The government is likely to increase the budget allocation for the &#39;Pradhan Mantri Fasal Bima Yojana&#39;&nbsp;(PMFBY) to Rs 13,000 crore for 2018-19 from Rs 10,701 crore for the current financial year, sources said.

The Union Budget for 2018-19 will be presented on February 1.

Under the upgraded crop insurance scheme PMFBY, launched early 2016, farmers pay a very nominal premium and get a full claim for the crop damage.

According to sources, the budget allocation for the PMFBY could go up to Rs 13,000 crore for the next fiscal taking into account about 10 per cent likely increase in the sum insured.

While the Agriculture Ministry has demanded Rs 11,000 crore budget for the next fiscal for the flagship scheme, but the ministry is hopeful of getting more funds from the Finance Ministry considering the importance of the scheme.

For the current fiscal, the government had initially given a budget of Rs 9,000.75 crore for the PMFBY. However, the additional requirement of Rs 1,701 crore was made through supplementary demands, taking the total allocation to

Rs 10,701 crore for the scheme, sources added.

Total crop insurance claim for 2016-17 crop year (July- June) is estimated to be Rs 15,500 crore. Already claims to the tune of Rs 13,661 crore have been reported, of which Rs 12,313 crore have been settled, according to official data.

As many as 5.70 crore farmers purchased the crop insurance policy PMFBY during the 2016-17 crop year.

Under the PMFBY, farmers&#39; premium has been kept lower between 1.5-2 per cent for foodgrains and oilseed crops, and up to 5 per cent for horticultural and cotton crops.

There is no cap on the premium and 25 per cent of the likely claim will be settled directly in farmers&#39; accounts.&nbsp;

The government is likely to increase the budget allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY) to Rs 13,000 crore for 2018-19

The government is likely to increase the budget allocation for the 'Pradhan Mantri Fasal Bima Yojana' (PMFBY) to Rs 13,000 crore for 2018-19 from Rs 10,701 crore for the current financial year, sources said. The Union Budget for 2018-19 will be presented on February 1. Under the upgraded crop insurance scheme PMFBY, launched early 2016, farmers pay a very nominal premium and get a full claim for the crop damage. According to sources, the budget allocation for the PMFBY could go up to Rs 13,000 crore for the next fiscal taking into account about 10 per cent likely increase in the sum insured. While the Agriculture Ministry has demanded Rs 11,000 crore budget for the next fiscal for the flagship scheme, but the ministry is hopeful of getting more funds from the Finance Ministry considering the importance of the scheme. For the current fiscal, the government had initially given a budget of Rs 9,000.75 crore for the PMFBY. However, the additional requirement of Rs 1,701 crore was made through supplementary demands, taking the total allocation to Rs 10,701 crore for the scheme, sources added. Total crop insurance claim for 2016-17 crop year (July- June) is estimated to be Rs 15,500 crore. Already claims to the tune of Rs 13,661 crore have been reported, of which Rs 12,313 crore have been settled, according to official data. As many as 5.70 crore farmers purchased the crop insurance policy PMFBY during the 2016-17 crop year. Under the PMFBY, farmers' premium has been kept lower between 1.5-2 per cent for foodgrains and oilseed crops, and up to 5 per cent for horticultural and cotton crops. There is no cap on the premium and 25 per cent of the likely claim will be settled directly in farmers' accounts.

Crop insurance scheme likely to get Rs 13,000 crore in FY19 budget

Ahead of the budget <a href="http://www.wionews.com/india-news/budget-exclusive-tourism-ministry-expects-rs-3000-crore-allocation-28661">presentation on February 1, Prime Minister Modi </a>will be meeting top economists to seek their views on the macroeconomic situation in the country at a closed-door meeting held by the Niti Aayog.

During the day-long brainstorming session, the economists are expected to outline areas holding back India&#39;s growth prospect and sectors in the Indian economy which need immediate government intervention.

The meeting is set to be attended by finance minister Jaitley including Niti Aayog officials. The economists who will be at the meeting include Niti Aayog member Bibek Debroy including economists Rathim Roy and Ashima Goyal.

The pre-budget exercise involves meetings with the select group of economists who will advise the prime minister on manufacturing, government&#39;s &quot;Make in India&quot;&nbsp;initiative, exports, doubling agricultural income and job creation which is the government&#39;s key objective.

The economists are also likely to give their views on taxation, tariff, education, digital technology, housing, tourism, banking and data-driven policies.

The government is also seeking ideas on PM&#39;s policy vision on &quot;New India 2022&quot; with short-term and long-term measures which may find special mention in the budget in February.

During the day-long brainstorming session, the economists are expected to outline areas holding back India's growth prospect

Ahead of the budget presentation on February 1, Prime Minister Modi will be meeting top economists to seek their views on the macroeconomic situation in the country at a closed-door meeting held by the Niti Aayog. During the day-long brainstorming session, the economists are expected to outline areas holding back India's growth prospect and sectors in the Indian economy which need immediate government intervention. The meeting is set to be attended by finance minister Jaitley including Niti Aayog officials. The economists who will be at the meeting include Niti Aayog member Bibek Debroy including economists Rathim Roy and Ashima Goyal. The pre-budget exercise involves meetings with the select group of economists who will advise the prime minister on manufacturing, government's "Make in India" initiative, exports, doubling agricultural income and job creation which is the government's key objective. The economists are also likely to give their views on taxation, tariff, education, digital technology, housing, tourism, banking and data-driven policies. The government is also seeking ideas on PM's policy vision on "New India 2022" with short-term and long-term measures which may find special mention in the budget in February.

Pre-Budget: Modi to meet economists in closed-door meeting

The Union Budget <a href="http://www.wionews.com/india-news/union-budget-to-be-presented-on-february-1-28623">set to be announced on February 1</a> is set to include special measures to strengthen women&#39;s safety.

The Railway Ministry is likely to announce 2018 as &quot;Railway Women&#39;s Safety Year&quot;.

The Railways intends to strengthen women&#39;s safety during train journey with a number of steps, sources said.

The budget is likely to have a detailed plan on women&#39;s safety, steps include installation of CCTV cameras in ladies coach especially in suburban rail service.

The budget is also likely to announce increasing the number of washrooms to at least two at each platform for women.

Finance minister Jaitley may also announce deployment of RPF women constables in ladies coach and in long routes

The budget is also likely to allocate&nbsp;of funds for women safety in Railways from Nirbhaya Women Safety Fund which is of Rs 1,000 crore.

The Budget Session of Parliament will commence from January 29th.&nbsp;President Ramnath Kovind will address the joint sitting of the two Houses on January 29 and the Economic Survey will be tabled on the same day.

The first phase of the session will be from January 29 to February 9.&nbsp;

The budget is likely to have a detailed plan on women's safety, steps include installation of CCTV cameras in ladies coach especially in suburban rail service.

The Union Budget set to be announced on February 1 is set to include special measures to strengthen women's safety. The Railway Ministry is likely to announce 2018 as "Railway Women's Safety Year". The Railways intends to strengthen women's safety during train journey with a number of steps, sources said. The budget is likely to have a detailed plan on women's safety, steps include installation of CCTV cameras in ladies coach especially in suburban rail service. The budget is also likely to announce increasing the number of washrooms to at least two at each platform for women. Finance minister Jaitley may also announce deployment of RPF women constables in ladies coach and in long routes The budget is also likely to allocate of funds for women safety in Railways from Nirbhaya Women Safety Fund which is of Rs 1,000 crore. The Budget Session of Parliament will commence from January 29th. President Ramnath Kovind will address the joint sitting of the two Houses on January 29 and the Economic Survey will be tabled on the same day. The first phase of the session will be from January 29 to February 9.

Budget likely to announce several features to strengthen women's safety in Railways

The tourism industry has appealed t<a href="http://www.wionews.com/business-economy/budget-likely-to-announce-several-features-to-strengthen-womens-safety-in-railways-28627">o the Indian government to ensure</a> safety and corruption-free environment including improvement in facilities.

Sources say that at a recent meet with the tourism minister Alphons and other government officials, the tourism industry has demanded improvement and addition of basic amenities like proper washroom at popular tourist destinations.

The tourism industry has also demanded&nbsp;better guidance in help desk and information counters including multiple language guides.

According to the World Travel and Tourism Council(WTTC), India&#39;s travel and tourism sector ranks seventh in the world in terms of contribution to the country&#39;s GDP.

Government sources said the tourism ministry has demanded the budgetary allocation be doubled. The ministry expects finance minister Jaitley to increase budgetary allocation to Rs 3,000 crore.

Interestingly, this time tourism Industry is keen for domestic tourism and specifically railway-connected tourism.

Tour operators have presented few ideas like opening gates for domestic tourists by providing reasonable fares for popular luxury tourist trains like Maharaja and Palace on Wheels.

In 2016, the tourism industry created over 40 million jobs in India accounting for 9.3 per cent of country&#39;s total jobs.

In its report, the WTTC said India&#39;s figures were predominantly generated by domestic travel, which accounts for 88% of the sector&#39;s contribution to GDP in 2016.

The tourism industry has also demanded?better guidance in help desk and information counters including multiple language guides.

The tourism industry has appealed to the Indian government to ensure safety and corruption-free environment including improvement in facilities. Sources say that at a recent meet with the tourism minister Alphons and other government officials, the tourism industry has demanded improvement and addition of basic amenities like proper washroom at popular tourist destinations. The tourism industry has also demanded better guidance in help desk and information counters including multiple language guides. According to the World Travel and Tourism Council(WTTC), India's travel and tourism sector ranks seventh in the world in terms of contribution to the country's GDP. Government sources said the tourism ministry has demanded the budgetary allocation be doubled. The ministry expects finance minister Jaitley to increase budgetary allocation to Rs 3,000 crore. Interestingly, this time tourism Industry is keen for domestic tourism and specifically railway-connected tourism. Tour operators have presented few ideas like opening gates for domestic tourists by providing reasonable fares for popular luxury tourist trains like Maharaja and Palace on Wheels. In 2016, the tourism industry created over 40 million jobs in India accounting for 9.3 per cent of country's total jobs. In its report, the WTTC said India's figures were predominantly generated by domestic travel, which accounts for 88% of the sector's contribution to GDP in 2016.

