&nbsp;

The major policy decisions are almost always announced separately from the budget. Take for instance the New Industrial Policy of 1991 which abolished the &quot;License Raj&quot;, MGNREGA or demonetisation &nbsp; &nbsp; &nbsp;

It is spring-time in Kolkata and the atmosphere is laden with a festive mood. The Kolkata Book Fair is in full swing. The festival of Saraswati Puja, which the vernacular media here has christened as Bengal&rsquo;s Valentine&#39;s Day, falls on February 1 &ndash; incidentally the Union Budget day from this year onwards. And our chief minister has advised us, quite sensibly this time as opposed to what she is known for, to ignore the Union Budget. Against my natural instinct about her advise, I wholeheartedly followed her suggestion on the Budget day. And why not?

I often wonder why there is so much euphoria about the Union Budget in the media. A budget after all is &ndash; just a budget and nothing more or less. It is a statement of planned receipts and expenditures over a stipulated period of time &ndash; like what we do at the beginning of each month in our family. In case of the government, the time-period is one year and the uncertainty over the receipts and expenditures is higher since it depends on multitudes of other factors. And the objectives are different. The family budget allocations are made to maximise the welfare of the family, while the government of the day chooses the budget allocations to increase its vote share, particularly if there is an election in near future. And if the next election happens to be in Punjab or Uttar Pradesh, then one can safely predict that the focus of the budget would be farmers and rural development.

I would have understood the excitement around the annual Budget if the government becomes constitutionally obliged to announce any major economic policy decision in the finance minister&rsquo;s budget speech. But it is not so in India. In fact, the major policy decisions are almost always announced separately from the budget. Take for instance the New Industrial Policy of 1991 which abolished the &quot;License &ndash; Permit Raj&quot;, MGNREGA or the recent demonetisation &ndash; arguably the three most significant economic policy decisions in India in last quarter century. None of these were announced by the finance minister in the budget speech. The announcements made by the prime minister on December 31 in his speech include housing for the poor, relief to farmers, credit support to Ministry of Micro, Small and Medium Enterprises (MSMEs), encouragement to digital transactions, assistance to pregnant women and senior citizens and priority to Dalits, tribals, backward classes and women. He did not need a budget to announce these schemes.

It seems that the year-to-year differences between the budget speeches are merely cosmetic. If somebody analyses the budget speeches of the last 20 years, she will surely find that every budget has been supposed to aim at benefitting the common man and the poor and the roadmap for achieving the above involves the implementation of next generation economic reforms, withdrawal of subsidies and control of fiscal deficit. There is surprising consistency in these despite political differences between different governments. I should confess here that I have never understood the meaning of next generation reforms apart from the fact that they generally refer to various kinds of sops given to industrialists. One thing however astounds me in the narratives about the budget. The assistance given to the poor and underprivileged from the Budget is called subsidy and is treated as expenditure and we are always made to understand that these doles to undeserving should be done away with. At the same time, the help provided to the industrial and corporate sector in different forms are called incentives and treated as revenue 
foregone. From a government&rsquo;s budgetary perspective, I fail to see the difference between the two. I also do not understand why it is such a grand achievement to propose 3.2 per cent instead of 3.4 per cent fiscal deficit which at the end of the year often overshoots the budget proposal.&nbsp;

The government generally takes the opportunity of the budget to score political points by announcing some minor schemes (which are most of the times old schemes repackaged with a different name) or by playing with numbers. Take for example, the finance minister&rsquo;s claim of an unprecedented increase in MGNREGA allocation from Rs 38,500 crores in the current to Rs 48,000 crores in the next fiscal year. What the Finance Minister did not tell us in his budget speech is that the current fiscal&rsquo;s revised estimate for MGNREGA is Rs 47,499 crores as the demand for jobs under the scheme has peaked up after demonetisation. After accounting for the rate of inflation, there appears to be a decrease in real terms in MGNREGA allocation. &nbsp; 
&nbsp; &nbsp; 
Overall, the budgetary exercise is nothing but some fiddling with numbers to balance the book. And that is how it should be. It is just a budget after all.&nbsp;

I doubt whether there is any real significance in the budgetary exercise to generate the high-pitch media excitement around it. Our chief minister has nailed it. I feel proud. 
&nbsp;&nbsp;

The assistance given to underprivileged is called subsidy and is treated as doles to undeserving which should be done away with

