The fiscal deficit will overshoot to 3.5 per cent from the earlier estimate of 3.2 per cent in the current fiscal, ending March 31, Finance Minister Arun Jaitley said on Thursday.

The target has been fixed at 3.3 per cent for 2018-19 as against the Fiscal Responsibility and Budget Management Act target of 3 per cent.

<a href="http://www.wionews.com/business-economy/live-union-budget-2018-finance-minister-arun-jaitley-presents-budget-in-parliament-31380">Read: Full Budget Speech of Finance Minister Arun Jaitley</a>

Expressing the government&#39;s commitment to bring down the fiscal deficit, Jaitley said in his Budget speech that he has endeavoured to bring down the fiscal deficit from 4.1 per cent in 2014-15 to 3.9 per cent in the following year and further to 3.5 per cent in 2016-17.

Fiscal deficit has a bearing on sovereign rating of the country as well as the debt market.

<a href="http://www.wionews.com/business-economy/budget-2018-jaitley-promises-70-lakh-new-formal-jobs-in-2018-19-31446">Also Read: Jaitley promises 70 lakh new formal jobs in 2018-19</a>

FRBM Review Panel headed by former Revenue Secretary N K Singh had recommended debt to GDP ratio of 60 per cent by 2023 and fiscal deficit at 3 per cent for next 3 years.

Fiscal deficit has a bearing on sovereign rating of the country as well as the debt market.

The fiscal deficit will overshoot to 3.5 per cent from the earlier estimate of 3.2 per cent in the current fiscal, ending March 31, Finance Minister Arun Jaitley said on Thursday. The target has been fixed at 3.3 per cent for 2018-19 as against the Fiscal Responsibility and Budget Management Act target of 3 per cent. Read: Full Budget Speech of Finance Minister Arun Jaitley Expressing the government's commitment to bring down the fiscal deficit, Jaitley said in his Budget speech that he has endeavoured to bring down the fiscal deficit from 4.1 per cent in 2014-15 to 3.9 per cent in the following year and further to 3.5 per cent in 2016-17. Fiscal deficit has a bearing on sovereign rating of the country as well as the debt market. Also Read: Jaitley promises 70 lakh new formal jobs in 2018-19 FRBM Review Panel headed by former Revenue Secretary N K Singh had recommended debt to GDP ratio of 60 per cent by 2023 and fiscal deficit at 3 per cent for next 3 years.

Budget 2018: Govt misses fiscal deficit target; higher at 3.5% in FY'18

Eyeing rural populace, Union Finance Minister Arun Jaitley is likely to deliver his Budget speech in Hindi on Thursday.

If reports are to be believed, the main idea behind it is to establish a direct connect with the rural people.&nbsp;

This will be the last full Budget of the Narendra Modi government and agriculture is going to be the major focus area in the annual exercise.&nbsp;

By delivered in Hindi, Jaitley will not only become the first Union FM to do so since Independence, but this will also help in establishing the fact that the Budget is going to be an aam budget for aam aadmi.&nbsp;

The populist way of deciding to speak in Hindi is likely to strike a chord with the voters ahead of the Lok Sabha elections 2019.

In the Budget 2018, the Modi government is likely to give impetus to farm sector by providing bigger allocation for food subsidy to widen MSP-based intervention.

Schemes to pay difference between MSP and market price to farmers, nationwide loan waiver for farmers and bigger allocation for farm sector to improve infrastructure, will be other decisions in the Budget.

This will be the last full year Budget of the Narendra Modi government before elections in 2019

Eyeing rural populace, Union Finance Minister Arun Jaitley is likely to deliver his Budget speech in Hindi on Thursday. If reports are to be believed, the main idea behind it is to establish a direct connect with the rural people. This will be the last full Budget of the Narendra Modi government and agriculture is going to be the major focus area in the annual exercise. By delivered in Hindi, Jaitley will not only become the first Union FM to do so since Independence, but this will also help in establishing the fact that the Budget is going to be an aam budget for aam aadmi. The populist way of deciding to speak in Hindi is likely to strike a chord with the voters ahead of the Lok Sabha elections 2019. In the Budget 2018, the Modi government is likely to give impetus to farm sector by providing bigger allocation for food subsidy to widen MSP-based intervention. Schemes to pay difference between MSP and market price to farmers, nationwide loan waiver for farmers and bigger allocation for farm sector to improve infrastructure, will be other decisions in the Budget.

To strike chord with rural India, Jaitley delivers Budget speech in mix of Hindi & English

Union Finance Minister Arun Jaitley on Thursday announced that special measures will be implemented to tackle the rising pollution levels in Delhi and it&#39;s adjoining regions.&nbsp;

The budget focused on the problems people are suffering from the pollution and assured to provide ways to manage crop residue, a major reason behind the rising level of pollution.

&quot;Air Pollution in Delhi NCR is a cause for concern, special scheme will be implemented to support Govts of Haryana, Punjab,UP and Delhi NCT to address it and subsidize machinery for management of crop residue.&quot;

Jaitley is presenting the last full budget of NDA government.&nbsp;

Earlier, a high-level task force headed by Nripendra Misra, principal secretary to the Prime Minister, released a 12-point draft plan to tackle pollution in Delhi NCR.

The draft included measures such as a crop-burning management plan, annual studies on air quality and steps to bolster the region&rsquo;s crumbling public transport system. 
&nbsp;

Jaitley is presenting the last full budget of NDA government.

Union Finance Minister Arun Jaitley on Thursday announced that special measures will be implemented to tackle the rising pollution levels in Delhi and it's adjoining regions. The budget focused on the problems people are suffering from the pollution and assured to provide ways to manage crop residue, a major reason behind the rising level of pollution. "Air Pollution in Delhi NCR is a cause for concern, special scheme will be implemented to support Govts of Haryana, Punjab,UP and Delhi NCT to address it and subsidize machinery for management of crop residue." Jaitley is presenting the last full budget of NDA government. Earlier, a high-level task force headed by Nripendra Misra, principal secretary to the Prime Minister, released a 12-point draft plan to tackle pollution in Delhi NCR. The draft included measures such as a crop-burning management plan, annual studies on air quality and steps to bolster the region’s crumbling public transport system.

Budget 2018 focusses on rising pollution in Delhi-NCR, Jaitley assures special measures

The benchmark BSE Sensex surged 200 points and was traind at 36,152.44 as Finance Minister Arun Jaitley presented the Union Budget in the Lok Sabha.

The 30-share BSE index, which had lost 318.23 points in the previous two sessions, had recovered 171.38 points, ahead of the Budget presentation.

Similarly, the NSE Nifty moved up to 11,086.10.

