The government will unveil its<a href="http://www.wionews.com/business-economy/ndas-interim-budget-on-friday-likely-to-offer-some-hope-and-relief-194176">&nbsp;budget&nbsp;for the 2019-20 fiscal year </a>on Friday, with investors expecting increased investment in areas such as agriculture, as Prime Minister Narendra Modi tries to woo voters ahead of general elections to be held by May.

After a string of recent setbacks in key state elections for Modi's Bharatiya Janata Party (BJP), the government is expected to woo rural and urban middle-class voters via farm relief measures and tax cuts.

Also read: <a href="http://www.wionews.com/business-economy/budget-2019-what-is-interim-budget-and-how-is-it-different-from-the-regular-one-193702">What is interim Budget and how is it different from the regular one?</a>

The government is expected to project economic growth of around 7.5 per cent for the next financial year while expanding capital spending on railways, roads and ports by 7-8 per cent.

Also read: <a href="http://www.wionews.com/business-economy/union-budget-2019-how-it-is-formulated-and-presented-194051">How Union Budget 2019 is formulated and presented</a>

Below is a list of some of the items expected in the&nbsp;budget, based on published media reports.

AGRICULTURE

Farm relief package itself could run to at least 1 trillion rupees ($14.04 billion)

Set to earmark about 1.8 trillion rupees for food subsidies in the fiscal year

Expected to waive premium for taking insurance policy for food crops

Proposal for waiving interest on crop loans for farmers who pay on time

DIVESTMENT

Target of about $11 billion from state asset sales in FY 2019-20

Potential stake sales via IPOs include Telecommunications Consultants India, Indian Railways' subsidiaries IRCTC, RailTel Corp India and National Seeds Corp

METALS

Gold - Speculation around a duty cut

HEALTH

Budget&nbsp;allocation for health is likely to increase by 5 per cent from a year ago

Taxes

An anticipated corporate tax rate cut to 25 per cent from 30 per cent may be put on hold until after the elections

Higher tax exemptions for the middle class and for small businesses anticipated

BANKS

Discount of 2 percentage points on loans for businesses with annual sales of less than 50 million rupees; government to compensate banks for the costs

40 billion-rupee capital infusion for public-sector general insurers

AUTOS

Reduction of goods and services tax (GST) on electric vehicles and batteries

IT/TELECOM

Better digital infrastructure in rural areas

Abolition of the angel tax to boost start-ups

Exemption from GST for spectrum and licence fee payouts, reduction in spectrum fees and cuts in import duty on telecom equipment (currently at 20 pct)

The government will unveil its budget for the 2019-20 fiscal year on Friday, with investors expecting increased investment in areas such as agriculture, as Prime Minister Narendra Modi tries to woo voters ahead of general elections to be held by May.

The government will unveil its budget for the 2019-20 fiscal year on Friday, with investors expecting increased investment in areas such as agriculture, as Prime Minister Narendra Modi tries to woo voters ahead of general elections to be held by May. After a string of recent setbacks in key state elections for Modi's Bharatiya Janata Party (BJP), the government is expected to woo rural and urban middle-class voters via farm relief measures and tax cuts. Also read: What is interim Budget and how is it different from the regular one? The government is expected to project economic growth of around 7.5 per cent for the next financial year while expanding capital spending on railways, roads and ports by 7-8 per cent. Also read: How Union Budget 2019 is formulated and presented Below is a list of some of the items expected in the budget, based on published media reports. AGRICULTURE Farm relief package itself could run to at least 1 trillion rupees ($14.04 billion) Set to earmark about 1.8 trillion rupees for food subsidies in the fiscal year Expected to waive premium for taking insurance policy for food crops Proposal for waiving interest on crop loans for farmers who pay on time DIVESTMENT Target of about $11 billion from state asset sales in FY 2019-20 Potential stake sales via IPOs include Telecommunications Consultants India, Indian Railways' subsidiaries IRCTC, RailTel Corp India and National Seeds Corp METALS Gold - Speculation around a duty cut HEALTH Budget allocation for health is likely to increase by 5 per cent from a year ago Taxes An anticipated corporate tax rate cut to 25 per cent from 30 per cent may be put on hold until after the elections Higher tax exemptions for the middle class and for small businesses anticipated BANKS Discount of 2 percentage points on loans for businesses with annual sales of less than 50 million rupees; government to compensate banks for the costs 40 billion-rupee capital infusion for public-sector general insurers AUTOS Reduction of goods and services tax (GST) on electric vehicles and batteries IT/TELECOM Better digital infrastructure in rural areas Abolition of the angel tax to boost start-ups Exemption from GST for spectrum and licence fee payouts, reduction in spectrum fees and cuts in import duty on telecom equipment (currently at 20 pct)

Key expectations from India's 2019-20 interim budget

Budget 2019: Market give Budget 2019 thumbs up

Budget 2019: It is a people's Budget says PM Narendra Modi

Budget 2019: P. Chidambaram speaks on Interim Budget

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections.

After rallying over 500 points to hit the day's high of 36,778.14, the 30-share index gave up all gains and sank to 36,221.32 in late-afternoon trade. It finally ended 212.74 points, or 0.59 per cent, higher at 36,469.43.

Similarly, the 50-share NSE Nifty jumped 62.70 points, or 0.58 per cent, to close at 10,893.65.

Auto and consumption stocks buzzed as investors welcomed incentives for the agriculture sector and middle class in the budget, traders said.

Finance Minister Piyush Goyal proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000.

The proposal will benefit 3 crore middle-class tax payers, Goyal said while unveiling the budget proposals for 2019-20.

As widely expected, the finance minister also announced the Pradhan Mantri Kisan Samman Nidhi for small and marginal farmers, providing Rs 6,000 per year to be transferred directly to farmers' bank accounts.

Overall, market mood was positive even as the government overshot the fiscal deficit target for the current financial year on the back of populist measures ahead of the general elections.

Goyal said the fiscal deficit for the current financial year is expected to be 3.4 per cent of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3 per cent.

"All these are those factors (sops) are going to bring in a lot of liquidity to the market in terms of investment," said Mustafa Nadeem, CEO, Epic Research.

Some profit-booking and consolidation in the short term was expected as prices tend to absorb the Budget, but we expect the momentum to remain strong, he added.

The BSE auto, consumer durables, FMCG and realty indices climbed up to 2.62 per cent.

Top gainers in the Sensex pack included Hero MotoCorp, Maruti, HCL Tech, Asian Paints, Bajaj Auto, Bajaj Finance, HDFC, RIL, HUL, Bharti Airtel and PowerGrid, rising up to 7.48 per cent.

Vedanta was the biggest loser on the Sensex, cracking 17.82 per cent after the metals and mining giant Thursday reported a 25.54 per cent decline in consolidated net profit at Rs 1,574 crore for the December 2018 quarter on the back of higher expenses and drop in commodity prices.

Banking stocks were the other top losers, with Yes Bank, SBI, ICICI Bank and Axis Bank falling up to 4.68 per cent.

Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with BSE showed.

Elsewhere in Asia, Shanghai Composite Index rallied 1.30 per cent and Japan's Nikkei rose 0.07 per cent. Hong Kong's Hang Seng ended 0.04 per cent lower and Korea's Kospi slipped 0.06 per cent.

In the Eurozone, Frankfurt's DAX gained 0.20 per cent, Paris CAC 40 was up 0.19 per cent and London's FTSE jumped 0.37 per cent in late morning deals.

The rupee, meanwhile, depreciated 24 paise against US dollar to 71.32.

The benchmark Brent crude futures were trading slightly lower at US $60.53 per barrel.&nbsp;

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections.

Benchmark Sensex ended over 212 points higher in see-saw trade Friday after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections. After rallying over 500 points to hit the day's high of 36,778.14, the 30-share index gave up all gains and sank to 36,221.32 in late-afternoon trade. It finally ended 212.74 points, or 0.59 per cent, higher at 36,469.43. Similarly, the 50-share NSE Nifty jumped 62.70 points, or 0.58 per cent, to close at 10,893.65. Auto and consumption stocks buzzed as investors welcomed incentives for the agriculture sector and middle class in the budget, traders said. Finance Minister Piyush Goyal proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000. The proposal will benefit 3 crore middle-class tax payers, Goyal said while unveiling the budget proposals for 2019-20. As widely expected, the finance minister also announced the Pradhan Mantri Kisan Samman Nidhi for small and marginal farmers, providing Rs 6,000 per year to be transferred directly to farmers' bank accounts. Overall, market mood was positive even as the government overshot the fiscal deficit target for the current financial year on the back of populist measures ahead of the general elections. Goyal said the fiscal deficit for the current financial year is expected to be 3.4 per cent of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3 per cent. "All these are those factors (sops) are going to bring in a lot of liquidity to the market in terms of investment," said Mustafa Nadeem, CEO, Epic Research. Some profit-booking and consolidation in the short term was expected as prices tend to absorb the Budget, but we expect the momentum to remain strong, he added. The BSE auto, consumer durables, FMCG and realty indices climbed up to 2.62 per cent. Top gainers in the Sensex pack included Hero MotoCorp, Maruti, HCL Tech, Asian Paints, Bajaj Auto, Bajaj Finance, HDFC, RIL, HUL, Bharti Airtel and PowerGrid, rising up to 7.48 per cent. Vedanta was the biggest loser on the Sensex, cracking 17.82 per cent after the metals and mining giant Thursday reported a 25.54 per cent decline in consolidated net profit at Rs 1,574 crore for the December 2018 quarter on the back of higher expenses and drop in commodity prices. Banking stocks were the other top losers, with Yes Bank, SBI, ICICI Bank and Axis Bank falling up to 4.68 per cent. Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with BSE showed. Elsewhere in Asia, Shanghai Composite Index rallied 1.30 per cent and Japan's Nikkei rose 0.07 per cent. Hong Kong's Hang Seng ended 0.04 per cent lower and Korea's Kospi slipped 0.06 per cent. In the Eurozone, Frankfurt's DAX gained 0.20 per cent, Paris CAC 40 was up 0.19 per cent and London's FTSE jumped 0.37 per cent in late morning deals. The rupee, meanwhile, depreciated 24 paise against US dollar to 71.32. The benchmark Brent crude futures were trading slightly lower at US $60.53 per barrel.

