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Tag: economic survey 2021 22

  • Budget 2022: Demand for work increased than pre-Covid stage however MGNREGS allocation not raised

    Notwithstanding the observations made in Economic Survey 2021-22 that the demand for work underneath Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) continues to be increased than pre-pandemic stage, the federal government has not elevated the funds allocation for the scheme.
    Finance Minister Nirmala Sitharaman, who offered Union Budget for the monetary yr 2022-23 on Tuesday, saved the budgetary allocation for the MGNREGS at Rs 73,000 crore for the monetary yr 2022-23, which is decrease than the revised estimates of Rs 98,000 crore for 2021-22 (by allocating Rs 25,000 within the Supplementary Demands for Grants) and the precise expenditure of Rs 1,11,170 crore in 2020-21.

    Interestingly, the NREGS didn’t discover a point out in Sitharaman’s 90-minute funds speech. This is the second time in a row in her funds speech that Sitharaman didn’t point out something in regards to the NREGS that has emerged as a security internet for the poor and migrant employees in the course of the Covid-19 pandemic.

    Last yr additionally, she didn’t point out the NREGS throughout her 110-minute speech, very similar to her first funds speech on July 5, 2019. However, in her February 1, 2020 funds speech she had talked about the NREGS as soon as.

    The Economic Survey 2021-22 has mentioned that the demand for work underneath the NREGS continues to be increased than pre-pandemic stage.
    “An analysis of the latest data on demand for work under MGNREGS suggests the following trends in the rural labour market: (i) MGNREGS employment peaked during the nation-wide lockdown in 2020 (ii) the demand for MGNREGS work has stabilized after the second COVID wave; (iii) aggregate MGNREGS employment is still higher than pre-pandemic level…,” mentioned the Economic Survey 2021-22, tabled in Lok Sabha on Monday.

    “During the nationwide lockdown, the aggregate demand for MGNREGS work peaked in June 2020, and has thereafter stabilised. During the second-COVID-wave, demand for MGNREGS employment reached the maximum level of 4.59 crore persons in June 2021. Nonetheless, after accounting for seasonality, the demand at an aggregate level still seems to be above the pre-pandemic levels of 2019,” The survey mentioned.
    The survey mentioned: “For some states like Andhra Pradesh and Bihar, the demand for work under MGNREGS has reduced to below the pre-pandemic levels during the last few months.”

    “Intuitively, one may expect that higher MGNREGS demand may be directly related to the movement of migrant labour i.e. source states would be more impacted. Nevertheless, state-level analysis shows that for many migrant source states like West Bengal, Madhya Pradesh, Odisha, Bihar, the MGNREGS employment in most months of 2021 has been lower than the corresponding levels in 2020,” the survey mentioned.
    “In contrast, the demand for MGNREGS employment has been higher for migrant recipient states like Punjab, Maharashtra, Karnataka and Tamil Nadu for most months in 2021 over 2020. There are still other states that do not neatly fit into this categorization,” it mentioned.
    “Therefore, the relationship between MGNREGS employment and movement of migrant labour during the last two years cannot be conclusively determined, and requires further research,” it added.
     

    According to the most recent information obtainable on the NREGS portal, 6.73 crore households (9.72 crore people) have availed the agricultural job assure scheme until January 31 in the course of the present monetary yr.

  • ‘Diversified mix of energy sources’ could also be key amid rising gas costs

    In what might sign a coverage push within the upcoming Union Budget for 2022-23, the Economic Survey for 2021-22 has flagged considerations with each clear vitality sources and rising costs of standard gas sources, calling for adoption of an strategy having a “diversified mix of sources of energy of which fossil fuels are an important part”.
    On the coverage entrance, particularly, it has highlighted three factors that shall be pertinent:
    1. The tempo at which shift from standard fossil-fuel primarily based sources is made. This tempo will decide the extent and mixture of funding in renewable sources of vitality, it stated.
    2. It additionally identified the significance of avoiding the danger of being a late comer within the net-zero emission plans on condition that developed international locations are already front-runners. This is pertinent due to the inelastic provide of minerals and metals important for creating clear vitality sources, which is inflicting the costs to shoot up, much more so sooner or later.
    3. Lastly, it referred to as for encouraging of analysis and improvement to make sure easy change to renewable sources of vitality. This can also embrace give attention to creating expertise that recycles, reuses and repurposes minerals, it stated.

