Market Watch

Quick fix: What could new FM do in Budget to boost economy

GST
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GST
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GST collection stood at Rs 1002.9 billion as on May 2019, which is lower than the monthly targeted budget of Rs 1142.5 billion.

In order to expand tax revenue government should bring crude oil, petrol, diesel, electricity, natural gas, real estate within the ambit of GST.

It must avoid procedural complexities and simplify registrations, delayed refund, and multiple tax slab.

Liquidity
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Liquidity
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Indian economy is facing a liquidity challenge which has put consumption and investment to a halt.

Urban demand growth as measured by consumer durables came down to 5.1 per cent in March from 6.2 per cent recorded in March last year.

The government must try to reduce the rated exposure of banks to all NBFCs.

Healthcare
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Healthcare
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Despite schemes like Ayushman Bharat –Pradhan Mantri Jan AarogyaYojana (AB-PMJAY), rural areas still lack access to healthcare facilities. Existing healthcare infrastructure is not enough to meet the needs of the population.

There is thus a need to revamp healthcare delivery at all its stages- prevention, diagnosis, and treatment.

As promised by the government, 1,50,000 Health and Wellness centers (HWCs) should be setup at the earliest.

Labour
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Labour
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Despite the abundance of labour, the cost of employing workers in India is high due to rigid labour regulations.

The labour laws need to be reformed and this would help enhance India's ease of doing business rank from the current spot at 77.

Agriculture
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Agriculture
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More than half the population depends on agriculture. Furthermore, low food prices have put pressure on farmers' income.

Government extended MSP to all crops, but the absence of proper infrastructure and market reforms has put a cap on the benefits.

The government must aim at extending the PM Kisan scheme with revised coverage to 14.5 crore farmers and effective implementation of the agricultural export policy.

Connectivity
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Connectivity
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Nearly 40,000 villages still lack mobile service connectivity.

The government must speed up its telecom connectivity programme across uncovered areas of Northeast including select Assam region and Arunachal Pradesh to tackle this issue.

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