The major policy decisions are almost always announced separately from the budget. Take for instance the New Industrial Policy of 1991 which abolished the "License Raj", MGNREGA or demonetisation It is spring-time in Kolkata and the atmosphere is laden with a festive mood. The Kolkata Book Fair is in full swing. The festival of Saraswati Puja, which the vernacular media here has christened as Bengal’s Valentine's Day, falls on February 1 – incidentally the Union Budget day from this year onwards. And our chief minister has advised us, quite sensibly this time as opposed to what she is known for, to ignore the Union Budget. Against my natural instinct about her advise, I wholeheartedly followed her suggestion on the Budget day. And why not? I often wonder why there is so much euphoria about the Union Budget in the media. A budget after all is – just a budget and nothing more or less. It is a statement of planned receipts and expenditures over a stipulated period of time – like what we do at the beginning of each month in our family. In case of the government, the time-period is one year and the uncertainty over the receipts and expenditures is higher since it depends on multitudes of other factors. And the objectives are different. The family budget allocations are made to maximise the welfare of the family, while the government of the day chooses the budget allocations to increase its vote share, particularly if there is an election in near future. And if the next election happens to be in Punjab or Uttar Pradesh, then one can safely predict that the focus of the budget would be farmers and rural development. I would have understood the excitement around the annual Budget if the government becomes constitutionally obliged to announce any major economic policy decision in the finance minister’s budget speech. But it is not so in India. In fact, the major policy decisions are almost always announced separately from the budget. Take for instance the New Industrial Policy of 1991 which abolished the "License – Permit Raj", MGNREGA or the recent demonetisation – arguably the three most significant economic policy decisions in India in last quarter century. None of these were announced by the finance minister in the budget speech. The announcements made by the prime minister on December 31 in his speech include housing for the poor, relief to farmers, credit support to Ministry of Micro, Small and Medium Enterprises (MSMEs), encouragement to digital transactions, assistance to pregnant women and senior citizens and priority to Dalits, tribals, backward classes and women. He did not need a budget to announce these schemes. It seems that the year-to-year differences between the budget speeches are merely cosmetic. If somebody analyses the budget speeches of the last 20 years, she will surely find that every budget has been supposed to aim at benefitting the common man and the poor and the roadmap for achieving the above involves the implementation of next generation economic reforms, withdrawal of subsidies and control of fiscal deficit. There is surprising consistency in these despite political differences between different governments. I should confess here that I have never understood the meaning of next generation reforms apart from the fact that they generally refer to various kinds of sops given to industrialists. One thing however astounds me in the narratives about the budget. The assistance given to the poor and underprivileged from the Budget is called subsidy and is treated as expenditure and we are always made to understand that these doles to undeserving should be done away with. At the same time, the help provided to the industrial and corporate sector in different forms are called incentives and treated as revenue foregone. From a government’s budgetary perspective, I fail to see the difference between the two. I also do not understand why it is such a grand achievement to propose 3.2 per cent instead of 3.4 per cent fiscal deficit which at the end of the year often overshoots the budget proposal. The government generally takes the opportunity of the budget to score political points by announcing some minor schemes (which are most of the times old schemes repackaged with a different name) or by playing with numbers. Take for example, the finance minister’s claim of an unprecedented increase in MGNREGA allocation from Rs 38,500 crores in the current to Rs 48,000 crores in the next fiscal year. What the Finance Minister did not tell us in his budget speech is that the current fiscal’s revised estimate for MGNREGA is Rs 47,499 crores as the demand for jobs under the scheme has peaked up after demonetisation. After accounting for the rate of inflation, there appears to be a decrease in real terms in MGNREGA allocation. Overall, the budgetary exercise is nothing but some fiddling with numbers to balance the book. And that is how it should be. It is just a budget after all. I doubt whether there is any real significance in the budgetary exercise to generate the high-pitch media excitement around it. Our chief minister has nailed it. I feel proud.

Why the Budget is not relevant

Indian shares rose more than 1.5 per cent on Wednesday (February 01) after Finance Minister Arun Jaitley unveiled a budget with a range of incentives for companies and geared towards boosting infrastructure and developing the rural economy.

The benchmark Sensex closed at 28,141.64, recording a jump of 1.76 per cent from the previous close.

Nifty jumped to 8,716.40 and was up 1.81 percent.

A Mumbai-based market expert, Sunil Shah, described the budget as growth-oriented.

&quot;This budget is perceived to be growth-oriented with fiscal prudence in place and no negative and that is the reason market is rejoicing and you have seen, market is just close and the closing number is, Sensex is up by 485. So I think market has given thumbs-up to the Finance Minister&#39;s Budget,&quot; said Shah.

Finance Minister Arun Jaitley announced increases in spending on rural areas, infrastructure and fighting poverty.

&quot;It seems that budget is pro-poor, pro-farmer, pro-rural and giving a much necessary thrust to the infrastructure sector and housing sector. Now, this will give necessary impetus for the overall GDP growth, because when you spend a lot of money on infrastructure, it will trickle down to the other sectors of the economy,&quot; Shah added.

However, views on the fiscal deficit target were mixed after the government raised it to 3.2 per cent from its earlier forecast of 3 per cent, with some analysts expressing scepticism about whether it would be achievable.

Bonds were down with the benchmark 10-year bond yields up 1 basis point at 6.42 per cent after rising as much as 5 bps earlier amid confusion about the government&#39;s planned gross borrowing numbers.

The numbers initially provided by the government did not account for a buyback of a net 750 billion rupees in bonds, which is part of the 6.05 trillion rupees gross borrowing projection for the next fiscal year and 3.48 trillion rupees net borrowing projection.

