United States Dec 2017 Monetary Policy Linkage to India’s monetary policy and its aftermath on the budget 2018-19.: United States had in December Monetary Policy, 2017 increased the Fed rate from 1/4 to 1/2 percent as a stance to accommodate the inflation target of 2 Percent. If the inflation target of US Monetary Policy is not met, then further rate hikes in the US Monetary Policy could be expected. This would imply a plausible FDI outflow impact on the Indian BOP Account. To mitigate the same, the foreign exchange loss and its converted impact on the Money Supply in the domestic country could be further raised through electoral bond funding.The financial markets of India could be strengthened if the Commodity Exchange has further simplified steps for Oil Bonds, Gold ETFs etc .This could help with the Current Account Deficit on the Macro stance as the Imports structure as part of Current Account Balance could be better aligned.
Current Account Deficit and Revenue Deficit(latest) savings impact of the UBI Scheme Launch as the money saved through the fiscal consolidation could help in the launch of a structural reform, which could help in raising the personal disposable income of the people below the poverty line and thus save on the reduction of absolute poverty figures in the country’s Budget 2018-19.
The E-Nam application’s reach and its impact on a possible reduction of wasteful agricultural subsidies could help in streamlining the Agricultural Sector’s GDP contribution in the Indian Occupational Structure of the Budget 2018-19.
Consumer Subsidies like the ones available on generation of electricity and its possible outreach on an Emerging India’s Carbon Taxes which could be avoided if the country has a higher Debt to GDP ratio as justification to avoid the imposition of Carbon Taxes on the generation on Pollution through thermal generation of Electricity. There would be a requirement to move towards Hydro and Solar generation of electricity further so that the emerging nations don’t have to pay higher money through carbon taxes under the Kyoto Protocol of Paris Climate Agreement.( IMF Highlights Fiscal Management 2018).
To counter the terrorism on Indian Soil, if alternate occupation is granted, by, for example, creating infrastructure for Solar Plant Generation, and there is a linkage of proper channelization of Islamic Banking to the globalized banking structure, then even the marginalized sector of the Muslim population could have the benefits of higher GDP trickle down effect and by the betterment of availability of systematic rise in their disposable incomes, the terrorism activities could automatically stop. By this action, the steps like Counterfeit Currency Creation by the less marginalized population would automatically stop and the terrorism funded activities of those countries could stop further, thus saving on the future expenditure on Defense 2018-19.
If the Net interest Margins of the Scheduled Commercial Banks are properly channelized and linked to aggregate Macro Economic Variables and also the Risk Management Department of the Banks, then the effective transmission mechanism of Indian Scheduled Commercial Banks could happen and the same could lead to effective financial prudence and avoid the repetitive need for Recapitalization need of banking before Basel Accord III implementation and Indradhanush Scheme’s further requirements. The same could be an effective Financial Sector Reform strategy for Budget 2018- 19.