Budget exclusive: Tourism ministry expects Rs 3,000 crore allocation

<a href="http://www.wionews.com/business-economy/indias-gdp-growth-to-slow-to-four-year-low-of-65-in-2017-18-28649" target="_blank">India&#39;s GDP growth to slow to four-year low of 6.5% in 2017-18</a>

The economic growth is expected to slow to a four-year low of 6.5 per cent in 2017-18, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors.

<a href="http://www.wionews.com/india-news/all-you-need-to-know-about-new-rs-10-note-introduced-by-rbi-28641" target="_blank">All you need to know about new Rs 10 note introduced by RBI</a>

The Reserve Bank of India on Friday introduced a new Rs 10 banknote in a new series and chocolate brown colour.

<a href="http://www.wionews.com/world/entertainment-hbo-confirms-for-first-time-game-of-thrones-to-return-in-2019-28632" target="_blank">HBO confirms for first time, &#39;Game of Thrones&#39; to return in 2019</a>

Putting speculations to rest, HBO now confirms that fan rumours were true -- the final season of &quot;Game of Thrones&quot;&nbsp;won&#39;t be back until 2019.&nbsp;

<a href="http://www.wionews.com/business-economy/disinvestment-on-cards-tata-group-and-singapore-airlines-ready-to-bid-for-air-india-28637" target="_blank">Disinvestment on cards, Tata group and Singapore Airlines ready to bid for Air India</a>

Just days after aviation minister Raju said the government does not want Air India to &quot;go the Kingfisher way&quot;, Vistara&#39;s CEO Leslie Thng said today that Tata Group and Singapore Airlines are &quot;open to bid&quot; for Air India.

<a href="http://www.wionews.com/business-economy/budget-likely-to-announce-several-features-to-strengthen-womens-safety-in-railways-28627" target="_blank">Budget likely to announce several features to strengthen women&#39;s safety in Railways</a>

The Union Budget&nbsp;<a href="http://www.wionews.com/india-news/union-budget-to-be-presented-on-february-1-28623">set to be announced on February 1</a>&nbsp;is set to include special measures to strengthen women&#39;s safety. The Railway Ministry is likely to announce 2018 as &quot;Railway Women&#39;s Safety Year&quot;.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

India's GDP growth to slow to four-year low of 6.5% in 2017-18 The economic growth is expected to slow to a four-year low of 6.5 per cent in 2017-18, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors. All you need to know about new Rs 10 note introduced by RBI The Reserve Bank of India on Friday introduced a new Rs 10 banknote in a new series and chocolate brown colour. HBO confirms for first time, 'Game of Thrones' to return in 2019 Putting speculations to rest, HBO now confirms that fan rumours were true -- the final season of "Game of Thrones" won't be back until 2019. Disinvestment on cards, Tata group and Singapore Airlines ready to bid for Air India Just days after aviation minister Raju said the government does not want Air India to "go the Kingfisher way", Vistara's CEO Leslie Thng said today that Tata Group and Singapore Airlines are "open to bid" for Air India. Budget likely to announce several features to strengthen women's safety in Railways The Union Budget set to be announced on February 1 is set to include special measures to strengthen women's safety. The Railway Ministry is likely to announce 2018 as "Railway Women's Safety Year".

WION Evening News brief, 5 January 2018

In a move aimed at electoral reforms, finance&nbsp;minister Arun Jaitley today announced guidelines for electoral bonds for funding of political parties.

The finance minister said the electoral bonds would be available in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.

&quot;Interest-free bonds for donation to political parties can&nbsp;be purchased from SBI for 10 days in the months of January, April, July and October,&quot; Jaitley said.

The finance minister in his budget last year had announced the introduction of &quot;electoral bonds&quot; aimed at improving transparency in funding of political parties.

The bonds can only be issued by a notified bank and can be bought using cheques or digital payment, negating the prevalence of hawala money.

All political parties are required to inform the Election Commission about the bonds and from where it would be accessed.

The finance minister in his budget last year had announced the introduction of "electoral bonds" aimed at improving transparency in funding of political parties.

In a move aimed at electoral reforms, finance minister Arun Jaitley today announced guidelines for electoral bonds for funding of political parties. The finance minister said the electoral bonds would be available in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore. "Interest-free bonds for donation to political parties can be purchased from SBI for 10 days in the months of January, April, July and October," Jaitley said. The finance minister in his budget last year had announced the introduction of "electoral bonds" aimed at improving transparency in funding of political parties. The bonds can only be issued by a notified bank and can be bought using cheques or digital payment, negating the prevalence of hawala money. All political parties are required to inform the Election Commission about the bonds and from where it would be accessed.

Finance minister Jaitley announces guidelines for electoral bonds

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody&#39;s said.

In an interview to PTI, Moody&#39;s Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government&#39;s commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden.

Moody&#39;s had last week raised India&#39;s sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive.

Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India&#39;s high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term.

India&#39;s debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023.

&quot;We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted.

&quot;However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden,&quot; Foster said.

Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating.

General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. &quot;The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply,&quot; he added.

The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre&#39;s revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal.

The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme.

The deficit has already touched 91.3 per cent of the target in the first half of the fiscal.

Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody&#39;s said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades.

According to Foster, the stable outlook denotes that Moody&#39;s does not expect a rating change in the foreseeable future. &quot;There are both positive and negative risks to the economy and India&#39;s credit profile,&quot; Foster added.

His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive.

&quot;In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating,&quot; Foster said.&nbsp;

Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody's said. In an interview to PTI, Moody's Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government's commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden. Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive. Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India's high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term. India's debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023. "We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted. "However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden," Foster said. Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating. General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. "The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply," he added. The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre's revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal. The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme. The deficit has already touched 91.3 per cent of the target in the first half of the fiscal. Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody's said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades. According to Foster, the stable outlook denotes that Moody's does not expect a rating change in the foreseeable future. "There are both positive and negative risks to the economy and India's credit profile," Foster added. His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive. "In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating," Foster said.

India's budget deficit may rise in FY18, but will improve in years ahead: Moody's

Canadian federal budgets will focus more on women in a bid to lift their job prospects, improve their quality of life and narrow the country&#39;s wide wage gap between the sexes, the government said on Wednesday, a move that underscores the feminist credentials of Liberal Prime Minister Justin Trudeau.

The latest budget, unveiled on Wednesday, included for the first time a separate gender statement detailing the main challenges facing women.

Finance Minister Bill Morneau told Parliament that fewer women joined the workforce than men, and noted they found it harder to reach senior roles in Canadian companies.

&quot;That means as a country we aren&#39;t taking full advantage of the talents, insights and experience of more than half of our population. It seems unfathomable, but it&#39;s true,&quot; he said.

&quot;It&#39;s why we need to do better.&quot;

Trudeau, who took power in November 2015, has stressed the importance of gender equality and made a point of appointing a cabinet with the same number of men and women.

While women account for 47 per cent of the workforce compared with 38 per cent in 1976, Canada has one of the highest gender wage gaps - 19.3 per cent - in the 35-nation Organisation for Economic Cooperation and Development.

The budget contained two measures spread over 11-years that the Liberals said should help address the issue - a program to boost early learning and child care and one to build more affordable housing.

The budget statement said women were disproportionately represented in lower-paying occupations and noted that mothers were less likely to work full-time thanks to challenges such as child care.

It also noted that women and girls were more likely to experience poverty, violence and harassment and have trouble finding affordable housing.

Morneau said the statement &quot;ensures all budget measures - not just those aimed specifically at women - help us advance the goals of fairness, workforce participation and gender equality&quot;.

The 2016 budget increased child benefits, included measures to make post-secondary education more affordable and committed more money to affordable housing. Ottawa is also looking at flexible working arrangements for federally regulated employees.

(Reuters)

The latest budget, unveiled on Wednesday, included for the first time a separate gender statement detailing the main challenges facing women

Canadian federal budgets will focus more on women in a bid to lift their job prospects, improve their quality of life and narrow the country's wide wage gap between the sexes, the government said on Wednesday, a move that underscores the feminist credentials of Liberal Prime Minister Justin Trudeau. The latest budget, unveiled on Wednesday, included for the first time a separate gender statement detailing the main challenges facing women. Finance Minister Bill Morneau told Parliament that fewer women joined the workforce than men, and noted they found it harder to reach senior roles in Canadian companies. "That means as a country we aren't taking full advantage of the talents, insights and experience of more than half of our population. It seems unfathomable, but it's true," he said. "It's why we need to do better." Trudeau, who took power in November 2015, has stressed the importance of gender equality and made a point of appointing a cabinet with the same number of men and women. While women account for 47 per cent of the workforce compared with 38 per cent in 1976, Canada has one of the highest gender wage gaps - 19.3 per cent - in the 35-nation Organisation for Economic Cooperation and Development. The budget contained two measures spread over 11-years that the Liberals said should help address the issue - a program to boost early learning and child care and one to build more affordable housing. The budget statement said women were disproportionately represented in lower-paying occupations and noted that mothers were less likely to work full-time thanks to challenges such as child care. It also noted that women and girls were more likely to experience poverty, violence and harassment and have trouble finding affordable housing. Morneau said the statement "ensures all budget measures - not just those aimed specifically at women - help us advance the goals of fairness, workforce participation and gender equality". The 2016 budget increased child benefits, included measures to make post-secondary education more affordable and committed more money to affordable housing. Ottawa is also looking at flexible working arrangements for federally regulated employees. (Reuters)

Women's issues hold centre stage in Canada's new budget

WION&#39;s chief domestic correspondent Kartikeya Sharma spoke with the usually taciturn Congress leader Ahmed Patel after the budget. Patel gave his review of the budget, and also spoke of the controversy around the death of former union minister and Indian Union Muslim League national president E Ahamed -- his family alleged they were not allowed to see him at the government-run RML Hospital -- the Congress&#39; alliance with the Samajwadi Party in UP, and Priyanka Gandhi. &nbsp;

&nbsp;

Question: Sir, how do you rate this budget? Will it help the people?

