Tough Steps ahead for Fast-Track Economic Development: Modi

15 tough steps PM Narendra Modi could announce

Fuel subsidy reforms

Strong chance: Diesel subsidy will soon be phased out; a monthly increase mechanism for LPG and kerosene may come.

Food Bill recast 

Likely: The scope of the food security bill could be scaled down to target only the poor.

Fertiliser subsidy rationalisation 

Some price reform: Food security needs require higher use of fertilisers. Some rationalisation of urea prices likely.

Fiscal consolidation 

Likely to continue: Staying with fi scal consolidation road map will enhance credibility of the new government.

New taxes or higher rates 

Not likely: It could dampen corporate and consumer sentiment that is on a high.

Spending curbs 

Focus on revenue deficit: Gujarat govt under Modi gave special emphasis on maintaining revenue surplus.

PSU bank mergers 

Likely: PSU banks could be merged to create bigger ones.

Amendment to Land Bill 

Likely to be reworked: Infrastructure development and industrialisation will suffer if it is not reworked.

Labour reforms 

Announcement likely: Rajasthan govt has already tested ground with some measures.

Railway fare increase 

Very likely: Railways high on Modi's agenda. Its revival needs steady rise in fares.

Slower MSP increases 

Strong chance: Food subsidy bill and inflation management require slower increase in support prices for crops.

PSU reforms 

Top priority: PSUs likely to get greater powers, those on the brink may be shuttered.

Food Corp & CIL recast 

Strong chance: Coal India has failed to keep pace with demand, and FCI's inefficiencies add to the food subsidy.

Rejig in tax slabs or higher exemption rate 

At most, minimal relief: Fiscal consolidation does not give much room for personal income-tax relief.

Recast of NREGA 

Will see a radical revamp: It has many adverse effects and requires to be fixed.