Fresh positions created by retail and domestic institutional investors on hopes of an investor-friendly and growth-oriented budget lifted the sentiment, brokers said.

Besides, positive leads from other Asian markets, tracking overnight gains on the Wall Street following the Federal Reserve&#39;s decision to keep rates unchanged, influenced sentiments here, they said.

On the macro front, growth of the eight core sectors slowed to a five-month low of 4 per cent in December 2017 due to negative performance of segments like coal and crude oil, official data showed on Wednesday.

In Asian trade, Hong Kong&#39;s Hang Seng was up 0.24 per cent while Japan&#39;s Nikkei edged higher by 1.28 per cent in early trade on Thursday. Shanghai Composite Index, however, shed 0.97 per cent.

The US Dow Jones Industrial Average closed 0.28 per cent higher on Wednesday.

Fresh positions created by retail and domestic institutional investors on hopes of an investor-friendly and growth-oriented budget lifted the sentiment, brokers said.

The benchmark BSE Sensex surged 200 points and was traind at 36,152.44 as Finance Minister Arun Jaitley presented the Union Budget in the Lok Sabha. The 30-share BSE index, which had lost 318.23 points in the previous two sessions, had recovered 171.38 points, ahead of the Budget presentation. Similarly, the NSE Nifty moved up to 11,086.10. Fresh positions created by retail and domestic institutional investors on hopes of an investor-friendly and growth-oriented budget lifted the sentiment, brokers said. Besides, positive leads from other Asian markets, tracking overnight gains on the Wall Street following the Federal Reserve's decision to keep rates unchanged, influenced sentiments here, they said. On the macro front, growth of the eight core sectors slowed to a five-month low of 4 per cent in December 2017 due to negative performance of segments like coal and crude oil, official data showed on Wednesday. In Asian trade, Hong Kong's Hang Seng was up 0.24 per cent while Japan's Nikkei edged higher by 1.28 per cent in early trade on Thursday. Shanghai Composite Index, however, shed 0.97 per cent. The US Dow Jones Industrial Average closed 0.28 per cent higher on Wednesday.

Sensex surges over 200 points as Finance Minister Arun Jaitley presents Budget

A 28-year-old man, who the BJP claimed was a party worker, was hacked to death by a gang here following which two people were arrested in the case, police said on Thursday.

Santhosh was attacked by a four-member gang when he was returning home from a party last night, they said.

They said he was murdered over the previous enmity and added that two people were arrested in the case while a hunt was on for two others.

Meanwhile, the Karnataka unit of the BJP claimed that Santhosh was a party worker and the incident took place when he was putting up party flags and buntings in Chennappa Garden area in view of Prime Minister Narendra Modi&#39;s visit to the city on February 4.

In a tweet late last night, the Karnataka BJP said, &quot;Santhosh was found dead in a pool of blood after he was hacked near Channappa Garden, JC Nagar, Bengaluru.&quot;

&quot;When will this cycle of violence stop in Karnataka Santosh was stabbed in the thigh and died during treatment,&quot; it alleged.

On January 3, Deepak Rao (28), who was associated with the Bajrang Dal and the Vishwa Hindu Parishad, was killed, triggering tension in Dakshina Kannada district and leading to a retaliatory attack that claimed the life of Basheer (47).

A series of killings of Hindu activists in the state triggered a political slugfest between the ruling Congress and the BJP in recent months.

The BJP had alleged that the Congress government allowed &quot;jihadi forces&quot; to have a field day and to indulge in &quot;wanton killings&quot; of Hindu workers in pursuance of &quot;vote-bank politics&quot; and minority appeasement.

The Congress had charged the BJP with polarising the sensitive situation in the region with an eye on the upcoming Assembly polls due this year.&nbsp;

A series of killings of Hindu activists in the state triggered a political slugfest between the ruling Congress and the BJP in recent months

A 28-year-old man, who the BJP claimed was a party worker, was hacked to death by a gang here following which two people were arrested in the case, police said on Thursday. Santhosh was attacked by a four-member gang when he was returning home from a party last night, they said. They said he was murdered over the previous enmity and added that two people were arrested in the case while a hunt was on for two others. Meanwhile, the Karnataka unit of the BJP claimed that Santhosh was a party worker and the incident took place when he was putting up party flags and buntings in Chennappa Garden area in view of Prime Minister Narendra Modi's visit to the city on February 4. In a tweet late last night, the Karnataka BJP said, "Santhosh was found dead in a pool of blood after he was hacked near Channappa Garden, JC Nagar, Bengaluru." "When will this cycle of violence stop in Karnataka Santosh was stabbed in the thigh and died during treatment," it alleged. On January 3, Deepak Rao (28), who was associated with the Bajrang Dal and the Vishwa Hindu Parishad, was killed, triggering tension in Dakshina Kannada district and leading to a retaliatory attack that claimed the life of Basheer (47). A series of killings of Hindu activists in the state triggered a political slugfest between the ruling Congress and the BJP in recent months. The BJP had alleged that the Congress government allowed "jihadi forces" to have a field day and to indulge in "wanton killings" of Hindu workers in pursuance of "vote-bank politics" and minority appeasement. The Congress had charged the BJP with polarising the sensitive situation in the region with an eye on the upcoming Assembly polls due this year.

Man murdered in Karnataka by gang, BJP claims he was party worker

Union Finance Minister Arun Jaitley tabled the Budget for 2018 on Thursday.

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The <a href="http://www.wionews.com/india-news/top-takeaways-from-union-budget-2018-31457">budget 2018-19</a> focussed primarily on the rural and agricultural economy and promised a brighter future for the&nbsp;<a href="http://www.wionews.com/business-economy/budget-2018-government-to-set-up-worlds-largest-healthcare-programme-says-jaitley-31435">healthcare sector</a>.&nbsp;

<a href="http://www.wionews.com/business-economy/budget-2018-finance-minister-arun-jaitley-announces-no-change-in-personal-income-tax-slabs-31449">No change</a> has been proposed in personal Income tax slab rates.

Also, Jaitley decided to keep the tax rates of most of the products unchanged. However, the government has decided to rationalise customs duty for several products, a move that will impact the final price of many products.&nbsp;

This year&#39;s budget is likely to make <a href="http://www.wionews.com/business-economy/union-budget-2018-electronic-items-like-television-sets-mobile-phone-to-get-expensive-31469">electronic items </a>like laptops, mobile phones and television sets expensive.