Answer: No I&rsquo;m not impressed with this budget. People expected lot from this budget. Poor people and businessmen had hope that this budget will do something for them but it didn&rsquo;t. This budget is nothing but an exercise to cover the blunder of demonetisation. People expected big reforms in the income tax slabs but the benefits will not be more than 10 to 12,000 rupees. Farmers didn&rsquo;t get anything. Famers were hoping that the government would write of their debt but it didn&rsquo;t happen. It is a budget of promises and less on concrete action. 
&nbsp; 
&nbsp;Q: The budget also focuses on political funding. It could be looked at as an attempt to do away with black money from the political arena? 
A: Well an attempt has been made and we welcome it. The slab of 20,000 has been reduced to 2,000. We also want elections to become transparent. I don&rsquo;t think much will come out of it. 
&nbsp; 
&nbsp;Q: The BJP says the budget is for the poor, and they will benefit the most from it? 
&nbsp;A: There is nothing for the poor. There is nothing for the workers. Yes, there are some benefits but government has already made its money through excise and petrol and diesel prices. This benefit too should reach people. These are small benefits. 
&nbsp; 
Q: Then how would you rate this budget? How would you define this budget? 
&nbsp;A: I will give this budget 3 out of 10. It is a routine budget and doesn&rsquo;t help common man. This budget doesn&rsquo;t give that message. People are still suffering from demonetisation. A dream was sold that money from rich people will flow down to the poor. The government sold a dream. 
&nbsp; 
Q: Mr Patel, what exactly happened on Tuesday night at RML Hospital. Congress President Sonia Gandhi had to rush there and only then was the body (of E Ahamed) released... 
&nbsp;A: I don&rsquo;t know why hospital authority did this. We were informed after 10 pm by the family members of E Ahmad. We rushed to the hospital. The kids came from far away. They doctors behaved in a strange way. We went but were turned away. We wanted to know about the treatment. We were denied the information. The doctors should have consulted the family members. Real situation should have been informed to the family. There should be an enquiry and health ministry should find out what happen. Imagine what must be happening to common people. Both Sonia Gandhi and Rahul Gandhi had to be there. Imagine the plight of those who don&rsquo;t have political muscle. 
&nbsp; 
Q: You have forged an alliance in UP. What makes you believe this alliance will succeed in UP now? 
&nbsp;A: The decision was taken to forge the alliance to stop communal forces. We wanted to stop forces who want to divide the nation. We don&rsquo;t want them to succeed in Uttar Pradesh. This alliance is not about the Congress but about UP. Uttar Pradesh will benefit from it. 
&nbsp; 
Q: There was a tweet of yours on the party (and Priyanka). Lot was made out of it. What do you have to say on it? 
&nbsp;A: I said what I had to say and the matter ends there.

(WION)

The Congress leader says it was a budget of promises, not of concrete action

WION's chief domestic correspondent Kartikeya Sharma spoke with the usually taciturn Congress leader Ahmed Patel after the budget. Patel gave his review of the budget, and also spoke of the controversy around the death of former union minister and Indian Union Muslim League national president E Ahamed -- his family alleged they were not allowed to see him at the government-run RML Hospital -- the Congress' alliance with the Samajwadi Party in UP, and Priyanka Gandhi. Question: Sir, how do you rate this budget? Will it help the people? Answer: No I’m not impressed with this budget. People expected lot from this budget. Poor people and businessmen had hope that this budget will do something for them but it didn’t. This budget is nothing but an exercise to cover the blunder of demonetisation. People expected big reforms in the income tax slabs but the benefits will not be more than 10 to 12,000 rupees. Farmers didn’t get anything. Famers were hoping that the government would write of their debt but it didn’t happen. It is a budget of promises and less on concrete action. Q: The budget also focuses on political funding. It could be looked at as an attempt to do away with black money from the political arena? A: Well an attempt has been made and we welcome it. The slab of 20,000 has been reduced to 2,000. We also want elections to become transparent. I don’t think much will come out of it. Q: The BJP says the budget is for the poor, and they will benefit the most from it? A: There is nothing for the poor. There is nothing for the workers. Yes, there are some benefits but government has already made its money through excise and petrol and diesel prices. This benefit too should reach people. These are small benefits. Q: Then how would you rate this budget? How would you define this budget? A: I will give this budget 3 out of 10. It is a routine budget and doesn’t help common man. This budget doesn’t give that message. People are still suffering from demonetisation. A dream was sold that money from rich people will flow down to the poor. The government sold a dream. Q: Mr Patel, what exactly happened on Tuesday night at RML Hospital. Congress President Sonia Gandhi had to rush there and only then was the body (of E Ahamed) released... A: I don’t know why hospital authority did this. We were informed after 10 pm by the family members of E Ahmad. We rushed to the hospital. The kids came from far away. They doctors behaved in a strange way. We went but were turned away. We wanted to know about the treatment. We were denied the information. The doctors should have consulted the family members. Real situation should have been informed to the family. There should be an enquiry and health ministry should find out what happen. Imagine what must be happening to common people. Both Sonia Gandhi and Rahul Gandhi had to be there. Imagine the plight of those who don’t have political muscle. Q: You have forged an alliance in UP. What makes you believe this alliance will succeed in UP now? A: The decision was taken to forge the alliance to stop communal forces. We wanted to stop forces who want to divide the nation. We don’t want them to succeed in Uttar Pradesh. This alliance is not about the Congress but about UP. Uttar Pradesh will benefit from it. Q: There was a tweet of yours on the party (and Priyanka). Lot was made out of it. What do you have to say on it? A: I said what I had to say and the matter ends there. (WION)

Budget nothing but an exercise to cover blunder of demonetisation: Ahmed Patel

Sweeping aside objections raised by opposition parties, the government will present the Union Budget 2017-18 on February 1 but will refrain from making any announcements pertaining to poll-bound states.

The government has before the Election Commission vehemently defended its move to advance budget presentation by a month saying it had made clear its intention on this way back in September 2016 so as to help begin the investment cycle right from the first day of the new fiscal, April 1. &quot;Budget presentation on February 1 is a done deal, we will not make any specific announcement for poll-bound states,&quot; a top source said.

Opposition parties including Congress and TMC had approached the Election Commission against presentation of the budget just hours before the first of the five states goes to poll on February 4.

But the government stoutly defended the move. The source said that in view of the model code of conduct, the budget will not make any announces related to poll-bound states of Punjab, Uttar Pradesh, Uttarakhand, Goa and Manipur.

According to the scheme drawn, the first part of the budget session of Parliament will start on January 31 with President Pranab Mukherjee&#39;s address and tabling of the economic survey, which sets the scene for finance minister Arun Jaitley&#39;s fourth annual budget. The budget will be presented the next day. The cabinet had in September last year decided to scrap nearly century-long practice of having a separate railway budget and instead merged it with the general budget.

It had also decided to scrap a distinction between plan and non-plan expenditures.

(PTI)

Opposition parties had approached the Election Commission against presentation of the budget just hours before state elections on February 4

Sweeping aside objections raised by opposition parties, the government will present the Union Budget 2017-18 on February 1 but will refrain from making any announcements pertaining to poll-bound states. The government has before the Election Commission vehemently defended its move to advance budget presentation by a month saying it had made clear its intention on this way back in September 2016 so as to help begin the investment cycle right from the first day of the new fiscal, April 1. "Budget presentation on February 1 is a done deal, we will not make any specific announcement for poll-bound states," a top source said. Opposition parties including Congress and TMC had approached the Election Commission against presentation of the budget just hours before the first of the five states goes to poll on February 4. But the government stoutly defended the move. The source said that in view of the model code of conduct, the budget will not make any announces related to poll-bound states of Punjab, Uttar Pradesh, Uttarakhand, Goa and Manipur. According to the scheme drawn, the first part of the budget session of Parliament will start on January 31 with President Pranab Mukherjee's address and tabling of the economic survey, which sets the scene for finance minister Arun Jaitley's fourth annual budget. The budget will be presented the next day. The cabinet had in September last year decided to scrap nearly century-long practice of having a separate railway budget and instead merged it with the general budget. It had also decided to scrap a distinction between plan and non-plan expenditures. (PTI)

India: Government to present budget on February 1

The Speaker of Lok Sabha,&nbsp;Sumitra Mahajan started the proceedings with an obituary reference to former union minister and MP E. Ahamed who passed away today.

Finance minister Arun Jaitley has begun his budget speech:

Inflation in double-digit has been controlled

We have started a war on black money

According to the IMF, India will be one of the fastest growing economies in 2017-18

Pressure&nbsp;on protectionism is going up: Impact on exports

We have moved from a discretionary administration to a policy-based administration

Fiscal deficit has declined

Demonetisation&nbsp;has been a bold move, it will have long-term benefits. The pace of remonetisation has picked up

Growth will pick up in 2017.

There is early evidence of bank loans at lower rates

Current account deficit has declined, the govt will spend more on poor

Transform, energise and clean India

Government&#39;s&nbsp;Agenda:

Will double farmers&#39; income in 5 years

Focus will be on more jobs for the youth

Target for agriculture credit set for 2017-18 set at 10 lakh crore

Government has done away with planned and non-planned expenditure for states

Demonetisation&nbsp;will not spill over to next year

Government promises to bring 1 crore households out of poverty

Dairy processing&nbsp;infrastructure fund to be created.

Rural road targets to be increased, 138 km roads to be built per day

48,000 crore allocated to MNREGA, &quot;this is the biggest ever allocation for MNREGA&quot;

EDUCATION

Emphasis on science and local innovation

Reform of UGC

Leverage IT technology to help students

350 online courses with top faculty

Quality education will energise the youth

Single authority for exam entrance

100 skill centres across India

&nbsp;

<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/dVnCar_uwA4" width="560"></iframe>

&nbsp;

Women &amp; Children

Mahila shakti Kendra to be set up

Higher investment in affordable housing

National Housing Bank will refinance loans

Government&nbsp;initiatives

Reform of Labour laws&nbsp;

Will reduce cost of life-saving drugs

5 special tourism zones to be set-up

Railways

1 lakh thirty-one thousand crore&nbsp;expenditure in 2017-18

Passenger safety, cleanliness, finance and accounting to be the key

Rail Sanraksha fund to be set up

Redevelopment of stations

Shares of IRCTC to be listed

&nbsp;

<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/MtGIwDtliw0" width="560"></iframe>

&nbsp;

Transformative steps:

Service charge on e-tickets withdrawn

7,000 stations to get solar power

Other Policies

New Metro rail policy to be announced which will open up job opportunity.

