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The big Budget push to ramp up domestic manufacturing and improve export competitiveness

The big Budget push to ramp up domestic manufacturing and improve export competitiveness
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Synopsis
“Our customs duty policy should have the twin objectives of promoting domestic manufacturing and helping India get onto global value chain and export better,” Finance Minister Nirmala Sitharaman said in her budget speech. “The thrust now has to be on easy access to raw materials and exports of value-added products.”
Agencies
Building a tariff wall may be counter-productive in the long run, says NR Bhanumurthy, vice-chancellor, Bengaluru Dr BR Ambedkar School of Economics University.
The Economic Survey 2020-21 and the Union Budget 2021-22 are remarkably different from previous ones. While the survey provides the analytical backstop for the government’s intent to borrow, build and grow, the budget itself is directionally clear and unambiguous about broad strategy. To build and support local industry the AatmaNirbhar Bharat (ANB) pr ....

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What is Fiscal Policy Strategy Statement, Fiscal Policy Strategy Statement Meaning and Definition

WHAT IS FISCAL POLICY STRATEGY STATEMENT
Fiscal Policy Strategy Statement
The Fiscal Policy Strategy Statement, presented to Parliament under Section 3(4) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, outlines the strategic priorities of the government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.

The Interim Budget did not outline such a statement. Here s what the government aimed to achieve in its Fiscal Policy Strategy Statement of Budget 2018: ....

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What is Medium-term Fiscal Policy Statement, Medium-term Fiscal Policy Statement Meaning, and Definition

WHAT IS MEDIUM-TERM FISCAL POLICY STATEMENT
Medium-term Fiscal Policy Statement
The Medium-term Fiscal Policy Statement, presented to Parliament under Section 3(2) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, sets out three-year rolling targets for four specific fiscal indicators in relation to gross domestic product (GDP) at market prices (i) Revenue Deficit, (ii) Fiscal Deficit, (iii) Tax to GDP ratio and (iv) Total outstanding Debt at the end of the year. The statement includes the underlying assumptions, an assessment of sustainability relating to balance between revenue receipts and revenue expenditure and the use of capital receipts, including market borrowings for generation of productive assets. ....

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