Thursday, November 27, 2014

Ensuing budget must unveil more reforms

Despite Modi’s unprecedented political success, NDA government has to think deeply and give a push to bring in more reforms to augment the economic growth of the country. The ensuing budget to be presented by the finance minister in next February is a benchmark to supplement the political growth and convert the same to an economic upswing in terms of incremental GDP. Our finance minister is hoping that GDP growth is going to cross 6% in the next fiscal. If he can translate his financial acumen  of GDP growth into reality, India will be reckoned as one of the most powerful countries in the world map in the near future. The finance ministry is chalking out various strategies to unveil the second generation reforms in the next union budget and country’s people can expect a lot of exciting and prosperous time ahead.


The country now can’t wait anymore the stagnancy prevailing in the market. Though there is a bit of an upswing in the current fiscal in money market, foreign investment and a growth in some manufacturing sectors, India as a whole has to come out from the scenario of clutter reforms, which took place in the past decades. The decision of more reforms is definitely welcome and appreciated as stated by the finance minister on last Sunday. The country needs a larger opening out in more sectors. The present government has to stabilize the tax policy and brought many more changes in the tax regime besides a reasonable cost of capital. If the cost of capital is not curtailed, the industrial growth will not be that significant. Jaitley is very confident that with the advent of radical changes to be brought  through reforms, India can be in a position to fulfill the level of GDP growth in the year 2015-16. He pointed out that various reforms in the sector of insurance, coal ordinance, goods and services tax bill and one of textiles takeover are being considered   very seriously in the next financial budget. The insurance bill, in particular, is pending for the past couple of years. The last UPA government could not do much of reforms under the pretext of not getting adequate support from his allies and opposition parties. This bill of utmost importance is getting redundant like a wheelchair carrying a  old and haggard patient here and there. In fact, the gravity and essentiality of this issue of reforms  were completely diluted by the then Parliament and its members. But now, this fear should not be there as none other than a man like Modi is heading the government and so,  It will be difficult to curb the enthusiasm of this NDA government. The indomitable and unflappable character of Modi will be  in a frame of mind to place all the bills on above sectors through his finance minister in the winter session of the Parliament began on 24th of this month. The countrymen can be assured that  base on the thumping victory with an absolute majority they got  got in the last Parliament election, Modi and his team will not face any hindrance to block the passing of  these bills.


The reforms in above  sectors are very much essential and without that, creation of employment, eradication of irrationality in disposable income, upliftment of economically backward and  downtrodden of the societies and more importantly the year to year growth, will not be feasible at all.

The winter session of the Parliament will definitely encounter a bit of a chaotic situation from the opposition benches when the government led by fearless and dominating Modi will introduce various reforms, but Modi will be in a position to circumvent  these situations with the help of his rhetorical power and dominance.


Jaitley also enumerated the steps taken by this government in the last six months to vitalize the economy and to correct the depressing sentiment of the money market. The essential steps, particularly related to would-be reforms in a big scale in the next budget and these alone will uplift the sagging economy that he had inherited from his predecessor. He emphasized that the economy had dipped quite substantially below the desired level, causing a sense of disillusion, but in the past six months after his saddle on the hot seat of the finance ministry, he has turned around the condition from a low to a moderate scale. This is evident as the domestic and foreign investment has sped up undoubtedly in the last couple of months. Of course, he has succeeded to do all these turn around with the help of his visionary leader Modi. Needless to say, under his  stewardship, this time the country will be able to observe a full scale second generation reforms.














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