Airports in tier-2 cities to be revamped

Bio-toilets to be set up.

FDI

Abolition of FIPB&nbsp;(Foreign Investment Promotion Board)

New FDI policy under consideration

Disinvestment policy to continue

Promotion of Digital Economy

&#39;India at the cusp of digital economy&#39;

Bheem app launched will help in transforming the digital economy

Cash back scheme and referral scheme to be launched to push digital economy

Aadhar to push digital transformation. Aadhar enabled payment scheme to be launched.

&quot;Govt considering new law to confiscate assets of economic offenders&quot;

Increase in capital&nbsp;expenditure by 25.4 per cent

Fiscal Deficit pegged at 3.2 per cent of GDP

Tax Proposals

India tax to GDP ratio is very low

Only 24 lakh showed income over 10 lakhs

&#39;Burden of taxes falls on just a few&#39;

Committed to making&nbsp;tax rates reasonable.

Only 1.74 crore people filing taxes in India

Bring transparency in poll funding.

34.8 per cent increase in income tax declaration

&quot;We are a non-tax compliant society&quot;

Changes in capital gains on sale of property

Relaxation of tax norms on unoccupied property

Income tax exception to startups increased

Tax exception for land pooling

Income tax for small&nbsp;companies reduced, MSME sector to get a boost

Holding period for realty sales now to be&nbsp;2 years

No cash&nbsp;transaction over 3 lakhs

Tax on income upto 5 lakhs cut by 5 per cent

Surcharge on those earning more than 1 crore to continue

No tax upto 3 lakh rupees

10% surcharge on income between 50 lakhs to 1 crore.

&nbsp;

 
<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/Auo6CUtoupY" width="560"></iframe><centre></centre></centre>

Poll funding

Political funding reduced to Rs 2,000 per head

Political parties can get payment through cheques or digital payments

&nbsp;

 
<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/MpASWtMW-84" width="560"></iframe><centre> </centre></centre>

&nbsp;

Exclusive:

Political Reactions:

Union Budget: Congress leader Rahul Gandhi speaks on Budget 2017

 
<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/L4Lb6iTr-sk" width="560"></iframe><centre></centre></centre>
<centre></centre>

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Union Budget 2017: Exclusive conversation with senior Congress leader Ahmed Patel&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

 
<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/2caz5dyJrPM" width="560"></iframe><centre></centre></centre>

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Exclusive

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Corporate Reactions

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Union Budget 2017: Exclusive conversation with Vijay Shekhar Sharma, Founder PayTM

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

 
<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/us3fnmMD_yo" width="560"></iframe><centre></centre></centre>

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Union Budget 2017: Exclusive conversation with Dr. Naushad Forbes, President CII

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

<centre></centre>

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

<centre><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/7V3J1o1T2pM" width="560"></iframe><centre></centre></centre>

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Jaitley has presented the budget in India's lower house of Parliament

The Speaker of Lok Sabha, Sumitra Mahajan started the proceedings with an obituary reference to former union minister and MP E. Ahamed who passed away today. Finance minister Arun Jaitley has begun his budget speech: Inflation in double-digit has been controlled We have started a war on black money According to the IMF, India will be one of the fastest growing economies in 2017-18 Pressure on protectionism is going up: Impact on exports We have moved from a discretionary administration to a policy-based administration Fiscal deficit has declined Demonetisation has been a bold move, it will have long-term benefits. The pace of remonetisation has picked up Growth will pick up in 2017. There is early evidence of bank loans at lower rates Current account deficit has declined, the govt will spend more on poor Transform, energise and clean India Government's Agenda: Will double farmers' income in 5 years Focus will be on more jobs for the youth Target for agriculture credit set for 2017-18 set at 10 lakh crore Government has done away with planned and non-planned expenditure for states Demonetisation will not spill over to next year Government promises to bring 1 crore households out of poverty Dairy processing infrastructure fund to be created. Rural road targets to be increased, 138 km roads to be built per day 48,000 crore allocated to MNREGA, "this is the biggest ever allocation for MNREGA" EDUCATION Emphasis on science and local innovation Reform of UGC Leverage IT technology to help students 350 online courses with top faculty Quality education will energise the youth Single authority for exam entrance 100 skill centres across India Women & Children Mahila shakti Kendra to be set up Higher investment in affordable housing National Housing Bank will refinance loans Government initiatives Reform of Labour laws Will reduce cost of life-saving drugs 5 special tourism zones to be set-up Railways 1 lakh thirty-one thousand crore expenditure in 2017-18 Passenger safety, cleanliness, finance and accounting to be the key Rail Sanraksha fund to be set up Redevelopment of stations Shares of IRCTC to be listed Transformative steps: Service charge on e-tickets withdrawn 7,000 stations to get solar power Other Policies New Metro rail policy to be announced which will open up job opportunity. Airports in tier-2 cities to be revamped Bio-toilets to be set up. FDI Abolition of FIPB (Foreign Investment Promotion Board) New FDI policy under consideration Disinvestment policy to continue Promotion of Digital Economy 'India at the cusp of digital economy' Bheem app launched will help in transforming the digital economy Cash back scheme and referral scheme to be launched to push digital economy Aadhar to push digital transformation. Aadhar enabled payment scheme to be launched. "Govt considering new law to confiscate assets of economic offenders" Increase in capital expenditure by 25.4 per cent Fiscal Deficit pegged at 3.2 per cent of GDP Tax Proposals India tax to GDP ratio is very low Only 24 lakh showed income over 10 lakhs 'Burden of taxes falls on just a few' Committed to making tax rates reasonable. Only 1.74 crore people filing taxes in India Bring transparency in poll funding. 34.8 per cent increase in income tax declaration "We are a non-tax compliant society" Changes in capital gains on sale of property Relaxation of tax norms on unoccupied property Income tax exception to startups increased Tax exception for land pooling Income tax for small companies reduced, MSME sector to get a boost Holding period for realty sales now to be 2 years No cash transaction over 3 lakhs Tax on income upto 5 lakhs cut by 5 per cent Surcharge on those earning more than 1 crore to continue No tax upto 3 lakh rupees 10% surcharge on income between 50 lakhs to 1 crore. Poll funding Political funding reduced to Rs 2,000 per head Political parties can get payment through cheques or digital payments Exclusive: Political Reactions: Union Budget: Congress leader Rahul Gandhi speaks on Budget 2017 Union Budget 2017: Exclusive conversation with senior Congress leader Ahmed Patel Exclusive Corporate Reactions Union Budget 2017: Exclusive conversation with Vijay Shekhar Sharma, Founder PayTM Union Budget 2017: Exclusive conversation with Dr. Naushad Forbes, President CII

India Budget 2017: No cash?transaction over 3 lakhs, govt considering new law to confiscate assets of economic offenders

India&#39;s finance minister Arun Jaitley will likely boost spending and ease back on cutting the deficit when he presents his fourth budget today, as he seeks to lift growth hit by the government&#39;s drive to purge the economy of &quot;black money&quot;.

Prime Minister Narendra Modi&#39;s surprise decision last November to scrap high-value bank notes worth 86 per cent of India&#39;s cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments.

Jaitley will present the 2017/18 budget at 11 am (0530 GMT) in&nbsp;the lower house of Parliament.

&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Watch me live presenting the Union Budget 2017 at 11 am, February 1, 2017 <a href="https://t.co/BtQAlBf8Zz">https://t.co/BtQAlBf8Zz</a>
&mdash; Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/826653574511759362">February 1, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

The finance ministry forecasts that growth could dip to as low as 6.5 per cent in the current fiscal year to March, before picking up in the coming fiscal year to between 6.75 and 7.5 per cent. Corporate India wants a cut in corporate tax to boost growth. The government may cut tax rate with tax concessions on ESOPs and unlisted shares. The budget is also likely to address the problem of bad loans in banking.

While opinions vary on how long the disruptions caused by Modi&#39;s crackdown on untaxed and illicit wealth will last, there is near unanimity among economists that Asia&#39;s third-largest economy needs a helping hand.

Arvind Subramanian, Jaitley&#39;s chief economic adviser, on Tuesday advocated slashing personal income tax and accelerating cuts in corporate tax rates. He cautioned, however, against pursuing debt-fuelled fiscal expansion.

Still, economists are pencilling in a federal fiscal deficit of 3.3 per cent of GDP for 2017/18. That would be higher than the 3 per cent pledged earlier but lower than 3.5 per cent that the government has budgeted for the year soon to end.

&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="videos-block">
<div><iframe src="https://www.youtube.com/embed/apxkQFz7KPo"></iframe></div>
</div>

<div class="media-description">
Sitting Lok Sabha MP from Kerala, E Ahamed, died early on Wednesday leading to a confusion on whether the budget would take place today. Sources have just told WION that the obituary will take place before or after the presentation of the budget (WION)
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

The rollout of a nationwide Goods and Services tax (GST), expected in July after years of delays, could also weigh on economic growth. Countries that have introduced GST in the past have often faced a relative economic slowdown before the benefits of a unified tax regime feed through.

The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms. The survey listed some of the challenges that might impede India&#39;s progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution. The survey highlighted difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector.&nbsp;

It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products. Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said.

Meanwhile, doubts were being raised over the presentation of the budget, after the death of former union minister and sitting Member of Parliament E Ahamed. &nbsp;However, a spokesman for the Prime Minister&#39;s Office told Reuters, that the budget is on schedule despite the death of a sitting member of Parliament.