Budget day: Sensex ends 212 points higher; auto, consumption stocks rally

Calling the <a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">interim Budget </a>presented by Centre on Friday as "yet another jumla", the Congress hit out at the BJP led government claiming that the Budget was an insult to the farmers.

The Congress post on its Twitter handle said, "After having failed to deliver on any of the promises to farmers, Modi govt insults them once again with yet another jumla !".

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
After having failed to deliver on any of the promises to farmers, Modi govt insults them once again with yet another jumla!<a href="https://twitter.com/hashtag/Budget2019?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2019</a> <a href="https://twitter.com/hashtag/AakhriJumlaBudget?src=hash&amp;ref_src=twsrc%5Etfw">#AakhriJumlaBudget</a> <a href="https://t.co/f6ocdzKByS">pic.twitter.com/f6ocdzKByS</a>
— Congress (@INCIndia) <a href="https://twitter.com/INCIndia/status/1091267874138644480?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Party President Rahul Gandhi also targetted the <a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378">Modi government</a> over the <a href="http://www.wionews.com/india-news/big-takeaways-from-union-budget-2019-194331">Budget</a>.

" Dear NoMo, 5 years of your incompetence and arrogance has destroyed the lives of our farmers. Giving them Rs. 17 a day is an insult to everything they stand and work for, " Gandhi's tweet read.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
Dear NoMo, 
 
5 years of your incompetence and arrogance has destroyed the lives of our farmers. 
 
Giving them Rs. 17 a day is an insult to everything they stand and work for. <a href="https://twitter.com/hashtag/AakhriJumlaBudget?src=hash&amp;ref_src=twsrc%5Etfw">#AakhriJumlaBudget</a>
— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1091267096938467328?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Former Union minister and Congress leader P Chidambaram termed the Budget as "an account for votes" adding that the 2019&nbsp;Budget was accompanied by an election campaign speech.

"The Interim Finance Minister tested our patience by the longest interim Budget speech in the recent memory. It was not an interim Budget, it was a full-fledged Budget accompanied by an election campaign speech.... My one line comment on the Budget is that it is not a vote on account but an account for votes."

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P Chidambaram, Congress on <a href="https://twitter.com/hashtag/Budget2019?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2019</a>: The Interim Finance Minister tested our patience by the longest interim budget speech in the recent memory. It was not an interim budget, it was a full fledged budget accompanied by an election campaign speech. <a href="https://t.co/AlY8uxmQpD">https://t.co/AlY8uxmQpD</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1091263193190522881?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Congress leader Shashi Tharoor questioned the credibility of the&nbsp;income support assured to the farmers under the Budget. He however praised the government's move of providing tax exemption to the middle class.

Tharoor said, " The whole exercise has turned out to be a damp squib. We have seen one good thing that is tax exemption for the middle class. Rs 6000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour and dignity?"

<div class="ui-state-default" contenteditable="false">
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S Tharoor, Congress: The whole exercise has turned out to be a damp squib. We've seen one good thing that is tax exemption for the middle class. Rs 6000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour&amp;dignity? <a href="https://t.co/kZDRhkKSWi">pic.twitter.com/kZDRhkKSWi</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1091250025655463938?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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TMC chief Mamata Banerjee said, "This government has no moral authority or responsibility to place the budget for five years when they'll not be in power; the government will go for expiry. After expiry, if you give medicine, is there any value? What will be the value? This is absolutely valueless".

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WB CM Mamata Banerjee: This govt has no moral authority or responsibility to place the budget for 5 years when they'll not be in power; the govt will go for expiry. After expiry, if you give medicine, is there any value? What will be the value? This is absolutely valueless. <a href="https://t.co/rK4CBge5Sw">pic.twitter.com/rK4CBge5Sw</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1091283305909997570?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Speaking to reporters outside Parliament, leader of Congress in Lok Sabha Mallikarjun Kharge said the promises made by the BJP in this Budget are mere poll sops and "jumlas", which will not be fulfilled as the BJP has a mandate to rule only till May this year.

Further calling it as BJP's election manifesto, he charged the party of bribing to voters.

"This is all being done for elections. I directly charge them of paying bribe to voters.There is politics in everything they do and there is nothing for the poor in this budget...This budget is only an election manifesto that the BJP read in Parliament and it is only for getting votes," Kharge said.

"They are distributing money in elections to please farmers, but the reality is that in the first three months they would give only Rs 2,000 in first instalment," he said.

On the announcement of Income Tax exemption up to Rs 5 lakh to tax-payers, he alleged the BJP parliamentarians are creating a 'tamasha' in Parliament.

"You have a mandate up to May and instead they have presented a full year's Budget and are trying to befool the people of the country, keeping elections in mind.

"Who will fulfil these promises made. If they do not come to power, who will fulfil these promises. The next government will come and only it can deliver".

Karnataka chief minister Kumaraswamy said, "I want to ask if this Budget was prepared by officials of Finance department or RSS? In this Budget, Narendra Modi has given cotton candy for farmers. When I announced loan waiver scheme, PM mocked it as lollipop. Friends of BJP have prepared this budget".

(With inputs from agencies)

Calling the interim Budget presented by Centre on Friday as "yet another jumla", the Congress hit out at the BJP led government claiming that the Budget was an insult to the farmers.

Calling the interim Budget presented by Centre on Friday as "yet another jumla", the Congress hit out at the BJP led government claiming that the Budget was an insult to the farmers. The Congress post on its Twitter handle said, "After having failed to deliver on any of the promises to farmers, Modi govt insults them once again with yet another jumla !". After having failed to deliver on any of the promises to farmers, Modi govt insults them once again with yet another jumla!#Budget2019 #AakhriJumlaBudget pic.twitter.com/f6ocdzKByS — Congress (@INCIndia) February 1, 2019 × Party President Rahul Gandhi also targetted the Modi government over the Budget. " Dear NoMo, 5 years of your incompetence and arrogance has destroyed the lives of our farmers. Giving them Rs. 17 a day is an insult to everything they stand and work for, " Gandhi's tweet read. Dear NoMo, 5 years of your incompetence and arrogance has destroyed the lives of our farmers. Giving them Rs. 17 a day is an insult to everything they stand and work for. #AakhriJumlaBudget — Rahul Gandhi (@RahulGandhi) February 1, 2019 × Former Union minister and Congress leader P Chidambaram termed the Budget as "an account for votes" adding that the 2019 Budget was accompanied by an election campaign speech. "The Interim Finance Minister tested our patience by the longest interim Budget speech in the recent memory. It was not an interim Budget, it was a full-fledged Budget accompanied by an election campaign speech.... My one line comment on the Budget is that it is not a vote on account but an account for votes." P Chidambaram, Congress on #Budget2019: The Interim Finance Minister tested our patience by the longest interim budget speech in the recent memory. It was not an interim budget, it was a full fledged budget accompanied by an election campaign speech. https://t.co/AlY8uxmQpD — ANI (@ANI) February 1, 2019 × Congress leader Shashi Tharoor questioned the credibility of the income support assured to the farmers under the Budget. He however praised the government's move of providing tax exemption to the middle class. Tharoor said, " The whole exercise has turned out to be a damp squib. We have seen one good thing that is tax exemption for the middle class. Rs 6000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour and dignity?" S Tharoor, Congress: The whole exercise has turned out to be a damp squib. We've seen one good thing that is tax exemption for the middle class. Rs 6000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour&dignity? pic.twitter.com/kZDRhkKSWi — ANI (@ANI) February 1, 2019 × TMC chief Mamata Banerjee said, "This government has no moral authority or responsibility to place the budget for five years when they'll not be in power; the government will go for expiry. After expiry, if you give medicine, is there any value? What will be the value? This is absolutely valueless". WB CM Mamata Banerjee: This govt has no moral authority or responsibility to place the budget for 5 years when they'll not be in power; the govt will go for expiry. After expiry, if you give medicine, is there any value? What will be the value? This is absolutely valueless. pic.twitter.com/rK4CBge5Sw — ANI (@ANI) February 1, 2019 × Speaking to reporters outside Parliament, leader of Congress in Lok Sabha Mallikarjun Kharge said the promises made by the BJP in this Budget are mere poll sops and "jumlas", which will not be fulfilled as the BJP has a mandate to rule only till May this year. Further calling it as BJP's election manifesto, he charged the party of bribing to voters. "This is all being done for elections. I directly charge them of paying bribe to voters.There is politics in everything they do and there is nothing for the poor in this budget...This budget is only an election manifesto that the BJP read in Parliament and it is only for getting votes," Kharge said. "They are distributing money in elections to please farmers, but the reality is that in the first three months they would give only Rs 2,000 in first instalment," he said. On the announcement of Income Tax exemption up to Rs 5 lakh to tax-payers, he alleged the BJP parliamentarians are creating a 'tamasha' in Parliament. "You have a mandate up to May and instead they have presented a full year's Budget and are trying to befool the people of the country, keeping elections in mind. "Who will fulfil these promises made. If they do not come to power, who will fulfil these promises. The next government will come and only it can deliver". Karnataka chief minister Kumaraswamy said, "I want to ask if this Budget was prepared by officials of Finance department or RSS? In this Budget, Narendra Modi has given cotton candy for farmers. When I announced loan waiver scheme, PM mocked it as lollipop. Friends of BJP have prepared this budget". (With inputs from agencies)

It was not an interim Budget but a full fledged Budget: Chidambaram

WION CHAT: Discussion after the presentation of Interim Budget 2019

An outlay of Rs 3.05 lakh crore was set aside for the<a href="http://www.wionews.com/business-economy/union-budget-2019-rs-64587-crore-budgetary-support-for-railways-in-2019-20-says-goyal-194329"> defence Budget for 2019-20 </a>which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal.

