Aam Aadmi hoping for a tax-cut:
There has never been a year when the expectations are not high from the budget. And, the pandemic year has raised the stakes by manyfold.
For the middle-class, a relief in taxes remains the biggest wish every year. And, they would be hoping for a relief on this front given the texting time we are living in.
For the government, cutting taxes is not going to be an easy task. Its revenue sources are stretched and the fiscal deficit has heightened. However, it is the need of the economy to generate demand. For that, the government needs to put extra money in the hands of the people.
The economy needs improved spending to revive the demand. For that, tax-cut on the middle-income group is very much required. And, the government must take it into active consideration.
Indian vaccine open for the world:
The whole world is watching as India is about to begin its vaccination program. The success of the Indian vaccine is going to result in huge global demand due to its cost-efficiency.
Anticipating the high demand in advance, Indian companies have ramped up production. The PM has also clarified that the government is not planning to restrict the export of vaccines. The successful supply of vaccines will lift India's global profile. It will also support its emergence as a reliable world power.
The vaccine’s supply is crucial for India to lift its standing across the globe. Critics say that the country must assess the needs of its population first and plan the global supply.
The government has planned to vaccinate 3 crore frontline workers in the first phase. A clarity on exports is likely to emerge as per the progress of the vaccination drive.
A reality check: RBI’s Financial Stability Report (FSR):
The RBI governor has fired the first shot of warning for the celebrating bulls in his latest Financial Stability Report (FSR). The governor mentioned the growing disconnect between the economy and the financial markets.
According to him, this poses a risk to the stability of the financial sector. He has also warned about the growth in gross non-performing assets once the supreme court lifts its stay on asset classification
Abundant global liquidity and lower interest rates have led to the diversion of funds towards equity markets. It has resulted in the stretched valuations of equity assets. This phenomenon is not just in India but also seen globally.
Governor Shaktikanta Das has given a warning to stock investors to maintain caution with their investments.