    “The recent surge in prices of natural gas in Europe on account of higher energy demand coupled with cold spells across the region and slower winds to run wind turbines has resulted in lower electricity output. The energy crisis being experienced by Europe brings to the fore the need for having a diversified mix of sources of energy of which fossil fuels are an important part. Simultaneously focus should be laid on building storage for intermittent electricity generation from solar PV and wind farms to ensure on-demand energy supply,” the Survey famous.

    ExplainedCan lower time and pink tapeAs vitality crises are being skilled in varied components of the world, largely notably in Europe, the main focus for India wants to show to a balanced strategy of switching to renewable esources and easing out fossil-fuel primarily based ones.

    Notably, the federal government has already began transferring on organising giant battery storage system — one thing that has inspired multi-million greenback offers within the vitality storage expertise, together with grid-scale stationary storage purposes. The Centre has already introduced plans to drift tenders to arrange 13 GWh grid-scale battery storage programs in Ladakh area, along with constructing a 14 GWh grid-scale battery storage system on the world’s largest renewable vitality park at Khavda in Kutch in Gujarat.
    Power Minister RK Singh had not too long ago stated that the federal government will quickly come out with an vitality storage coverage which can delicense the organising of standalone vitality storage programs with a view to broaden using storage programs within the nation to allow easy transition to scrub vitality. Singh has repeatedly referred to as out western international locations for low investments in creating vitality storage expertise to carry down the value of storage.
    Separately, analysts are predicting that crude oil costs to might rise to as excessive as $125 per barrel as a result of geopolitical tensions within the center east and in Europe as Russia has amassed a lot of troops on its border with Ukraine.

    Further, key oil producing international locations have saved crude oil provides on a regularly rising manufacturing schedule regardless of a pointy enhance in international crude oil costs. Earlier this month OPEC determined to extend its total day by day manufacturing ranges by solely 400,000 barrels per day in February regardless of its personal forecast that oil demand would rise by 4.15 million barrels per day in 2022. India has repeatedly referred to as on OPEC to extend manufacturing to satisfy the rise in international demand noting that prime crude oil costs are undermining the publish pandemic financial restoration in rising nations.

  • More kids, girls flip to pension schemes underneath APY

    NEW DELHI :

    More kids and ladies are signing up for the federal government’s flagship social safety scheme Atal Pension Yojana (APY), the financial survey 2021-22 confirmed, in a serious pattern shift in India’s pension sector.

    The survey tabled in parliament on Monday confirmed that the age profile of the subscribers within the APY scheme suggests rising enrolments at a youthful age.

    “As on September 2021, greater than 43% subscribers have been between 18 and 25 years, as in comparison with 29% as on March 2016,” it mentioned.

    Further, the gender hole in enrolments underneath APY has narrowed with elevated participation of feminine subscribers, which has elevated from 37% as of March 2016, to 44% as of September 2021.

    The survey additionally confirmed that extra individuals at the moment are choosing a pension quantity of ₹1,000 per thirty days. As on September 2021, round 78% subscribers opted for the determine, in contrast with 38% subscribers as on March 2016. Further, as on September 2021, the share of subscribers choosing ₹2,000, ₹3,000, ₹4,000 per thirty days pension is 8%, whereas 14% go for ₹5,000 per thirty days pension.

    As on 12 October 2021, contribution of ₹16,109 crore was collected in APY from greater than 34.5 million enrolments. The APY scheme is being distributed by greater than 250 energetic APY service suppliers together with all banks and put up workplaces, it mentioned.

    The complete variety of subscribers underneath New Pension Scheme (NPS) and APY elevated from 37.4 million as on September 2020 to 46.3 million as on September 2021, a progress of 23.7% over the 12 months. Overall contribution underneath NPS grew by greater than 29% in the course of the September 2020 to September 2021 interval.

    Assets underneath administration (AUM) of NPS and mixed APY stood at ₹6.67 trillion on the finish of September 2021, towards ₹4.95 trillion on the finish of September 2020, up 34.8%.

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  • Post-Covid financial system won’t merely be re-inflation of pre-Covid financial system: Economic Survey

    It said that supply-chain breakdowns triggered an interruption of the financial system’s supply-side which additionally squeezed demand, however it’s not right to see the pandemic associated financial slowdown as only a demand downside.
    “…the post-Covid economy will not be merely a re-inflation of the pre-Covid economy. Simply building it back with demand measures is not a solution,” it mentioned.