The rupee strengthened to 67.59 per dollar from its previous close of 67.86.

(Reuters)

The benchmark Sensex closed over the 28,000-mark, recording a jump of 1.76 per cent from the previous close

Indian shares rose more than 1.5 per cent on Wednesday (February 01) after Finance Minister Arun Jaitley unveiled a budget with a range of incentives for companies and geared towards boosting infrastructure and developing the rural economy. The benchmark Sensex closed at 28,141.64, recording a jump of 1.76 per cent from the previous close. Nifty jumped to 8,716.40 and was up 1.81 percent. A Mumbai-based market expert, Sunil Shah, described the budget as growth-oriented. "This budget is perceived to be growth-oriented with fiscal prudence in place and no negative and that is the reason market is rejoicing and you have seen, market is just close and the closing number is, Sensex is up by 485. So I think market has given thumbs-up to the Finance Minister's Budget," said Shah. Finance Minister Arun Jaitley announced increases in spending on rural areas, infrastructure and fighting poverty. "It seems that budget is pro-poor, pro-farmer, pro-rural and giving a much necessary thrust to the infrastructure sector and housing sector. Now, this will give necessary impetus for the overall GDP growth, because when you spend a lot of money on infrastructure, it will trickle down to the other sectors of the economy," Shah added. However, views on the fiscal deficit target were mixed after the government raised it to 3.2 per cent from its earlier forecast of 3 per cent, with some analysts expressing scepticism about whether it would be achievable. Bonds were down with the benchmark 10-year bond yields up 1 basis point at 6.42 per cent after rising as much as 5 bps earlier amid confusion about the government's planned gross borrowing numbers. The numbers initially provided by the government did not account for a buyback of a net 750 billion rupees in bonds, which is part of the 6.05 trillion rupees gross borrowing projection for the next fiscal year and 3.48 trillion rupees net borrowing projection. The rupee strengthened to 67.59 per dollar from its previous close of 67.86. (Reuters)

India's 2017 budget buoys Sensex

With an aim to further strengthen the Digital India program, Union Minister for Finance and Corporate Affairs Arun Jaitley announced a slew of tech initiatives in the Union Budget 2017. Referred to as a &ldquo;historic&rdquo; step by Jaitley, the general budget this year was merged with the rail budget, making it the first such move in 92 years.

Here are some key tech initiatives announced in the Union Budget 2017, which aim to bolster up different sectors and ease the way public services are accessed by citizens.

1. AadharPay, a merchant version of Aadhaar-enabled payment system, will soon be launched for those without debit cards and mobile phones.

2. By the end of 2017, high-speed broadband connectivity will be available in over 1,50,000 gram panchayats. Also, the access to digital services will be offered at low tariffs.

3. Government will launch two new schemes to promote the use of the recently-announced BHIM app - an Indian government initiative to enable and encourage cashless payments.

4. Indian Railways will soon introduce an integrated platform for feedback and grievances.

5. Twenty lakh Aadhar-based swipe machines will be put in place by 2020.

6. An SMS-based service &ldquo;Clean My Coach&rdquo; has been announced for the Indian Railway passengers. The new service will allow passengers to request for cleaning the coach by sending a message.

7. 7000 stations will be equipped with the solar power facility in a few years from now.

8. All ticketing services will be integrated in one app. According to the Ministry of Railways, the concept design for the same has already been submitted by an agency. The app is being developed under the aegis of CRIS and IRCTC.

9. New measures have been announced to ease online booking system for army and defence personnel. Speaking of which, a centralised Defence Travel System has been developed through which travel tickets can be booked online by soldiers and defence officers.

10. No Service charge will be levied on tickets booked through IRCTC.

11. The Indian government proposes to leverage information technology and launch the SWAYAM platform with at least 350 online courses. The idea is to enable students to virtually attend the courses. According to Jaitley, the access to SWAYAM would be widened by linkage with education-centric DTH channels.

12.&nbsp; A comprehensive web-based Pension Disbursement System for defence pensioners will be established to receive pension proposals and make payments.

(WION)

A look at how the Indian government is planning to leverage technology to bolster the Digital India program

