Status check: President’s 2016 address to parliament

President Pranab Mukherjee outlined the major policy priorities of the government in his 2016 speech

GN Bureau | February 2, 2017


#Goods and Services Tax   #GST   #Demonetisation   #Black Money   #Pranab Mukherjee   #GDP   #PRS legislative research  


President Pranab Mukherjee addressed parliament on February 23, 2016. In his address, he outlined the major policy priorities of the government across different sectors. PRS legislative research has undertaken an analysis of the address and provided the current status of the initiatives undertaken.

Efforts to tackle black money

The Taxation Laws (Second Amendment) Bill, 2016 was passed by Parliament and received the President’s assent in December, 2016.12 The Bill proposes to introduce the Pradhan Mantri Garib Kalyan Yojana, 2016. Under the scheme, taxpayers may declare undisclosed income possessed in the form of cash deposited in banks, post offices or RBI before a notified date.

On November 8, 2016, existing currency notes of Rs 500 and Rs 1,000 were demonetized to address storage of unaccounted wealth and circulation of counterfeit currency. No official estimation of black money is available.

Specified Bank Notes Cessation of Liabilities Ordinance, 2016 was issued in December, 2016. It provides that specified bank notes (old Rs 500 and Rs 1,000) will cease to be liabilities of the Reserve Bank of India from December 31, 2016 onwards.

Read: Demonetisation is a regressive and anti-poor measure: KC Chakrabarty

To put in place a simplified, progressive and non-adversarial tax regime

The Constitution (101st Amendment) Act, 2016 was enacted in September, 2016 to allow for the levy of a Goods and Services Tax (GST).

Model Central and State Goods and Services Tax Bills, 2016 were introduced in November 2016. The Model Central/ State GST Bills provide for the levy of: (i) the Central Goods and Services Tax (CGST), (ii) State Goods and Services Tax (SGST), (iii) levy of integrated Goods and Services Tax and (iv) compensation to states.

Read:  The flawed premises of GST

Committed to improve quality of governance by reforming institutions, simplifying procedures and repealing obsolete laws.

Standing Committee on Personnel, Public Grievances, Law and Justice has submitted a report on delays in appointing higher court judges. The recommendations include increased transparency, timely filling of vacancies and finalisation of Memorandum of Procedure in relation to appointments of judges.

The Appropriation Acts (Repeal) Bill, 2016, repealed 758 Appropriation Acts passed between 1950 and 2012.


The Repealing and Amending Act, 2016 repealed 295 laws while amending two laws, which were passed between 1862 and 2014.

Gross Domestic Product (GDP) growth increased

GDP: The GDP is estimated to grow at 7.1 % in the year 2016-17.  It grew at 7.1% in the first quarter (April-June) and 7.3% in the second quarter (July-September) of 2016-17. The GDP growth rate was 7.6% in the year 2015-16.

Read: Post DeMo, GDP growth in 2017-18 projected at 6.75 to 7.5 percent

Inflation, fiscal deficit and current account deficit decreased

Inflation: The average Consumer Price Index (CPI) in December 2016 was 3.4 %. CPI was 5.6% in December 2015.

Food inflation was 1.4% in December 2016 as compared to 6.4% in December 2015. Inflation target of 4% was notified by RBI for the period 2016-2021. It also set an upper limit of 6% and lower limit of 2% for the Consumer Price Index (CPI) inflation.

Fiscal Deficit: It is targeted at 3.5% of GDP in 2016-17 (compared to 3.9% in 2015- 16).

As of November 2016, the government had reached 85.8% of its fiscal deficit target, compared to 87% in November 2015.

Current Account Deficit: It decreased from $14.7 billion in 2015-16 (April-September) to $ 3.7 billion in the corresponding period in 2016-17.

Read: PRS legislative research analysis of the president’s address to parliament in 2016

 

Comments

 

Other News

When Jaitley asked me to guess his age...

Sometime in 1999, I took Arun Jaitley out for meal for the column, “Lunch with Business Standard”. As is his wont, he chose his own place for lunch. It was at the Chambers at the Taj Mansingh hotel, an exclusive domain of the high and the mighty Delhi. As we sat down for the meal

Thus ends the Chidamba-Run!

The arrest of Palaniappan Chidambaram, former union minister of home & finance, by the CBI, albeit after his much dramatic disappearance and reappearance, has brought an end to his long run from the arms of law. As a finance minister, being at the other end of the law, the former ministe

What Imran’s rant against RSS tells us about Modi’s Kashmir policy

An unintended consequence of the inversion of Article 370 and the division of the state of Jammu and Kashmir into two union territories is the curious revival of Pakistan’s interest in Indian history and sociology. For the first time in decades, a Pakistan prime minister made the Rasht

On a Personal note with actor Neeraj Kabi

Neeraj Kabi, a critically acclaimed self-taught actor, theatre director, and acting teacher, has worked in Odiya, Hindi and international cinema, theatre, television and web series. In 2014 he was honoured with the best actor award at the 4th Sakhalin International Film Festival for his role in the fil

Talking to Trump, Modi hits out at Imran’s anti-India rhetoric

Prime minister Narendra Modi has told US president Donald Trump that Pakistan prime minister Imran Khan’s “incitement to anti-India violence” was not good for peace in south Asia. Modi and Trump had a telephonic conversation – their first since the Aug 5 move to chang

Paediatricians call for junking unhealthy food

As children are consuming more and more fast foods and sweetened beverages are becoming, leading to obesity and related non-communicable diseases (NCDs), the Indian Academy of Pediatrics (IAP) has come out with guidelines on such substances. The dietary guidelines under its nutrition chapter



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter