The fourth session of the AVM Talk Series titled “Pro Growth Government Policies and Tax Systems” was held by Arvind Sir on 24th January. During this session, Sir delved into the intricate dynamics of economic growth, mainly the government policies, and tax systems.

We learnt firsthand from Arvind Sir how a budget can be analysed. He provided insights into financial priorities and strategies of the government. Firstly, understanding the allocation of funds into planned and unplanned expenditures offers a clear idea of government’s future actions. While discussing the interim budget, Sir also threw light upon the concept of fiscal deficit. He explained that fiscal deficit is more for country like India as it is focusing on infrastructure development and made it clear that fiscal deficits do not mean foreign currency deficits. Also, a major take away from this budget analysis session was that the current government has focused more on capacity increment, rather than on dishing out freebies.

On the top of budget discussion, he emphasized the importance of investing in small-scale industries with high potential, niche market, less disruptive and with few competitors. Discussions underscored the indispensable role of grace of God for well-being in the volatile market. The analysis of Indian tax system concisely yet comprehensively covered direct & indirect taxes and tax-saving instruments.

The session provided an overview of various government policies aimed at fostering economic growth and development. For instance, Sir expounded on Ethanol Blended Petrol (EBP) Programme, smart meters and Gujarat’s Renewable Energy Policy 2023. In addition to that, he explained about the benefits and functioning of the famous GIFT city [Gujarat International Finance Tec-City], a highly anticipated global hub for finance, trade and technologies in Gandhinagar. Lastly, the scheme for pushing electric vehicles production, i.e., FAME [Faster Adoption and Manufacturing of Electric vehicles] policy was discussed.

Overall, yet again, Arvind Sir masterfully delivered a comprehensive understanding of key economic concepts and practical approaches to navigate through India’s dynamic economic environment.

Written by: Saumya Savaliya, Krish Patel (Grade 11)

 

Students’ Reflections

I learnt about how government has to balance the expenditure. As, if the expenditure is high due to policies of giving free gas or any other services or MNREGA, then the country faces inflation because there is no revenue generated from this expenditure. However, if the government spends more on infrastructure development, then government gets revenue in return which can be put to further use in the development of country.

Krish N. Patel

In this fourth session conducted by Arvind Sir explained how government policies have helped in the growth of our country. Sir also explained the tax improvement journey of our country in comparison to other countries. In the beginning, Sir talked about the primary requirement of the grace of God in the capital markets. He gave us some quick ideas on how to analyse a budget. Moving on, he mentioned that the annual budget is not about tax evasions and also told that if the planned expenditure is less than unplanned expenditure then it would it would lead to inflationary situation. He also explained that capital receipts don’t represent the health of our country and therefore we should focus on revenue receipts and revenue expenditure. I could relate it to our Accountancy topic which was quite similar in a way. Further, he explained to us about Gujarat International Finance Tec-City (GIFT City) and how the government is providing benefits so that the businesses can flourish there. He also explained various schemes introduced by the government and said that India has achieved a milestone of 12% ethanol blending target as part of the EBP programme. Lastly, he explained the foresight of our current government and that there will be two budgets introduced. Overall, it was a very insightful session for me.

Kartik K. Kathiriya

The fourth session by Arvind Sir regarding government policies was outstanding! It helped me gain the skill of briefly analysing the government budget on the basis of planned and unplanned expenditures. This session made it very easy for me to understand the real perspective behind the government policies introduced and how it helps the life of normal person to improve.

Veer R. Modi

I am very grateful to Arvind Sir, again, for his session on “Pro-Growth Government Policies and Tax Systems”. First and foremost, I got training on how to analyse the budget of India. New economic terms like fiscal deficit, planned expenditure and unplanned expenditure were elaborated by him during the session. The concept of capital enhancement, instead of fast revenue inflow that was explained by Sir, was very insightful. Discussion of latest policies with their impact and importance of currency stability was also helpful. Lastly, the very important review of tax policies of different countries was quite enlightening as I was not at all familiar to such an exercise earlier.

Bhagya N. Patel

The primary learning from this session was how taxation policy influences the economic growth of our country. Introduction of a unified indirect tax like GST helps control inflation and increases GDP of the nation. Subsidy schemes help increase production, benefitting the corporates and the final users (for instance, the PM-KUSUM scheme offering solar pumps subsidy). Governments also need to plan for planned expenses for future readiness and infrastructure, which will bring income; and reduce the non-planned expenses which are funded by the government budget to provide free electricity, water and gas.

Pankaj Bhakta

Hats off to Arvind Sir for making us aware of various domains of paramount importance. Throwing light on our country’s economy, he delved deeper into topics like ideal expenditure for government, fiscal deficit and indispensable role of government in tax improvement journey. Therefore, everyone present in the session were enlightened about the significance of adopting such measures by the government.

Aryan Jasoliya

Running the nation in the most efficient and most effective way is not an easy task. Introduction of policies keeping in mind the aspect of attracting investments is another tremendous task done by the government. Beating the import of crude oil, software is exported more which is a sign of India becoming independent. The aim of the government is to provide stable currency in order to attract foreign investments. These were my key learnings from this amazing fourth session of Arvind Sir.

Neel Zadafiya

In this session, I got to know about the working of taxation policies which are announced in the budget by the government. I got insight into the impact of the policy changes made by the government during the last 10 years and how they balanced the planned expenditure to control the inflation. Our main focus was on revenue receipt or expenditure. Later in the session I got to know about different government policies which help and benefit every individual. Thanks again Arvind Sir for this insightful session.

Yug Bhakta