With an aim to further strengthen the Digital India program, Union Minister for Finance and Corporate Affairs Arun Jaitley announced a slew of tech initiatives in the Union Budget 2017. Referred to as a “historic” step by Jaitley, the general budget this year was merged with the rail budget, making it the first such move in 92 years. Here are some key tech initiatives announced in the Union Budget 2017, which aim to bolster up different sectors and ease the way public services are accessed by citizens. 1. AadharPay, a merchant version of Aadhaar-enabled payment system, will soon be launched for those without debit cards and mobile phones. 2. By the end of 2017, high-speed broadband connectivity will be available in over 1,50,000 gram panchayats. Also, the access to digital services will be offered at low tariffs. 3. Government will launch two new schemes to promote the use of the recently-announced BHIM app - an Indian government initiative to enable and encourage cashless payments. 4. Indian Railways will soon introduce an integrated platform for feedback and grievances. 5. Twenty lakh Aadhar-based swipe machines will be put in place by 2020. 6. An SMS-based service “Clean My Coach” has been announced for the Indian Railway passengers. The new service will allow passengers to request for cleaning the coach by sending a message. 7. 7000 stations will be equipped with the solar power facility in a few years from now. 8. All ticketing services will be integrated in one app. According to the Ministry of Railways, the concept design for the same has already been submitted by an agency. The app is being developed under the aegis of CRIS and IRCTC. 9. New measures have been announced to ease online booking system for army and defence personnel. Speaking of which, a centralised Defence Travel System has been developed through which travel tickets can be booked online by soldiers and defence officers. 10. No Service charge will be levied on tickets booked through IRCTC. 11. The Indian government proposes to leverage information technology and launch the SWAYAM platform with at least 350 online courses. The idea is to enable students to virtually attend the courses. According to Jaitley, the access to SWAYAM would be widened by linkage with education-centric DTH channels. 12. A comprehensive web-based Pension Disbursement System for defence pensioners will be established to receive pension proposals and make payments. (WION)

Union Budget 2017: 12 key tech initiatives announced to push Digital India

Indian finance minister Arun Jaitley presented the much-awaited Union Budget 2017 on Wednesday. Watch WION&#39;s post-budget analysis here.
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India's Union Budget was presented in the Parliament today

Indian finance minister Arun Jaitley presented the much-awaited Union Budget 2017 on Wednesday. Watch WION's post-budget analysis here. ×

Watch: Breaking down Union Budget 2017-18

Stock market turned cautious amid the budget announcements by finance minister Arun Jaitley with the key indices paring early gains as IT, pharma and power shares witnessed selling pressure.

The benchmark BSE Sensex opened higher at 27,669.08 and moved in a range of 27,725.16 and 27,590.10 points in morning trade.

At 11:45 hrs, the Sensex surrendered the gains to trade lower by 4.45 points, or 0.02 per cent, at 27,651.51 points dragged by losses in IT major TCS and Infosys.

At 12:12 pm BSE Sensex traded down 11.76 points at 27,644.&nbsp;

At 12:46 pm Sensex was down 25.65 points or 0.09 per cent at 27630.31.

At 1:03 pm Sensex was up 219.37 points or 0.79 per cent at 27,875.33 &nbsp;post the budget session.&nbsp;

The wider NSE Nifty had gained 21.90 points, or 0.26 per cent, at 8,583.20 in opening trade.

However, at 11:45 hrs, it fell by 6.65 points, or 0.08 per cent, at 8,554.65 points with 25 constituents led by TCS Tech Mahindra Infosys and Idea trading in the negative zone.

Investors were focusing on ongoing Budget announcements on the expectation of applying balm on frayed nerves.

Meanwhile, Nikkei Markit India Manufacturing Purchasing Managers&#39;Index (PMI) monthly survey rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector by increasing 50.4 in January from 49.6 in December.

Among the major gainers were, SBIN 2.73 per cent, ITC 1.76 per cent, HDFC 1.55 per cent, Adani Ports 1.35 per cent, Maruti 1.31 per cent and L&amp;T 1.28 per cent.

Notable losers were TCS 2.62 per cent, Dr Reddy 2.08 per cent, Lupin 2.07 per cent and Infosys 1.92 per cent.

Meanwhile, the foreign portfolio investors (FPIs) sold shares worth a net Rs 532.88 crore yesterday, as per provisional data released by the stock exchanges.

Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the US dollar. Markets in China, Taiwan, Malaysia and Vietnam remain closed for a holiday.

US stocks ended mostly lower yesterday, as declines in industrial, technology and financials shares outweighed gains in health-care and utilities sector.

(PTI)

The Sensex traded up 16.91 points at 27672.87 and the Nifty traded up 8.20 points at 8569.50 ahead of the Budget

Stock market turned cautious amid the budget announcements by finance minister Arun Jaitley with the key indices paring early gains as IT, pharma and power shares witnessed selling pressure. The benchmark BSE Sensex opened higher at 27,669.08 and moved in a range of 27,725.16 and 27,590.10 points in morning trade. At 11:45 hrs, the Sensex surrendered the gains to trade lower by 4.45 points, or 0.02 per cent, at 27,651.51 points dragged by losses in IT major TCS and Infosys. At 12:12 pm BSE Sensex traded down 11.76 points at 27,644. At 12:46 pm Sensex was down 25.65 points or 0.09 per cent at 27630.31. At 1:03 pm Sensex was up 219.37 points or 0.79 per cent at 27,875.33 post the budget session. The wider NSE Nifty had gained 21.90 points, or 0.26 per cent, at 8,583.20 in opening trade. However, at 11:45 hrs, it fell by 6.65 points, or 0.08 per cent, at 8,554.65 points with 25 constituents led by TCS Tech Mahindra Infosys and Idea trading in the negative zone. Investors were focusing on ongoing Budget announcements on the expectation of applying balm on frayed nerves. Meanwhile, Nikkei Markit India Manufacturing Purchasing Managers'Index (PMI) monthly survey rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector by increasing 50.4 in January from 49.6 in December. Among the major gainers were, SBIN 2.73 per cent, ITC 1.76 per cent, HDFC 1.55 per cent, Adani Ports 1.35 per cent, Maruti 1.31 per cent and L&T 1.28 per cent. Notable losers were TCS 2.62 per cent, Dr Reddy 2.08 per cent, Lupin 2.07 per cent and Infosys 1.92 per cent. Meanwhile, the foreign portfolio investors (FPIs) sold shares worth a net Rs 532.88 crore yesterday, as per provisional data released by the stock exchanges. Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the US dollar. Markets in China, Taiwan, Malaysia and Vietnam remain closed for a holiday. US stocks ended mostly lower yesterday, as declines in industrial, technology and financials shares outweighed gains in health-care and utilities sector. (PTI)

