Current Industrial Policy of Government of India

The Industrial Policy of 1991 was a watershed moment in the Indian Economy. It fulfilled log-left demands of the industry such as removal of compulsory licensing, MRTP limit and other numerous bureaucratic bottlenecks. The companies could establish new undertakings and ..

Exchange Traded Funds as a successful way of disinvestment

One of the components of the Union Budget of 2017 has been the proposal to launch more CPSE ETFs in the coming financial year. This proposal has been adopted seeing the overwhelming response that the government has received for this ..

Disinvestment and Mobilization of Resources

In this article, we review the current government policy and various issues around disinvestment. Disinvestment and privatization are two related but different terms. They are related because both involve sale of government shares in PSUs. However, when 51% or more ..

Proposed Public Debt Management Agency (PDMA): Requirement, Features, Issues

In an effort to streamline the borrowings of the government and achieve better cash management, the Finance Ministry in 2016 established the Public Debt Management Cell which is to become Public Debt Management Agency in two years time. It is ..

Mobilization of Resources for Local Bodies: Various Issues

The Economic Survey for 2017-18 pointed out that the local bodies in India appear to not to be collecting the revenues from taxes to the extent they can. This has somewhat rekindled the debate on mismatch between powers of taxation ..

Trends & Issues in Capital Expenditure

The capital expenditures result in creation of physical and financial assets such as land, building, machinery, infrastructure such as road and bridges etc. Similarly, these expenditures also result in the reduction in government liability such as paying back the loans, ..

Trends and Issues in Revenue Expenditure of Government

Revenue expenditures are those expenditures of the government which are used for running the show and don’t create any productive assets and don’t reduce liabilities. These include operational and administrative expenses, welfare schemes, subsidies, pensions, salaries, interest payments, grants, money ..

Deficits of States: Trends and Implications for Resource Mobilization

The Reserve Bank of India in its “State Finances: A Study of Budgets of 2016-17” has provided a consolidated fiscal health of the states. This study has reflected the fiscal position of centre as well as states in detail for the ..