ECONOMIC SURVEY 2016-17 ON AS as) oT MODULE - 1 Cn ic) r J Learning SpaceECONOMIC SURVEY Ay Learning Space 2016-17 MAJOR EVENTS OF 20: The main purpose was four fold This is in continuation of Government's Bo curb corruption crusade against black money like Creation of SIT in 2014 a To prevent counterfeiting Bringing Black Money Act, 2015 Benrami Transactions (Prohibition) ie brew otse or bien depormnation Amendment Act of 2016 notes for terrorist activities Double Taxation Avoidance Agreement Protocols (DTAA) with some countries and. Income Disclosure Scheme, 2016 ete. To prevent accumulation of black money |MEH sree et UN sees Porm ee a 2Gise2abe6 ECONOMIC SURVEY (4 Learning Space 2016-17 [Sato Public debate revolved around three aspects Broader aspects of management as teflected in the design and implementation of the initiative. B Economic impact in the short and long run. Broader vision underlining the future | conduct of economic policy.ECONOMIC SURVEY 2016-17 HOW IT EFFECTED THE ECONOMY? AGGREGATE DEMAND SHOCK It reduces the supply ot money and affects private wealth, especially of those holding unaccounted money. v AGGREGATE SUPPLY SHOCK It effects the economic activity Which relies on cash as an input. For example, agriculture production because sowing requires the use of labour traditionally paid in cash WU orsar nach eei8 There was uncertainty because of the imponderables related to the magnitude and duration of the cash shortage and the policy responses —A ECONOMIC SURVEY ]]_Learning Space 2016-17 PW ieadasois nase on) STC) a tases cy LONG TERM BENEFITS Inconvenience and hardship. Reduced corruption Worst affected were informal and cash Bo Greater digitisation of the economy. incentive sectors, who have lost income andempignient oH Inereased flows of financial savings Informal sector was worst affected Greater formalisation of the economy. a All-round uncertainty. Ultimately higher GDP growth, better tax compliance and greater tax revenue. Mismanagement of currency distribution added to the problemA ECONOMIC SURVEY [A] Learning Space 2016-17 RAV ¢yst say = SCOT o Bring land and real estate into GST. B Reduce taxes and stamp duties | 2 | Ensure follow up to demonetisation. a Be cautious about overzealous tax | administrationECONOMIC SURVEY Ay Learning Space i 2016-17 Bg Example of cooperative federalism B Bold new experiment. G S aE H Create common Indian market. a Improve tax compliance. i 6000s AND SERVICES TAX Ey boost investment and growth, eine Go Improve governance. ED tmerove ease of doing business Ee] Reduce logistics costsECONOMIC SURVEY [L.A] Learning space 2016-17 This to take care of the exit problem that pervade the Indian economy. ‘arectra fare a 2 Insolvency cy Board of India Here Insolvency and Bankruptcy Board of India (IBBI) is created. This will settle the Issues of insolvent companies / Ls individuals within the specific time DR. M.S. SAHOO frame of 180 days and extendable by 90 CHAIRMAN days. Insolvency and Bankruptcy Board of India (IBB!)ECONOMIC SURVEY [L.A] Learning space 2016-17 Hi Monetary Policy Committee was constituted Stability by ensuring CPI based inflation control within 2% to 6%. a This is with a view to consolidate the gains from macro economic stability. Inflation control will be less susceptible to the whims and fancies of individualsand the caprice of governments.ECONOMIC SURVEY Ay Learning Space a Se Statutory basis for Aadhaar a ~ This is with a view to realise Jan-dhan, Aadhaar, Mobile initiative, which is popularly AW. known as JAM. ee ‘IN. Increasing the reach of Aadhaarfor more and more schemes. Package of schemes for textiles and apparel sector to boost employment especially Nec) — Lim» fefhate einelaiiient NPC! successfully finalising the UPI platform a Further FDI reform measures.ECONOMIC SURVEY Ay Learning Space 2016-17 NYP): Kei g)-\ae ay [e] ac) Delivery of essential services such as health and education, which is predominantly the preserve of the State Governments remains impaired. Competitive federalism has been @ powerful agent of change in attracting investments, butit is abysmally less in evidence in relation to essential service delivery. However, some States are exception.ECONOMIC SURVEY (4 Learning Space 2016-17 NYP): Kei g)-\ae ay [e] ac) o Competitive populism by various States is another maior problem. Central Government runs about 950 central sector and centrally sponsored schemes and sub schemes, which cost about 5% of GDP and the targeted delivery is yet to be improved.ECONOMIC SURVEY Ay Learning Space 2016-17 Plo): el g)-\a aay [ec] 9 Twin balance sheet problem ie. over indebtedness of the corporates and the stress in bankingsector still persists and some hard decisions are required to come out of this. Frequent recourse to stock limits and controls on trade in agriculture, which draws upon the antiquated Essential Commodities Act creates uncertainty for the farmers.ECONOMIC SURVEY Ay Learning Space 2016-17 Plo): el g)-\a aay [ec] 9 India’s ambitious growth target of 8 to 10% requires export growth of about 15 to 20% and serious retreat from openness on the partof India’s trading partners would jeopardise this ambition. International oil prices may rise and because of twin balance sheet problem, India’ private investment may remain weak.ECONOMIC SURVEY Ay Learning Space 2016-17 [TNR 8 Global interest rates as a result of US elections and implied change in the expectations of fiscal and monetary policy of US may impact India’s capital EXPERIENCE THE NEW flows and exchange rates. Medium term political outlook for globalisation and in particular, the world’s political carrying capacity for globalisation may have changed in the Wake of recent developments.Figure: Globalisation and the World (1870 to present) TigpesgiceaioncomECONOMIC SURVEY Ay Learning Space 2016-17 [TNR 8 International world order is changing. Impact of BREXIT as well as US elections still uncertain and several countries are going towards isolationism and nativism. The post war consensus in favour of globalisation of goods, services and labour as well as market based economic organizational structures are under threat across the advanced economiesWE EXPRESS OUR SINCERE THANKS FOR VIEWING THIS VIDEO Presented by 4 (ic Al] Learning Space For Suggestions: Visit us at: suggestions@learningspace.in erred www.learningspacedigital.com To Contact us: G. V. Rao 0866-24 44472 info@learningspace.in 098499 42299 D. Sunil Kumar G. Ravi Babu V. Dayakar James —_D. Joji ¥. Sri Poojita K. Victor Babu