India Budget 2017: Sensex starts on a positive note

Indian President Pranab Mukherjee kickstarted Budget 2017 by addressing a joint session of both the Houses of Parliament on Tuesday.&nbsp;

The President advocated for a constructive debate on simultaneous elections in the Lower House (Lok Sabha) and Assemblies, as well as funding of polls to eliminate money power.&nbsp;

&quot;Frequent elections put on hold development programmes, disrupt normal public life and impact essential services and burden human resource with prolonged period of election duty.

&quot;My government welcomes a constructive debate on simultaneous conduct of elections to Lok Sabha and state legislative assemblies. Funding of elections to eradicate misuse of money power also needs to be debated,&quot; he said.

In his speech, he praised people, especially the poor for showing &#39;&#39;resilience&quot; in the fight against black money and corruption.&nbsp;

He also listed various achievements of the government saying all initiatives target the welfare of the &#39;gareeb&#39;, &#39;peedit&#39;, &#39;Dalit&#39; and &#39;vanchhit&#39; (the poor, discriminated and deprived section).&nbsp;

The President assured that the government is committed to fulfilling the &quot;social and economic quality&quot; for the deprived sections of society.&nbsp;

He cited various schemes like Jan Dhan accounts, Pradhan Mantri Yojana, Deen Dayal Antyodaya Yojana and Deen Dayal Upadhayay Gram Jyoti Yojana which have aided the poor.&nbsp;

&quot;Under Deen Dayal Antyodaya Yojana, over Rs 16000 crore have been made available to SHGs in the current Financial Year,&quot; President Mukherjee said.

&quot;Under Deen Dayal Upadhayay Gram Jyoti Yojana over 11,000 villages have been electrified in a record time,&quot; he said.&nbsp;

The President also spoke on women empowerment, saying &quot;naari shakti&quot; intrinsic part of India&#39;s development.&nbsp;

He referred to the Save the girl child scheme (Beti Bachao Beti Padhao) produced &quot;encouraging results&quot; and the &quot;Pradhan Mantri Surakshit Matritva Abhiyan (free health check-ups for pregnant women) will provide comprehensive ante-natal care to all pregnant women.&quot;

The President said the government will combat terrorism and ensure that the perpetrators do not go unpunished. He praised the government&#39;s decision to carry out surgical strikes against militant launch pads along the Line of Control as a fitting reply to the repeated incursions. He said the country was proud and &quot;owed a debt of gratitude&quot; to the soldiers for their bravery.&nbsp;

The Economic Survey will be tabled later in the day while the Rail and General Budget will be presented together on Wednesday, a departure from tradition.&nbsp;

Some 34 bills will also be introduced for passing and consideration. These include three ordinances which will be replaced through bills: The ordinance&nbsp;of Enemy Property, Payment of Wages and Specified Bank Notes.

(WION with inputs from agencies)

The Economic Survey will be tabled later in the day while the Rail and General Budget will be presented together on February 1

Indian President Pranab Mukherjee kickstarted Budget 2017 by addressing a joint session of both the Houses of Parliament on Tuesday. The President advocated for a constructive debate on simultaneous elections in the Lower House (Lok Sabha) and Assemblies, as well as funding of polls to eliminate money power. "Frequent elections put on hold development programmes, disrupt normal public life and impact essential services and burden human resource with prolonged period of election duty. "My government welcomes a constructive debate on simultaneous conduct of elections to Lok Sabha and state legislative assemblies. Funding of elections to eradicate misuse of money power also needs to be debated," he said. In his speech, he praised people, especially the poor for showing ''resilience" in the fight against black money and corruption. He also listed various achievements of the government saying all initiatives target the welfare of the 'gareeb', 'peedit', 'Dalit' and 'vanchhit' (the poor, discriminated and deprived section). The President assured that the government is committed to fulfilling the "social and economic quality" for the deprived sections of society. He cited various schemes like Jan Dhan accounts, Pradhan Mantri Yojana, Deen Dayal Antyodaya Yojana and Deen Dayal Upadhayay Gram Jyoti Yojana which have aided the poor. "Under Deen Dayal Antyodaya Yojana, over Rs 16000 crore have been made available to SHGs in the current Financial Year," President Mukherjee said. "Under Deen Dayal Upadhayay Gram Jyoti Yojana over 11,000 villages have been electrified in a record time," he said. The President also spoke on women empowerment, saying "naari shakti" intrinsic part of India's development. He referred to the Save the girl child scheme (Beti Bachao Beti Padhao) produced "encouraging results" and the "Pradhan Mantri Surakshit Matritva Abhiyan (free health check-ups for pregnant women) will provide comprehensive ante-natal care to all pregnant women." The President said the government will combat terrorism and ensure that the perpetrators do not go unpunished. He praised the government's decision to carry out surgical strikes against militant launch pads along the Line of Control as a fitting reply to the repeated incursions. He said the country was proud and "owed a debt of gratitude" to the soldiers for their bravery. The Economic Survey will be tabled later in the day while the Rail and General Budget will be presented together on Wednesday, a departure from tradition. Some 34 bills will also be introduced for passing and consideration. These include three ordinances which will be replaced through bills: The ordinance of Enemy Property, Payment of Wages and Specified Bank Notes. (WION with inputs from agencies)

