Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget...

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Transcript of Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget...

Page 1: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 2: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 3: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

Chapter1

VolumeII

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Page 4: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

Chapter 1Introduction

SectionA.AnalyticalreviewofrecentdevelopmentTheGoods&ServicesTax

ParadigmShifttoLowInflationWedgebetweenassetprice&realeconomyFarmLoanWavers- MacroEconomicImpact

Demonetization:LongTermBenefits&ShortTermCostSectionB.Outlook&policiesfor2017-18

SectionC:ReviewofDevelopmentin2016-17

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Review of Developments in

2016-17

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1.GDP• AccordingtoCSOMay2017estimatesrealGDPgrewby7.1%in2016-17incomparisonto8%inpreviousyear.

• ThisperformancewashigherthantherangepredictedinVolumeI.

• Itsuggestedthateconomywasmoreresilienttothelargeliquidityshockofdemonetization.

• ThisresilienceismoreapparentinnominalGDPandGVAwhichacceleratedbyalmost1%morein2016-17thanto2015-16.

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GDP• DespiteofresiliencethelatestGDPfiguresraisedquestionsongrowth

trajectoryduringthecourseFY2017.• RealGDA&GVAgrowthdeclinedforfourconsecutivequarters.• ThegrowthinCoreGVA(TotalGVAexcludingagriculture,defenceandother

services)deceleratedby3.6%fromFY2016toFY2017.• ManufacturingGVAgrowthstarteddecliningfromQ4FY2016.• ThegrowthinrealfixedinvestmentwaslowsincethesecondhalfofFY2013

anddeclinedsteeplyafteratemporaryspurtinthesecondhalfofFY2016• AsperSurveycalculationsprivateinvestmentgrowthisestimatedtobe

negativein2016-17.• Theonlydemandboostcamefromconsumption,whichaccountedforabout

96percentofGDPgrowthinFY2017.

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Page 9: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 10: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 11: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 12: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 13: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 14: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

2.Inflation• TheIndianeconomyhasgonethroughadramatictransitionfromhightolowinflation.

• AnnualInflationaveragedfrom5.9%in201-15andhasdeclinedto4.5%inFY2017.

• Inflationdeclinesharplyfrom6.1%inJuly2016to1.5%inJune2017pertainingtogrowthdeceleration.

• FoodinflationhadhardenedduringthefirstfewmonthsofFY2017duetoupwardpressureonprices,mainlyofpulsesandvegetables,butsoftenedsubsequentlywithimprovementinseasonalavailabilityandparticularlyafterdemonetization.

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2.Inflation

• HeadlineCPIinflationhasnowbeenbelowtheRBI’s2017targetfortenconsecutivemonthsbyabout1.7percentagepointsonaverage.

• Notonlyheadlinebutrefinedcoreinflation—whichstripsoutagricultureandoilaswellastheoil-componentintransportationservices— declinedsteadilyfromover5percentinJune2016to3.9percentinJune2017.

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Page 17: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

2.Inflation

• AsharpdeclineinWPIinlateFY2015andthroughoutFY2016owedtothedecelerationinglobalcommodityprices,especiallycrudeoilprices.

• Withglobalcommoditypricesrecoveringandthe‘baseeffect’(lowinflationinthepreviousyear)givinganupwardpush,wholesaleinflationperkedupduringFY2017.

• Thevastdivergencebetweentheretailandwholesaleinflationhasnowbeeneliminated.

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Page 19: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

3.ExternalSector

• Withthegreenshoots slowlybecomingvisibleinmerchandisetrade,androbustcapitalflows,theexternalpositionappearsrobust,reflectedinteraliainrisingreserves andastrengthening

exchangerate.

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3.ExternalSector

• Thecurrentaccountdeficitnarrowedin2016-17to0.7percentofGDP,downfrom1.1percentofGDPthepreviousyear.

• Exportgrowthturnedpositiveafteragapoftwoyearsandimportscontractedmarginally,sothatIndia’stradedeficitnarrowedto5.0percentofGDPinFY2017ascomparedto6.2percentinthepreviousyear.