Even though the middle class is not shelling money out of their wallets in terms of tax but they will now be entitled to pay higher prices for common items.&nbsp;

Also read:<a href="http://www.wionews.com/business-economy/as-expected-budget-2018-friendly-to-farmers-big-on-health-stocks-fall-31454">&nbsp;As expected, Budget 2018 friendly to farmers, big on health; stocks fall</a>

The <a href="http://www.wionews.com/india-news/budget-2018-reactions-common-man-not-so-delighted-with-jaitleys-decision-31472">common man</a> took to Twitter to voice their angst over how Jaitley&nbsp;&quot;looted&quot; the middle class.&nbsp;

Here are some of them:&nbsp;

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Friend : Did you see the budget?Middle class is screwed bro 
 
Me : Why? What happened? 
 
Friend : Tu budget dekh yaar. Middle Class is screwed bro.<a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; SAGAR (@sagarcasm) <a href="https://twitter.com/sagarcasm/status/958965651036672000?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Middle Class: Jaitley looted us. 
Jaitley: 
*Petrol price wil come down by 2Rs/L. 
*Personal Tax slabs unchanged. 
*National Health Protection Scheme launched. 
*GDP growth 7-7.5% 
*senior citizens get 50K medical exemption 
 
Middle Class : Don&#39;t know, Jaitley looted us.<a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Beanology (@followTheGupta) <a href="https://twitter.com/followTheGupta/status/958999160748953605?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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<a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a> 
 
Middle Class: Sir, hamaare liye kuch... 
 
Jaitley: <a href="https://t.co/X89ZT7OgXs">pic.twitter.com/X89ZT7OgXs</a>
&mdash; Chinmay Mishra (@Chinmay_Mishra_) <a href="https://twitter.com/Chinmay_Mishra_/status/958970442592718848?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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There&rsquo;s something for everyone in today&rsquo;s budget. 
 
Politicians - salary hike 
Corporate - tax cut 
 
Farmers - false promises 
Middle class - disappointment <a href="https://twitter.com/hashtag/AntiMiddleClassBudget?src=hash&amp;ref_src=twsrc%5Etfw">#AntiMiddleClassBudget</a>
&mdash; Jas Oberoi (@iJasOberoi) <a href="https://twitter.com/iJasOberoi/status/959079672351879168?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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<a href="https://twitter.com/hashtag/AntiMiddleClassBudget?src=hash&amp;ref_src=twsrc%5Etfw">#AntiMiddleClassBudget</a> Middle class getting burdened by 
1. Demonetization 
2. High GST taxes 
3. High petrol prices 
4. High LPG and food prices 
5. 10% Capital Gain Tax. 
 
Are these <a href="https://twitter.com/hashtag/AccheDin?src=hash&amp;ref_src=twsrc%5Etfw">#AccheDin</a> or Kacche Din?
&mdash; AAP Ka Vikram (@vikrameffects) <a href="https://twitter.com/vikrameffects/status/959074982994370560?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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&nbsp;

While some also questioned Modi as a&nbsp;leader with a sight to make changes in the 2019 elections.&nbsp;

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<a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a> No respite for hard working middle class from tax burden!! Why should an educated working class man vote for BJP next time? Why should he not influence 100 other uneducated voters to not vote for BJP in next election. We kept our patience for nothing. <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a>
&mdash; Gaurav Chaturvedi (@gauravchatur) <a href="https://twitter.com/gauravchatur/status/959021400492306432?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Its high time to show government, the power of middle class people <a href="https://twitter.com/hashtag/GetRidofModi?src=hash&amp;ref_src=twsrc%5Etfw">#GetRidofModi</a> <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Rakesh sharma (@rakesh974) <a href="https://twitter.com/rakesh974/status/958987131669622784?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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<a href="http://www.wionews.com/budget2018">Full Coverage of Budget 2018</a>

Arun Jaitley presented his fifth Budget today

Union Finance Minister Arun Jaitley tabled the Budget for 2018 on Thursday. × The budget 2018-19 focussed primarily on the rural and agricultural economy and promised a brighter future for the healthcare sector. No change has been proposed in personal Income tax slab rates. Also, Jaitley decided to keep the tax rates of most of the products unchanged. However, the government has decided to rationalise customs duty for several products, a move that will impact the final price of many products. This year's budget is likely to make electronic items like laptops, mobile phones and television sets expensive. Even though the middle class is not shelling money out of their wallets in terms of tax but they will now be entitled to pay higher prices for common items. Also read: As expected, Budget 2018 friendly to farmers, big on health; stocks fall The common man took to Twitter to voice their angst over how Jaitley "looted" the middle class. Here are some of them: Friend : Did you see the budget?Middle class is screwed bro Me : Why? What happened? Friend : Tu budget dekh yaar. Middle Class is screwed bro.#Budget2018 — SAGAR (@sagarcasm) February 1, 2018 × Middle Class: Jaitley looted us. Jaitley: *Petrol price wil come down by 2Rs/L. *Personal Tax slabs unchanged. *National Health Protection Scheme launched. *GDP growth 7-7.5% *senior citizens get 50K medical exemption Middle Class : Don't know, Jaitley looted us.#Budget2018 — Beanology (@followTheGupta) February 1, 2018 × #Budget2018 Middle Class: Sir, hamaare liye kuch... Jaitley: pic.twitter.com/X89ZT7OgXs — Chinmay Mishra (@Chinmay_Mishra_) February 1, 2018 × There’s something for everyone in today’s budget. Politicians - salary hike Corporate - tax cut Farmers - false promises Middle class - disappointment #AntiMiddleClassBudget — Jas Oberoi (@iJasOberoi) February 1, 2018 × #AntiMiddleClassBudget Middle class getting burdened by 1. Demonetization 2. High GST taxes 3. High petrol prices 4. High LPG and food prices 5. 10% Capital Gain Tax. Are these #AccheDin or Kacche Din? — AAP Ka Vikram (@vikrameffects) February 1, 2018 × While some also questioned Modi as a leader with a sight to make changes in the 2019 elections. #Budget2018 No respite for hard working middle class from tax burden!! Why should an educated working class man vote for BJP next time? Why should he not influence 100 other uneducated voters to not vote for BJP in next election. We kept our patience for nothing. @narendramodi — Gaurav Chaturvedi (@gauravchatur) February 1, 2018 × Its high time to show government, the power of middle class people #GetRidofModi #Budget2018 — Rakesh sharma (@rakesh974) February 1, 2018 × Full Coverage of Budget 2018

Budget 2018: 'Jaitley looted us', middle class reacts

On February 01, 2018, the Finance Minister Arun Jaitley will unveil the Union Budget 2018-19. This budget is very significant for the Modi government, as it is the first budget post-GST and the last full budget before the general election in 2019. To appease the voters, the government may announce some populist schemes. However, the government may not want to shatter the image of a reformist government. Therefore, we expect Budget 2018-19 to be a right mix of populism and reforms.

One such reform is LTCG (Long Term Capital Gain) Tax. For almost 13 years now, the issue of reinstating the long-term capital gains tax on listed equity shares pops up with unerring accuracy weeks before the Union Budget presentation. This year is no exception.