Presenting an interim <a href="http://www.wionews.com/india-news/big-takeaways-from-union-budget-2019-194331">Budget for 2019-20 </a>in Parliament, Union Minister for finance and corporate affairs Piyush Goyal said additional funds, if necessary, would be provided to secure the country's borders and maintain defence preparedness.

"Our defence budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided," he said.

Referring to strengthening defence and national security, Goyal said the soldiers protect India's borders in tough conditions and that due care has been taken for them.

He said the issue of One Rank One Pension (OROP) which was pending for the last 40 years has been resolved.

"The previous governments announced it in three budgets but sanctioned a mere Rs 500 crore in 2014-15 interim budget. In contrast we have already disbursed over Rs 35,000 crore after implementing the scheme in its true spirit," he said.

He said the government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances were given to naval and air force personnel deployed in high-risk duties.&nbsp;

After the defence Budget was announced, shares of companies related to defence sector rose up to 5 per cent as an outlay of Rs 3.05 lakh crore was set aside for the sector for 2019-20.

Shares of Walchandnagar Industries jumped 4.71 per cent, Bharat Electronics gained 2.98 per cent, BEML 2.79 per cent and Bharat Dynamics 1.76 per cent on BSE.

An outlay of Rs 3.05 lakh crore was set aside for the defence Budget for 2019-20 which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal.

An outlay of Rs 3.05 lakh crore was set aside for the defence Budget for 2019-20 which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal. Presenting an interim Budget for 2019-20 in Parliament, Union Minister for finance and corporate affairs Piyush Goyal said additional funds, if necessary, would be provided to secure the country's borders and maintain defence preparedness. "Our defence budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided," he said. Referring to strengthening defence and national security, Goyal said the soldiers protect India's borders in tough conditions and that due care has been taken for them. He said the issue of One Rank One Pension (OROP) which was pending for the last 40 years has been resolved. "The previous governments announced it in three budgets but sanctioned a mere Rs 500 crore in 2014-15 interim budget. In contrast we have already disbursed over Rs 35,000 crore after implementing the scheme in its true spirit," he said. He said the government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances were given to naval and air force personnel deployed in high-risk duties. After the defence Budget was announced, shares of companies related to defence sector rose up to 5 per cent as an outlay of Rs 3.05 lakh crore was set aside for the sector for 2019-20. Shares of Walchandnagar Industries jumped 4.71 per cent, Bharat Electronics gained 2.98 per cent, BEML 2.79 per cent and Bharat Dynamics 1.76 per cent on BSE.

Defence Budget increased over Rs 20,000 crore; crosses Rs 3,00,000 crore for first time

After the government presented its final Budget,<a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324"> PM </a><a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">Modi</a><a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324"> while addressing the n</a>ation said the Budget will bring positive changes in the country.

"Various government schemes will help the marginalised section of society," the prime minister asserted, adding,"it will bring down the poverty level in the country."

<a href="http://www.wionews.com/india-news/big-takeaways-from-union-budget-2019-194331">Also Read: Big takeaways from Union Budget 2019</a>

PM Modi said the economy <a href="http://www.wionews.com/business-economy/live-updates-union-budget-2019-194198">will run at a renewed pace after </a>the Budget. He said the middle class will stand to gain due to the present Budget.

"Middle class dreams have been fueled by the Budget," he said. "It's generosity and honesty of middle class and upper middle class which provides tax to the nation through which schemes are formulated and there is welfare of poor," he added.&nbsp;

Piyush Goel had announced major tax incentive for the middle class with individuals with an annual income of up to Rs 2.5 lakh (age below 60 years) being exempted from paying tax. The Modi government also announced tax relief for the middle-income group by raising the tax exemption limit from Rs 2 lakh to Rs 2.5 lakh.

The finance minister also raised standard deduction from Rs 40,000 to Rs 50,000. &nbsp;"There was always demand to exempt those, with annual income upto Rs 5 Lakh, from taxation. Our government has fulfilled it," PM Modi said.&nbsp;

The prime minister said historic steps have been taken for farmers. The government had announced Pradhan Mantri Kisan Samman Nidhi scheme under which Rs 6,000 per year would be transferred to each farmer in three instalments directly to his bank account. It is applicable for those farmers who have less than two hectares land.

"Poverty has almost been wiped out," the PM said. "From middle class to labourers, from farmers’ growth to the development of businessmen, from manufacturing to MSME sector, from the growth of the <a href="http://www.wionews.com/business-economy/union-budget-2019-rs-64587-crore-budgetary-support-for-railways-in-2019-20-says-goyal-194329">economy to development of New India</a>, everyone has been taken care of in this interim Budget," the prime minister asserted.

"This is an interim Budget. This is just a trailer of the Budget which, after elections, will take India on the path to development," he said.&nbsp; 
&nbsp;

After the government presented its final Budget, PM Modi while addressing the nation said the Budget will bring positive changes in the country. "Various government schemes will help the marginalised section of society," the prime minister asserted, adding,"it will bring down the poverty level in the country.

After the government presented its final Budget, PM Modi while addressing the nation said the Budget will bring positive changes in the country. "Various government schemes will help the marginalised section of society," the prime minister asserted, adding,"it will bring down the poverty level in the country." Also Read: Big takeaways from Union Budget 2019 PM Modi said the economy will run at a renewed pace after the Budget. He said the middle class will stand to gain due to the present Budget. "Middle class dreams have been fueled by the Budget," he said. "It's generosity and honesty of middle class and upper middle class which provides tax to the nation through which schemes are formulated and there is welfare of poor," he added. Piyush Goel had announced major tax incentive for the middle class with individuals with an annual income of up to Rs 2.5 lakh (age below 60 years) being exempted from paying tax. The Modi government also announced tax relief for the middle-income group by raising the tax exemption limit from Rs 2 lakh to Rs 2.5 lakh. The finance minister also raised standard deduction from Rs 40,000 to Rs 50,000. "There was always demand to exempt those, with annual income upto Rs 5 Lakh, from taxation. Our government has fulfilled it," PM Modi said. The prime minister said historic steps have been taken for farmers. The government had announced Pradhan Mantri Kisan Samman Nidhi scheme under which Rs 6,000 per year would be transferred to each farmer in three instalments directly to his bank account. It is applicable for those farmers who have less than two hectares land. "Poverty has almost been wiped out," the PM said. "From middle class to labourers, from farmers’ growth to the development of businessmen, from manufacturing to MSME sector, from the growth of the economy to development of New India, everyone has been taken care of in this interim Budget," the prime minister asserted. "This is an interim Budget. This is just a trailer of the Budget which, after elections, will take India on the path to development," he said.

Budget will take India on path to development: PM Modi

Madam Speaker, I rise to present the Interim Budget for the year 2019-20. PART A 2. I am deeply conscious of the absence of Shri Arun Jaitley today. Also read: Big takeaways from Union Budget 2019 I am sure the House joins me in wishing Shri Jaitley speedy recovery, good health and long life in the service of the nation.

Budget 2019: Full text of finance minister Piyush Goyal's speech in Parliament

With the Lok Sabha elections only a few months away, the NDA government will present its <a href="http://www.wionews.com/business-economy/union-budget-2019-how-it-is-formulated-and-presented-194051">Interim Budget </a>on Friday amidst a lot of hopes and expectations from across the spectrum of society—right from the common people to industries.

The Interim Budget for 2019, the last financial exercise by Prime Minister Narendra Modi led Central government before the General Elections will be presented in the Lok Sabha by Finance Minister Piyush Goyal on Friday at 11 am.

If some relief in income tax exemption to the salaried and middle-class people is expected, there is a hope that the Central government may come out with some ‘concrete’ measures to combat the problem of unemployment.

At present, there is an exemption from paying personal tax on an income up to Rs 2.5 lakh, while income between Rs 2.5 lakh and Rs 5 lakh attracts five per cent tax. A 20 per cent tax is levied on the income in the range of Rs 5 lakh to Rs 10 lakh. An individual’s income above Rs 10 lakh is taxed at 30 per cent.

However, in 2014’s Interim Budget presented by then Finance Minister P Chidambaram in the Lok Sabha on February 14 for 2014-15 fiscal, no change was made in income tax rates.

Since the Goods and Services Tax (GST) is in force now, there is not much scope for the government to offer in terms of relief on the front of indirect taxes.

Union Minister of Parliamentary Affairs, Rural Development, Panchayati Raj and Mines Narendra Singh Tomar on Thursday told media persons that the Interim Budget Session of Parliament, subject to exigencies of Government Business, may conclude on February 13, 2019.

“The Session will mainly be devoted to the Financial Business relating to Interim Budget for 2019 and discussion on the Motion of Thanks on President’s address. However, essential Legislative and other Business will also be taken up during the Session,” he said.

Some of the key highlights of 2014 Interim Budget, which the BJP had then described as more of an election Budget rather than an Interim Budget, relief in indirect taxes, reduction in excise duty on capital goods from 12 per cent to 10 per cent, focus on building up manufacturing capacity, three more industrial corridors, one million jobs, and Rs 11,200 crore for capital infusion in PSBs.

Distressed farmers are another area of serious concern, which the Central government would like to take care of in the ‘Interim Budget.’ It, however, remains to be seen how the government moves on this front as most of the states have chosen to waive off farm loans.

&nbsp;

With the Lok Sabha elections only a few months away, the NDA government will present its Interim Budget on Friday amidst a lot of hopes and expectations from across the spectrum of society—right from the common people to industries.