&nbsp;

(WION with agency inputs)

Finance minister Arun Jaitley will likely boost spending and ease back on cutting the deficit when he presents his fourth budget today

India's finance minister Arun Jaitley will likely boost spending and ease back on cutting the deficit when he presents his fourth budget today, as he seeks to lift growth hit by the government's drive to purge the economy of "black money". Prime Minister Narendra Modi's surprise decision last November to scrap high-value bank notes worth 86 per cent of India's cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments. Jaitley will present the 2017/18 budget at 11 am (0530 GMT) in the lower house of Parliament. Watch me live presenting the Union Budget 2017 at 11 am, February 1, 2017 https://t.co/BtQAlBf8Zz — Arun Jaitley (@arunjaitley) February 1, 2017 × The finance ministry forecasts that growth could dip to as low as 6.5 per cent in the current fiscal year to March, before picking up in the coming fiscal year to between 6.75 and 7.5 per cent. Corporate India wants a cut in corporate tax to boost growth. The government may cut tax rate with tax concessions on ESOPs and unlisted shares. The budget is also likely to address the problem of bad loans in banking. While opinions vary on how long the disruptions caused by Modi's crackdown on untaxed and illicit wealth will last, there is near unanimity among economists that Asia's third-largest economy needs a helping hand. Arvind Subramanian, Jaitley's chief economic adviser, on Tuesday advocated slashing personal income tax and accelerating cuts in corporate tax rates. He cautioned, however, against pursuing debt-fuelled fiscal expansion. Still, economists are pencilling in a federal fiscal deficit of 3.3 per cent of GDP for 2017/18. That would be higher than the 3 per cent pledged earlier but lower than 3.5 per cent that the government has budgeted for the year soon to end. Sitting Lok Sabha MP from Kerala, E Ahamed, died early on Wednesday leading to a confusion on whether the budget would take place today. Sources have just told WION that the obituary will take place before or after the presentation of the budget (WION) × The rollout of a nationwide Goods and Services tax (GST), expected in July after years of delays, could also weigh on economic growth. Countries that have introduced GST in the past have often faced a relative economic slowdown before the benefits of a unified tax regime feed through. The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms. The survey listed some of the challenges that might impede India's progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution. The survey highlighted difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector. It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products. Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said. Meanwhile, doubts were being raised over the presentation of the budget, after the death of former union minister and sitting Member of Parliament E Ahamed. However, a spokesman for the Prime Minister's Office told Reuters, that the budget is on schedule despite the death of a sitting member of Parliament. (WION with agency inputs)

Jaitley's budget agenda: Boost growth and job creation

There were signs of anxiety in the market as the Sensex today slumped 194 points ahead of the budget - to be presented on Wednesday - to a one-week low of 27,656 and the Nifty slipped below 8,600 after the Economic Survey projected a lower growth of 6.5 per cent for 2016-17.

The recently introduced immigration restrictions by US President Donald trump and the new legislation that aims to rework the H-1-B visa programme dealt a blow to IT stocks, which saw a big fall.

TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent, followed by technology that tanked 2.49 per cent.

The Economic Survey for 2016-17, tabled in Parliament by Finance Minister Arun Jaitley today, underscored the need for more reforms. Its GDP growth forecast for this fiscal is lower than the 7.1 per cent put out by the Central Statistics Office earlier this month.

The Sensex closed down 193.60 points, or 0.70 per cent, at 27,655.96, it&#39;s lowest closing since January 24 when the figure was 27,375.58. It had lost 33 points in the previous session.

The broad-based NSE Nifty, which hit a low of 8,552.40 intra-day, managed to cut down losses and ended lower 71.45 points, or 0.83 per cent, at 8,561.30.

The risk-averse behaviour was on display as participants took cues from global stocks that remained on the backfoot following Trump&#39;s controversial crackdown on immigration.

&quot;The Economic Survey failed to impress investors who opted for keeping their commitments at a low ebb and wait for the the budget,&quot; said Manoj Choraria, a Delhi-based stock broker.

GAIL, Adani Ports, Sun Pharma, Tata Motors, Coal India, Lupin, Axis Bank and NTPC were among those that weighed.&nbsp;Sectoral indices such as oil and gas (1.64 per cent), PSU (1.39 per cent), healthcare (1.38 per cent), infrastructure (1.31) per cent and metal (1.01 per cent) all turned weak.

Selling activity also extended to the broader markets, with the BSE mid-cap falling 1.10 per cent and the small-cap 1.03 per cent.&nbsp;According to provisional figures, foreign investors bought shares worth Rs 607.36 crore yesterday.

There were a few that went up cushioning the fall, which include ITC, PowerGrid, Bajaj Auto, ONGC and HDFC Bank.&nbsp;In Asia, most markets were closed today for a public holiday. Japan&#39;s Nikkei ended lower by 1.69 per cent. 
European markets, however, were trading higher as major indices in France, Germany and the UK moved up.

(PTI)

TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent

There were signs of anxiety in the market as the Sensex today slumped 194 points ahead of the budget - to be presented on Wednesday - to a one-week low of 27,656 and the Nifty slipped below 8,600 after the Economic Survey projected a lower growth of 6.5 per cent for 2016-17. The recently introduced immigration restrictions by US President Donald trump and the new legislation that aims to rework the H-1-B visa programme dealt a blow to IT stocks, which saw a big fall. TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent, followed by technology that tanked 2.49 per cent. The Economic Survey for 2016-17, tabled in Parliament by Finance Minister Arun Jaitley today, underscored the need for more reforms. Its GDP growth forecast for this fiscal is lower than the 7.1 per cent put out by the Central Statistics Office earlier this month. The Sensex closed down 193.60 points, or 0.70 per cent, at 27,655.96, it's lowest closing since January 24 when the figure was 27,375.58. It had lost 33 points in the previous session. The broad-based NSE Nifty, which hit a low of 8,552.40 intra-day, managed to cut down losses and ended lower 71.45 points, or 0.83 per cent, at 8,561.30. The risk-averse behaviour was on display as participants took cues from global stocks that remained on the backfoot following Trump's controversial crackdown on immigration. "The Economic Survey failed to impress investors who opted for keeping their commitments at a low ebb and wait for the the budget," said Manoj Choraria, a Delhi-based stock broker. GAIL, Adani Ports, Sun Pharma, Tata Motors, Coal India, Lupin, Axis Bank and NTPC were among those that weighed. Sectoral indices such as oil and gas (1.64 per cent), PSU (1.39 per cent), healthcare (1.38 per cent), infrastructure (1.31) per cent and metal (1.01 per cent) all turned weak. Selling activity also extended to the broader markets, with the BSE mid-cap falling 1.10 per cent and the small-cap 1.03 per cent. According to provisional figures, foreign investors bought shares worth Rs 607.36 crore yesterday. There were a few that went up cushioning the fall, which include ITC, PowerGrid, Bajaj Auto, ONGC and HDFC Bank. In Asia, most markets were closed today for a public holiday. Japan's Nikkei ended lower by 1.69 per cent. European markets, however, were trading higher as major indices in France, Germany and the UK moved up. (PTI)

TCS, Infosys drag down Sensex at close

It is not yet clear as to how much of the specified bank notes (Rs 500 and Rs 1000) have not returned to the banking system. However, the impact of demonetisation on the economy is now becoming clear.

All available estimates from the official central statistical office (CSO) to rating agencies to international agencies, such as the International Monetary Fund (IMF) and the World Bank have lowered their forecast for the growth rate of the economy. While the official statistics has not included the estimates of the months after demonetisation, the slowdown of the economy does have implications for income distribution as well as government&rsquo;s ability to spend.

The budget tomorrow will be important not just for the signals for reviving the economy but also for measures to insulate the poor from the after effects of the demonetisation.

Macro-economic indicators of the economy have already pointed out the fragility of economic growth. The declining trend in exports has not been arrested, and the decline in private investment also suggests a decline&nbsp;in demand in the economy. While all these point out to an urgent need to&nbsp;revive economic activities&nbsp;in an uncertain international environment, there&nbsp;is also the need&nbsp;to&nbsp;provide&nbsp;relief to the poor and informal workers in the economy.

&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="row">
<div class="article-blockquote">
<div class="col-sm-10 col-sm-offset-1 blockquote-content quoteshare">
<blockquote>
<h5>The demonetisation has only added to the misery of the farmers as far as realisation of output prices are concerned</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=The demonetisation has only added to the misery of the farmers as far as realisation of output prices are concerned" target="_blank">&nbsp;</a></div>
</div>
<a class="close-mark close-div" href="#" id="jqquoteclosemark">&times;</a></div>
</div>
</div>

&nbsp;

There is now enough evidence to suggest that the worst hit as a result of the liquidity squeeze after demonetisation have been the informal sector workers and the agricultural sector in particular.

While this may not have impacted the sowing figures, given that last year was the second year of a back to back drought, it is clear that the agricultural and the rural sector has been going through distress. This was only partly a result of the drought in 2014 and 2015. A large part of the distress was also due to falling agricultural commodity prices since August 2014. The demonetisation has only added to the misery of the farmers as far as realisation of output prices are concerned.

There has been a&nbsp;declining profitability in agriculture for most of the crops and the growth rate of real agricultural wage in rural areas have been falling in real terms. This is unprecedented in the recent history, and the data indicate that the decline in real wages since November 2013 is the worst.

The rural poor not only have been suffering from declining profitability and wages in agriculture, but also from declining non-farm activity.

The biggest deceleration has been in construction, which was also the sector which absorbed majority of the workers in rural areas in the non-farm sector. Recent estimates from the CSO suggest that the growth of construction sector has reached its lowest at 2.9 per cent&nbsp;by the first advance estimates. The decline in availability of employment opportunities and a decline in real wages, cumulatively contributed to the already vulnerable situation of rural poor. Recent data from automobile sale, notably motorcycle sales and the sale of durable goods suggest a sharp decline in sales of these, confirming a slump in rural demand.

It is in this context that the budget of this year is expected to not only provide relief to the middle class and the poor but also take steps to revive the economy. The decline in private investment since last year has also meant that the onus of increasing investment falls on the government. However, with the expected pay out for seventh pay commission and increase in interest payments, the room for manoeuvrability is all the less in this year&rsquo;s budget.

The final factor that will make budget making a challenging exercise is the slowdown in revenue generation due to the deceleration in growth rate of economic activity. Global trend in protectionism also adds to the uncertainty in commodity prices, including petroleum products but also for ability of exports to cover up for the deficit in demand.

