Finesse, the Finance club of IMNU organized a “Pre-Budget” session on 24th February, 2011. The session aimed to analyze the current economic situation of the country and compare it with the past. It also aimed to make the audience aware about the budget making exercise of the Government. An attempt was made to forecast the measures that the Government might take in the upcoming budget to tackle the current problems and take the economy forward.
The eminent speakers for the session were Prof. Bindi Mehta and Prof. R J Mody and the session was chaired by Prof. Mallikarjun. Finesse members (Jay Joshi, Mitesh Jain & Manan Pamani) gave a presentation on the state of the economy, comparing it with the past 4-5 years.
Prof. Bindi Mehta gave an insight into the process of the constitutional exercise carried out every year by the Indian Parliamentary system. She talked about the intricacies in the preparation of the Budget. She also explained the fiscal and monetary measures that the Government takes to control the economy.
A macroeconomic analysis of the Indian economy was done by the students. It covered the overall health of the economy and compared the fiscal deficit, inflation and balance of payments with the past 4 years. The impact of windfall gains from 3G auction and sensitivity analysis with respect to this aspect was carried out. The important taxation announcements in the past 3 years that affected the countrymen were explained.
Prof. Mody talked about the major causes of inflation and the measures required for controlling it. He explained that the inflationary pressure is from supply and distribution side constraints rather than demand-driven. He compared the Indian economy with other countries and highlighted how it is different from them. He also tried to give a picture of what to expect from the current budget.
Prof. Mallikarjun concluded the session and the insightful questions were taken up. He explained that high current account deficit should not be cause of worry and it should not be compared with other countries as India is fundamentally different from other countries.
(Content Courtesy: Manan Pamani on behalf of Finesse Club)