With the Lok Sabha elections only a few months away, the NDA government will present its Interim Budget on Friday amidst a lot of hopes and expectations from across the spectrum of society—right from the common people to industries. The Interim Budget for 2019, the last financial exercise by Prime Minister Narendra Modi led Central government before the General Elections will be presented in the Lok Sabha by Finance Minister Piyush Goyal on Friday at 11 am. If some relief in income tax exemption to the salaried and middle-class people is expected, there is a hope that the Central government may come out with some ‘concrete’ measures to combat the problem of unemployment. At present, there is an exemption from paying personal tax on an income up to Rs 2.5 lakh, while income between Rs 2.5 lakh and Rs 5 lakh attracts five per cent tax. A 20 per cent tax is levied on the income in the range of Rs 5 lakh to Rs 10 lakh. An individual’s income above Rs 10 lakh is taxed at 30 per cent. However, in 2014’s Interim Budget presented by then Finance Minister P Chidambaram in the Lok Sabha on February 14 for 2014-15 fiscal, no change was made in income tax rates. Since the Goods and Services Tax (GST) is in force now, there is not much scope for the government to offer in terms of relief on the front of indirect taxes. Union Minister of Parliamentary Affairs, Rural Development, Panchayati Raj and Mines Narendra Singh Tomar on Thursday told media persons that the Interim Budget Session of Parliament, subject to exigencies of Government Business, may conclude on February 13, 2019. “The Session will mainly be devoted to the Financial Business relating to Interim Budget for 2019 and discussion on the Motion of Thanks on President’s address. However, essential Legislative and other Business will also be taken up during the Session,” he said. Some of the key highlights of 2014 Interim Budget, which the BJP had then described as more of an election Budget rather than an Interim Budget, relief in indirect taxes, reduction in excise duty on capital goods from 12 per cent to 10 per cent, focus on building up manufacturing capacity, three more industrial corridors, one million jobs, and Rs 11,200 crore for capital infusion in PSBs. Distressed farmers are another area of serious concern, which the Central government would like to take care of in the ‘Interim Budget.’ It, however, remains to be seen how the government moves on this front as most of the states have chosen to waive off farm loans.

NDA’s interim Budget on Friday likely to offer some hope and relief

Ahead of the Budget the International Monetary Fund's(IMF)&nbsp;top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal.&nbsp; 
Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow. He hoped for fiscal consolidation in the upcoming Budget. Here is the full interview.&nbsp;

WION: The IMF report was upbeat on India. What makes you so confident?&nbsp;

Andreas Bauer: We think India has a strong base to grow on. It has a young population, it has human resources that are growing, it has a fairly high savings rate, although we would see some more of that will provide the basis for investment.

India has a good basis to start growing. We need reforms. This is why we looking in Budgets, programmes of the new government. We want to see continues pace of reforms, some important reforms have been implemented in recent years.&nbsp;

WION: Your assessment of reforms introduced by the government in the last few years?&nbsp;

Andreas Bauer: India has made a lot of progress in a few years and GST for us is a big reform. It has the potential to unify the domestic market, certainty, the initial structure of GST was quite complex and compliance cost very high.

We have seen good moves to simplify that. More scope to go further. But reforms give a tailwind to move the economy forward. Looking at the next phase, after the elections that India can pick up the reform pace and continue to build the economic pace that allows country to grow at these high rates.

India has done well, India is growing above 7 per cent, the country is 15 per cent of global growth and world needs India to grow as there are other economies like China which are slowing, so we do need India to grow.&nbsp;

WION: What kind of reforms you expect?&nbsp;

Andreas Bauer: We have laid reforms out in our annual assessment of the economy. In short term, we are looking at a number of things. We are looking at ways to address twin balance sheet problem.

So improving capital base of banks, which is ongoing for public banks and governance reforms of the banks and making sure these banks in future work on much better basis and we don't see repeat of accumulation of large non-performing loans. One of the issues, we have discussed is the global environment might become challenging. Important to put fiscal on a strong footing.&nbsp;

WION: Your suggestions on the Budget?&nbsp;

Andreas Bauer: I rather wait for the Budget to see what is in there but we have been for sometimes saying that India should gradually consolidate. So certainly we want India to persist on that path.

See the deficits to decline and debt levels to decline. These are relatively high levels for an emerging economy and we want to have a space that when a negative shock comes, fisc can help. We would like to see the continuation of the consolidation path. It is important to take a global view and create fiscal space to be ready in case if negative shock.&nbsp;

WION: Your assessment of oil prices especially with the crisis in Venezuela?

Andreas Bauer: Geopolitical events always pose risk to oil price. The general expectation is after the recent decline oil prices, they will remain at the current level so that is not bad news for oil importers like India.

Risk of supply disruption as we saw last year. So risk as well on that front. In general, given that global economy is slowing and given that previous supply disruptions have been addressed, so our forecast and markets forecast is stable oil prices.&nbsp;

WION: You have painted a gloomy picture of the world economy. What makes you pessimistic?&nbsp;

Andreas Bauer: The good news is the global economy is still expanding but expansion is slowing and at a faster pace than originally then we anticipated. So we put out a word of caution. The global economy last year expanded by 3.7 per cent, that is quite a good pace.

For the current year, growth will slow down to 3.5 per cent and that refects in both advanced and emerging markets. The key message to countries is, the situation is still okay, but risk remains and better prepare for a more difficult external environment.&nbsp;

Ahead of the Budget the International Monetary Fund's(IMF) top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal. Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow.

Ahead of the Budget the International Monetary Fund's(IMF) top representative Andreas Bauer in India spoke exclusively to our correspondent Siddhant Sibal. Bauer lauded the various reforms in India especially the GST and said that the country has done well and the world needs it to grow. He hoped for fiscal consolidation in the upcoming Budget. Here is the full interview. WION: The IMF report was upbeat on India. What makes you so confident? Andreas Bauer: We think India has a strong base to grow on. It has a young population, it has human resources that are growing, it has a fairly high savings rate, although we would see some more of that will provide the basis for investment. India has a good basis to start growing. We need reforms. This is why we looking in Budgets, programmes of the new government. We want to see continues pace of reforms, some important reforms have been implemented in recent years. WION: Your assessment of reforms introduced by the government in the last few years? Andreas Bauer: India has made a lot of progress in a few years and GST for us is a big reform. It has the potential to unify the domestic market, certainty, the initial structure of GST was quite complex and compliance cost very high. We have seen good moves to simplify that. More scope to go further. But reforms give a tailwind to move the economy forward. Looking at the next phase, after the elections that India can pick up the reform pace and continue to build the economic pace that allows country to grow at these high rates. India has done well, India is growing above 7 per cent, the country is 15 per cent of global growth and world needs India to grow as there are other economies like China which are slowing, so we do need India to grow. WION: What kind of reforms you expect? Andreas Bauer: We have laid reforms out in our annual assessment of the economy. In short term, we are looking at a number of things. We are looking at ways to address twin balance sheet problem. So improving capital base of banks, which is ongoing for public banks and governance reforms of the banks and making sure these banks in future work on much better basis and we don't see repeat of accumulation of large non-performing loans. One of the issues, we have discussed is the global environment might become challenging. Important to put fiscal on a strong footing. WION: Your suggestions on the Budget? Andreas Bauer: I rather wait for the Budget to see what is in there but we have been for sometimes saying that India should gradually consolidate. So certainly we want India to persist on that path. See the deficits to decline and debt levels to decline. These are relatively high levels for an emerging economy and we want to have a space that when a negative shock comes, fisc can help. We would like to see the continuation of the consolidation path. It is important to take a global view and create fiscal space to be ready in case if negative shock. WION: Your assessment of oil prices especially with the crisis in Venezuela? Andreas Bauer: Geopolitical events always pose risk to oil price. The general expectation is after the recent decline oil prices, they will remain at the current level so that is not bad news for oil importers like India. Risk of supply disruption as we saw last year. So risk as well on that front. In general, given that global economy is slowing and given that previous supply disruptions have been addressed, so our forecast and markets forecast is stable oil prices. WION: You have painted a gloomy picture of the world economy. What makes you pessimistic? Andreas Bauer: The good news is the global economy is still expanding but expansion is slowing and at a faster pace than originally then we anticipated. So we put out a word of caution. The global economy last year expanded by 3.7 per cent, that is quite a good pace. For the current year, growth will slow down to 3.5 per cent and that refects in both advanced and emerging markets. The key message to countries is, the situation is still okay, but risk remains and better prepare for a more difficult external environment.

Ahead of Budget, IMF calls for more reforms

The Finance Ministry clarified on Wednesday that the 2019 Budget presented by the government&nbsp;will be an <a href="http://www.wionews.com/business-economy/budget-2019-what-is-interim-budget-and-how-is-it-different-from-the-regular-one-193702">Interim Budget</a>.

The clarification came amid reports that stated that the Finance Minister has asked its staff to refer to the upcoming <a href="http://www.wionews.com/business-economy/fiscal-deficit-cut-motion-guillotine-terms-to-know-for-budget-193703">Budget </a>as a General Budget.

The provisional calendar released by the Lok Sabha has also categorised the event as an Interim Budget.

With 2019 being an election year, the Budget presented by the government will be an interim one as during election years&nbsp;the newly elected government presents the full Budget around July.

The Budget will be presented by Piyush Goyal on February 1.

Goyal has been given a temporary charge of the Finance Ministry in the absence of Arun Jaitley.

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In an election year, the incumbent government usually presents vote-on-account in Parliament which enables the government machinery to meet important expenses of administration, like salaries etc. The vote-on-account is usually for a period of three-four months and is meant to provide a smooth transition for the next government; it gives time to Parliament when it reconstitutes after the elections to discuss and pass the full Budget and allocate money accordingly.

The Modi government has indicated that this year's Budget will not be a vote-on-account but an interim one. While the vote-on-account deals only with the expenditure side of the Budget, an interim Budget has both expenditure and receipts and gives the complete financial statement, much like a full Budget.

&nbsp;

&nbsp;

The Finance Ministry clarified on Wednesday that the 2019 Budget presented by the government will be an Interim Budget. The clarification came amid reports that stated that the Finance Minister has asked its staff to refer to the upcoming Budget as a General Budget.

