Economic Survey: Fiscal space to provide additional support to the economy 

Morning Masala Tea
1 February, 2022

News Today:

Finance minister Nirmala Sitharaman will present her fourth Budget today 

The Budget is basically an account of the government’s expenditure and receipts. Tax revenues are basically a function of nominal incomes. It is in keeping with this logic that the Budget projects a nominal GDP growth number as the basis for the entirely budgetary math. The 2021-22 Budget projected a nominal GDP growth of 14.4%. The nominal growth rate for 2021-22, as per the first advanced estimates released by the National Statistical Office (NSO) is significantly higher (17.6%) than this number. At 9.2%, the real GDP growth has turned out to be much lower than the last year’s Economic Survey forecast of 11%.. HT

Improvement in vulnerability indicators

Vulnerability indicators relating to reserves such as reserves to total external debt, reserves to short-term debt (residual maturity) and reserve cover of imports have shown marked improvement in the first half of the current fiscal vis-à-vis FY 2014, the taper tantrum year. Deccan Herald

SKM would have no option but to resume the agitation

The Samyukta Kisan Morcha, which spearheaded the yearlong farmers’ movement, on Monday said it would have no option but to resume the agitation as the Narendra Modi government “continues to renege on the promises made to protesting farmers” on December 9. This ultimatum came on a day President Ram Nath Kovind addressed a joint sitting of both Houses of Parliament and the government unveiled the Economic Survey. Telegraph

Buoyant tax revenues offered the government fiscal space to provide additional support to the economy 

The Economic Survey tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman pointed out that buoyant tax revenues offered the government fiscal space to provide additional support to the economy and continue the push in favour of higher capital expenditure. Though output in various contact intensive services remained below pre-pandemic levels, it said the macroeconomic strength provided buffers against likely stresses such as withdrawal of stimulus by global central banks.. Indian Express

Gaping lacuna in government data regarding the impact of the pandemic on education

The Economic Survey has acknowledged a gaping lacuna in government data regarding the impact of the pandemic on education, especially on 25 crore schoolchildren who have not entered a classroom in almost two years.“It is difficult to gauge the real time impact of repeated lockdowns on education sector because the latest available comprehensive official data dates back to 2019-20.. Hindu


Google Trends Today

Chinese New Year 2022

This Lunar New Year will be the year of the Tiger. Chinese New Year 2022 will fall on February 1.

IPO of Adani Wilmar subscribed 17 times

The initial public offer (IPO) of Adani Wilmar Limited (AWL) received a strong response from investors, with the issue garnering over 17 times subscription on the last and final day of the bidding process on Monday.

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Twitter Trends 

  1. Kerala HC stays I&B Ministry’s order revoking Malayalam news channel’s licence
  2. Burkina Faso military says they will restore the constitution following African Union suspension
  3. #Budget2022


Compiled from Twitter

24 February, 2024

Byju’s, once heralded as a flagship in India’s edtech sector, is grappling with severe financial and operational challenges, marked by a dramatic valuation drop. The company, which sought to stabilize its operations and finances, is now raising funds at a valuation significantly lower than its peak. This development comes amid efforts to address a substantial debt burden, with Byju’s proposing a repayment plan for its $1.2 billion loan. Investor confidence appears shaken, with some stakeholders pushing for drastic changes in leadership to navigate the crisis effectively. The turmoil reflects broader sectoral pressures and raises questions about the sustainability of high-growth trajectories in the edtech industry

10 February, 2024

Australia’s energy market is witnessing significant transitions and investments aimed at bolstering renewable energy infrastructure and securing gas supplies. Key developments include a $179 million investment by the Queensland Government for community battery projects, Santos’ $5.7 billion gas pipeline project following a legal battle win, and a $206 million energy savings package for NSW households. Additionally, the Australian government has secured new gas supply deals to support the east coast market, emphasizing the role of gas in transitioning to a renewable grid.

India 2024
9 February, 2024

The latest opinion polls, including the Mood of the Nation survey by India Today, predict a comfortable victory for Prime Minister Narendra Modi’s BJP and its allies in the National Democratic Alliance (NDA), with a projected win of 335 Lok Sabha seats in the 2024 general elections. This forecast suggests a slight decrease from the 2019 elections but still ensures a majority. The survey, involving interviews with over 149,000 respondents, reflects Modi’s enduring popularity based on his nationalist policies and economic reforms. Other polls echo these findings, although seat projections vary slightly. The opposition INDIA alliance is expected to secure a significant number of seats, yet not enough to challenge the NDA’s majority. These predictions highlight a political landscape that remains largely favorable to Modi and the BJP as the election approaches