By Dr.

Vibhas Jha Sir

Slide-1 1
7. Enhancing productivity in agriculture
o Growth rate of 4.6% for past six years because of
o Good monsoon years.
o Reforms by government
✓ soil health card scheme
✓ micro irrigation fund
✓ organic and natural farming promotion
✓ FPO (Food Producer’s Organisation)
✓ National agriculture market (e-NAM)
✓ Agriculture Infrastructure Development Fund (AIDF)
✓ KISAN Rail-perishables plus horticulture
✓ Cluster development program (Horticulture cluster Development)
✓ Start-up ecosystem in agriculture

By Dr. Vibhas Jha Sir

8. Shocks and structural reforms during 2014 to 2022
▪ It was the period of banking, Non-banking and Non-Financial corporate
sector balance sheet stress
▪ Collapse of IL&FS (September 2018)
✓ collapse had ripple effect on other NBFCs
✓ Also led to low credit growth in the economy

Measures taken to address balance sheet stress

Amendment Insolvency and Prompt Recapitalisat Merger

Asset quality
to SARFAESI bankruptcy corrective action ion of PSBs of PSBs
review
Act code

By Dr. Vibhas Jha Sir

Shocks to Economy

By Dr. Vibhas Jha Sir

9. Growth magnets in decade
A. Healthy and repaired balance sheet in financial and corporate sector will
✓ Ensure efficient credit provisioning
✓ Contribute to higher growth through investment and consumption
B. Digitization reforms and efficiency gain
✓ Greater formalisation
✓ Higher financial inclusion
✓ More economic opportunities also skilling initiative to unleash
demographic dividend

By Dr. Vibhas Jha Sir

C. Evolving geopolitical situation presents opportunity-diversification of supply
chain like
✓ Re-Shoring
✓ Diversification
✓ Regionalization will drive re-structuring of global value chains.

D. The below reform agenda should be kept in mind to ensure-sustainable,

equitable and long run economic growth of 6% plus given global factors remain
unchanged.

By Dr. Vibhas Jha Sir

10. Further Reform Agenda
• De-regulation and simplification of compliances
• Addressing Power Sector issues in States
• Impetus to education and skill
• Dealing with 21st century Climate Change and Energy Transition
• Harnessing Demographic advantage
• Sensitize population towards healthy life style
• Strategies to arrest and reverse rising obesity
• Long-range plan to secure necessary metals and minerals energy
• Successful implementation of public sector asset and monetization
scheme.

By Dr. Vibhas Jha Sir

 CHAPTER 3
FISCAL DEVELOPMENT:
REVENUE RELISH

By Dr. Vibhas Jha Sir

INTRODUCTION

• Fiscal policy has become an effective macroeconomic stabilizing tool

globally.
• There is always tradeoff between giving fiscal support to manage the
continuing crisis and withdrawing fiscal stimulus from economy to
control inflation, ensure debt sustainability and reduce crowding out.

By Dr. Vibhas Jha Sir

DEVELOPMENT IN UNION GOVT FINANCES
(A) Fiscal position
• Calibrated fiscal response led to stable public finances amid
uncertainties.
(B) Govt is on track to achieve fiscal deficit target, hence on fiscal glide path.
(C) Prudent budgetary assumptions provided buffer to the government
during global uncertainties.

By Dr. Vibhas Jha Sir

(D) Performance of union government’s Non-debt receipts
a. Sustained revenue buoyancy
• Gross tax revenue growth had shown 15.5% growth YoY
basis.
b. Net tax revenue grew by ~8% on YoY basis.

By Dr. Vibhas Jha Sir

(E) Govt focusing over expansion of tax base and enhancing tax compliances.
• Tax measures:
✓ Introduction of GST
✓ Digitalization of economic transactions
• Tax policy measures:
✓ Foulness assessment & appeal
✓ Simplification of return filing
✓ Generation of e-way bills
✓ Information sharing between govt departments

By Dr. Vibhas Jha Sir

(F) Direct Taxes: Personal and corporate tax collection grew at 26% from
April to Nov 2022 YoY basis.
(G) Excise flexi-fiscal policy tool duties and customs
✓ Govt increased taxes on petrol and diesel to collect revenue, when
revenue from other sources were falling.
✓ Govt reduced taxes when supply-induced inflation was hurting real
income.

By Dr. Vibhas Jha Sir

(H) GST stabilized as vital revenue source: ₹ 13.5 lakh crore collected from
April to Dec 2022.
GST tax collection growth due to
• Nationwide drive against GST evasion
• Fake bills and
• Systemic changes like
✓ rates rationalization
✓ correcting inverted duty structure.
Fact: GST net doubled from 70 lakhs to 1.4 crore in 2022.

(I) Centre is on track to meet its non-tax revenue target

By Dr. Vibhas Jha Sir

Thank You

By Dr. Vibhas Jha Sir