The Finance Ministry clarified on Wednesday that the 2019 Budget presented by the government will be an Interim Budget. The clarification came amid reports that stated that the Finance Minister has asked its staff to refer to the upcoming Budget as a General Budget. The provisional calendar released by the Lok Sabha has also categorised the event as an Interim Budget. With 2019 being an election year, the Budget presented by the government will be an interim one as during election years the newly elected government presents the full Budget around July. The Budget will be presented by Piyush Goyal on February 1. Goyal has been given a temporary charge of the Finance Ministry in the absence of Arun Jaitley. Finance Ministry clarifies that this budget will be 'Interim Budget 2019-20'. pic.twitter.com/jr3mQhlGQ7 — ANI (@ANI) January 30, 2019 × In an election year, the incumbent government usually presents vote-on-account in Parliament which enables the government machinery to meet important expenses of administration, like salaries etc. The vote-on-account is usually for a period of three-four months and is meant to provide a smooth transition for the next government; it gives time to Parliament when it reconstitutes after the elections to discuss and pass the full Budget and allocate money accordingly. The Modi government has indicated that this year's Budget will not be a vote-on-account but an interim one. While the vote-on-account deals only with the expenditure side of the Budget, an interim Budget has both expenditure and receipts and gives the complete financial statement, much like a full Budget.

Will present an interim Budget, clarifies Finance Ministry

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one.

As the government gets ready to present its financial plan for the coming months, we highlight some critical details related to a few significant terms like 'GST', 'Fiscal Deficit', 'Revenue Deficit', ‘Primary Deficit', 'Capital Expenditure', Direct &amp; Indirect Taxes etc, used in the annual financial statement.

These definitions are provided by the Finance Ministry.

Budget estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Fiscal deficit: When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called a fiscal deficit.

Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure.

Primary deficit: The primary deficit is the fiscal deficit minus interest payments. It tells how much of the government's borrowings are going towards meeting expenses other than interest payments.

Goods and Services Tax: The Constitution defines Goods and Services Tax as any tax on the supply of goods or services or both except taxes on the supply of alcoholic liquor for human consumption. 'Goods' means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. 'Services' means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination for which a separate consideration is charged.

Direct and indirect taxes: Direct taxes are the one that falls directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Customs duty: These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer.

Monetary policy: This comprises actions taken by the central bank (RBI) to regulate the level of money or liquidity in the economy, or change the interest rates.

Fiscal policy: It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the Budget and is the primary means by which the government can influence the economy.

Inflation: A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.

Finance bill: The bill produced immediately after presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget.

Excess grants: If the total expenditure under a grant exceeds the provision allowed through its original grant and supplementary grant, then the access requires regularisation by obtaining the excess grant from Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the annual Budget i.e. through a presentation of demands for grants and passing of appropriation bills.

Re-appropriations: Re-appropriations allow the government to re-appropriate provisions from one sub-head to another within the same grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller and Auditor General and the Public Accounts Committee review these re-appropriations and comments on them for taking corrective actions.

Cut motions: Motions for reduction to various demands for grants are made in the form of cut motions seeking to reduce the sums sought by the government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.

Guillotine: Parliament, unfortunately, has very limited time for scrutinising expenditure demands of all the ministries. So, once the prescribed period for discussion on demands for grants is over, the Speaker of Lok Sabha puts all the outstanding demands for grants, whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'. 
&nbsp;

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one.

The presentation of Union Budget 2019 is just days away. The Budget, which will be presented on February 1, is going to be Modi government's last Budget of the current tenure and is expected to be an interim one. As the government gets ready to present its financial plan for the coming months, we highlight some critical details related to a few significant terms like 'GST', 'Fiscal Deficit', 'Revenue Deficit', ‘Primary Deficit', 'Capital Expenditure', Direct & Indirect Taxes etc, used in the annual financial statement. These definitions are provided by the Finance Ministry. Budget estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year. Fiscal deficit: When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called a fiscal deficit. Revenue Deficit: The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure. Primary deficit: The primary deficit is the fiscal deficit minus interest payments. It tells how much of the government's borrowings are going towards meeting expenses other than interest payments. Goods and Services Tax: The Constitution defines Goods and Services Tax as any tax on the supply of goods or services or both except taxes on the supply of alcoholic liquor for human consumption. 'Goods' means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. 'Services' means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination for which a separate consideration is charged. Direct and indirect taxes: Direct taxes are the one that falls directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc. Customs duty: These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer. Monetary policy: This comprises actions taken by the central bank (RBI) to regulate the level of money or liquidity in the economy, or change the interest rates. Fiscal policy: It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the Budget and is the primary means by which the government can influence the economy. Inflation: A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Finance bill: The bill produced immediately after presentation of the Union Budget detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget. Excess grants: If the total expenditure under a grant exceeds the provision allowed through its original grant and supplementary grant, then the access requires regularisation by obtaining the excess grant from Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the annual Budget i.e. through a presentation of demands for grants and passing of appropriation bills. Re-appropriations: Re-appropriations allow the government to re-appropriate provisions from one sub-head to another within the same grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller and Auditor General and the Public Accounts Committee review these re-appropriations and comments on them for taking corrective actions. Cut motions: Motions for reduction to various demands for grants are made in the form of cut motions seeking to reduce the sums sought by the government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance. Guillotine: Parliament, unfortunately, has very limited time for scrutinising expenditure demands of all the ministries. So, once the prescribed period for discussion on demands for grants is over, the Speaker of Lok Sabha puts all the outstanding demands for grants, whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'.

Fiscal deficit, cut motion, guillotine: Terms to know for Budget

Looking for five more years in power, the ruling Bharatiya Janata Party-led alliance will woo rural and urban middle-class voters with farm relief measures and tax cuts, said officials privy to plans for the final budget before India's general election.

The electoral compulsions mean that major economic reforms, such as tax cuts for bigger companies and plans to bring down the budget deficit, could be put on hold at least until after the election, the sources said.

Piyush Goyal, the interim finance minister, will present the budget on February 1, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment.

The higher spending, along with a shortfall in tax collections, will push the fiscal deficit up to the equivalent of 3.5 per cent of gross domestic product for the year ending in March, overshooting a previous 3.3 per cent target, according to one of the sources with direct knowledge of budget discussions.

The source said there was a chance that the government could take corrective action in March, hoping that by that time the election schedule will be settled and the public focus will shift towards campaigning.

"We may resort to spending cuts in March to contain the fiscal deficit," the source said.

The finance ministry had cut capital and other spending amounting to $10.55 billion in the last financial year ending in March 2018. But Modi's government has been stepping back from such fiscal rectitude in recent months.

The government also pressed the Reserve Bank of India to part with more of its reserves, causing a rift that culminated in the resignation of Governor Urjit Patel last month.

"This is an election budget, and most of the economic reforms have been put on hold," said another official, adding the government could defer any decision on business demands for a cut in corporate tax.

Business leaders said the government still has to meet its three-year-old promise of cutting the corporate tax rate for larger companies to 25 per cent from 30 per cent.

"Although all over the world overall tax has started coming down, India is one of the large economies which has corporate taxes on the higher side," said Rohinton Sidhwa, partner at Deloitte India.

The budget, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 per cent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 per cent, and estimating an increase in revenue of about 15 per cent, officials said.

But the main focus will be on the rural sector and the urban middle-class.

The government is ready with relief measures for farmers, benefits for unemployed youth, higher tax exemptions for the middle class and small businesses, the officials said.

According to two government sources, the farm relief package itself could run to at least $14 billion if the government is to have a meaningful impact on which way voters lean in rural areas, where two-thirds of Indians live.

The pre-election giveaways could give the economy short-term momentum, but result in a hangover after the election.

Credit rating agencies have warned that without bringing down other spending, a higher farm subsidy bill will increase future fiscal deficits.

"In the absence of new revenue boosting measures, the policies will collectively make it harder for the government to achieve its fiscal consolidation objectives," Moody's Investors Service said last week.

LOOKING FOR JOBS

Though he has spent big on building roads and railways, Modi has been fiscally conservative for most of his time in power, helping to bring retail inflation to near two per cent from double-digits during the previous government's time.

Last month's state election upsets have made the Modi government shed some of that caution.

Despite expanding by seven per cent plus annually - the fastest pace among major economies, the uneven nature of the growth has meant that the economy has failed to create enough jobs for millions of youth entering the workforce each year.

Merchandise exports have shown no signs of growth in last four years, and some textile, leather and engineering goods producers have shifted production abroad.

Earlier this month, the Centre for Monitoring Indian Economy (CMIE), a leading independent think tank, issued a report showing the country lost as many as 11 million jobs last year, making it even harder for new entrants to the labour market.

Last week, Raghuram Rajan, former governor of the Reserve Bank of India, said India needed flexible labour and land laws, and to fix glitches in the Goods and Services Tax, launched as a major tax reform in 2017.

"We need two percentage points more growth to provide those jobs that are needed," said Rajan.

Looking for five more years in power, the ruling Bharatiya Janata Party-led alliance will woo rural and urban middle-class voters with farm relief measures and tax cuts, said officials privy to plans for the final budget before India's general election.