    The emphasis given to the supply-side in India’s COVID-19 response is pushed by two vital issues: first, Indian policymakers noticed the disruptions attributable to travel-restrictions, lockdowns and supply-chain breakdowns as an interruption of the financial system’s supply-side. “Although this also squeezed demand, it is not correct to see the pandemic related economic slowdown as just a demand problem as happens with most economic cycles,” it mentioned. Second, the post-Covid world shall be impacted by all kinds of things – adjustments in expertise, client behaviour, geo-politics, supply-chains, local weather change, it added.

    The Survey has flagged dangers from rising inflation from each a tighter international liquidity situation and trade charge volatility in international foreign money. “In 2021, inflation picked up globally as economic activity revived with the opening up of economies. Inflation in the US touched 6.8 per cent in November 2021, the highest since 1982, driven largely by energy and food prices. As inflation worries are mounting, a distinct shift towards the unwinding of pandemic-led stimulus is taking hold. This may result in tightening of financial conditions, adversely affecting capital flows, putting pressure on exchange rate and slowing down growth in emerging economies,” it mentioned.

    Highlighting the divergence between wholesale and retail inflation, it mentioned imported inflation is an issue and must be taken into consideration. The excessive WPI-based inflation charge in 2021 is essentially attributable to the low base of the previous 12 months, whereas retail inflation that had remained excessive throughout 2020-21 as a result of provide chain disruptions and excessive meals inflation moderated in 2021-22 on account of efficient provide aspect administration, leading to a divergence between WPI and CPI primarily based inflation, it mentioned. “…unanticipated increase in energy prices and emergence of industrial input cost pressure and high freight costs led to a sharp spike in WPI inflation in 2021. This was reflected in high WPI inflation in the fuel group and manufactured sector during the year. Thus, while on the one hand, low food inflation pulled down CPI, on the other hand high energy and input prices pulled up WPI based inflation rate,” it mentioned.

    The Survey additionally said that the stability of dangers for international commerce is tilted to the draw back, with the largest danger from the pandemic, notably with resurgence of recent variants corresponding to Omicron. In addition to the surge in international inflation, longer port delays, increased freight charges, scarcity of transport containers, scarcity of inputs corresponding to semiconductors, with supply-side disruptions being exacerbated by restoration in demand, pose important dangers, inter alia, for international commerce.
     

  • Economic Survey pegs industrial progress at 11.8 per cent in FY22, and the way schemes like PLI would assist restoration

    India’s industrial sector, which was marred by disruptions because of the Covid-19 pandemic, is more likely to file a progress of 11.8 per cent in 2021-22, the financial survey has stated. Though the efficiency of the slowed down through the yr, it gives some prescriptions: a gradual unlocking of the financial system and plans such because the manufacturing linked incentive (PLI) scheme for varied sectors, together with different coverage initiatives akin to emergency credit score line assure to micro, small, and medium enterprises will assist assist the tempo of restoration.
    “The pace of this recovery and further growth is likely to continue due to consistent efforts of the government to bring in various structural, fiscal and infrastructural reforms in addition to a slew of measures/schemes like the production linked incentive scheme (PLI) to support industries,” the survey famous.

    Quoting the Reserve Bank of India research on company efficiency, the financial survey famous that the web revenue to gross sales ratio of enormous corporates had reached an all-time excessive regardless of the challenges of the pandemic.
    “Buoyant FDI (foreign direct investment) inflows amid improvements in overall business sentiments, foretells a positive outlook for the industry,” the survey famous.

    Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2021-22 within the Lok Sabha.
    Among the assorted main parts of commercial progress, manufacturing, which had a median share of 16.3 per cent within the nominal gross worth addition over the past decade noticed its share fall to 14.4 per cent. It is, nevertheless, anticipated to get better and attain 15.3 per cent by the top of this fiscal.
    Overall, in 2021-22, manufacturing is predicted to develop by 12.5 per cent, mining and quarrying by 14.3 p.c, development by 10.7 p.c and electrical energy, gasoline and water provide by 8.5 per cent.

    For the nation to attain a gross home product of $5 trillion by 2024-25, about $1.4 trillion must be spent simply on infrastructure over these years. Though India invested $1.1 trillion between 2008 and 2017, the problem is to “step up infrastructure investment substantially”, the survey famous.
    “The next 10 years will see a very high level of CAPEX (capital expenditure) in the railway sector as capacity growth has to be accelerated such that by 2030 it is ahead of demand. The CAPEX outlay for 2021-22 is Rs 2,15,000 crores which is more than five times the 2014 level. As more projects are taken on hand and several sources of capital funding are developed, the CAPEX will increase further in coming years and the railway system will actually emerge as an engine of national growth,” the survey famous.

