Union Budget (2014-15) : Comments on an Empirical Approach

Abstract

The Central Government should take positive steps for reviving Investment, entrepreneurship and overall growth momentum in order to put the economy back on the growth trajectory. THE union budget for any year is a comprehensive statement of projected sources and applications of fund of the government for that year. In this paper, we make an attempt to empirically analyse the historical data of earlier year's budget with an aim to find out whether the amount projected for various components of this year's budget proposal is realistic and achievable. We follow the methodology normally adopted by the financial analysts for projecting future cash flows of a company. We perform this exercise in three stages.