Core Insights - The article discusses the evolution of India's Union Budgets over the decades, highlighting key reforms and their impacts on the economy and governance [21][20]. Group 1: Historical Budget Reforms - Pranab Mukherjee's 1983-84 budget introduced performance-based grants to states, allocating Rs 300 crore based on program implementation rather than population [3][21]. - V.P. Singh's 1985-86 budget raised the personal income tax exemption limit from Rs 15,000 to Rs 18,000, removing around 1 million taxpayers from the tax net [5][21]. - Rajiv Gandhi's 1987-88 budget significantly increased education spending from Rs 352 crore to Rs 800 crore, leading to the establishment of the Securities and Exchange Board of India [6][21]. Group 2: Liberalization and Structural Changes - Manmohan Singh's 1991-92 budget marked a shift towards Liberalization, Privatization, and Globalization (LPG) in response to a balance of payments crisis, with fiscal deficit exceeding 8% of GDP [7][21]. - P. Chidambaram's 1996-97 budget focused on long-term infrastructure financing, establishing the IDFC to support infrastructure projects [10][21]. - The 1997-98 budget, known as the "dream budget," introduced significant tax reforms, lowering personal income tax rates and recognizing the importance of information technology [11][21]. Group 3: Recent Developments and Future Directions - Arun Jaitley's 2017-18 budget introduced the Goods and Services Tax (GST), unifying 17 central and state indirect taxes under a federal framework [16][17]. - Nirmala Sitharaman's 2020-21 budget emphasized infrastructure development through the National Infrastructure Pipeline and proposed a restructuring of the personal income tax regime [18][21]. - The 2025-26 budget proposed the Jan Vishwas Bill 2.0 to decriminalize certain provisions, aiming to reduce compliance burdens and improve the ease of doing business [19][21].

India is set to introduce a new health and national security cess on machines used to produce a tobacco-related product, and amend the current compensation levy under the goods and services tax regime https://t.co/DX8w8a8xit ...

Economic Activity - India's economic activity slowed in November, impacting job creation, as indicated by a flash survey from HSBC Holdings Plc [1] - The manufacturing purchasing managers' index (PMI) decreased to 57.4 from 59.2 in October, while the services PMI increased to 59.5 from 58.9, resulting in a composite index drop to 59.9 from 60.4 [1][2] Business Confidence - The indexes reflect business confidence and are based on preliminary surveys, with a reading above 50 indicating expansion and below indicating contraction [2] - The expansion in new orders and business activity was reported to be at its slowest since May, which, along with a lack of pressure on operating capacities, limited job creation [2] Trade Impact - October's trade data showed a decline in exports to the US, India's largest trading partner, which fell by 8.6% due to the 50% tariffs imposed by the US, adversely affecting labor-intensive industries [2] - The tariffs and global trade uncertainties contributed to a record high trade deficit for India in October [2] Domestic Demand - Cuts to the goods and services tax (GST) in September helped lower prices on household items and boosted domestic demand, partially offsetting the impact of tariffs [3] - However, overall new orders in the manufacturing sector were described as "soft," suggesting that the GST-led boost may have peaked [3]

India’s Prime Minister Narendra Modi is seeking to overhaul the country’s complex goods and services tax, in an attempt to boost domestic spending and cushion the economic blow of US tariffs. Here's what to know. https://t.co/YMzlyGtpsZ ...

India’s Prime Minister Narendra Modi says the nation will announce reforms in Goods and Services Tax in the coming months, a move that will significantly lower prices of everyday use items https://t.co/Y7YvCA2N24 ...