-Hindustan Times Finance Minister Arun Jaitley's claims of already having achieved an economic turnaround, made in his budget speech, evoke suspicion. Inflation is certainly down and so is the current account deficit, but that has almost entirely to do with the crash in international crude oil prices, which have fallen from $110 per barrel in June 2014 to around $57 per barrel currently. In fact, rather than passing on the full...

-Press Information Bureau/ Ministry of Finance Economic Outlook, Prospects and Policy Challenges Macroeconomic fundamentals in 2014-15 have dramatically improved. Highlights are: * Inflation has declined by over 6 percentage points since late 2013. * The current account deficit has declined from a peak of 6.7 percent of GDP (in Q3, 2012-13) to an estimated 1.0 percent in the coming fiscal year. * Foreign portfolio flows have stabilized the rupee, exerting downward pressure on long-term interest...

-Hindustan Times The government's fiscal management plan in the budget could see a roadmap on extending the controversial cash transfer schemes from just entitlements to subsidies, a move that could add fuel to the already surcharged atmosphere over the land acquisition bill. The finance ministry has issued instructions to bring all Central schemes having a financial component under the direct benefit transfer (DBT) from April, apparently to plug leakages and to keep...

Following the recommendations of the Shanta Kumar Committee report on restructuring of the Food Corporation of India (FCI), there are signs that the Central Government is in a hurry to replace the Public Distribution System (PDS) with cash transfers. The Government's intention has been revealed in two official letters (one dated 10 February 2015 and another dated 11 February 2015) that were sent from the Joint Secretary at Department of...

-Business Standard The Union government has remained equivocal in public about the Shanta Kumar report and whether the National Democratic Alliance intends to follow up and change the National Food Security Act. But at least on one count it has moved fast to implement the report - converting the subsidised food supply into cash transfers under the Direct Benefits Transfer Scheme. The food ministry has written to the Union Territories to...