor force. Suffered by demonetization, pandemic,

Toppers

Search By Date

Newsletter Subscription
SMS Alerts