Budget 2017: President Pranab Mukherjee welcomes debate on simultaneous Lower House and Assembly elections

Indian President Pranab Mukherjee started off budget 2017 by addressing both the Houses of Parliament on Tuesday.&nbsp;

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Budget session of Parliament begins with President Pranab Mukherjee&#39;s address to members of both the houses. <a href="https://t.co/glkplFHeEb">pic.twitter.com/glkplFHeEb</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/826302621698842624">January 31, 2017</a></blockquote>
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The Economic Survey will be tabled later in the day while the Rail and General Budget will be presented together on Wednesday, a departure from tradition.&nbsp;

Some 34 bills will also be introduced for passing and consideration. These include three ordinances which will be replaced through bills: The ordinance&nbsp;of Enemy Property, Payment of Wages and Specified Bank Notes.

Here are some key quotes from the Indian President&#39;s speech:&nbsp;

<ul>
	<li>Resilience demonstrated by our countrymen particularly the poor, in the fight against black money and corruption, is remarkable.</li>
	<li>Postal network has wider network with over 1.5 lakh crore reach.</li>
	<li>Under Deendayal Upadhyay Yojana, deprived sections have been provided 16,000 crore.</li>
	<li>Over 1.2 crore consumers have voluntarily given up their subsidy and it has helped the poor.</li>
	<li>1.4 lakh villages, over 450 cities, 70 districts and 23 states have declared them open defecation free.</li>
	<li>&nbsp;At the core of all my government policies, is the welfare of &#39;gareeb&#39;,&nbsp;&#39;peedit&#39;, &#39;Dalit&#39;, &#39;vanchhit&#39;.&nbsp;</li>
	<li>26 crore plus Jan Dhan accounts have been opened. Over 20 crore RuPay card have been given to enable cashless scheme.</li>
	<li>My government has taken various initiatives to improve the quality of life of poor.</li>
	<li>My government is committed to provide shelter to the homeless under Pradhan Mantri&nbsp;Aawas Yojna.&nbsp;</li>
	<li>In farmer&rsquo;s welfare lies the country&rsquo;s economic prosperity. &nbsp;My government has taken many steps to improve the lives of farmers.</li>
	<li>Affordable credit, improved irrigation facilities, improved productivity through soil health care cards. Three crore Kisan or farmer cards will be converted to rupee debit cards.</li>
	<li>My government is making &quot; naari shakti&quot; an integral part of our development journey, they deserve equal opportunities.</li>
	<li>
	PV Sindhu, Sakshi Malik, Deepa illustrate strength of our women.
	</li>
	<li>
	Social and economic equality for deprived sections is the first promise of our constitution, our Govt is committed to fulfilling it.
	</li>
	<li>
	Through the Stand-Up India initiative, the govt plans to empower over 2-and-a-half lakh SCs, STs and women entrepreneurs.
	</li>
	<li>
	North East is our gateway for trade and communication with South East Asia.
	</li>
	<li>
	India has been facing grave challenge of terrorism, threat to global community.
	</li>
	<li>
	India gave a befitting reply to repeated incursions by conducting successful surgical strikes.
	</li>
	<li>
	J&amp;K affected by terrorism sponsored and supported from across the border.
	</li>
</ul>

(Agencies)

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The President called this session 'historic'

