- Modi & Jaitley's Budget 2017 - Snap shot is as given above.
- Definitely you don't spend your earnings the way Modi & Jaitley are spending nation's money.
- With monthly income of Rs. 100,000 spending is Rs.125,000 (revenue deficit of Rs. 300,000 per annum).
- Borrowing of Rs.500,000 (fiscal defict) is OK if it is meant for investments like buying car or apartment or resalable assets like gold, shares etc. but within limits. Surely fiscal deficit of Rs.500,000 which is 42% of tax revenues is untenable.
- Borrowing is deplorable it it is meant for luxury expenses like holidaying, buying durables or spending for fun.
- Deficits are neither bad nor avoidable but within permissible limits and must not be passed on to children.
- For the country to develop, it must not have 'revenue deficit' but could have a small 'fiscal deficit' which could be bridged by long term soft loans from World Bank/IMF etc
- Any prudent person will save 30-40% of net revenue (after tax income) for gold, investments etc. and will manage family expenses with 60-70% of net revenues.
- That is why rating agencies have downgraded India, two years ago, to 'baa' (only a notch above junk status) and bluntly told Modi & Jaitley,recently, to cleanup balance sheet by enforcing reforms and also stated that upgrading is at least two years away.
- With this rating all cheaper interest foreign investments shy away from India.
- Only hedge funds with 'flight capital' and looking for big returns with some risk invest in India in small amounts.
Thursday, 2 February 2017
This is no way to manage country's finances!
Congress led UPA had revenue deficit prior to 2013 mainly to due to high crude oil prices and their pro-poor welfare schemes. During Modi's rule of 3 years, bank NPA's has trebled to nearly 6 lakh crores during past 2 years and became worthless. Modi with low oil price (almost 1/3rd) regime since 3 years had saved nearly Rs.4 lakh crores in the last 3 years with just 15% passed on to consumers and with minimum welfare where the money has gone?? Guess!