Who says nothing is free in economics.
All of us want everything free and Modi Govt should find a solution to all our problems today and today itself. All this in the name of pandemic.
This Rs.20 lac cr is the most maligned number like "Rs.15 lac in bank account of everyone."
People have been counting zeroes or sibals in this huge number .People started hearing about 1 lac crore during UPA times when Govt auditor bandied 1.76 lac cr.for the first time in his scathing 2G audit report.
So now Rs.1 lac cr. has fallen out of fashion and so 10 lac cr. is better keeping pace with the inflation of our times. Like director Shankar's mega block buster big budget bash, Modi has to announce this humongous figure to take the wind out of opposition's sails.
this package has pulled many punches and seems to contain well thought out stimulus prescriptions. Some short term like money to Jan dhan accounts and many medium to long term .As we all are used to crisis for bringing out the best economic reforms, financial, agricultural, power reforms have all been bundled together using Covid camouflage.
GST reform/reduction is still pending.GST reduction of Auto sector from 28% to 18% will be a good starting point.This will push up demand,sentiment and also generate employment in one stroke.Covid struck people are looking for personal transport vehicles and this is the best time for this GST reduction. Revenues foregone notionally in short term will get recovered in medium term with its beneficial effects spilling all over the economy. In any case States should not worry as they will get any revenue loss compensated by Central Govt for 5 years.
This will be a great fillip with huge multiplier effects, ripple effects on the economy since Auto sector is the biggest driver of the GDP of the entire economy.
All of us want everything free and Modi Govt should find a solution to all our problems today and today itself. All this in the name of pandemic.
This Rs.20 lac cr is the most maligned number like "Rs.15 lac in bank account of everyone."
People have been counting zeroes or sibals in this huge number .People started hearing about 1 lac crore during UPA times when Govt auditor bandied 1.76 lac cr.for the first time in his scathing 2G audit report.
So now Rs.1 lac cr. has fallen out of fashion and so 10 lac cr. is better keeping pace with the inflation of our times. Like director Shankar's mega block buster big budget bash, Modi has to announce this humongous figure to take the wind out of opposition's sails.
this package has pulled many punches and seems to contain well thought out stimulus prescriptions. Some short term like money to Jan dhan accounts and many medium to long term .As we all are used to crisis for bringing out the best economic reforms, financial, agricultural, power reforms have all been bundled together using Covid camouflage.
GST reform/reduction is still pending.GST reduction of Auto sector from 28% to 18% will be a good starting point.This will push up demand,sentiment and also generate employment in one stroke.Covid struck people are looking for personal transport vehicles and this is the best time for this GST reduction. Revenues foregone notionally in short term will get recovered in medium term with its beneficial effects spilling all over the economy. In any case States should not worry as they will get any revenue loss compensated by Central Govt for 5 years.
This will be a great fillip with huge multiplier effects, ripple effects on the economy since Auto sector is the biggest driver of the GDP of the entire economy.
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