  • Economic Survey 2022 Live Updates: Economic Survey 2021-22 to be tabled in Parliament right this moment

    Economic Survey 2022 Live Updates: The Budget Session of the Parliament will begin right this moment with President Ram Nath Kovind addressing each the homes. Thereafter Finance Minister Nirmala Sitharaman will desk the Economic Survey 2021-22.
    The Economic Survey is an annual doc ready by the Ministry of Finance beneath the steering of the Chief Economic Advisor (CEA) and it gives a abstract of annual financial improvement throughout the nation in the course of the monetary 12 months 2021-22.
    The authorities on Friday appointed Dr. V Anantha Nageswaran as the brand new CEA including in a press release that he has assumed cost. He changed KV Subramanian whose three-year time period led to December.

  • Parliament Budget Session 2021 Live Updates: President handle to each Houses right now

    Gandhi statue at Parliament (Express Photo/File)
    Opposition events boycott President handle to Parliament
    17 Opposition events mentioned Thursday they might boycott President Ram Nath Kovind’s customary handle to the joint sitting of Lok Sabha and Rajya Sabha Friday. They mentioned this is able to be an expression of solidarity with farmer unions who’ve been protesting at Delhi’s borders for over two months, demanding the repeal of recent agriculture legal guidelines.
    Responding to the announcement, Minister of Parliamentary Affairs Pralhad Joshi mentioned: “I appeal to leaders of all parties not to boycott the President’s address. The government is ready to discuss all issues threadbare, and as much time as is required will be set aside when the Business Advisory Committees of both Houses meet.”
    In a joint assertion, the Opposition leaders mentioned: “Lakhs of farmers have been agitating at the gates of the national capital of Delhi, braving biting cold and heavy rain for the last 64 days for their rights and justice. Over 155 farmers have lost their lives. The Government remains unmoved and has responded with water cannons, tear gas and lathi charges. Every effort has been made to discredit a legitimate mass movement through a government-sponsored disinformation campaign.”
    “Unfortunately, there were few acts of violence on January 26 in the national capital of Delhi which was condemned universally and unequivocally. We also express our sadness over the injuries sustained by Delhi Police personnel while handling the difficult situation. But we believe that an impartial investigation will reveal the Central Government’s nefarious role in orchestrating those events,” the leaders mentioned.
    The signatories to the joint assertion are Leader of Opposition in Rajya Sabha Ghulam Nabi Azad, Congress chief in Lok Sabha Adhir Ranjan Chowdhury, Congress deputy chief in Rajya Sabha Anand Sharma, NCP’s Sharad Pawar and Supriya Sule, National Conference’s Farooq Abdullah, DMK’s T R Baalu and Tiruchi Siva, Trinamool Congress’s Derek O Brien and Sudip Bandyopadhyay, Shiv Sena’s Sanjay Raut, SP’s Ram Gopal Yadav, RJD’s Manoj Jha, CPM’s Elamaram Kareem, CPI’s Binoy Viswam, RSP’s N K Premachandran, PDP’s Nazir Ahmad Laway, MDMK’s Vaiko, IUML’s P K Kunhalikutty, AIUDF’s Badruddin Ajmal and Kerala Congress (M)’s Thomas Chazhikadan.
    Economic Survey 2021 by Finance Minister Nirmala Sitharaman right now
    The Economic Survey 2020-21 shall be tabled within the Parliament on Friday, January 29, 2021, by Finance Minister Nirmala Sitharaman, two days earlier than the Union Budget will get offered. Generally, the Economic Survey is offered on the opening day of the Budget Session and gives a abstract of annual financial growth throughout the nation in the course of the monetary 12 months.
    It analyses the tendencies in cash provide, infrastructure, agricultural and industrial manufacturing, employment, costs, exports, imports, overseas alternate reserves in addition to different related elements that have an effect on the financial system and the finances. This 12 months, the main target goes to be on the losses suffered by the Indian financial system as a result of coronavirus (COVID-19).
    The Economic Survey is likely one of the most vital annual doc of the Finance Ministry because it gives the useful resource allocations talked about within the Budget. This doc is ready beneath the steering of the Chief Economic Advisor (CEA) to the central authorities.