An opportunity has been forsaken to strengthen our economic fundamentals while improving the lives of the people, increasing the divide between India Shining and India Suffering. While the people were hoping for relief in the current budget, the Finance Minister was faced with the task of reversing the slowing growth rate and raging inflation. He had a choice in this budget. He, however, chose a path that is going to worsen...

-The Business Standard   Major subsidies extended by the government are likely to jump to Rs 1,34,411 crore during 2011-12 The Survey has warned of deteriorating fiscal health due to a mounting subsidy burden. The huge outgo over the past year has been largely on account of the global rally in crude oil prices, the fertiliser subsidy and state-controlled foodgrain prices, it said. It also blamed ‘coalition politics and federal considerations’ for holding...

Most of us don’t even get a single shot at making history — Manmohan Singh has a second chance The fiscal deficit is an outcome, not a policy. It is the net resolution of the policies pertaining to taxes and expenditure. It is worth analysing separately the two components of the deficit. The table reports the results of relating the tax and expenditure share of GDP to per capita income for...

-The Indian Express The Samajwadi Party’s sweep in India’s biggest state, Uttar Pradesh, and Congress’s defeat in Punjab and Goa will further shrink the elbow room the Congress-led UPA government at the Centre has to push through key initiatives such as foreign direct investment (FDI) in multi-brand retail, pension reforms and legislation such as the goods and service tax (GST) that require support from states. The Centre had postponed some of these...

-The Times of India Government agencies fear that terror funds are flowing into the real estate sector, apart from a substantial part of the black money generated within the country finding its way into the housing industry. An assessment prepared by revenue intelligence agencies and reviewed by the finance minister recently reveals that the highest component of undisclosed money detected by the income tax department was from the real estate sector. Officials suspect...