Posts

Showing posts from January, 2020

BUDGET 2020 EXPECTATION

Image
            With only few days left for the Finance Minister, Nirmala Sitharaman, who has the huge responsibility to revive the Indian Economy, to present the NDA's seventh budget. The Indian Economy has grown at 4.5% in the second quarter, inflation stands at 7.35% which is five and a half year high and along with that unemployment rate is 6.1%, highest in 45 years. Almost every section of the economy is eagerly waiting for the budget that will be presented on 1st February, 2020 to see what the Government has planned to combat the slowing growth rate.              The main issue concerning the economy is low demand especially in rural segment. Consumption forms almost the 60% of Aggregate Demand and it is low and as a result the output is also getting low. Private consumption has also grown very slowly in the first half of the year, further decreasing the aggregate demand.              The main challenge for the government now is to increase the Consumption and Investment,