Human Signature

While last year’s theme was pro Rural, pro Agriculture and pro Woman budget and there was no significant takeaways for middle class. The election mode is ON and it was clear that the government wanted to use this opportunity which is one of the last opportunities before them to send positive messages to its core voters.  The tax sops given to the middle class and salaried employees makes it a friendly budget.   Fiscal prudence prevailed as the fiscal deficit was stated to be contained at 3.4%. Unarguably there were two main themes: Key Numbers ·        India’s Economic Size: $ 2.6 trillion (India to become $5 trillion economy in 5 years) ·        Total expenditure of this year’s Budget: 27.84 lakh crore ·        GDP Expected (2018-19): 7.2% ·        Fiscal Deficit: 3.4% of GDP ·        Current Accou...

While FM must have an eye on the LS elections  and also the impact of the low vote share % in Saurashtra, one thing which must be applauded that there were no giveaway subsidies and no loan waivers which has been very common in the past. Currently the government is facing number of constraints and challenges like: 1. 40% increase in oil prices over last 6 months 2. Slowdown in growth 3. GST impact 4. Inadequate private investment and distress in agriculture This is a pro Rural, pro Agriculture and pro Woman budget. While the middle class might be disappointed, we must accept the fact that we need to take care of the 90% of the population which lags behind. The fiscal deficit target has been eased at 3.3% of the gross domestic product to accommodate higher demand for expenditure against the earlier target of 3%. While this might disappoint many, one needs to understand that the higher target is set in a country which has introduced bank re-capitalizati...

What is Insolvency and Bankruptcy? Are they different? Insolvency is when an individual or a firm is unable to meet their financial obligations. This is the financial state of the company. Bankruptcy is the legal process that serves the purpose of resolving the issue of insolvency. This is the legal state of the company What is the need for the Act in India? Under the existing archaic-old laws, banks have had a hard time recovering bad debt, with the case of Kingfisher tycoon Vijay Mallya, who owes banks more than US$1.3 billion bringing the issue into focus. In fact, there was no single law dealing with insolvency and bankruptcy in India which leads to overlapping judgements and process becomes extremely cumbersome. Provisions of insolvency and bankruptcy related can found under various Acts: o   The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 o    Presidency Towns Insolvency Act, 1909 o...