This time the rumour returned on the strength of a reported proposal by BSE Ltd. that the tax be reintroduced. Capital market and tax experts are divided on whether the tax ought to make a comeback.

When and why it was removed

Back in 2014, while presenting the Union Budget 2004-05, the then Finance Minister P Chidambaram had abolished LTCG tax on listed equities i.e. gains arising from sale on a stock exchange of equity shares held for more than a year.

But, he introduced the Security Service tax. The whole point of abolishing it was to encourage more people to get into the financial system and to bring the simplicity to the system through the Security Service Tax which you need to pay whether there is profit or loss and this system has stood for many years.

How this time the rumor started

On 24 December 2016, none other than Prime Minister Narendra Modi help restart the rumour when he mentioned it at an event hosted by the Securities Exchange Board of India.

&ldquo;For various reasons, the contribution of tax from those who make money on the markets has been low.... To some extent, the low contribution of taxes may also be due to the structure of our tax laws. Low or zero tax rate is given to certain types of financial income. We should consider methods for increasing it in a fair, efficient and transparent way.&rdquo;

Therefore, this time as the rumour is started by none other the Prime Minister himself, therefore, there is a huge chance that LTCG will resurface in some form or the other. Moreover, one of the main aims of abolishing it was to get more participant in the equity market and currently the retail participation is at its highest peak.

In what form could it be introduced

The Finance Minister may think of putting some concessional rate on the long-term capital gains but maybe an exception could be made for small investors and STT could be abolished.

If this happens, it would be a great decision as then more retail participation will happen and Government would also be able to fetch more tax from the big bulls of the stock market without dampening the mood of the small retail investor.

By Retail Investors, I mean someone who makes a gain of Rs 2-3 lakh a year on Long-term Capital Gains.

Definition of Long Term

Currently, any investment kept for more than a year is considered to be a long-term and anything less than that, is considered to be short-term and the Government imposes 15% taxes on the short-term capital Gain. Finance Minister in this budget may increase the Long-Term definition to 2 or 3 years.

If this happens, it would bring some pain to the retail investors, who liked to keep the stock for a short duration before selling but would not hamper the long-term investors a lot. However, the real winner would be our economy as we would see more investors sticking for longer periods.&nbsp;

At last, I would just say that irrespective of what the decision is, it should not just be based on the financial numbers but should still take care of the Retail Participants, as the whole removal of LTCG tax happened to enhance retail participation and we should not stop it when it is at its peak.

Moreover, whatever the policy is &ndash; It should be simple to understand i.e. the taxpayer should not be put under any undue burden of calculating the taxes.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

&nbsp;

Finance Minister may think of putting some concessional rate on the long-term capital gains but maybe an exception could be made for small investors.

On February 01, 2018, the Finance Minister Arun Jaitley will unveil the Union Budget 2018-19. This budget is very significant for the Modi government, as it is the first budget post-GST and the last full budget before the general election in 2019. To appease the voters, the government may announce some populist schemes. However, the government may not want to shatter the image of a reformist government. Therefore, we expect Budget 2018-19 to be a right mix of populism and reforms. One such reform is LTCG (Long Term Capital Gain) Tax. For almost 13 years now, the issue of reinstating the long-term capital gains tax on listed equity shares pops up with unerring accuracy weeks before the Union Budget presentation. This year is no exception. This time the rumour returned on the strength of a reported proposal by BSE Ltd. that the tax be reintroduced. Capital market and tax experts are divided on whether the tax ought to make a comeback. When and why it was removed Back in 2014, while presenting the Union Budget 2004-05, the then Finance Minister P Chidambaram had abolished LTCG tax on listed equities i.e. gains arising from sale on a stock exchange of equity shares held for more than a year. But, he introduced the Security Service tax. The whole point of abolishing it was to encourage more people to get into the financial system and to bring the simplicity to the system through the Security Service Tax which you need to pay whether there is profit or loss and this system has stood for many years. How this time the rumor started On 24 December 2016, none other than Prime Minister Narendra Modi help restart the rumour when he mentioned it at an event hosted by the Securities Exchange Board of India. “For various reasons, the contribution of tax from those who make money on the markets has been low.... To some extent, the low contribution of taxes may also be due to the structure of our tax laws. Low or zero tax rate is given to certain types of financial income. We should consider methods for increasing it in a fair, efficient and transparent way.” Therefore, this time as the rumour is started by none other the Prime Minister himself, therefore, there is a huge chance that LTCG will resurface in some form or the other. Moreover, one of the main aims of abolishing it was to get more participant in the equity market and currently the retail participation is at its highest peak. In what form could it be introduced The Finance Minister may think of putting some concessional rate on the long-term capital gains but maybe an exception could be made for small investors and STT could be abolished. If this happens, it would be a great decision as then more retail participation will happen and Government would also be able to fetch more tax from the big bulls of the stock market without dampening the mood of the small retail investor. By Retail Investors, I mean someone who makes a gain of Rs 2-3 lakh a year on Long-term Capital Gains. Definition of Long Term Currently, any investment kept for more than a year is considered to be a long-term and anything less than that, is considered to be short-term and the Government imposes 15% taxes on the short-term capital Gain. Finance Minister in this budget may increase the Long-Term definition to 2 or 3 years. If this happens, it would bring some pain to the retail investors, who liked to keep the stock for a short duration before selling but would not hamper the long-term investors a lot. However, the real winner would be our economy as we would see more investors sticking for longer periods. At last, I would just say that irrespective of what the decision is, it should not just be based on the financial numbers but should still take care of the Retail Participants, as the whole removal of LTCG tax happened to enhance retail participation and we should not stop it when it is at its peak. Moreover, whatever the policy is – It should be simple to understand i.e. the taxpayer should not be put under any undue burden of calculating the taxes. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Union Budget should ensure long-term investment to boost Indian economy

India unveiled its budget for the fiscal year starting April 1 on Thursday, in what is being seen as a test for Prime Minister Narendra Modi to maintain fiscal discipline without stifling economic growth ahead of general elections next year.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/union-budget-2018-full-text-of-finance-minister-arun-jaitleys-speech-to-parliament-31464" target="_blank">Full text of Finance Minister Arun Jaitley&#39;s speech to Parliament</a>

Here are the highlights of the budget for 2018-19 fiscal year.

