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Why in the news? Fiscal deficit target for FY25 cut to 4.9% of GDP from 5.1% in interim Budget. FY24 fiscal deficit stands at 5.6% of GDP, lower than the revised estimate of 5.8%. Government aims to reduce the fiscal deficit below 4.5% by FY26-27. Government prioritising debt-GDP ratio over fiscal deficit figures. source:indianexpress About …
Read MoreWhy in the news? The standard deduction under the New Tax Regime (NTR) increased from Rs 50,000 to Rs 75,000. Taxpayers with a taxable income of Rs 15 lakh or more will save Rs 17,500 annually under the NTR due to higher standard deduction and rate rationalisation. Tax slabs adjusted: 5% rate for Rs 3-7 …
Read MoreSyllabus: GS 2: Government Policies and Interventions . GS 3: Government Budgeting Why in the News? The 2024 Union Budget represents a significant shift in economic strategy, addressing past policy failures and acknowledging broader economic challenges. It aims to tackle issues like regional disparities, agrarian distress, and employment by implementing new measures and investments, reflecting …
Read MoreWhy in the news? Chief Economic Adviser V. Anantha Nageswaran highlighted that demand under the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS) does not accurately reflect rural distress. Studies show no satisfactory explanation for the uneven performance of the scheme across states. source:slideshare About the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS): Legislation: Enacted August …
Read MoreWhy in the news? The Economic Survey criticises the EU’s Carbon Border Adjustment Tax (CBAT) as protectionist. The tax, part of the Carbon Border Adjustment Mechanism (CBAM), imposes tariffs on energy-intensive imports like iron, steel, and aluminium. The Survey argues that CBAM contradicts the Paris Agreement’s principle of “Common but Differentiated Responsibilities.” source:researchgate About Carbon …
Read MoreWhy in the news? Economic Survey 2023-24 reveals India’s growth challenges, including global headwinds, dependence on China, and data deficiencies. source:economictimes Key points from the Economic Survey: Challenges Identified: Global Headwinds: High interest rates and geopolitical uncertainties affect foreign direct investment (FDI) and increase competition from developed countries with substantial subsidies. China Dependency: India’s reliance …
Read MoreWhy in the news? The Economic Survey recommends financial incentives for states to modernise agricultural marketing. 15th Finance Commission suggests providing ₹50,000 crore in incentives to states for modernising agricultural marketing. Encourage adoption of agricultural reforms and improvement in infrastructure. Implementing e-National Agriculture Market (e-NAM), supporting Farmer Producer Organizations (FPOs), and enhancing market infrastructure. source:scribd …
Read MoreWhy in the news? India’s infrastructure growth has been primarily driven by public sector investments. Private sector participation remains inadequate despite potential in sectors like roads and water. Challenges include long payback periods, lack of independent regulation, and complex project structuring. Source:lotusarise Government steps include PPPs, funding, and infrastructure initiatives: Public-Private Partnership (PPP): Government promotes …
Read MoreWhy in the news? Economic Survey 2023-24 highlights the need to reduce compliance burdens on MSMEs. Subnational deregulation is crucial for MSME growth, including easing licensing, inspection, and compliance (LIC) requirements. Example: Indian factories face stricter space regulations than in Southeast Asia, limiting employment opportunities. source:slideshare About Micro, Small, and Medium Enterprises(MSME): MSME Sector: Key …
Read MoreWhy in the news? India is transitioning from women’s development to women-led development. Budget allocation for women’s welfare and empowerment increased by 218.8%. Gender Budget now constitutes 6.5% of the total Union Budget, the highest since 2006. source:pib Key Facts:Female Labour Force Participation: Female Labour Force Participation Rate (LFPR) rose from 23.3% in 2017-18 to …
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