15 tough steps the Government may announce to repair Economy
Prime Minister Narendra Modi has warned of tough measures to repair the economy. There is no denying that restoring the economy would require some unpopular decisions, but the tough talk could also be a calibrated move to tone down expectations. While one section of the BJP leadership points towards the possibility of curtailing petroleum subsidy, a senior BJP functionary explained that Modi's attempt was to make his cadre base realise that the impact of inflation and high food prices cannot be reversed overnight.
The measures may also include an attempt spruce up the Railways, which has been ailing due to populist steps taken by previous railway ministers. ET looks at some possibilities
1) Fuel Subsidy Reforms - Strong chance
Diesel subsidy will soon be phased out; a monthly increase mechanism for LPG and kerosene may come
2) Food Bill Recast - Likely
The scope of the food security bill could be scaled down to target only the poor
3) Fertiliser Subsidy Rationalisation - Some price reform
Food security needs require higher use of fertilisers. Some rationalisation of urea prices likely
4) Fiscal Consolidation - Likely to continue
Staying with fi scal consolidation road map will enhance credibility of the new government
5) New Taxes Or Higher Rates - Not likely
It could dampen corporate and consumer sentiment that is on a high
6) Spending Curbs - Focus on revenue deficit
Gujarat government under Modi gave special emphasis on maintaining revenue surplus
7) PSU Bank Mergers - Likely
PSU banks could be merged to create bigger ones
8) Amendment To Land Bill - Likely to be reworked
Infrastructure development and industrialisation will suffer if it is not reworked
9) Labour Reforms - Announcement likely
Rajasthan government has already tested ground with some measures
10) Railway Fare Increase - Very likely
Railways high on Modi's agenda. Its revival needs steady rise in fares
11) Slower MSP Increases - Strong chance
Food subsidy bill and inflation management require slower increase in support prices for crops
12) PSU Reforms - Top priority
PSUs likely to get greater powers, those on the brink may be shuttered
13) Food Corp & CIL Recast - Strong chance
Coal India has failed to keep pace with demand, and FCI's ineffi ciencies add to the food subsidy
14) Rejig In Tax Slabs or Higher Exemption Rate - At most, minimal relief
Fiscal consolidation does not give much room for personal income-tax relief
15) Recast of NREGA - Will see a radical revamp
It has many adverse effects and requires to be fixed more
The measures may also include an attempt spruce up the Railways, which has been ailing due to populist steps taken by previous railway ministers. ET looks at some possibilities
1) Fuel Subsidy Reforms - Strong chance
Diesel subsidy will soon be phased out; a monthly increase mechanism for LPG and kerosene may come
2) Food Bill Recast - Likely
The scope of the food security bill could be scaled down to target only the poor
3) Fertiliser Subsidy Rationalisation - Some price reform
Food security needs require higher use of fertilisers. Some rationalisation of urea prices likely
4) Fiscal Consolidation - Likely to continue
Staying with fi scal consolidation road map will enhance credibility of the new government
5) New Taxes Or Higher Rates - Not likely
It could dampen corporate and consumer sentiment that is on a high
6) Spending Curbs - Focus on revenue deficit
Gujarat government under Modi gave special emphasis on maintaining revenue surplus
7) PSU Bank Mergers - Likely
PSU banks could be merged to create bigger ones
8) Amendment To Land Bill - Likely to be reworked
Infrastructure development and industrialisation will suffer if it is not reworked
9) Labour Reforms - Announcement likely
Rajasthan government has already tested ground with some measures
10) Railway Fare Increase - Very likely
Railways high on Modi's agenda. Its revival needs steady rise in fares
11) Slower MSP Increases - Strong chance
Food subsidy bill and inflation management require slower increase in support prices for crops
12) PSU Reforms - Top priority
PSUs likely to get greater powers, those on the brink may be shuttered
13) Food Corp & CIL Recast - Strong chance
Coal India has failed to keep pace with demand, and FCI's ineffi ciencies add to the food subsidy
14) Rejig In Tax Slabs or Higher Exemption Rate - At most, minimal relief
Fiscal consolidation does not give much room for personal income-tax relief
15) Recast of NREGA - Will see a radical revamp
It has many adverse effects and requires to be fixed more
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View all 10 comments Below 10 comments
Good governance is reflected only when the grievances of people are properly addressed. Every year large number of grievances are filed before various departments, ministries etc. But there is no check the way they are being disposed of. The Right to Information Act itself is being made futile by various authorities. Then where is the solace to various grievances? It would be better if an exclusive Ministry (at the level Deputy Minister) is entrusted the task of deciding the proper way of redress is an immediate need. more
Jun 23
Adity ji, I support your 15 points. Another point is infrastructure. All National Highway should be 4 lane & 6 lane. more
Jun 18
Anil & Aditya have done their best, but there is no magic to for overnight achievement for BJP, But any delay in relief will cause sorrow to voters, how do you deal with it, do little by little to console to improve tolerance levels. Review to revise garbage created in the last 10 years will give the clue to good governance. States must cooperate in their comfort in local administrative governance as fast, ASP. God's blessings to save the Indian citizens is on top of the list. Govind rao adapa more
Jun 18
general public feeling is --- they should get relief in kitchen budget, more relief in incometax, no floods this year, all roads connecting whole of india- roads should look like glassy , infrastructure devlopment -- price control ... i apprehend if it is not done it will be not good for us- ie bjp rakesh jain more
Jun 18
