Budget Talk @ AIM
Budget Talk was organized at AIM to understand and analyse the intricacies of the Union Budget 2016-17. Dr.Martin Patrick, Chief Economist, Centre for Public Policy Research, Kochi was the Resource Person. Dr.Martin explained the basic concepts of a budget so that the students could understand the meaning of the terms used in a budget. He explained the nine pillars upon which the budget of 2016-17 is built up. In a nutshell he explained the budget and gave an excellent idea on the impact of this budget on the economic situation of this country. He expressed his concern on how the Finance Minister is going to reduce the Fiscal Deficit from 3.9% o to 3.5% of GDP. Given the situation of high expenditure due to Salary to Central Govt. employees and increasing revenue expenditure, the Finance Minister may face tough times, he said. India hailed as a ‘bright spot’ amidst a slowing global economy by IMF because of low inflation, sufficient forex reserves (350 billion US dollars), growth started picking up. He also stressed upon poor performance of capital market, decline of manufacturing sector and distress of agriculture sector. Dr.Martin is of the opinion that Fiscal Consolidation and Global Slowdown is a challenge for the Indian Economy. He expressed his concern over the objective of doubling the income of the farmers in five years, because to achieve this end almost 15% growth in farm sector is essential.