NEW POLITICAL AND ECONOMIC HURDLES MAKE IT MORE DIFFICUT
Gyan Pathak
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2020-01-24 11:39
India budget exercise for the fiscal 2020-21 is different this year, not only because our Prime Minister has involved himself in the exercise, but also due to multiple new political and economic challenges that enforced him to come into the picture. The focus is on avoiding a turbulent fiscal ahead by resorting to a realistic budget at the time when economy is performing at a low growth rate of 4.8 per cent with huge shortfall in revenue under sweeping reform of GST, recommendations of 15th Finance Commission for revenue sharing with states which is binding on the government from the fiscal 2020-21, mounting inflationary pressure, rising oil prices, distortion in trade balance, deficit, and the political unrest in most of the states which are now ruled by opposition parties depending largely on revenue sharing and grants-in-aid from the Centre.