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

Media trial a dangerous trend: Aryama Sundaram

There is a danger in media doing trials of ongoing cases and this must be stopped, says senior advocate Aryama Sundaram. He castigated media trials and said nowadays in media while a case is going on you have debates where people are discussing what is right and what is wrong, which way the

PM launches Ayushman Bharat Digital Mission

 Prime Minister Narendra Modi has launched the Ayushman Bharat Digital Mission. Speaking at the launch, the Prime Minister said that the campaign of strengthening health faci

Want to learn the art of politics? There’s a course for it

Twenty-five youngsters with dreams of becoming political leaders – or of contributing meaningfully to governance processes – have begun their exciting journey, in a formal setting of an education institute. The Indian Institute of Democratic Leadership (IIDL), of the Rambhau Mhalgi Prabodhini (

Making sense of facts – and alternative facts

The Art of Conjuring Alternate Realities: How Information Warfare Shapes Your World By Shivam Shankar Singh and Anand Venkatanarayanan HarperCollins / 284 pages / Rs 599 Professor Noam Chomsky, linguist and public intellectual, has often spoken of &ls

The Manali Trance: Economics of Abandoning Caution in the Time of Coronavirus

The brutal second wave of the COVID-19 pandemic in India has left a significant death toll in its wake. Health experts advise that the imminent third wave can be delayed by following simple measures like wearing a mask and engaging in social distancing. However, near the end of the second wave, we witnesse

Govt considers fixing driving hrs of commercial vehicles

Union Minister of Road Transport and Highways Nitin Gadkari has emphasised deciding driving hours for truck drivers of commercial vehicles, similar to pilots, to reduce fatigue-induced road accidents. In a Na

Visionary Talk: Aryama Sundaram, Senior Advocate on Governance & Judiciary


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter