Fiscal Policy & Budget
Dive deep into India's fiscal policy, covering the Union Budget, government spending, and taxation. Understand how fiscal deficit and policy choices shape the economy and impact markets.
39 articles- Budget Allocations: Infrastructure vs Social Welfare — A Comparison For long-term growth, infrastructure spending is often prioritized. However, for immediate poverty reduction and improved living s... 5 min read
- How many new schemes are launched in the Union Budget? The Union Budget does not launch dozens of new schemes each year; the number is typically quite small, often between 3 to 10 major... 5 min read
- How to Invest Based on Union Budget Announcements To invest based on Union Budget announcements, you should first analyze the big-picture economic signals like the fiscal deficit a... 5 min read
- What is the Fiscal Responsibility and Budget Management Act? The Fiscal Responsibility and Budget Management (FRBM) Act is an Indian law designed to enforce financial discipline on the govern... 5 min read
- How to Understand the Union Budget Step by Step Understanding the Union Budget involves breaking it down into simple parts like government income (revenue) and spending (expendit... 5 min read
- What are Capital Gains Taxes and How Do They Work? Capital gains taxes are the taxes you pay on the profit you make from selling a capital asset like property, stocks, or gold. The... 5 min read
- Best Tax-Saving Investments for Young Professionals The best tax-saving investment for young professionals is an Equity Linked Saving Scheme (ELSS), due to its short 3-year lock-in a... 5 min read
- Why is Tax Compliance Difficult? How to Simplify It Tax compliance in India is difficult due to complex laws, frequent changes from the annual budget, and the confusing choice betwee... 5 min read
- What is a Progressive Tax System? A progressive tax system is a type of taxation where the tax rate increases as a person's income increases. This means high-income... 5 min read
- Tax Planning for Women Effective tax planning for women involves using specific tools like Section 80C investments, health insurance, and NPS to legally... 5 min read
- Is Government Spending Always Good for the Economy? Government spending is not always good for the economy. While it can boost growth by creating jobs and infrastructure, excessive o... 5 min read
- How to Analyze the Union Budget for Investment Clues The Union Budget is more than a government report; it's a roadmap for investors. Analyzing it involves checking big-picture number... 5 min read
- Is a Zero Fiscal Deficit Possible? A zero fiscal deficit is theoretically possible, but it is extremely difficult and often harmful for a growing economy like India.... 5 min read
- Government Budgets for Retirees: What to Expect The government's budget directly impacts retirees by changing tax rules, pension amounts, and interest rates on savings schemes. U... 5 min read
- Why is Tax Collection Low and How to Improve It? India's tax-to-GDP ratio is about 11.7%, far below the OECD average of 34%. Tax collection stays low because of a narrow base, exe... 5 min read
- How much tax revenue does India need annually? For the financial year 2024-25, India needs to collect approximately 26.02 lakh crore rupees in net tax revenue. This figure is ba... 5 min read
- Are Government Subsidies Really Effective? Government subsidies aim to make goods affordable, but their effectiveness is debated. While they can provide a crucial social saf... 5 min read
- 7 Factors to Consider in Government Spending When considering government spending in India, key factors include driving economic growth, ensuring social welfare, managing nati... 5 min read
- Why is Tax Evasion Happening and How to Stop It? Tax evasion happens due to factors like high tax rates, complex laws, and a large cash-based economy. To stop it, the government i... 5 min read
- How to Interpret Budgetary Allocations for Infrastructure Interpreting budgetary allocations for infrastructure involves analysing Capital Expenditure (Capex) figures in the Union Budget.... 5 min read
- Best Ways to Use Government Tax Incentives The best way to use government tax incentives is by choosing instruments that not only save tax but also build long-term wealth, l... 5 min read
- Best Ways to Manage Government Debt Governments manage debt through economic growth, spending reform, tax improvements, and debt restructuring. The most effective app... 5 min read
- Why Government Debt is Rising and How to Fix It Government debt rises because spending grows faster than revenue and crisis spending becomes permanent. The realistic fix is a mix... 5 min read
- Fiscal Deficit vs Government Debt — Key Differences Fiscal deficit is the shortfall in a government's income versus its spending over a single year, representing a flow of money. Gov... 5 min read
- Best Ways to Invest in Government Schemes Investing in government schemes offers a secure way to grow your money with attractive returns and tax benefits. The best option i... 5 min read
- How much does a government earn from taxes? The Indian government earns most of its revenue from corporate tax, personal income tax, GST, and excise on fuel, with smaller sha... 6 min read
- How much of GDP is fiscal deficit? India's fiscal deficit for the financial year 2023-24 was 5.6% of its GDP. This crucial ratio shows how much the government's spen... 5 min read
- Is Increased Government Borrowing Really Bad? Government borrowing is not inherently bad. While it can lead to higher taxes and inflation if misused, it is also a crucial tool... 5 min read
- 5 Things to Check Before You Invest Based on the Budget Before you invest after the Union Budget, run a five-point check: the real numbers, exposed companies, your tax slab, the fine pri... 5 min read
- How to Understand the Impact of Budget on Your Taxes The Union Budget impacts your taxes through direct changes to income tax slabs and deductions. It also affects your expenses via i... 5 min read
- Fiscal Stimulus vs Monetary Stimulus — What's the Difference? Fiscal stimulus involves the government using spending and tax cuts to boost the economy directly. In contrast, monetary stimulus... 5 min read
- What is Fiscal Policy and Its Objectives? Fiscal policy is the government's plan for taxes and spending, designed to manage the economy. Its main objectives are growth, job... 5 min read
- Is a Fiscal Deficit Always a Bad Thing? A fiscal deficit, where government spending exceeds revenue, is not always a bad thing. It can be beneficial when used to stimulat... 5 min read
- Fiscal Policy vs Monetary Policy — Which controls inflation? Monetary policy, controlled by the Reserve Bank of India, is the primary tool used to control inflation quickly through interest r... 5 min read
- Is government spending good for the economy? Government spending can be good for the economy, especially during a recession, by boosting demand and creating jobs. However, it... 5 min read
- Union Budget for NRIs: Key Takeaways The latest Union Budget for NRIs introduces significant changes to residency rules, taxation on income earned in India, and invest... 5 min read
- What is Fiscal Deficit and How Does it Affect You? A fiscal deficit is the gap between the government's total spending and its total income, excluding borrowings. It affects you dir... 5 min read
- How Much Should Government Borrow Each Year? In India, the government should ideally borrow around 3% of the country's Gross Domestic Product (GDP) each year. This target is s... 5 min read
- Why is India's Debt-to-GDP Ratio Important? How to Improve It India's debt-to-GDP ratio is important because it measures the government's ability to repay its debts without compromising econom... 5 min read