New Income Tax Slab

Income Tax Slab for people less than 60 years for 2017-18

Income Slabs&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;Income tax rate in 2017-18 
Upto Rs. 2,50,000&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; Nil 
From Rs 2,50,001- Rs 5,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;5% 
From Rs.5,00,001- Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;20% 
Above Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30%

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for 2017-18

Income Slabs&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; Income Tax Rate for 2017-18 
Upto Rs. 3,00,000&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;Nil 
From Rs 3,00,001- Rs 5,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 5% 
From Rs.5,00,001- Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;20% 
Above Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30%

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For 2017-18

Income Slabs&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; Income Tax Rate for 2017-18

Upto Rs. 5,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Nil 
From Rs.5,00,001- Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;20% 
Above Rs.10,00,000&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30%

Fiscal deficit

Targets 2018/19 fiscal deficit at 3.3 percent of GDP, estimates current year at 3.5 percent - Bloomberg citing sources

Growth

Estimates 7.2 to 7.5 percent GDP growth in second half of current fiscal year.

Finance minister says &quot;firmly on path to achieve 8 percent plus growth soon&quot;.

Expenditure

Estimates 1.38 trillion rupees expenditure on health, education and social security.

Railway capital expenditure set at 1.49 trillion rupees for 2018/19.

Infrastructure

To spend 14.34 trillion Indian rupees ($225.50 billion) on rural infrastructure.

Banking/Lending

To soon announce measures to address bad loans of small and medium enterprises.

Proposes setting up 3 trillion rupees plan for lending for small enterprises.

Agriculture

Finance minister says will focus on strengthening rural, agriculture economy.

Sets 10 trillion rupees to 11 trillion rupees credit for &quot;agricultural activities&quot;.

Minimum support price of all crops to be increased to at least 1.5 times of production cost.

Export of agriculture commodities to be liberalised.

Education&nbsp; 
Government to increase digital intensity in education. Technology to be the biggest driver in improving quality of education. Rs. 1 lakh crore allocated to revitalisation and up-gradation of the education sector. By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalaya.&nbsp;

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Health/pollution

To provide 500,000 rupees per family annually for medical reimbursement under National Health Protection Scheme. Finance minister says the plan will protect 500 million poor people and will be world&#39;s largest health protection scheme.

To implement special schemes for governments around Delhi to address air pollution.

Removal of crop residue to be subsidized in order to tackle the problem of pollution due to the burning of crop residue.

Aviation

UDAN Scheme to connect 64 unconnected airports across the country. Airport Authority of India (AAI) has 124 airports. Propose to increase the number by at least 5 times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the initiative.

Rail Budget 2018&nbsp;

Finance Minister Arun Jaitley in his Union Budget 2018 speech announced a capital expenditure of Rs 1.48 lakh crore for Indian railways.&nbsp;

According to Jaitley most of this money will be spent on capacity expansion since that is the most important priority for railways right now. There is a target of doubling 18,000 km of lines and gauge conversion is underway to eliminate capacity constraints, FM Jaitley said for Railway Budget 2018.&nbsp;

Highlights of Rail Budget

Focus on safety first, maintenance of track infrastructure is being given special attention.

12,000 wagons, 5160 coaches and 700 locomotives being procured. There are significant achievements of physical targets by Railways.

All stations with more than 25,000 footfall will have escalators.

4267 unmanned railway crossing will be eliminated in next two years. All railway stations and trains will be provided WiFi and CCTVs progressively.

10 prominent tourist sites to be developed as iconic tourist spots.

Redevelopment of 600 major railway stations taken up; Mumbai transport system being expanded; the suburban network of 160 km planned for Bengaluru.

Foundation stone of the bullet train was laid in September 2017. An institute is coming up in Vadodara to train the manpower required for the high-speed railway projects.

Physical targets of Indian Railways is also improving. Work on dedicated freight corridors is on in full-swing &ndash; both east and west &ndash; announced FM Jaitley in the Railway Budget speech.

We have announced plans to set up a dedicated Railway University in Vadodara, said FM Arun Jaitley during his Union Budget 2018 speech.

(With inputs from Agencies)&nbsp;

Finance Minister Arun Jaitley presented the Union Budget 2018 in Parliament today. Continuing with the trend from last year, the Railways Budget was included in the general Budget.

India unveiled its budget for the fiscal year starting April 1 on Thursday, in what is being seen as a test for Prime Minister Narendra Modi to maintain fiscal discipline without stifling economic growth ahead of general elections next year. Also read: Full text of Finance Minister Arun Jaitley's speech to Parliament Here are the highlights of the budget for 2018-19 fiscal year. New Income Tax Slab Income Tax Slab for people less than 60 years for 2017-18 Income Slabs Income tax rate in 2017-18 Upto Rs. 2,50,000 Nil From Rs 2,50,001- Rs 5,00,000 5% From Rs.5,00,001- Rs.10,00,000 20% Above Rs.10,00,000 30% Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for 2017-18 Income Slabs Income Tax Rate for 2017-18 Upto Rs. 3,00,000 Nil From Rs 3,00,001- Rs 5,00,000 5% From Rs.5,00,001- Rs.10,00,000 20% Above Rs.10,00,000 30% Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For 2017-18 Income Slabs Income Tax Rate for 2017-18 Upto Rs. 5,00,000 Nil From Rs.5,00,001- Rs.10,00,000 20% Above Rs.10,00,000 30% Fiscal deficit Targets 2018/19 fiscal deficit at 3.3 percent of GDP, estimates current year at 3.5 percent - Bloomberg citing sources Growth Estimates 7.2 to 7.5 percent GDP growth in second half of current fiscal year. Finance minister says "firmly on path to achieve 8 percent plus growth soon". Expenditure Estimates 1.38 trillion rupees expenditure on health, education and social security. Railway capital expenditure set at 1.49 trillion rupees for 2018/19. Infrastructure To spend 14.34 trillion Indian rupees ($225.50 billion) on rural infrastructure. Banking/Lending To soon announce measures to address bad loans of small and medium enterprises. Proposes setting up 3 trillion rupees plan for lending for small enterprises. Agriculture Finance minister says will focus on strengthening rural, agriculture economy. Sets 10 trillion rupees to 11 trillion rupees credit for "agricultural activities". Minimum support price of all crops to be increased to at least 1.5 times of production cost. Export of agriculture commodities to be liberalised. Education Government to increase digital intensity in education. Technology to be the biggest driver in improving quality of education. Rs. 1 lakh crore allocated to revitalisation and up-gradation of the education sector. By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalaya. × Health/pollution To provide 500,000 rupees per family annually for medical reimbursement under National Health Protection Scheme. Finance minister says the plan will protect 500 million poor people and will be world's largest health protection scheme. To implement special schemes for governments around Delhi to address air pollution. Removal of crop residue to be subsidized in order to tackle the problem of pollution due to the burning of crop residue. Aviation UDAN Scheme to connect 64 unconnected airports across the country. Airport Authority of India (AAI) has 124 airports. Propose to increase the number by at least 5 times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the initiative. Rail Budget 2018 Finance Minister Arun Jaitley in his Union Budget 2018 speech announced a capital expenditure of Rs 1.48 lakh crore for Indian railways. According to Jaitley most of this money will be spent on capacity expansion since that is the most important priority for railways right now. There is a target of doubling 18,000 km of lines and gauge conversion is underway to eliminate capacity constraints, FM Jaitley said for Railway Budget 2018. Highlights of Rail Budget Focus on safety first, maintenance of track infrastructure is being given special attention. 12,000 wagons, 5160 coaches and 700 locomotives being procured. There are significant achievements of physical targets by Railways. All stations with more than 25,000 footfall will have escalators. 4267 unmanned railway crossing will be eliminated in next two years. All railway stations and trains will be provided WiFi and CCTVs progressively. 10 prominent tourist sites to be developed as iconic tourist spots. Redevelopment of 600 major railway stations taken up; Mumbai transport system being expanded; the suburban network of 160 km planned for Bengaluru. Foundation stone of the bullet train was laid in September 2017. An institute is coming up in Vadodara to train the manpower required for the high-speed railway projects. Physical targets of Indian Railways is also improving. Work on dedicated freight corridors is on in full-swing – both east and west – announced FM Jaitley in the Railway Budget speech. We have announced plans to set up a dedicated Railway University in Vadodara, said FM Arun Jaitley during his Union Budget 2018 speech. (With inputs from Agencies)