Indian President Pranab Mukherjee started off budget 2017 by addressing both the Houses of Parliament on Tuesday. Budget session of Parliament begins with President Pranab Mukherjee's address to members of both the houses. pic.twitter.com/glkplFHeEb — ANI (@ANI_news) January 31, 2017 × The Economic Survey will be tabled later in the day while the Rail and General Budget will be presented together on Wednesday, a departure from tradition. Some 34 bills will also be introduced for passing and consideration. These include three ordinances which will be replaced through bills: The ordinance of Enemy Property, Payment of Wages and Specified Bank Notes. Here are some key quotes from the Indian President's speech: Resilience demonstrated by our countrymen particularly the poor, in the fight against black money and corruption, is remarkable. Postal network has wider network with over 1.5 lakh crore reach. Under Deendayal Upadhyay Yojana, deprived sections have been provided 16,000 crore. Over 1.2 crore consumers have voluntarily given up their subsidy and it has helped the poor. 1.4 lakh villages, over 450 cities, 70 districts and 23 states have declared them open defecation free. At the core of all my government policies, is the welfare of 'gareeb', 'peedit', 'Dalit', 'vanchhit'. 26 crore plus Jan Dhan accounts have been opened. Over 20 crore RuPay card have been given to enable cashless scheme. My government has taken various initiatives to improve the quality of life of poor. My government is committed to provide shelter to the homeless under Pradhan Mantri Aawas Yojna. In farmer’s welfare lies the country’s economic prosperity. My government has taken many steps to improve the lives of farmers. Affordable credit, improved irrigation facilities, improved productivity through soil health care cards. Three crore Kisan or farmer cards will be converted to rupee debit cards. My government is making " naari shakti" an integral part of our development journey, they deserve equal opportunities. PV Sindhu, Sakshi Malik, Deepa illustrate strength of our women. Social and economic equality for deprived sections is the first promise of our constitution, our Govt is committed to fulfilling it. Through the Stand-Up India initiative, the govt plans to empower over 2-and-a-half lakh SCs, STs and women entrepreneurs. North East is our gateway for trade and communication with South East Asia. India has been facing grave challenge of terrorism, threat to global community. India gave a befitting reply to repeated incursions by conducting successful surgical strikes. J&K affected by terrorism sponsored and supported from across the border. (Agencies)

Budget 2017: President Pranab Mukherjee addresses joint session of Parliament

By Praveena Sharma&nbsp;

Budget 2017 is likely to offer some tax reliefs to individuals and corporate houses to boost consumption, savings and investment and some levies like Bank Cash Transaction Tax (BCTT), and differential service tax rates in the run-up to the implementation of Goods and Services Tax (GST) in July, according to a source.

The minimum threshold for income-tax (I-T), which is currently Rs 2.5 lakh, could increase to Rs 3 lakh. However, the I-T rate slabs may remain the same.

This means that personal income between Rs 3 lakh and Rs 5 lakh could attract a 10 per cent tax, between Rs 5 and 10 lakh could attract 20 per cent and incomes above Rs 10 lakh could get taxed at 30 per cent.

Besides raising the threshold for I-T, sources said the government could also increase the investment amount for which tax relief could be availed under Section 80 C of I-T Act.

At present, tax relief for specified investments under Section 80 C is Rs 1.5 lakh. This could be raised to Rs 2 lakh, if it is invested in schemes like National Saving Certificate, Post Office Savings Account, Life Insurance policies, Kisan Vikas Patra, Provident Funds, pension schemes and the like.

Effectively, it would mean that if a person with Rs 5 lakh income invests Rs 2 lakh in specified savings under Section 80C, he may not have to pay any tax.

On the corporate tax front, there could be a snip of one percentage point &ndash; from 30 per cent to 29 per cent. According to the source, there could be an announcement in this year&#39;s Budget of a 1 per cent cut in corporate tax every year for the next three years.

Service tax, which is currently a single rate of 15 per cent (14 per cent + Swachh Bharat cess + Krishi Kalyan cess), may be made multi-slab and get aligned with the proposed GST rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

It could be hiked to 16 per cent or 18 per cent.

&quot;In my mind, there is a very good case for having differential rates for service tax. It should not be one rate any longer, but whether they are going to act on it in the Budget or whether they will do it when GST is introduced, we have to wait and watch,&quot; said M S Mani, senior director (indirect tax), Deloitte Haskins &amp; Sells LLP.

Even taxes on goods could be brought in line with the proposed GST rates.

In what could be seen as a fallout of demonetisation, the source said that the government was very seriously considering a 1 per cent to 2 per cent BCTT on cash transaction above Rs 50,000.

&quot;This would mean that anybody who withdraws cash from banks above Rs 50,000 would have to pay a tax of Rs 500 or Rs 1,000. This is being looked at to discourage people from withdrawing cash. If the transaction is done electronically or digitally, there would be no tax.&nbsp;

Therefore, people would be inclined to do more of electronic and digital transactions,&quot; said the source.

In all likelihood, there would be a limit on cash transaction. &quot;They (government) are planning to do that. The limit could possibly be Rs 5 lakh or Rs 10 lakh&quot;.

