government borrowings

How government borrowings affect aam aadmi. For the development project and subsidies , government need money.For money,governmnet go for borrowings. The government will incrase the tax and also the base. More taxes led to less liquid money in the pocket of aam aadmi. Less money will affect their spending pattern. people will start spending less . This will lead to less consumption and less production also. It may cause slump in growth. Government fiscal policy of increasing the tax slab from 1,80,000 to 2,00,000 will however,help the indian people to have more money with them. Government also told to decrease the fiscal deficit from 5.9 % to 5.1 %. that means,less subsidy this year and more taxes .It can be seen that service tax has been raised from 10 % to 12%. the government is also considering including transfer pricing in the corporate sector. Regarding transfer pricing structure, please wait for my nest blog which i will publish soon.

financial trends in india post budget

current financial trends in india is highly volatile. Post budget 2013, the Indian service tax structure has been raised from 10 % to 12%. The budget focuses on transfer pricing and tax on mergers and acquitisions.However, the 23rd march,goldman sachs report shows some signs of recovery for indian inc and the share market will revert in the 3rd quarter. the Global market is recovering .US is recovering and european market is also recovering from greece debacle.The current indian scenario is showing signs of recovery. After 3 weeks of stocks showing downturn, the infosys and tcs showed some signs of recovery in terms of 4 to 5% . The Indian central bank also given signal of policy cuts in the recent monetary review. The government recent rajeev gandhi invetsment plans will add millions of dollar to the investors. The stable government in UP also helped the india to come up with its current debacle. Wall street is bouncing back. the overall economic view is somewhat comeing out of its nightmare .