Looking for five more years in power, the ruling Bharatiya Janata Party-led alliance will woo rural and urban middle-class voters with farm relief measures and tax cuts, said officials privy to plans for the final budget before India's general election. The electoral compulsions mean that major economic reforms, such as tax cuts for bigger companies and plans to bring down the budget deficit, could be put on hold at least until after the election, the sources said. Piyush Goyal, the interim finance minister, will present the budget on February 1, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment. The higher spending, along with a shortfall in tax collections, will push the fiscal deficit up to the equivalent of 3.5 per cent of gross domestic product for the year ending in March, overshooting a previous 3.3 per cent target, according to one of the sources with direct knowledge of budget discussions. The source said there was a chance that the government could take corrective action in March, hoping that by that time the election schedule will be settled and the public focus will shift towards campaigning. "We may resort to spending cuts in March to contain the fiscal deficit," the source said. The finance ministry had cut capital and other spending amounting to $10.55 billion in the last financial year ending in March 2018. But Modi's government has been stepping back from such fiscal rectitude in recent months. The government also pressed the Reserve Bank of India to part with more of its reserves, causing a rift that culminated in the resignation of Governor Urjit Patel last month. "This is an election budget, and most of the economic reforms have been put on hold," said another official, adding the government could defer any decision on business demands for a cut in corporate tax. Business leaders said the government still has to meet its three-year-old promise of cutting the corporate tax rate for larger companies to 25 per cent from 30 per cent. "Although all over the world overall tax has started coming down, India is one of the large economies which has corporate taxes on the higher side," said Rohinton Sidhwa, partner at Deloitte India. The budget, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 per cent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 per cent, and estimating an increase in revenue of about 15 per cent, officials said. But the main focus will be on the rural sector and the urban middle-class. The government is ready with relief measures for farmers, benefits for unemployed youth, higher tax exemptions for the middle class and small businesses, the officials said. According to two government sources, the farm relief package itself could run to at least $14 billion if the government is to have a meaningful impact on which way voters lean in rural areas, where two-thirds of Indians live. The pre-election giveaways could give the economy short-term momentum, but result in a hangover after the election. Credit rating agencies have warned that without bringing down other spending, a higher farm subsidy bill will increase future fiscal deficits. "In the absence of new revenue boosting measures, the policies will collectively make it harder for the government to achieve its fiscal consolidation objectives," Moody's Investors Service said last week. LOOKING FOR JOBS Though he has spent big on building roads and railways, Modi has been fiscally conservative for most of his time in power, helping to bring retail inflation to near two per cent from double-digits during the previous government's time. Last month's state election upsets have made the Modi government shed some of that caution. Despite expanding by seven per cent plus annually - the fastest pace among major economies, the uneven nature of the growth has meant that the economy has failed to create enough jobs for millions of youth entering the workforce each year. Merchandise exports have shown no signs of growth in last four years, and some textile, leather and engineering goods producers have shifted production abroad. Earlier this month, the Centre for Monitoring Indian Economy (CMIE), a leading independent think tank, issued a report showing the country lost as many as 11 million jobs last year, making it even harder for new entrants to the labour market. Last week, Raghuram Rajan, former governor of the Reserve Bank of India, said India needed flexible labour and land laws, and to fix glitches in the Goods and Services Tax, launched as a major tax reform in 2017. "We need two percentage points more growth to provide those jobs that are needed," said Rajan.

Budget will woo rural voters with farm relief measures, middle class with tax cuts: Sources

<a href="http://www.wionews.com/india-news/piyush-goyal-may-present-budget-as-he-gets-additional-charge-of-finance-ministry-192343">Finance Minister Piyush Goyal</a> will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said.

The meeting assumes significance as it comes just three days ahead of the Budget 2019-20, the last from this government before the general elections expected to be held in April-May.

The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das, who is going to announce his first monetary policy review on February 7.

Goyal, who was given additional charge of the finance ministry last Wednesday as <a href="http://www.wionews.com/india-news/arun-jaitley-in-good-health-recovering-rapidly-piyush-goyal-192699">Arun Jaitley is away to the US for treatment</a>, is his expected to discuss a host of issues including credit offtake and bad loan position of lenders.

Among the key issues, sources said, the meeting will review the progress of various schemes of the government being implemented through the government. It will also review the credit flow to MSMEs, agriculture and retail sectors.

Besides, sources said, the meeting will also review the financial performance of the banks for the nine months ended December 2018. 
Non-performing assets (NPAs) would also come up for deliberation, they added.

Public sector banks (PSBs) have seen a decline in bad loans by over Rs 23,000 crore from a peak of Rs 9.62 lakh crore in March 2018 due to various initiatives taken by the government.

At the same time, PSBs have also made a record in the recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year.

According to the latest finance ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 &amp; 2) of PSBs have declined by 61 per cent over five successive quarters - from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018.

In his first stint as finance minister for 100 days last year, Goyal was instrumental in setting up a committee headed by the non-executive chairman of Punjab National Bank Sunil Mehta to examine whether the creation of an asset reconstruction company or asset management company to help in the faster resolution of stressed assets.

Finance Minister Piyush Goyal will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said.

Finance Minister Piyush Goyal will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said. The meeting assumes significance as it comes just three days ahead of the Budget 2019-20, the last from this government before the general elections expected to be held in April-May. The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das, who is going to announce his first monetary policy review on February 7. Goyal, who was given additional charge of the finance ministry last Wednesday as Arun Jaitley is away to the US for treatment, is his expected to discuss a host of issues including credit offtake and bad loan position of lenders. Among the key issues, sources said, the meeting will review the progress of various schemes of the government being implemented through the government. It will also review the credit flow to MSMEs, agriculture and retail sectors. Besides, sources said, the meeting will also review the financial performance of the banks for the nine months ended December 2018. Non-performing assets (NPAs) would also come up for deliberation, they added. Public sector banks (PSBs) have seen a decline in bad loans by over Rs 23,000 crore from a peak of Rs 9.62 lakh crore in March 2018 due to various initiatives taken by the government. At the same time, PSBs have also made a record in the recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year. According to the latest finance ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 & 2) of PSBs have declined by 61 per cent over five successive quarters - from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018. In his first stint as finance minister for 100 days last year, Goyal was instrumental in setting up a committee headed by the non-executive chairman of Punjab National Bank Sunil Mehta to examine whether the creation of an asset reconstruction company or asset management company to help in the faster resolution of stressed assets.

Finance minister Piyush Goyal to meet heads of PSU banks on Monday

Piyush Goyal is likely to present the interim Budget on February 1 as he was Wednesday given the <a href="http://www.wionews.com/india-news/railway-minister-piyush-goyal-given-additional-charge-of-finance-ministry-as-jaitley-gets-medical-treatment-192328">additional charge of finance ministr</a>y as Arun Jaitley is in the US for medical treatment, sources said.

Jaitley has undergone surgery at a hospital in New York on Tuesday and has been advised at least two weeks rest by the doctors, sources said. Jaitley, who had travelled to the US on January 13, has undergone tests for soft tissue cancer this week.

Ahead of the interim budget scheduled to be presented on February 1, Railways Minister Piyush Goyal has been given additional charge of Finance and Corporate Affairs ministries.&nbsp;

An official release from the Rashtrapati Bhavan Wednesday said the President, as advised by Prime Minister Narendra Modi, directed that during the period of Jaitley's indisposition, the portfolios of the Minister of Finance and the Minister of Corporate Affairs, held by him, be temporarily assigned to Goyal, in addition to his existing portfolios.

Goyal is likely to present the interim Budget, according to sources.

The budget comes ahead of the general elections and the government is expected to make some key announcements, including relief package for farmers, poor and sops for middle-class.

Jaitley has been designated as a minister without portfolio during the period of his indisposition or till such time when he is able to resume his work as the Minister of Finance and the Minister of Corporate Affairs.&nbsp;

Rajya Sabha Member Goyal also holds the coal portfolio.

This for the second time that Goyal has been given the additional charge of the Finance Ministry.

In May last year, Goyal was given the additional charge of the ministry after Jaitley underwent a kidney transplant surgery.

Later after a gap of four months, Jaitley resumed the office of the Finance Minister.

Jaitley had also undergone a bariatric surgery soon after the BJP government came to power at the Centre in 2014. The surgery, to treat weight gain that he suffered because of a long-standing diabetic condition, was first performed at Max Hospital, but he then had to be shifted to AIIMS because of complications.

The ruling BJP has recently appointed Jaitley as in-charge of publicity for the upcoming Lok Sabha elections. Jaitley, a senior member of the ruling party, has presented five budgets of the current regime.&nbsp;

Piyush Goyal is likely to present the interim Budget on February 1 as he was Wednesday given the additional charge of finance ministry as Arun Jaitley is in the US for medical treatment, sources said.

Piyush Goyal is likely to present the interim Budget on February 1 as he was Wednesday given the additional charge of finance ministry as Arun Jaitley is in the US for medical treatment, sources said. Jaitley has undergone surgery at a hospital in New York on Tuesday and has been advised at least two weeks rest by the doctors, sources said. Jaitley, who had travelled to the US on January 13, has undergone tests for soft tissue cancer this week. Ahead of the interim budget scheduled to be presented on February 1, Railways Minister Piyush Goyal has been given additional charge of Finance and Corporate Affairs ministries. An official release from the Rashtrapati Bhavan Wednesday said the President, as advised by Prime Minister Narendra Modi, directed that during the period of Jaitley's indisposition, the portfolios of the Minister of Finance and the Minister of Corporate Affairs, held by him, be temporarily assigned to Goyal, in addition to his existing portfolios. Goyal is likely to present the interim Budget, according to sources. The budget comes ahead of the general elections and the government is expected to make some key announcements, including relief package for farmers, poor and sops for middle-class. Jaitley has been designated as a minister without portfolio during the period of his indisposition or till such time when he is able to resume his work as the Minister of Finance and the Minister of Corporate Affairs. Rajya Sabha Member Goyal also holds the coal portfolio. This for the second time that Goyal has been given the additional charge of the Finance Ministry. In May last year, Goyal was given the additional charge of the ministry after Jaitley underwent a kidney transplant surgery. Later after a gap of four months, Jaitley resumed the office of the Finance Minister. Jaitley had also undergone a bariatric surgery soon after the BJP government came to power at the Centre in 2014. The surgery, to treat weight gain that he suffered because of a long-standing diabetic condition, was first performed at Max Hospital, but he then had to be shifted to AIIMS because of complications. The ruling BJP has recently appointed Jaitley as in-charge of publicity for the upcoming Lok Sabha elections. Jaitley, a senior member of the ruling party, has presented five budgets of the current regime.

