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Title of Magazine
Business Today
Dated:16
th
March 2014

Title of the article
Interim Budget-Budgeted Wrong

Author
Shweta Punj(Business Journalist)





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Summary of the article:
Finance Minister of India has announced his successful achievement
of controlling the fiscal and current account deficits but according to
Siddhartha sanyal chief economist at Barclays the expenditure of
lower rate will ask the government to invest in the project which
will have a direct impact on economic growth, future tax collections
and fiscal deficit targets which will be difficult job for the next
years finance minister to keep the fiscal deficits.

It will be difficult for the coming government to repay the debts
which will be about 51% for which the government needs to spend
two third of its tax revenue for interest repayment, debt servicing
and subsidies

This article is stating the working of the finance minister but also
stating that the strategies which he had adopted will effect a lot in
the future and the burden of debts will be high for the next
government. He had shown all the deficit advantages of current
situation without considering the future consequences.






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Analysis of the article:
What is the problem? Is it clearly stated?
The problem mentioned in the article is about the future managing
and preparing the budget for the coming government as our current
finance minister P.chidambaram might have met his fiscal deficit
problem but some of the implementation of the lower plan
expenditure in which government will pay only 30-35% of the total
amount which will have a direct impact on the economic growth and
future fiscal deficits target.
The problem which mentioned in the article is about the net
borrowing will be down to 20.5% from the previous year and tax
increment will be the burden for the local people.
Next government has to spend its two third the amount which is
received from tax collection into the interest payment, debt servicing
and subsidies.
The share of the subsidies also has reduced to 1.9% of GDP as
compared with this year as 202% of GDP.
Mr.Chidambaram had rolled out the amount of Rs.35000 Cr of fuel
and fertilizer payment for the coming government which is again the
problem for the coming government.
Yes, the entire problem related to the current budgeting and the
consequences of this budget to the next coming year has been clearly
mentioned in the article.


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Research question or objectives? Is there is a clarity?
The research objectives of the article are to learn about the future
deficits that will be occurring due to the current strategies applied
presently by the finance minister.
Yes the objectives are being clearly mentioned in the article as it
had shown the future effects of the implementation of the different
budget plans in the country.
The researchers were made to make a relationship between the
current strategies and the impact of the strategies in the future.

Is adequate survey of literature done?
The survey of literature done over here is adequate as in the article
it has been studied well by shweta punj to state the consequences
of the current budget over the coming budget. As survey of
literature is a secondary source and the article mentioned over here
has considered all the effects of the current action taken in the
reporting the current budget

In the literature it has mentioned the critical points which can
definitely occur in the future if neglected

What is the hypothesis? Is it stated?
A research hypothesis is the statement created by researchers when
they speculate upon the outcome of a research or experiment.

Yes, the hypothesis is mentioned in the article as the net borrowing
for the next year will be Rs.457.321 which is just the assumption
for which the statement has been made that will be 2.5% down
from the current year borrowings which will be impacting the
expenditure and cost on the product and will impact the economy
of the country.
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What is the research methodology? Is it structured?
The process used to collect information and data for the purpose
of making business decisions.
The methodology may include publication research, interviews, surveys
and other research techniques, and could include both present and
historical information.
Many surveys and study has been done from the different economy
analyst in order to know whether the decisions taken by the finance
minister is correct or not. It had also included the techniques of data from
the historical analysis in forms of graphs to show how interest payment
has increase in the country since from 5 years.
The research methodology used over here is causal methodology.
The research methodology used over here is not structured and it needs to
give more clarity on the on the showing of the comparison with more
powerful evident.
Findings and analysis. Is it mentioned clearly?
Net market borrowing for next year are estimated to be
Rs.4,57,321Cr which is 2.5% less from the current year.
The amount of debt repayment and interest payment will be done
from the tax received which is about two third of the amount of tax
received which will be a loss for the coming government to
develop and strategies the road towards the development
The analysis on the part of the share of subsidies will decrease by
0.3% from the current year has also been analyzed in this article.
There has also been the analysis of cut excise duties to some of the
sector like automobile, capital goods and non-durable goods to
which the other sector can also ask the same from the coming
government which will be also the major problem.
The analysis of the three subsidies has been done and explained in
what way the new government have alternatives on fuel subsidies,
employment guarantee Act and food security Act

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Interpretation and conclusion. Is it justified by the facts or figures
presented or available?
It has been interpreted that the effect and impact of the current
interim budget plan on the next year budget plan leaving a problem
for the coming government.
The conclusion is showing that the new finance minister will be
having a lot of problem in forming the next budget and also
maintaining the current deficit level
Yes, the interpretation had been shown through the facts and the
graphical representation

B-Part:
If you were to revise the article what improvement do you suggest

If I have to change the article I would have given more input about the
interim budget which happened this year and considering the effect of
this interim budget I would have related the difference (gap) between the
two and then have analyze the reason for the problem in the article
followed by the conclusion what could have done better to avoid the loss
and future burden.
More representation and comparative analysis could have shown to
explain the article more comparative rather than descriptive and
theoretically
Could have given the example of other nation and the implementation
and method of their budgeting to explain why our country is showing a
good trend but still there is a issue of deficit with a higher amount.
Even if the budget have been passed out could have provided the solution
for the coming government about the overcoming of the problem
Could have given the relationship between the most effective budget
taken with the current budget with the time value so that we can come to
conclusion how timely our budget is affecting and with which variable.