(This article first appeared on DNA)

There are speculations that Bank Cash Transaction Tax could be imposed on transactions above Rs 50,000, to discourage people from using cash

By Praveena Sharma Budget 2017 is likely to offer some tax reliefs to individuals and corporate houses to boost consumption, savings and investment and some levies like Bank Cash Transaction Tax (BCTT), and differential service tax rates in the run-up to the implementation of Goods and Services Tax (GST) in July, according to a source. The minimum threshold for income-tax (I-T), which is currently Rs 2.5 lakh, could increase to Rs 3 lakh. However, the I-T rate slabs may remain the same. This means that personal income between Rs 3 lakh and Rs 5 lakh could attract a 10 per cent tax, between Rs 5 and 10 lakh could attract 20 per cent and incomes above Rs 10 lakh could get taxed at 30 per cent. Besides raising the threshold for I-T, sources said the government could also increase the investment amount for which tax relief could be availed under Section 80 C of I-T Act. At present, tax relief for specified investments under Section 80 C is Rs 1.5 lakh. This could be raised to Rs 2 lakh, if it is invested in schemes like National Saving Certificate, Post Office Savings Account, Life Insurance policies, Kisan Vikas Patra, Provident Funds, pension schemes and the like. Effectively, it would mean that if a person with Rs 5 lakh income invests Rs 2 lakh in specified savings under Section 80C, he may not have to pay any tax. On the corporate tax front, there could be a snip of one percentage point – from 30 per cent to 29 per cent. According to the source, there could be an announcement in this year's Budget of a 1 per cent cut in corporate tax every year for the next three years. Service tax, which is currently a single rate of 15 per cent (14 per cent + Swachh Bharat cess + Krishi Kalyan cess), may be made multi-slab and get aligned with the proposed GST rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent. It could be hiked to 16 per cent or 18 per cent. "In my mind, there is a very good case for having differential rates for service tax. It should not be one rate any longer, but whether they are going to act on it in the Budget or whether they will do it when GST is introduced, we have to wait and watch," said M S Mani, senior director (indirect tax), Deloitte Haskins & Sells LLP. Even taxes on goods could be brought in line with the proposed GST rates. In what could be seen as a fallout of demonetisation, the source said that the government was very seriously considering a 1 per cent to 2 per cent BCTT on cash transaction above Rs 50,000. "This would mean that anybody who withdraws cash from banks above Rs 50,000 would have to pay a tax of Rs 500 or Rs 1,000. This is being looked at to discourage people from withdrawing cash. If the transaction is done electronically or digitally, there would be no tax. Therefore, people would be inclined to do more of electronic and digital transactions," said the source. In all likelihood, there would be a limit on cash transaction. "They (government) are planning to do that. The limit could possibly be Rs 5 lakh or Rs 10 lakh". (This article first appeared on DNA)

Budget 2017: Income tax relief, limit on high-value cash transactions likely

The chief of India&#39;s central bank on Wednesday warned the federal government that not wresting a ballooning fiscal deficit might cause long-term economic damage.

Reserve Bank of India governor Urjit Patel said not reducing the high borrowing levels was also hampering the country&#39;s sovereign ratings.

Patel, speaking at an investors&#39; summit in India&#39;s western Gujarat state, said both the federal government and state governments had to &quot;take cognisance&quot; of the matter to &quot;mitigate financial volatility&quot; in near future.

India&#39;s total fiscal deficit is targeted at 6.4 per cent of GDP in 2016-17, which is above the norm for most emerging markets and G20 countries. In comparison, China&#39;s government deficit was a little above two percentage points in 2016.

Patel&#39;s comments come weeks before the Narendra Modi administration is set to announce its annual budget.&nbsp;

The high debt burden has also scuttled India&#39;s chance of upgrading credit rating. Recently, Reuters had reported that the Indian government had pushed Moody&#39;s to get a better rating from its existing Baa3 rating -- the lowest investment grade.

But the international credit rating agency remained unmoved, with&nbsp;the company&#39;s senior vice president and sovereign analyst&nbsp;Marie Diron reasoning that high debt levels and the saddled banking sector&nbsp;were key reasons for the status quo.

(WION with inputs from Reuters)

&nbsp;

India's total fiscal deficit is targeted at 6.4 per cent of GDP in 2016-17, which is higher than most G20 countries

The chief of India's central bank on Wednesday warned the federal government that not wresting a ballooning fiscal deficit might cause long-term economic damage. Reserve Bank of India governor Urjit Patel said not reducing the high borrowing levels was also hampering the country's sovereign ratings. Patel, speaking at an investors' summit in India's western Gujarat state, said both the federal government and state governments had to "take cognisance" of the matter to "mitigate financial volatility" in near future. India's total fiscal deficit is targeted at 6.4 per cent of GDP in 2016-17, which is above the norm for most emerging markets and G20 countries. In comparison, China's government deficit was a little above two percentage points in 2016. Patel's comments come weeks before the Narendra Modi administration is set to announce its annual budget. The high debt burden has also scuttled India's chance of upgrading credit rating. Recently, Reuters had reported that the Indian government had pushed Moody's to get a better rating from its existing Baa3 rating -- the lowest investment grade. But the international credit rating agency remained unmoved, with the company's senior vice president and sovereign analyst Marie Diron reasoning that high debt levels and the saddled banking sector were key reasons for the status quo. (WION with inputs from Reuters)

Reduce borrowing levels to avoid economic volatility, warns RBI