<div class="ui-state-default" contenteditable="false">
<div class="row">
<div class="article-blockquote">
<div class="col-sm-10 col-sm-offset-1 blockquote-content quoteshare">
<blockquote>
<h5>The only option for reviving the economy is through increased expenditure of poverty alleviation programmes</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=The only option for reviving the economy is through increased expenditure of poverty alleviation programmes" target="_blank">&nbsp;</a></div>
</div>
<a class="close-mark close-div" href="#" id="jqquoteclosemark">&times;</a></div>
</div>
</div>

&nbsp;

Clearly, the only option for reviving the economy is through increased expenditure of poverty alleviation programmes. This will not only help revive demand in the rural economy, already suffering from demand depression in the last two years but also help alleviate some of the suffering for the poor after the demonetisation. This will require ramping up expenditure on existing social security measures such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) but also strengthening National Food Security Act and other rural development expenditure.

There is already some evidence that the demand for work under MGNREGA has increased by 60 per cent&nbsp;after demonetisation, aided by the return of migrant workers to their rural bases. The increase in spending on rural employment and rural infrastructure will not only boost employment generation but will also push up rural wages and economic activity in rural areas.

While such a step may appear to be fiscally difficult given the government&rsquo;s commitment to bring down the fiscal deficit, the need for a fiscal stimulus was never greater. The revival of demand is also the only option given the limits of monetary policy. With increasing likelihood of non-performing assets increasing, the urgency of increasing credit off-take is also the surest way of insulating the banking sector from the crisis of low credit and high deposit situation they are in.

The National Democratic Alliance (NDA) government has now completed half of its term. So far the economy has not shown signs of the promised recovery. The fear at this juncture is not just the failure of revival of the economy but also the likelihood of the economy getting into stagnation. This budget provides the last opportunity for the government to revive the economy and the only way out is to inject demand in the rural economy.

(WION)

This year's budget will be important for signals for reviving the economy, but also to insulate the poor from the effects of demonetisation

It is not yet clear as to how much of the specified bank notes (Rs 500 and Rs 1000) have not returned to the banking system. However, the impact of demonetisation on the economy is now becoming clear. All available estimates from the official central statistical office (CSO) to rating agencies to international agencies, such as the International Monetary Fund (IMF) and the World Bank have lowered their forecast for the growth rate of the economy. While the official statistics has not included the estimates of the months after demonetisation, the slowdown of the economy does have implications for income distribution as well as government’s ability to spend. The budget tomorrow will be important not just for the signals for reviving the economy but also for measures to insulate the poor from the after effects of the demonetisation. Macro-economic indicators of the economy have already pointed out the fragility of economic growth. The declining trend in exports has not been arrested, and the decline in private investment also suggests a decline in demand in the economy. While all these point out to an urgent need to revive economic activities in an uncertain international environment, there is also the need to provide relief to the poor and informal workers in the economy. The demonetisation has only added to the misery of the farmers as far as realisation of output prices are concerned × There is now enough evidence to suggest that the worst hit as a result of the liquidity squeeze after demonetisation have been the informal sector workers and the agricultural sector in particular. While this may not have impacted the sowing figures, given that last year was the second year of a back to back drought, it is clear that the agricultural and the rural sector has been going through distress. This was only partly a result of the drought in 2014 and 2015. A large part of the distress was also due to falling agricultural commodity prices since August 2014. The demonetisation has only added to the misery of the farmers as far as realisation of output prices are concerned. There has been a declining profitability in agriculture for most of the crops and the growth rate of real agricultural wage in rural areas have been falling in real terms. This is unprecedented in the recent history, and the data indicate that the decline in real wages since November 2013 is the worst. The rural poor not only have been suffering from declining profitability and wages in agriculture, but also from declining non-farm activity. The biggest deceleration has been in construction, which was also the sector which absorbed majority of the workers in rural areas in the non-farm sector. Recent estimates from the CSO suggest that the growth of construction sector has reached its lowest at 2.9 per cent by the first advance estimates. The decline in availability of employment opportunities and a decline in real wages, cumulatively contributed to the already vulnerable situation of rural poor. Recent data from automobile sale, notably motorcycle sales and the sale of durable goods suggest a sharp decline in sales of these, confirming a slump in rural demand. It is in this context that the budget of this year is expected to not only provide relief to the middle class and the poor but also take steps to revive the economy. The decline in private investment since last year has also meant that the onus of increasing investment falls on the government. However, with the expected pay out for seventh pay commission and increase in interest payments, the room for manoeuvrability is all the less in this year’s budget. The final factor that will make budget making a challenging exercise is the slowdown in revenue generation due to the deceleration in growth rate of economic activity. Global trend in protectionism also adds to the uncertainty in commodity prices, including petroleum products but also for ability of exports to cover up for the deficit in demand. The only option for reviving the economy is through increased expenditure of poverty alleviation programmes × Clearly, the only option for reviving the economy is through increased expenditure of poverty alleviation programmes. This will not only help revive demand in the rural economy, already suffering from demand depression in the last two years but also help alleviate some of the suffering for the poor after the demonetisation. This will require ramping up expenditure on existing social security measures such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) but also strengthening National Food Security Act and other rural development expenditure. There is already some evidence that the demand for work under MGNREGA has increased by 60 per cent after demonetisation, aided by the return of migrant workers to their rural bases. The increase in spending on rural employment and rural infrastructure will not only boost employment generation but will also push up rural wages and economic activity in rural areas. While such a step may appear to be fiscally difficult given the government’s commitment to bring down the fiscal deficit, the need for a fiscal stimulus was never greater. The revival of demand is also the only option given the limits of monetary policy. With increasing likelihood of non-performing assets increasing, the urgency of increasing credit off-take is also the surest way of insulating the banking sector from the crisis of low credit and high deposit situation they are in. The National Democratic Alliance (NDA) government has now completed half of its term. So far the economy has not shown signs of the promised recovery. The fear at this juncture is not just the failure of revival of the economy but also the likelihood of the economy getting into stagnation. This budget provides the last opportunity for the government to revive the economy and the only way out is to inject demand in the rural economy. (WION)

Inequality and the Indian budget

India&#39;s economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18.

The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms.

Retail inflation is likely to be well below RBI&#39;s target of 5 per cent in the current fiscal as demonetisation would discourage any price headwind, the Economic Survey for 2016-17 said.&nbsp;The new inflation targeting approach by the Monetary Policy Committee (MPC) and gains from macro-economic stability will help India consolidate gains on price control, meaning prices will be less susceptible of individual whims and caprice of governments, the survey said.

The survey&#39;s GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.

The survey lists some of the challenges that might impede India&#39;s progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.&nbsp;

The survey highlights difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector.

In this context, it pointed towards the need to further privatise civil aviation, banking and fertiliser sectors. The survey stated that the capacity of the state in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape.

At the level of states, competitive populism is more in evidence than competitive service delivery, it added. Constraints to policy making due to strict adherence to rules and abundant caution in bureaucratic decision-making favours status quo, it cautioned.

According to the survey, redistribution by the government is far from efficient in targeting the poor. This is intrinsic to current programmes because spending is likely to be greatest in states with better institutions.

It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products.&nbsp;Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said.

Noting that India has come a long way in terms of economic performance and reforms, the survey said there is still a journey ahead to achieve dynamism and social justice and completing this journey will require broader societal shifts in the underlying vision.

Highlights of the Economic Survey

* GDP growth for next fiscal pegged at 6.75-7.5 per cent

 
* Growth this fiscal to be 6.5 per cent.

 
* Prescribes cut in individual I-T rates, real estate stamp duties.

 
* Income Tax net could be widened gradually by encompassing all high income earners.

 
* Time table for cutting corporate tax should be accelerated.

 
* Tax administration could be improved to reduce discretion and improve accountability.

 
* Growth to return to normal as new currency comes in circulation.

 
* Demonetisation to affect growth rate by 0.25-0.5 per cent, but to have long-term benefits.

 
* GST, other structural reforms should take the trend growth rate to 8-10 per cent.

 
* Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price.

 
* Farm sector to grow at 4.1% this fiscal, up from 1.2% last year.

 
* Fiscal gains from GST will take time to realise.

 
* Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions.

 
* Growth rate of industrial sector to moderate at&nbsp;5.2% this fiscal, from 7.4% last fiscal.

 
* Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment.

 
* Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation.

(PTI)

The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms

India's economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18. The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms. Retail inflation is likely to be well below RBI's target of 5 per cent in the current fiscal as demonetisation would discourage any price headwind, the Economic Survey for 2016-17 said. The new inflation targeting approach by the Monetary Policy Committee (MPC) and gains from macro-economic stability will help India consolidate gains on price control, meaning prices will be less susceptible of individual whims and caprice of governments, the survey said. The survey's GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month. The survey lists some of the challenges that might impede India's progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution. The survey highlights difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector. In this context, it pointed towards the need to further privatise civil aviation, banking and fertiliser sectors. The survey stated that the capacity of the state in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape. At the level of states, competitive populism is more in evidence than competitive service delivery, it added. Constraints to policy making due to strict adherence to rules and abundant caution in bureaucratic decision-making favours status quo, it cautioned. According to the survey, redistribution by the government is far from efficient in targeting the poor. This is intrinsic to current programmes because spending is likely to be greatest in states with better institutions. It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products. Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said. Noting that India has come a long way in terms of economic performance and reforms, the survey said there is still a journey ahead to achieve dynamism and social justice and completing this journey will require broader societal shifts in the underlying vision. Highlights of the Economic Survey * GDP growth for next fiscal pegged at 6.75-7.5 per cent * Growth this fiscal to be 6.5 per cent. * Prescribes cut in individual I-T rates, real estate stamp duties. * Income Tax net could be widened gradually by encompassing all high income earners. * Time table for cutting corporate tax should be accelerated. * Tax administration could be improved to reduce discretion and improve accountability. * Growth to return to normal as new currency comes in circulation. * Demonetisation to affect growth rate by 0.25-0.5 per cent, but to have long-term benefits. * GST, other structural reforms should take the trend growth rate to 8-10 per cent. * Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price. * Farm sector to grow at 4.1% this fiscal, up from 1.2% last year. * Fiscal gains from GST will take time to realise. * Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions. * Growth rate of industrial sector to moderate at 5.2% this fiscal, from 7.4% last fiscal. * Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment. * Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation. (PTI)

India's GDP growth to be lower at 6.5% in FY17: Economic Survey

India&#39;s Election Commission, the authority that presides over poll processes in the country, has allowed the federal government to present the annual Budget ahead of key votes in five states, but laid down two caveats.