Piyush Goyal likely to present Interim Budget after he gets additional charge of Finance Ministry

The<a href="http://www.wionews.com/india-news/rs-5-crore-budget-for-fy18-19-to-propagate-hindi-globally-vk-singh-183513"> budget session of Parliament</a> is likely to be held from January 31 to February 13, and an interim budget is expected to be presented on February 1, government sources said Wednesday.&nbsp;

They said the Cabinet Committee on Political Affairs deliberated on the dates for the budget session at a meeting.&nbsp;

It is expected to be the last session of the current Lok Sabha as general elections are due in April-May.&nbsp;

It is expected to be the last session of the current Lok Sabha as general elections are due in April-May.

The budget session of Parliament is likely to be held from January 31 to February 13, and an interim budget is expected to be presented on February 1, government sources said Wednesday. They said the Cabinet Committee on Political Affairs deliberated on the dates for the budget session at a meeting. It is expected to be the last session of the current Lok Sabha as general elections are due in April-May.

Budget session likely from January 31 to February 13: Government sources

<a href="http://www.wionews.com/world/us-sanctions-are-economic-terrorism-says-iran-president-rouhani-182402">President Hassan Rouhani </a>presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying <a href="http://www.wionews.com/world/iran-seeks-regional-front-against-us-economic-terrorism-182445">US sanctions would affect Iranians`</a> lives and growth but not bring the government to its knees.

"America`s goal is to bring Iran`s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people`s lives, and the country`s development and economic growth," Rouhani told parliament in a speech carried live on state television.

He gave the value of the draft budget at about 4,700 trillion rials for the next Iranian year which starts on March 21, 2019.

President Hassan Rouhani presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying US sanctions would affect Iranians` lives and growth but not bring the government to its knees.

President Hassan Rouhani presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying US sanctions would affect Iranians` lives and growth but not bring the government to its knees. "America`s goal is to bring Iran`s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people`s lives, and the country`s development and economic growth," Rouhani told parliament in a speech carried live on state television. He gave the value of the draft budget at about 4,700 trillion rials for the next Iranian year which starts on March 21, 2019.

President Rouhani presents Iran budget, says US sanctions to hit lives, growth

The Ministry of Labour and Employment on Friday clarified that there is a proposal to pay employers for extended maternity benefit from government budget and not from any labour welfare cess.

"The Ministry of Labour and Employment is in the process of obtaining necessary budgetary grant and approvals of Competent Authorities. The reports that it will be funded from Labour Welfare Cess, is also incorrect, as no such cess exists under this Ministry," read an official statement.

Furthermore, the Ministry informed that it is working on an incentive scheme wherein seven weeks'&nbsp;wages would be reimbursed to employers who employ women workers with wage ceiling up to Rs. 15000 and provide maternity benefit of 26 weeks'&nbsp;paid leave.

Around Rs 400 crores would be the financial implication for the Labour Ministry for implementing the proposed incentive scheme, the statement further noted.

The Ministry said that if approved and implemented, the proposed scheme shall ensure that women in this country gain equal access to employment and other approved benefits along with adequate safety and security.

Also, women shall continue to bear the major share of household work as well as childcare. The workplaces will be more and more responsive to the family needs of the working women, it added.

The ministry said that the proposal has been made as it was noted that the 26 weeks` maternity leave provision is good in Public Sector, but not good in Private Sector and in contract jobs.

The Maternity Benefit Act, 1961 regulates the employment of women in certain establishments for certain period before and after childbirth and to provide maternity and other benefits.

The Act was amended through the Maternity Benefit (Amendment) Act, 2017 which, inter alia, has increased the paid maternity leave to women employees from 12 weeks to 26 weeks.

The Ministry of Labour and Employment on Friday clarified that there is a proposal to pay employers for extended maternity benefit from government budget and not from any labour welfare cess.

The Ministry of Labour and Employment on Friday clarified that there is a proposal to pay employers for extended maternity benefit from government budget and not from any labour welfare cess. "The Ministry of Labour and Employment is in the process of obtaining necessary budgetary grant and approvals of Competent Authorities. The reports that it will be funded from Labour Welfare Cess, is also incorrect, as no such cess exists under this Ministry," read an official statement. Furthermore, the Ministry informed that it is working on an incentive scheme wherein seven weeks' wages would be reimbursed to employers who employ women workers with wage ceiling up to Rs. 15000 and provide maternity benefit of 26 weeks' paid leave. Around Rs 400 crores would be the financial implication for the Labour Ministry for implementing the proposed incentive scheme, the statement further noted. The Ministry said that if approved and implemented, the proposed scheme shall ensure that women in this country gain equal access to employment and other approved benefits along with adequate safety and security. Also, women shall continue to bear the major share of household work as well as childcare. The workplaces will be more and more responsive to the family needs of the working women, it added. The ministry said that the proposal has been made as it was noted that the 26 weeks` maternity leave provision is good in Public Sector, but not good in Private Sector and in contract jobs. The Maternity Benefit Act, 1961 regulates the employment of women in certain establishments for certain period before and after childbirth and to provide maternity and other benefits. The Act was amended through the Maternity Benefit (Amendment) Act, 2017 which, inter alia, has increased the paid maternity leave to women employees from 12 weeks to 26 weeks.

Maternity leave pay to be reimbursed from government budget

The Nepal government on Tuesday unveiled the first federal budget of Rs 1.31 trillion for fiscal year 2018-19 at the Federal-Parliament.

According to Nepal Finance Minister Yubaraj Khatiwada, the government aims to collect Rs 8 trillion from revenues in the upcoming fiscal year and Rs 202 billion from foreign aid, Kathmandu Post reported.

Nepal's Finance Minister today presented the first federal budget of the Himalayan nation after completing the three-tier elections held simultaneously in the year of 2017.

The economic growth presumed by Finance Minister is hard to meet without increasing the tax levied on the public, the experts had projected.

Two days before presenting the budget for the upcoming fiscal year, the Finance Minister also stated that the budget deficit of the Himalayan Nation is expected to grow by 10.4 percent. Though Nepal unveils its budget every year, hardly 50 percent of the total allocated budget is spent over the title it is less spent and is freeze over.

There is a provision to unveil Nepal's budget for the next fiscal year on May 29.&nbsp;

According to Nepal Finance Minister Yubaraj Khatiwada, the government aims to collect Rs 8 trillion from revenues in the upcoming fiscal year and Rs 202 billion from foreign aid

The Nepal government on Tuesday unveiled the first federal budget of Rs 1.31 trillion for fiscal year 2018-19 at the Federal-Parliament. According to Nepal Finance Minister Yubaraj Khatiwada, the government aims to collect Rs 8 trillion from revenues in the upcoming fiscal year and Rs 202 billion from foreign aid, Kathmandu Post reported. Nepal's Finance Minister today presented the first federal budget of the Himalayan nation after completing the three-tier elections held simultaneously in the year of 2017. The economic growth presumed by Finance Minister is hard to meet without increasing the tax levied on the public, the experts had projected. Two days before presenting the budget for the upcoming fiscal year, the Finance Minister also stated that the budget deficit of the Himalayan Nation is expected to grow by 10.4 percent. Though Nepal unveils its budget every year, hardly 50 percent of the total allocated budget is spent over the title it is less spent and is freeze over. There is a provision to unveil Nepal's budget for the next fiscal year on May 29.

Nepal unveils Rs 1.31 trillion budget for fiscal year 2018/19

The European Commission on Wednesday announced plans to increase their post-Brexit budget to 1.279-trillion-euro that will trigger battles among member states over how to fill the funding gap left by Britain’s exit next year.

Bureaucrats have published the first draft Multiannual Financial Framework, which will run from 2021 to 2027 - the first directly affected by Brexit - and it is thought the loss of the UK’s contribution will have a major impact on the scope of the EU’s spending power from 2021.

During the 2021-27 period it would trim the biggest single item, farm subsidies, by 5 per cent and wants a new plastics tax. It would spend more on research and technology, foreign aid, euro zone stability, compensation for job losses from open trade and on joint defense and frontier guards.

It also introduces a new mechanism to penalize countries — notably in the ex-communist east — where governments breach EU rules on ensuring judicial freedom and the rule of law. These could find some of their important EU funding being withheld.

“With today’s proposal we have put forward a pragmatic plan for how to do more with less,” said European Commission President Jean-Claude Juncker.

“A budget for a Europe that protects, empowers and defends,” declared the Commission, urging the remaining 27 member states to make up the shortfall of at least 10 billion euros ($12 billion) a year to be caused by Brexit after 2020.

That language reflects a campaign from Brussels to persuade voters the bloc remains relevant after a decade of crisis that has seen ferocious austerity in countries hit by the euro zone debt crisis and uproar over the arrival of more than a million irregular migrants across the Mediterranean in 2015 alone.

“A Europe that protects,” has also become a familiar demand from French President Emmanuel Macron, as he tries to work with German Chancellor Angela Merkel to tighten integration after the ever-skeptical British have left, while easing fears among voters that the EU means open borders and jobs exported abroad.

The German government reacted cautiously but the priorities it set out echoed many of those from the EU executive — tougher border control, more EU defense cooperation, tech innovation and a stronger defense of democratic values in Europe.

While, the EU’s largest budget contributor, Germany, has said it stands ready to pump in more cash to the Brussels machine, the Netherlands, Denmark, Austria and Sweden have raised concerns over stumping up any more cash to prop up the bloc in the wake of the UK’s departure.

For the first time, the Commission will create a “rule of law” mechanism that ties budget payments to a country’s respect for EU values. Brussels insists the rules will not be used to target the likes of Hungary and Poland with whom it has tussled over independent judiciaries.

It repeated its readiness, like France, to pick up a bigger bill if the budget strengthens the Union: “But that,” it added, “includes fair burden-sharing among all member states.”

