Although from the growth perspectives it seems that Industrial Production, exports, corporates Sales, stock market, credit growth and agriculture are all in down pattern. But still Indian govt. expects 7.6% GDP in 2016-17, while economic survey sees it in the range of 7-7.75 in view of monsoon occurrence(worst possible only 7%). Government will face challenges due to 7th pay commission implementation as well as global economy slowdown expectations.
Here are few policies and insights given in economic survey led by Mr. Subramanian.
A much more revenue generating thing for government is the subsidy given in LPG, electricity, kerosene , gold etc. A new feature to this is PPF, this money which should be a part of banking system but not, enjoys 8-8.5% interest rate annually posing extra load on subsidy. And it is seen that although subsidies are given basically in favour of poor, but more than 90% is used only by rich people. If it is filtered then government revenues will see huge amount of about 1.25 lakh Crores every year.
He believes that if we change our cropping pattern from cereal to pulses
and oilseeds, then not only our farmers will get more money but these
crops also require very less water as compared to cereals. Also the bulk
amount of wheat grain which gets rotten and hence is destroyed every
year can also be avoided.
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