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Page 21: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 22: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

3.ExternalSector

• TheCapitalAccountsurplusexceedingthecapitalaccountdeficitresultedinincreaseinaccumulationofforeignreserves.

• Asaresultofabovereservebasedexternalsectorvulnerabilityindicatorshasimproved.

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Page 23: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 24: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance
Page 25: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

4.FiscalDevelopment

• ThegovernmentadheredtoFiscalDeficittargeteventhough:• TherewasexpenditurecompulsionofSeventhPayCommissionandOROPimplementation.

• Spectrumauctionanddisinvestmentreceiptfallshortofthetargets.

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CPSE – CentralPublicSectorEnterprise(CIL,SAIL,BHEL,GAILetc)RE – RevisedEstimateBE- BudgetedEstimate

Page 27: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

4.FiscalDevelopment

• Overall,thefiscaloutcomeoftheCentralGovernmentinFY2017wasmarkedbyrobustgrowthintaxrevenue andthemajorsourcesare:• ExciseDutyonpetroleumproducts(2/3ofgrowthofexcise

collection)• Buoyantcollectionofexcisedutyandservicetaxisobservedbymobilizingadditionaltaxresources.

• Swach BharatCess &Krishi Kalyan Cess (1/3ofgrowthinservicetaxcollection)

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4.FiscalDevelopment

• FiscalDeficitsofStatesdetrioted duetoincreasedDISCOMliabilityundertheUDAYprogramme.

• DuringFY2016fiscaldeficitofstatesincreasedby1%.

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Page 29: Economic Survey-Volume II- Chapter 1 - Part 3 (1)Procedural Reforms introduced in Union Budget 2017-18: 1. Railway Budget was integrated with Union Budget bringing railway finance

4.FiscalDevelopment

ProceduralReformsintroducedinUnionBudget2017-18:1. RailwayBudgetwasintegratedwithUnionBudgetbringingrailwayfinancein

mainstream.2. ThedateoftheUnionBudgetwasadvancedtoFebruary1,almostbyamonth,

tohelpCentralministriesandStategovernmentsplanandspendtheirfullbudgetfromthebeginningofthefinancialyear.

3. theclassificationofexpenditureinto‘plan’and‘non-plan’waseliminatedtoallowfocusonthemoreeconomicallymeaningfulcapital-revenuedistinction.

4. TheMediumTermExpenditureFrameworkStatementwasrestructuredtogiveprojectedexpenditures(revenueandcapital)foreachdemandforthenexttwofinancialyears.

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Speak Asia Online Survey on Union Railway Budget [Tech-Wonders.com]

Speak Asia Online Survey on Union Railway Budget [Tech-Wonders.com]

Model Railway Budget

Model Railway Budget

Railway Budget 2010-2011

Railway Budget 2010-2011

Railway Budget Hindu

Railway Budget Hindu

Indian Railway Budget 2012-13

Indian Railway Budget 2012-13

Railway Budget - 2012 -13 Speech

Railway Budget - 2012 -13 Speech

Railway Budget of 2015-16

Railway Budget of 2015-16

Brockville's Union Railway Station

Brockville's Union Railway Station

Railway Budget Analyssis

Railway Budget Analyssis

Railway Budget FINAL

Railway Budget FINAL

Railway budget

Railway budget

Railway Budget 2016 -17 presentation

Railway Budget 2016 -17 presentation

Railway budget 2011-12

Railway budget 2011-12

Railway budget 2017 18

Railway budget 2017 18

Railway Budget Speech 2014-15

Railway Budget Speech 2014-15

Railway budget 2012-2013

Railway budget 2012-2013

Union Budget 2017-18 - KPMG · Presentation of the Union Budget 2017-18 (Budget 2017-18) not only subsumed the Railway Budget but was also advanced to 1 February to enable Ministries

Union Budget 2017-18 - KPMG · Presentation of the Union Budget 2017-18 (Budget 2017-18) not only subsumed the Railway Budget but was also advanced to 1 February to enable Ministries

Railway Budget - 2004-05

Railway Budget - 2004-05

Railway Budget Speech English

Railway Budget Speech English

Railway Budget 2012-13

Railway Budget 2012-13