Watch: Key highlights of Budget 2018

Former Prime Minister and economist Manmohan Singh today expressed his disappointment on 2018 budget presented by Arun Jaitley in the parliament on Thursday.

Contradicting policies such as increasing farmer&#39;s income in double, Manmohan Singh said unless agriculture grows at 12% such expectations can&#39;t be met.

Reacting the budget Manmohan also said that the budget for 2018-19 doesn&#39;t have provision for the schemes announced.

He also asked to have a separate discussion in parliament on the issues like farmers, job, health and education as the budget hasn&#39;t provided any assurance for the schemes that have been announced.

Arun Jaitley on Thursday presented NDA government&#39;s last full-year budget ahead of the general elections in 2019.

Jaitley had earlier tabled the &nbsp;Economic Survey on Monday targeting a 7-7.5 per cent growth in 2018-19.&nbsp;

While presenting the budget Finance minister said that the special focus has been placed on strengthening rural, agriculture economy and announced 10 trillion rupees to 11 trillion rupees credit for agricultural activities.

Jaitley also announced to double farmers&#39; income by 2022 and said, &quot;we are committed to achieving that. Our emphasis is on generating higher income for farmers.&quot;

 
&nbsp;

While presenting the budget Finance minister said that the special focus has been placed on strengthening rural, agriculture economy and announced 10 trillion rupees to 11 trillion rupees credit for agricultural activities

Former Prime Minister and economist Manmohan Singh today expressed his disappointment on 2018 budget presented by Arun Jaitley in the parliament on Thursday. Contradicting policies such as increasing farmer's income in double, Manmohan Singh said unless agriculture grows at 12% such expectations can't be met. Reacting the budget Manmohan also said that the budget for 2018-19 doesn't have provision for the schemes announced. He also asked to have a separate discussion in parliament on the issues like farmers, job, health and education as the budget hasn't provided any assurance for the schemes that have been announced. Arun Jaitley on Thursday presented NDA government's last full-year budget ahead of the general elections in 2019. Jaitley had earlier tabled the Economic Survey on Monday targeting a 7-7.5 per cent growth in 2018-19. While presenting the budget Finance minister said that the special focus has been placed on strengthening rural, agriculture economy and announced 10 trillion rupees to 11 trillion rupees credit for agricultural activities. Jaitley also announced to double farmers' income by 2022 and said, "we are committed to achieving that. Our emphasis is on generating higher income for farmers."

Budget 2018: Manmohan Singh says doubling farmers' income is not possible

In the post-Budget meeting, finance minister <a href="http://www.wionews.com/business-economy/healthcare-in-budget-india-lags-behind-us-china-in-doctor-patient-ratio-31515">Arun Jaitley said it is India&#39;s </a>first Budget post-GST.

On corporate tax, the finance minister asserted that companies are paying less than 25 per cent in corporate tax, saying that out of the 6 lakh companies, 5 lakh, 93 thousand&nbsp;companies have been covered under the tax net. In effect, covering the entire gamut of small and medium companies.

<a href="http://www.wionews.com/business-economy/union-budget-2018-electronic-items-like-television-sets-mobile-phone-to-get-expensive-31469">Also Read: Electronic items like mobile phones, television sets to get expensive&nbsp;</a>

The 7,000 big companies are out of it, he added, saying they won&#39;t always be out of the net since it was part of the roadmap.

The finance minister pointed out that the 7,000 companies actually availed all the exemptions and still payed&nbsp;22 to 23 per cent tax.

The exemptions will gradually be done away with, he said.

He said the services sector is doing well, even though manufacturing was looking weak for a few months.

The weak spot was the agricultural sector, he said. It posed the greatest challenge, the finance minister added.

The finance minister said the Ujjawala Yogana has been successful so increasing the budgetary allocation was needed, adding that his government&#39;s healthcare scheme was the centerpiece of the Budget.

The minister said out of the 25 crore families in India, the bottom 10 crore family which constitute 40 per cent of the population will benefit from the new healthcare plan.

&quot;The poor families will now have an insurance card and can go to any hospital and show their card to avail health benefits,&quot; he said.

&quot;We can make this scheme universal, then the world will have to acknowledge that whether Obamacare became successful or not, &#39;Modicare&#39;&nbsp;can definitely be made successful,&quot; the finance minister said.

On the question of funding of&nbsp;&quot;Modicare&quot;, the minister said it was mainly an operational detail&nbsp;and that it would be funded by the government.

&quot;The healthcare plan is a major step in ensuring social security of the country,&quot; the minister said.