Firstly, the federal government cannot announce schemes in poll-bound states. Secondly, the government cannot talk about its achievements in the states which are going to polls next month.

Local elections will be held in five states of the country -- Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa -- just days after the Budget is presented by the government on February 1.

The federal government was also told that they cannot not announce a full-blown Budget, and instead opt for a vote-on-account.

Vote-on-account is taken by a government during an election year. That is because the government receives the budgetary allocation only by mid-May after its details are forensically studied by a parliamnetary committee. So in case of an election year, during which time governments can change, the Election Commission allows the incumbent dispensation to only pass a vote-by-account.

Earlier in the day, the Supreme Court dismissed a plea seeking postponement of the Budget to deter the federal government from lavishing extra attention on states that are slated to vote.

The current government under Indian Prime Minister Narendra Modi has maintained that advancing Budget presentation was necessary as it would ensure that all budgetary provisions are allocated to different sectors from April 1, the beginning of the new fiscal.

The Budget is usually presented around last week of February and, as a result, the approval of the budget spills over to the next financial year, delaying the start of new programmes.

Opposition parties, however, said the government could use the Budget presentation as a key&nbsp;tool&nbsp;to influence voters.

(WION with inputs from PTI)

But the Election Commission has told the government to not announce any schemes for poll-bound states

India's Election Commission, the authority that presides over poll processes in the country, has allowed the federal government to present the annual Budget ahead of key votes in five states, but laid down two caveats. Firstly, the federal government cannot announce schemes in poll-bound states. Secondly, the government cannot talk about its achievements in the states which are going to polls next month. Local elections will be held in five states of the country -- Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa -- just days after the Budget is presented by the government on February 1. The federal government was also told that they cannot not announce a full-blown Budget, and instead opt for a vote-on-account. Vote-on-account is taken by a government during an election year. That is because the government receives the budgetary allocation only by mid-May after its details are forensically studied by a parliamnetary committee. So in case of an election year, during which time governments can change, the Election Commission allows the incumbent dispensation to only pass a vote-by-account. Earlier in the day, the Supreme Court dismissed a plea seeking postponement of the Budget to deter the federal government from lavishing extra attention on states that are slated to vote. The current government under Indian Prime Minister Narendra Modi has maintained that advancing Budget presentation was necessary as it would ensure that all budgetary provisions are allocated to different sectors from April 1, the beginning of the new fiscal. The Budget is usually presented around last week of February and, as a result, the approval of the budget spills over to the next financial year, delaying the start of new programmes. Opposition parties, however, said the government could use the Budget presentation as a key tool to influence voters. (WION with inputs from PTI)

Indian govt allowed to present Budget ahead of state elections

The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget. Some of these changes are:

<ul>
	<li>Omission of plan and non-plan expenditure</li>
	<li>No separate Railway budget</li>
	<li>The budget in the Indian Parliament may be tabled earlier than before</li>
</ul>

What does each one of them mean? 
 
The budget is represented under two accounts: revenue account and capital account. The revenue account means day to day running of the various government departments and services, interest payments etc. 
 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_1-20160922112651.jpg" />

<div class="media-description">
 
Capital account involves long-term investments such as machinery, plants, etc.
</div>

 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_3-20160922113120.jpg" />

<div class="media-description">
&nbsp;
</div>

Till this year&rsquo;s budget, revenue expenditure and capital expenditure were further divided into plan expenditure and non-plan expenditure. 
 
Plan expenditure: means the expenditure done under the five year plans, that is decided beforehand during the planning process. 
 
Non-plan expenditure: means expenditure that lies outside the plan and for which no provision can be made as it is largely unforeseen, unpredictable and contingent on circumstances.&nbsp; E.g. expenditure on repairs and maintenance of assets, unfinished schemes, defence, law and order, etc. 
 
From next year, the expenditure under both the accounts will not be divided into plan and non-plan as the premier economic planning institution, Planning Commission of India, no longer exists. It has been replaced by NITI Aayog, a think tank. 
 
<img alt="" class="img-responsive" src="http://s.wionews.com/photos/budget_slide_2-20160922112918.jpg" />

<div class="media-description">
 
From next year, the expenditure under revenue account and capital account will not be divided into plan and non-plan.
</div>

The 12th five year plan will end in 2017 and after that, there will be no five year plans, thus redefining the Indian Economy textbooks. 
&nbsp; 
If not five year plans, then what? &nbsp; 
 
The NITI Aayog will be preparing a 15-year vision document aligned with the country&rsquo;s social goals and sustainable development targets. The first 15-year vision document will start from 2017-18. Aayog will also prepare a seven-year National Development Agenda which will lay down the schemes, programmes and strategies to be reviewed after every three years. 
 
The vision document is similar to the Directive Principles of the State Policy of the Constitution, guiding where India should be heading but not enforceable by law. &nbsp; 
&nbsp;At the same time, one should be looking at the documents laid before Parliament under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003:

<ul>
	<li>Medium term fiscal policy statement: It sets out three-year rolling targets for four specific fiscal&nbsp;indicators in relation to GDP, namely (i) revenue deficit, (ii) fiscal deficit, (iii) tax to GDP&nbsp;ratio and (iv) total outstanding debt at the end of the year.</li>
	<li>Fiscal policy strategy statement: It outlines the strategic priorities of the government in the fiscal area for the&nbsp;ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing,&nbsp;borrowings and guarantees. The statement explains how the current policies are in conformity with sound&nbsp;fiscal management principles and gives the rationale for any major deviation in key fiscal measures.</li>
	<li>Macro-economic framework statement: It contains assessment regarding&nbsp;the GDP growth rate, fiscal balance of the Indian government and the external sector balance of the economy.</li>
</ul>

&nbsp;Concerns with merger of railway budget with general budget 
 
The proposal to merge the two budgets was given by the Bibek Debroy Committee at NITI Aayog. It is said that after the merger, Indian Railways will save around $1.5 billion every year by not paying the dividend it has to pay for gross budgetary support from the Indian government. 
 
Indian economist Bibek Debroy, in an interview, has raised four concerns regarding this merger that still need to be addressed by the railway ministry and finance ministry:

<ul>
	<li>What happens to dividends? Dividends i.e. corporate dividends is actually a repayment of debt that the Indian government extends to the railways in perpetuity and only the interest gets repaid, the principal is never extinguished.&nbsp;</li>
	<li>What happens to the existing debt? Does that continue or not?&nbsp;</li>
	<li>What happens to the gross budgetary support? In what form will it be extended now?</li>
	<li>What happens to the windows that the railways has for borrowing? Right now, the railways borrows through Indian Railway Finance Corporation (IRFC).</li>
</ul>

&nbsp; 
Why does the budget needs to be presented earlier than usual? 
 
At present, the budget is presented on 28th February every year. The budget session of Parliament is divided into two parts: the first is held between last week of February to middle of March and the second session is held from last week of April to middle of May. 
 
Usually, the budget gets passed in the second part of the session. After that, the country experiences monsoon season for 3 to 4 months hampering the infrastructure spending. 
 
Also, unlike India, most countries around the world have their fiscal year as the calendar year. 
 
With the Goods and Services tax scheduled to be rolled out next year, it is not certain whether the Indian government would table its Annual Financial Statement on a different date.&nbsp; 
&nbsp;

The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget

The Government of India has made several changes in its Annual Financial Statement, commonly referred to as budget. Some of these changes are: Omission of plan and non-plan expenditure No separate Railway budget The budget in the Indian Parliament may be tabled earlier than before What does each one of them mean? The budget is represented under two accounts: revenue account and capital account. The revenue account means day to day running of the various government departments and services, interest payments etc. Capital account involves long-term investments such as machinery, plants, etc. Till this year’s budget, revenue expenditure and capital expenditure were further divided into plan expenditure and non-plan expenditure. Plan expenditure: means the expenditure done under the five year plans, that is decided beforehand during the planning process. Non-plan expenditure: means expenditure that lies outside the plan and for which no provision can be made as it is largely unforeseen, unpredictable and contingent on circumstances. E.g. expenditure on repairs and maintenance of assets, unfinished schemes, defence, law and order, etc. From next year, the expenditure under both the accounts will not be divided into plan and non-plan as the premier economic planning institution, Planning Commission of India, no longer exists. It has been replaced by NITI Aayog, a think tank. From next year, the expenditure under revenue account and capital account will not be divided into plan and non-plan. The 12th five year plan will end in 2017 and after that, there will be no five year plans, thus redefining the Indian Economy textbooks. If not five year plans, then what? The NITI Aayog will be preparing a 15-year vision document aligned with the country’s social goals and sustainable development targets. The first 15-year vision document will start from 2017-18. Aayog will also prepare a seven-year National Development Agenda which will lay down the schemes, programmes and strategies to be reviewed after every three years. The vision document is similar to the Directive Principles of the State Policy of the Constitution, guiding where India should be heading but not enforceable by law. At the same time, one should be looking at the documents laid before Parliament under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003: Medium term fiscal policy statement: It sets out three-year rolling targets for four specific fiscal indicators in relation to GDP, namely (i) revenue deficit, (ii) fiscal deficit, (iii) tax to GDP ratio and (iv) total outstanding debt at the end of the year. Fiscal policy strategy statement: It outlines the strategic priorities of the government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures. Macro-economic framework statement: It contains assessment regarding the GDP growth rate, fiscal balance of the Indian government and the external sector balance of the economy. Concerns with merger of railway budget with general budget The proposal to merge the two budgets was given by the Bibek Debroy Committee at NITI Aayog. It is said that after the merger, Indian Railways will save around $1.5 billion every year by not paying the dividend it has to pay for gross budgetary support from the Indian government. Indian economist Bibek Debroy, in an interview, has raised four concerns regarding this merger that still need to be addressed by the railway ministry and finance ministry: What happens to dividends? Dividends i.e. corporate dividends is actually a repayment of debt that the Indian government extends to the railways in perpetuity and only the interest gets repaid, the principal is never extinguished. What happens to the existing debt? Does that continue or not? What happens to the gross budgetary support? In what form will it be extended now? What happens to the windows that the railways has for borrowing? Right now, the railways borrows through Indian Railway Finance Corporation (IRFC). Why does the budget needs to be presented earlier than usual? At present, the budget is presented on 28th February every year. The budget session of Parliament is divided into two parts: the first is held between last week of February to middle of March and the second session is held from last week of April to middle of May. Usually, the budget gets passed in the second part of the session. After that, the country experiences monsoon season for 3 to 4 months hampering the infrastructure spending. Also, unlike India, most countries around the world have their fiscal year as the calendar year. With the Goods and Services tax scheduled to be rolled out next year, it is not certain whether the Indian government would table its Annual Financial Statement on a different date.

