 "Economic Survey: A snapshot")
LOOK AND FEEL
- Revamped presentation style of the Economic Survey
- Volume I is forward-looking and more data-driven
- Identifies 10 areas for policy reforms that can be matched with Budget announcements
- Has been bold in suggesting lowering of income tax threshold, instead of pushing it upward every year
- Uses a lot of new terms, following up on 'JAM' introduced last year
- Names of chapters draw attention - Mother and Child, Chakravyuha Challenge, More from Less
- Each chapter details extant literature in the area before offering solutions
- Chapter on fertiliser is the longest-ever on the subject in any Economic Survey
- FY17 GDP expected to be in the range of 7-7.75%. Current year's at 7.6%
- Arguments to stick to fiscal consolidation path
- But need to revisit medium-term fiscal policy framework
- Farm prices and trade policies need to account that India is a big market for the world
- Twin balance sheet problem - banking stress and that of the corporate sector hampering economy
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- Exit problems clogging up investment in sectors like fertiliser, banks, telecom
- Institutions like DRTs and ideas like "sanctification of the small" block quick exits
- Need to spread the Jan Dhan-Aadhaar-Mobile trinity as a tech solution in fertiliser, other subsidies
- Rationalise MSP policy and remove wedges between retail and wholesale prices
- Massive investment in health services for babies and infants
- Need for reforms in the fertiliser sector through introduction of DBT
- Remove tax incentives for small savings, as mostly the rich benefit from them
- Impose tax on gold since it is hoarded by the rich
- Rs 1-lakh-crore subsidy going to the rich from the government
- Fast-growth years for GDP have led to larger inequality in India; need for measures like wider property tax in the context of smart cities
- Only four per cent of Indians pay income tax; this has to rise to about 23 per cent
- Benefits of low global oil prices transient
- El Niño effect on agriculture to continue for some more time
- Crop-wise yields in India compared to the world are low for rice, wheat and pulses
- Need to shift to demand-driven agri-extension services
- Food not the only reason for low transmission of rate cuts by RBI
- Challenge of creating good jobs is proving difficult
- Too many regulations have harmed job creation - worker-centric rule needed
- Competitive federalism is needed to reduce bottlenecks in clearances
- Transparency and simplicity needed in power rates
- Easier power supply to encourage 'Make in India'