 
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&nbsp;

&nbsp;

The finance minister said the Ujjawala Yogana has been successful so increasing the budgetary allocation was needed

In the post-Budget meeting, finance minister Arun Jaitley said it is India's first Budget post-GST. On corporate tax, the finance minister asserted that companies are paying less than 25 per cent in corporate tax, saying that out of the 6 lakh companies, 5 lakh, 93 thousand companies have been covered under the tax net. In effect, covering the entire gamut of small and medium companies. Also Read: Electronic items like mobile phones, television sets to get expensive The 7,000 big companies are out of it, he added, saying they won't always be out of the net since it was part of the roadmap. The finance minister pointed out that the 7,000 companies actually availed all the exemptions and still payed 22 to 23 per cent tax. The exemptions will gradually be done away with, he said. He said the services sector is doing well, even though manufacturing was looking weak for a few months. The weak spot was the agricultural sector, he said. It posed the greatest challenge, the finance minister added. The finance minister said the Ujjawala Yogana has been successful so increasing the budgetary allocation was needed, adding that his government's healthcare scheme was the centerpiece of the Budget. The minister said out of the 25 crore families in India, the bottom 10 crore family which constitute 40 per cent of the population will benefit from the new healthcare plan. "The poor families will now have an insurance card and can go to any hospital and show their card to avail health benefits," he said. "We can make this scheme universal, then the world will have to acknowledge that whether Obamacare became successful or not, 'Modicare' can definitely be made successful," the finance minister said. On the question of funding of "Modicare", the minister said it was mainly an operational detail and that it would be funded by the government. "The healthcare plan is a major step in ensuring social security of the country," the minister said.

Don't know about Obamacare but 'Modicare' can definitely become successful: Jaitley

As the government unveils its 2018-19 budget today, all eyes will be on whether the authorities stay the course on containing the fiscal deficit, or whether they throw caution to the wind with a populist set of spending priorities.

Facing discontent at home over falling farm incomes and a backlash following policy initiatives that have dented growth, Prime Minister Narendra Modi will be aiming to woo rural voters and small business owners in the last full budget before a general election that must be held by May 2019.&nbsp;

While economic growth has been slowed by the botched rollout of a nationwide goods and service tax (GST) in 2017, and a shock move to ban high-value currency notes in late 2016, investors have so far looked beyond the setbacks, perceiving the initiatives as being positive in the long term.&nbsp;

Benchmark 10-year bond yields have fallen 135 basis points and the NSE share index has surged 55 percent since Modi took power in May 2014.

To keep investors on the side, however, Modi will have to convince them that he plans to keep to his word on working towards reining in the fiscal deficit.

A Reuters poll this week showed most economists expect a 3.2 percent deficit in 2018-19, as the government looks to increase investments in areas such as agriculture. Anything much beyond that, however, may draw a swift sell-off in the markets.

Investors were already spooked this week after India&#39;s Chief Economic Advisor Arvind Subramanian, in an economic survey ahead of the budget, suggested &quot;a pause&quot; in the fiscal consolidation path, while the government attempts to reinvigorate growth.

Indian shares fell for a second consecutive session on Wednesday, as investors opted to book profits ahead of the budget, with markets trading near all-time highs.

The benchmark 10-year bond yield closed flat at 7.60 percent on Wednesday, but it is up 13 basis points from its close on Friday after Subramanian`s comments.&nbsp;

Facing discontent over falling farm incomes and a backlash following policy initiatives that have dented growth, Prime Minister Modi will be aiming to woo rural voters and small business owners

As the government unveils its 2018-19 budget today, all eyes will be on whether the authorities stay the course on containing the fiscal deficit, or whether they throw caution to the wind with a populist set of spending priorities. Facing discontent at home over falling farm incomes and a backlash following policy initiatives that have dented growth, Prime Minister Narendra Modi will be aiming to woo rural voters and small business owners in the last full budget before a general election that must be held by May 2019. While economic growth has been slowed by the botched rollout of a nationwide goods and service tax (GST) in 2017, and a shock move to ban high-value currency notes in late 2016, investors have so far looked beyond the setbacks, perceiving the initiatives as being positive in the long term. Benchmark 10-year bond yields have fallen 135 basis points and the NSE share index has surged 55 percent since Modi took power in May 2014. To keep investors on the side, however, Modi will have to convince them that he plans to keep to his word on working towards reining in the fiscal deficit. A Reuters poll this week showed most economists expect a 3.2 percent deficit in 2018-19, as the government looks to increase investments in areas such as agriculture. Anything much beyond that, however, may draw a swift sell-off in the markets. Investors were already spooked this week after India's Chief Economic Advisor Arvind Subramanian, in an economic survey ahead of the budget, suggested "a pause" in the fiscal consolidation path, while the government attempts to reinvigorate growth. Indian shares fell for a second consecutive session on Wednesday, as investors opted to book profits ahead of the budget, with markets trading near all-time highs. The benchmark 10-year bond yield closed flat at 7.60 percent on Wednesday, but it is up 13 basis points from its close on Friday after Subramanian`s comments.

Close watch on fiscal deficit as India unveils Budget today

The last full-fledged budget of the Narendra Modi-led government and the first one after GST rollout is much anticipated. With the day finally arriving today, speculation about Union Budget 2018 is rife across the country.

Various sectors such as e-commerce, health, agriculture, education, Information Technology (IT), and manufacturing among others expect major policy initiatives which will drive growth and support development and expansion.

Here are a few sectors which will most likely benefit from Union Budget 2018:

- Union Budget 2017, the first budget post demonetisation, boosted digital operations and transactions in the country. With the `Digital India` initiative, high on Prime Minister Narendra Modi`s agenda, Union Budget 2018 too, is expected to give a major push to digitization.

- Industry experts also believe that the budget will focus more on the rural distress. Job programs, irrigation projects, and improvement of health infrastructure in rural India is expected to get a push.

- The previous Budgets presented by Finance Minister Arun Jaitley have been all development oriented. One can expect the same from Union Budget 2018 as well. Employment-intensive sectors will most likely be boosted. And since the MSME sector in India plays a crucial role in providing large-scale employment at a comparatively lower capital cost; new schemes and initiatives can be expected.

- In Budget 2018, the government may reportedly also tweak income tax slabs and rates. Multiple deductions might be replaced with a standard deduction to reduce the tax burden on consumers.

- Union Budget 2017 saw the merger of the Railway Budget with the General Budget. Further, Economic Survey 2017-18 stated that during 2017-18 (up to September 2017) the Indian Railways carried 558.10 million tonnes of revenue earning freight traffic as against 531.23 million tonnes during the corresponding period of previous year, showing an increase of 5.06 percent during this period. It is expected that Union Budget 2018 will lay emphasis on railways infrastructure development.

- The Economic Survey 2017-18 focused on the need to address the issues of pendency, delays and backlogs in the appellate and judicial arenas towards Ease of Doing Business. These issues, it said hamper dispute resolution and contract enforcement, discourage investment, stall projects, hamper tax collection, stress taxpayers and escalate legal costs. The survey emphasized the importance of an effective, efficient and expeditious contract enforcement regime for economic growth and development. Budget 2018 is expected to provide a way out.

- Controlling inflation has been a priority area for the Modi-led government. And the government has taken a number of measures for this purpose in the past. From regular review meetings on prices and availability to the implementation of Price Stabilization Fund (PSF), strict measures have been taken to control inflation numbers. Budget 2018 is expected to do just the same.