Merger of Rail Budget with Union Budget and more: What it means for India

A united opposition on Thursday visited the office of India&#39;s Election Commission to discuss the date of the Budget Session and demanded that it be presented once the assembly elections are over.

&quot;Populist measures could be taken in budget, so a just and fair election can&#39;t be held. We demand that budget be presented after March 8, which is when polling for elections will be over,&quot; said Congress leader Ghulam Nabi Azad after meeting the poll panel.

Trinamool Congress, Congress, Samajwadi Party (SP), Bahujan Samaj Party (BSP), Janata Dal (United), Rashtriya Janata Dal (RJD) and other opposition parties met the Commission.

The Budget Session of the Parliament will begin on February 1.

The Election Commission on Tuesday announced seven-phase polling for 403 assembly constituencies in the politically crucial state of Uttar Pradesh, two-phase polling in Manipur and one-phase polling each in the states of Punjab, Uttarakhand and Goa respectively.

While the Election Commission said it will examine a representation made by parties opposing the February 1 Budget plan, finance minister Arun Jaitley defended the move asking why Opposition parties are afraid of it when they have claimed that demonetization is an unpopular decision.

Parties including Congress, Left, SP and BSP wrote to the Election Commission and the President opposing the advancing of the budget presentation to February 1 before the polls.

&quot;It is a collective and serious concern of the Opposition parties that advancing the presentation of budget to February 1 will provide an opportunity to the government to make populist announcements to influence voters. This will not only give unfair advantage to the ruling party but will also undermine the process of free and fair elections. It is therefore demanded that in view of the forthcoming elections and the precedent of 2012, the advancement of the presentation of the budget should not be allowed,&quot; Leader of the Opposition in the Rajya Sabha Ghulam Nabi Azad said in a letter to Chief Election Commissioner Nasim Zaidi.

&nbsp;

(This report first appeared in DNA)

The opposition parties met the election commissioner today.The Budget Session of the Parliament is scheduled to begin on February 1

A united opposition on Thursday visited the office of India's Election Commission to discuss the date of the Budget Session and demanded that it be presented once the assembly elections are over. "Populist measures could be taken in budget, so a just and fair election can't be held. We demand that budget be presented after March 8, which is when polling for elections will be over," said Congress leader Ghulam Nabi Azad after meeting the poll panel. Trinamool Congress, Congress, Samajwadi Party (SP), Bahujan Samaj Party (BSP), Janata Dal (United), Rashtriya Janata Dal (RJD) and other opposition parties met the Commission. The Budget Session of the Parliament will begin on February 1. The Election Commission on Tuesday announced seven-phase polling for 403 assembly constituencies in the politically crucial state of Uttar Pradesh, two-phase polling in Manipur and one-phase polling each in the states of Punjab, Uttarakhand and Goa respectively. While the Election Commission said it will examine a representation made by parties opposing the February 1 Budget plan, finance minister Arun Jaitley defended the move asking why Opposition parties are afraid of it when they have claimed that demonetization is an unpopular decision. Parties including Congress, Left, SP and BSP wrote to the Election Commission and the President opposing the advancing of the budget presentation to February 1 before the polls. "It is a collective and serious concern of the Opposition parties that advancing the presentation of budget to February 1 will provide an opportunity to the government to make populist announcements to influence voters. This will not only give unfair advantage to the ruling party but will also undermine the process of free and fair elections. It is therefore demanded that in view of the forthcoming elections and the precedent of 2012, the advancement of the presentation of the budget should not be allowed," Leader of the Opposition in the Rajya Sabha Ghulam Nabi Azad said in a letter to Chief Election Commissioner Nasim Zaidi. (This report first appeared in DNA)

India: Opposition demands budget be presented after upcoming five-state elections

Rebutting the charge of Opposition parties that the annual federal budget was being deliberately presented ahead of the assembly elections in five states, the government said the federal budget was an annual constitutional exercise covering the entire country and not just a few states.

The federal government was replying to the Election Commission which had asked it to respond to a representation by opposition parties urging the poll panel to make the government postpone the budget till assembly polls are over, PTI reported.

The opposition had alleged that the budget would be used to woo voters in the poll-bound states.

The cabinet secretariat replied to the Election Commission today.

The government said that advancing the budget presentation was necessary as it would ensure that all budgetary provisions were allocated to different sectors from April 1, the beginning of the new fiscal.

The budget is usually presented around the last week of February and, as a result, the approval of the budget spills over to the next financial year, delaying the start of new programmes, the government said.

The Budget Session has been convened from January 31 when the President will address the joint sitting of the two Houses. The federal budget and the Economic Survey are to be presented the next day.

The parliamentary committees have already been informed to study budgetary proposals in the recess period between February 10 and March 8, the government had said earlier.

It said that the government had made its intentions clear to advance the session in September last year and the federal cabinet had also cleared the proposal.

The opposition parties had written to the President and the Election Commission objecting to the presentation of the federal budget on February 1 ahead of the assembly elections and demanded that the government be asked to defer the annual exercise till March 8, the last day of voting.

A delegation of opposition parties comprising Congress, JD U(), BSP, SP, DMK and RJD had met chief election commissioner, Nasim Zaidi, on January 5, urging it to defer the budget presentation till March 8 at the least. 
 
Punjab and Goa go to polls on February 4 and the last phase of Assembly polls in Uttar Pradesh and Manipur will be held on March 8.

(WION with inputs from PTI) 
&nbsp;

The opposition parties had alleged that the presentation of the budget was being pushed ahead to woo voters in the poll-bound states.

Rebutting the charge of Opposition parties that the annual federal budget was being deliberately presented ahead of the assembly elections in five states, the government said the federal budget was an annual constitutional exercise covering the entire country and not just a few states. The federal government was replying to the Election Commission which had asked it to respond to a representation by opposition parties urging the poll panel to make the government postpone the budget till assembly polls are over, PTI reported. The opposition had alleged that the budget would be used to woo voters in the poll-bound states. The cabinet secretariat replied to the Election Commission today. The government said that advancing the budget presentation was necessary as it would ensure that all budgetary provisions were allocated to different sectors from April 1, the beginning of the new fiscal. The budget is usually presented around the last week of February and, as a result, the approval of the budget spills over to the next financial year, delaying the start of new programmes, the government said. The Budget Session has been convened from January 31 when the President will address the joint sitting of the two Houses. The federal budget and the Economic Survey are to be presented the next day. The parliamentary committees have already been informed to study budgetary proposals in the recess period between February 10 and March 8, the government had said earlier. It said that the government had made its intentions clear to advance the session in September last year and the federal cabinet had also cleared the proposal. The opposition parties had written to the President and the Election Commission objecting to the presentation of the federal budget on February 1 ahead of the assembly elections and demanded that the government be asked to defer the annual exercise till March 8, the last day of voting. A delegation of opposition parties comprising Congress, JD U(), BSP, SP, DMK and RJD had met chief election commissioner, Nasim Zaidi, on January 5, urging it to defer the budget presentation till March 8 at the least. Punjab and Goa go to polls on February 4 and the last phase of Assembly polls in Uttar Pradesh and Manipur will be held on March 8. (WION with inputs from PTI)

Budget covers entire country, not few states: Indian Govt to election body on advancing budget date

Hungary&#39;s government is drawing up a list of incentives to lure companies leaving Britain after the Brexit vote, economy minister Mihaly Varga told business daily Vilaggazdasag in an interview published today. 
 
The interview did not go into details on what sort of offers would be made to persuade companies to move to Hungary, or how far the plan had progressed. 
 
Varga said Britain&#39;s exit from the EU would probably affect Hungary in the longer term, as it would hit the EU&#39;s budget, and thus the development funds flowing to eastern Europe. 
 
But Varga said this was not an immediate issue, as Britain&#39;s negotiations with the EU would last at least for two years, and there was no need to amend Hungary&#39;s budget this year or next. 
 
He said Hungary also had no plan to follow Britain&#39;s example in leaving the EU. 
 
&quot;There is no such intention, no such plan, no such scenario or idea,&quot; Varga told the paper. 
 
He said he expected market turbulence to subside this week after Friday&#39;s sharp falls. 
 
(Reuters)

Budapest has no plan to follow London's example in leaving the EU, said economy minister Mihaly Varga

Hungary's government is drawing up a list of incentives to lure companies leaving Britain after the Brexit vote, economy minister Mihaly Varga told business daily Vilaggazdasag in an interview published today. The interview did not go into details on what sort of offers would be made to persuade companies to move to Hungary, or how far the plan had progressed. Varga said Britain's exit from the EU would probably affect Hungary in the longer term, as it would hit the EU's budget, and thus the development funds flowing to eastern Europe. But Varga said this was not an immediate issue, as Britain's negotiations with the EU would last at least for two years, and there was no need to amend Hungary's budget this year or next. He said Hungary also had no plan to follow Britain's example in leaving the EU. "There is no such intention, no such plan, no such scenario or idea," Varga told the paper. He said he expected market turbulence to subside this week after Friday's sharp falls. (Reuters)

Hungary prepares incentives to lure firms leaving Britain after Brexit vote

budget

Budget, News on Budget, stories on Budget, articles on Budget, Budget stories at Wion, Budget news, Budget latest news