The finance minister’s announcements on moving towards a more progressive direct tax structure and tax incentives for MSMEs are heartening.
Expenditure announced does not seem to have any connection to what has worked (or not) in the past.
In the 2017 Budget, the government has the opportunity to correct its misguided approach to spending and focus more on the social progress side of development.
Despite the success of some Indian industries since the 1990s, we are now seeing a major productivity gap circumscribing the prospects of industrial growth.
Demonetisation was meant to widen India’s tax base and increase our abysmally low tax-GDP ratio. The government could further this aim in more concrete ways through the Budget.
India’s economy had some positives in 2016, but issues like joblessness, lower agricultural incomes and the demonetisation aftermath remain matters of concern.
Over the last three decades, under China’s infrastructure-led public investment boom, total aggregate debt has grown from $2.1 trillion to $28.2 trillion.
Stagnation of wages for low-skilled persons can be a possible economic variable shaping the pattern of voting behaviour that led to Donald Trump’s victory.
The government’s IPR policy seems to lack a holistic understanding of the complexities attached with “traditional” knowledge (to be free and open for public access) vs. some kind of privately locked knowledge capital.
Policy makers should conduct deeper analysis of how many subtle factors shape inflation and its effects on the Indian economy.
The application of economics should be seen as a craft, instead of a purely methodological process with static assumptions.