The proposed budget of 1.28 trillion euros in inflation-adjusted future prices — or 1.14 trillion euros at 2018 prices — would be greater in real terms than the 1.09 trillion euros in the 2014-20 Multiannual Financial Framework.

It will be around 1.11 percent of the bloc’s economic output, the Commission said, up from the current 1.03 per cent. 
&nbsp;

(With inputs from Reuters)

The proposed budget of 1.28 trillion euros in inflation-adjusted future prices — or 1.14 trillion euros at 2018 prices — would be greater in real terms than the 1.09 trillion euros in the 2014-20 Multiannual Financial Framework

The European Commission on Wednesday announced plans to increase their post-Brexit budget to 1.279-trillion-euro that will trigger battles among member states over how to fill the funding gap left by Britain’s exit next year. Bureaucrats have published the first draft Multiannual Financial Framework, which will run from 2021 to 2027 - the first directly affected by Brexit - and it is thought the loss of the UK’s contribution will have a major impact on the scope of the EU’s spending power from 2021. During the 2021-27 period it would trim the biggest single item, farm subsidies, by 5 per cent and wants a new plastics tax. It would spend more on research and technology, foreign aid, euro zone stability, compensation for job losses from open trade and on joint defense and frontier guards. It also introduces a new mechanism to penalize countries — notably in the ex-communist east — where governments breach EU rules on ensuring judicial freedom and the rule of law. These could find some of their important EU funding being withheld. “With today’s proposal we have put forward a pragmatic plan for how to do more with less,” said European Commission President Jean-Claude Juncker. “A budget for a Europe that protects, empowers and defends,” declared the Commission, urging the remaining 27 member states to make up the shortfall of at least 10 billion euros ($12 billion) a year to be caused by Brexit after 2020. That language reflects a campaign from Brussels to persuade voters the bloc remains relevant after a decade of crisis that has seen ferocious austerity in countries hit by the euro zone debt crisis and uproar over the arrival of more than a million irregular migrants across the Mediterranean in 2015 alone. “A Europe that protects,” has also become a familiar demand from French President Emmanuel Macron, as he tries to work with German Chancellor Angela Merkel to tighten integration after the ever-skeptical British have left, while easing fears among voters that the EU means open borders and jobs exported abroad. The German government reacted cautiously but the priorities it set out echoed many of those from the EU executive — tougher border control, more EU defense cooperation, tech innovation and a stronger defense of democratic values in Europe. While, the EU’s largest budget contributor, Germany, has said it stands ready to pump in more cash to the Brussels machine, the Netherlands, Denmark, Austria and Sweden have raised concerns over stumping up any more cash to prop up the bloc in the wake of the UK’s departure. For the first time, the Commission will create a “rule of law” mechanism that ties budget payments to a country’s respect for EU values. Brussels insists the rules will not be used to target the likes of Hungary and Poland with whom it has tussled over independent judiciaries. It repeated its readiness, like France, to pick up a bigger bill if the budget strengthens the Union: “But that,” it added, “includes fair burden-sharing among all member states.” The proposed budget of 1.28 trillion euros in inflation-adjusted future prices — or 1.14 trillion euros at 2018 prices — would be greater in real terms than the 1.09 trillion euros in the 2014-20 Multiannual Financial Framework. It will be around 1.11 percent of the bloc’s economic output, the Commission said, up from the current 1.03 per cent. (With inputs from Reuters)

EU announces plans to boost post-Brexit budget to Euro 1.25 trillion

Pakistani Finance Minister Miftah Ismail lauded a resurgent economy and announced a big hike in military spending for the next fiscal year on Friday in a chaotic budget session marred by lawmakers'&nbsp;jeers and scuffles ahead of an expected election.

Opposition lawmakers objected to the ruling Pakistan Muslim League-Nawaz (PML-N) presenting a full-year budget so close to the election, likely in July, and staged a walkout. Others tried to storm the podium to physically disrupt Ismail's speech, but were blocked by a human chain of PML-N parliamentarians.

Pakistan's economy has rebounded in recent years due to a drop in militant violence and vast investments by China that have helped alleviate power shortages. Growth is projected to hit a 13-year high of 5.8 percent in 2017/2018 (July-June) before accelerating to 6.2 percent next fiscal year.

"Due to historic low-interest rates, the business and industry has seen growth, and employment opportunities have been created," Miftah said, while opposition lawmakers threw papers in the air.

But a widening current account deficit and dwindling foreign currency reserves have taken some shine off the economic outlook, with the World Bank and the International Monetary Fund (IMF) warning of risks to the economy.

Ismail said the budget deficit would hit 5.5 percent for the current fiscal year, missing the government's fiscal deficit target of 4.1 percent. He forecast the budget deficit at 4.9 percent of GDP in 2018/2019.

A government document put the total budget outlay for 2018/2019 at 5.9 trillion Pakistani rupees ($51.06 billion).

A very big success

Ismail said tax revenues reached 13.2 percent of GDP in 2017/2018, up from 10.1 percent in 2012/2013.

"This unusual increase in tax collection is a very big success," Ismail said.&nbsp;

A budget document said total tax receipts would reach 4.2 trillion for 2017/2018 - barely missing the official target - and Ismail projected they would jump to 4.43 trillion rupees next fiscal year.

Ismail also set aside 1.1 trillion for the defence budget, increasing it by about 20 percent from the 920 million that the government had budgeted for the military to spend. Revised figures from a budget document suggest military spending will hit 1 trillion this year anyway.&nbsp;

The United States has announced a suspension of military assistance to Pakistan totalling about $2 billion, though it was not clear whether this was why Pakistan's military budget exceeded its planned outlay.

Washington suspended the assistance due to claims that Islamabad was either assisting or turning a blind eye to Islamist militants who use Pakistan's soil as a launchpad for attacks in Afghanistan.

The huge boost to defence spending comes at a time of fraught relations between the ruling party and the powerful military, which has ruled Pakistan for nearly half its history.

Senior PML-N officials have suggested that elements of the military establishment are trying to weaken the party before the polls. The military has denied interfering in politics. 
&nbsp;

The huge boost to defence spending comes at a time of fraught relations between the ruling party and the powerful military, which has ruled Pakistan for nearly half its history

Pakistani Finance Minister Miftah Ismail lauded a resurgent economy and announced a big hike in military spending for the next fiscal year on Friday in a chaotic budget session marred by lawmakers' jeers and scuffles ahead of an expected election. Opposition lawmakers objected to the ruling Pakistan Muslim League-Nawaz (PML-N) presenting a full-year budget so close to the election, likely in July, and staged a walkout. Others tried to storm the podium to physically disrupt Ismail's speech, but were blocked by a human chain of PML-N parliamentarians. Pakistan's economy has rebounded in recent years due to a drop in militant violence and vast investments by China that have helped alleviate power shortages. Growth is projected to hit a 13-year high of 5.8 percent in 2017/2018 (July-June) before accelerating to 6.2 percent next fiscal year. "Due to historic low-interest rates, the business and industry has seen growth, and employment opportunities have been created," Miftah said, while opposition lawmakers threw papers in the air. But a widening current account deficit and dwindling foreign currency reserves have taken some shine off the economic outlook, with the World Bank and the International Monetary Fund (IMF) warning of risks to the economy. Ismail said the budget deficit would hit 5.5 percent for the current fiscal year, missing the government's fiscal deficit target of 4.1 percent. He forecast the budget deficit at 4.9 percent of GDP in 2018/2019. A government document put the total budget outlay for 2018/2019 at 5.9 trillion Pakistani rupees ($51.06 billion). A very big success Ismail said tax revenues reached 13.2 percent of GDP in 2017/2018, up from 10.1 percent in 2012/2013. "This unusual increase in tax collection is a very big success," Ismail said. A budget document said total tax receipts would reach 4.2 trillion for 2017/2018 - barely missing the official target - and Ismail projected they would jump to 4.43 trillion rupees next fiscal year. Ismail also set aside 1.1 trillion for the defence budget, increasing it by about 20 percent from the 920 million that the government had budgeted for the military to spend. Revised figures from a budget document suggest military spending will hit 1 trillion this year anyway. The United States has announced a suspension of military assistance to Pakistan totalling about $2 billion, though it was not clear whether this was why Pakistan's military budget exceeded its planned outlay. Washington suspended the assistance due to claims that Islamabad was either assisting or turning a blind eye to Islamist militants who use Pakistan's soil as a launchpad for attacks in Afghanistan. The huge boost to defence spending comes at a time of fraught relations between the ruling party and the powerful military, which has ruled Pakistan for nearly half its history. Senior PML-N officials have suggested that elements of the military establishment are trying to weaken the party before the polls. The military has denied interfering in politics.

Pakistan finance minister hikes military spending in rowdy budget session

The annual budget of Balochistan for 2018-19 will be presented on May 9, approved the Balochistan cabinet on Friday.

The cabinet meeting was presided over by Chief Minister Mir Abdul Quddus Bizenjo, reported Dawn.

The cabinet decided that the budget would be people-friendly. Bizenjo underscored that his government was endeavouring to provide to the people maximum relief and facilities.

According to the report, the Cabinet also decided to cease relapsing development funds for the current fiscal year by April 27 and ordered all departments to send proposals for development schemes and projects for the next year to the Planning and Development Department by May 1, the report said.&nbsp

The cabinet decided that the budget would be people-friendly.

The annual budget of Balochistan for 2018-19 will be presented on May 9, approved the Balochistan cabinet on Friday. The cabinet meeting was presided over by Chief Minister Mir Abdul Quddus Bizenjo, reported Dawn. The cabinet decided that the budget would be people-friendly. Bizenjo underscored that his government was endeavouring to provide to the people maximum relief and facilities. According to the report, the Cabinet also decided to cease relapsing development funds for the current fiscal year by April 27 and ordered all departments to send proposals for development schemes and projects for the next year to the Planning and Development Department by May 1, the report said.

Pakistan: Balochistan budget to be presented on May 9

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