But MPC has reasons to not ignore headline inflation
Derivatives traders are deploying strategies to profit from huge swings in stock prices typically seen on the day of the Union Budget
Budget should reverse two-year slide towards closed economy
After the rollout of GST, budgets are not awaited with the same excitement as earlier by India Inc. But Budget 2020 will be different
In 2009, FinMin proposed to move regulators' reserves into public account. These accounts were finally opened in 2013-14. However, no funds have been deposited in it so far
5 commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of GST's purview given the revenue dependence of state governments on these sectors
'Views may be supplemented and justified by relevant statistical information about the production, prices, revenue implication of the changes suggested'
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
The finance minister's revenue efforts represent a mix of progressive taxation, dipping into the petroleum sector for collecting more taxes and growing protectionism
Survey skilfully marshals fresh arguments for timeless policy
What could be troubling the market is the unknown quantum of public spending via borrowings, which are but sovereign liabilities, beyond the Rs 7 trillion fiscal gap
Just seven years ago, in 2011-12, the Union Budget size was bigger than the state Budgets