Challenges to Indian economy
Q. Which of the following are considered challenges to Indian economy in this fiscal year?
1) Risk of further global Slowdown
2) Fiscal Burden due to 7th Central pay Commission
3) Fiscal Burden due to OROP- Published on 21 Mar 16a. 1 and 2
b. 1 and 3
c. 2 and 3
d. All of the above
ANSWER: All of the above
- The risks of further global slo wdown and turbulence are mounting.
- It has three serious implications for us. First, we must strengthen our firewalls against these risks by ensuring macro-economic stability and prudent fiscal management
- Second, since foreign markets are weak, we must rely on domestic demand and Indian markets to ensure that India’s growth does not slow down.
- And third, we must continue with the pace of economic reforms and policy initiatives to change the lives of our people for the better.
- The 14th Finance Commission has reduced the Central share of taxes to 58% from the 68%. In the financial year 2015-16, we managed to improve upon the budgeted expenditure due to revenue buoyancy, notwithstanding the steep reduction in the Central share of taxes.
- The next financial year 2016-17 will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP.
