The Indian Union Budget of India is just around the corner and a lot of anticipation is brewing in the Industry. Budget session has already started from 23rd February 2015. We bring to you budget 2015 live. It covers some of the key areas where we are expecting changes in the 2015 Union Budget.
Railway budget is to be tabled on 26th February 2015, Monetary Policy on 27th February and Union Budget on 28th February 2015. Read minute-by-minute live coverage of Budget, only on Commerce Duniya.
Key areas of Economic Survey 2015-16:
The Survey has “urged” the government to aim at bringing down it’s fiscal deficit down to 3% of GDP. The 14th Finance Commission advised the finance ministry to aim at fiscal deficit of 3.6% of GDP next year.
The Survey said that subsidies are not having the desired effect on living standards of the poor. It said, “It says that a close look at price subsidies, which are estimated to be about 3,78,000 crore rupees, about 4.24% of GDP, reveal that they may not be the government’s best weapon for fighting poverty. ”
The Survey stated that price subsidies are often regressive and favour the rich more than the poor. However, it said, “that eliminating or phasing down subsidies is neither feasible nor desirable.”
The survey said that growth in India in 2014-15 was largely fueled by domestic demand. It said that growth in exports is projected to be only 0.9%.
Decline in savings:
A major decline in household physical savings has caused a decline in gross domestic savings to 30.6% in 2013-14 from 31.8% in 2012-13.
The Survey said that private sector investments must remain the primary engine for growth in the long run, public investment, especially in railways, will have to play an important role to revive growth. In the Indian Railways Budget tabled by Railways Minister Suresh Prabhu yesterday, the finance ministry has agreed to allocate Rs 40,000 crore for the railways out of its total over Rs 1 lakh crore expenditure for next fiscal.