@PChidambaram_IN mentioned "single-minded focus on containing the deficit"
FACTS
Chart 1: Absolute Fiscal Deficit is MASSIVELY EXPANDING like a Rocket
Chart 2: As % of GDP, Fiscal Balance (Deficit) is Highest Levels despite LIFE-TIME high Tax/GDP & Low Crude Oil Prices vs FY10-14
@PChidambaram_IN mentioned "single-minded focus on containing the Debt"
FACTS
Chart 1: General Government liabilities (DEBT) to GDP ratio is at the Highest levels. Well above 2014.
Q: Tax/GDP is highest Ever & Crude Oil px are Close to half levels of Pre-FY14
WHR IS THE MONEY?
Question to @PChidambaram_IN ... you are considered one of the smartest politicians - Why are you not aware of the FACTS and why are you putting the @nsitharaman's #Modinomics in such good light when she has been a DISASTER?
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Rs20000 per Plate of Food for #G20 comes as No Surprise
#Modinomics CAPEX is GOLD PLATED thereby costing us at-least 50-100% More than what a Frugal Govt should spend or what has been spent by the same institutions in the past.
This is precisely why your Road Cost you Rs75 LACS per 10 Meters of Road (Bangalore- Mysore Expressway) or the User Development Fee at your Airports are being raised by 500% etc
I have written Several Detailed Threads on this subject
A #BRILLIANT move by the @FinMinIndia hit 4 birds with one stone by introducing 3 changes in the Finance Bill. The 3 birds.. 1) Higher Tax Collections 2) Capital Controls 3) Bank Deposits 4) Lower cost of Govt funding.
But will HURT GROWTH. Long #THREAD
What are the changes 1) End of LTCG on #debt, Gold ETFs, Overseas or Any mutual fund that invests in less than 35% india equity bought after 1 Apr-23 2) STT Raised by 25% 3) Tax Collected at Source (TCS) raised to 20% (5% earlier) & threshold reduced to Zero (Rs7 lac earlier)
TRIGGER POINT: The Banking system is facing a shortage of liquidity => PRIMARY motive for the Changes in the Finance Bill in my opinion.
WHAT CAUSED THE LIQUIDITY CRUNCH? Weak Deposit growth vs credit growth.... also reflected in rising Credit/Deposit ratio