- The Economic Survey also pointed out that low level of tax collections by the local governments in rural areas is posing a challenge in reconciling fiscal federalism and accountability in the country. Unlike in other countries, reliance on direct taxes in India seems to be declining, a trend that will be reinforced if the Goods and Services Tax (GST) proves to be a buoyant source of revenue. Budget 2018, among other things, will extensively look to stabilise GST in the country.

On a related note, with this budget, Arun Jaitley has joined an elite group of finance ministers who have had the opportunity to present the Union Budget over five times. Yashwant Sinha, P. Chidambaram, and Pranab Mukherjee have all presented the budget five or more times in Parliament. &nbsp;

Industry experts believe the budget will focus on rural distress. Job programmes, irrigation projects, and improvement of health infrastructure in rural India are expected to get a push

The last full-fledged budget of the Narendra Modi-led government and the first one after GST rollout is much anticipated. With the day finally arriving today, speculation about Union Budget 2018 is rife across the country. Various sectors such as e-commerce, health, agriculture, education, Information Technology (IT), and manufacturing among others expect major policy initiatives which will drive growth and support development and expansion. Here are a few sectors which will most likely benefit from Union Budget 2018: - Union Budget 2017, the first budget post demonetisation, boosted digital operations and transactions in the country. With the `Digital India` initiative, high on Prime Minister Narendra Modi`s agenda, Union Budget 2018 too, is expected to give a major push to digitization. - Industry experts also believe that the budget will focus more on the rural distress. Job programs, irrigation projects, and improvement of health infrastructure in rural India is expected to get a push. - The previous Budgets presented by Finance Minister Arun Jaitley have been all development oriented. One can expect the same from Union Budget 2018 as well. Employment-intensive sectors will most likely be boosted. And since the MSME sector in India plays a crucial role in providing large-scale employment at a comparatively lower capital cost; new schemes and initiatives can be expected. - In Budget 2018, the government may reportedly also tweak income tax slabs and rates. Multiple deductions might be replaced with a standard deduction to reduce the tax burden on consumers. - Union Budget 2017 saw the merger of the Railway Budget with the General Budget. Further, Economic Survey 2017-18 stated that during 2017-18 (up to September 2017) the Indian Railways carried 558.10 million tonnes of revenue earning freight traffic as against 531.23 million tonnes during the corresponding period of previous year, showing an increase of 5.06 percent during this period. It is expected that Union Budget 2018 will lay emphasis on railways infrastructure development. - The Economic Survey 2017-18 focused on the need to address the issues of pendency, delays and backlogs in the appellate and judicial arenas towards Ease of Doing Business. These issues, it said hamper dispute resolution and contract enforcement, discourage investment, stall projects, hamper tax collection, stress taxpayers and escalate legal costs. The survey emphasized the importance of an effective, efficient and expeditious contract enforcement regime for economic growth and development. Budget 2018 is expected to provide a way out. - Controlling inflation has been a priority area for the Modi-led government. And the government has taken a number of measures for this purpose in the past. From regular review meetings on prices and availability to the implementation of Price Stabilization Fund (PSF), strict measures have been taken to control inflation numbers. Budget 2018 is expected to do just the same. - The Economic Survey also pointed out that low level of tax collections by the local governments in rural areas is posing a challenge in reconciling fiscal federalism and accountability in the country. Unlike in other countries, reliance on direct taxes in India seems to be declining, a trend that will be reinforced if the Goods and Services Tax (GST) proves to be a buoyant source of revenue. Budget 2018, among other things, will extensively look to stabilise GST in the country. On a related note, with this budget, Arun Jaitley has joined an elite group of finance ministers who have had the opportunity to present the Union Budget over five times. Yashwant Sinha, P. Chidambaram, and Pranab Mukherjee have all presented the budget five or more times in Parliament.

Budget 2018: All eyes on Jaitley's briefcase, here's what to expect

Finance minister <a href="http://www.wionews.com/business-economy/budget-2018-government-to-set-up-worlds-largest-healthcare-programme-says-jaitley-31435">Jaitley today declared while presenting</a> the Budget that the government&nbsp;has set the world&#39;s largest healthcare programme.

In the real terms,<a href="http://www.wionews.com/india-news/industry-leaders-hail-national-healthcare-programme-31508"> India spends Rs 30,000 around $470 per</a>&nbsp;person in below poverty level(BPL) family.

In Jaitley&#39;s Budget this time, the amount has gone upto to Rs 500,000 which is approximately $7830 for a BPL family. The new healtcare plan unveiled in the Budget is expected to benefit 500 million Indians.

There are 132 million Indians already under the health scheme.

Compared to India, in the US a taxpayer spends $7,000 on healthcare with multiple state and federal health insurances present in the system. There is no cap on coverage but it involves complex conditions.

As far as the health of the country is concerned, India still has the highest incidences of tuberculosis in the world. Reports say 4,20,000 Indians died of tuberculosis in 2016.

As a result, India has upped spending on tuberculosis since last year.

The 2018 Budget has not announced any allocation for cancer treatment, even though 1 million new cancer cases are detected every year in India, according to the WHO.

The finance minister will need to revamp&nbsp;761 district hospitals in the country, although the Budget hasn&#39;t announced any hospitals would be built.

The current doctor-patient ratio in northeast and central India is 9.4 to 100,000. In other areas, it is much better at 159 to 100,000 which is about 15.9 doctors for&nbsp;10,000 people.

In the US, the current doctor-patient ratio is 39.8 doctors for 10,000 people.&nbsp;The current budget does not address the doctor-patient ratio in India.

Further, India has just 9 hospital beds per 10,000 for its rural population, far behind the US which has 46 hospital beds and China which has 42 per 10,000 people.

The current doctor-patient ratio in northeast and central India is 9.4 to 100,000.

Finance minister Jaitley today declared while presenting the Budget that the government has set the world's largest healthcare programme. In the real terms, India spends Rs 30,000 around $470 per person in below poverty level(BPL) family. In Jaitley's Budget this time, the amount has gone upto to Rs 500,000 which is approximately $7830 for a BPL family. The new healtcare plan unveiled in the Budget is expected to benefit 500 million Indians. There are 132 million Indians already under the health scheme. Compared to India, in the US a taxpayer spends $7,000 on healthcare with multiple state and federal health insurances present in the system. There is no cap on coverage but it involves complex conditions. As far as the health of the country is concerned, India still has the highest incidences of tuberculosis in the world. Reports say 4,20,000 Indians died of tuberculosis in 2016. As a result, India has upped spending on tuberculosis since last year. The 2018 Budget has not announced any allocation for cancer treatment, even though 1 million new cancer cases are detected every year in India, according to the WHO. The finance minister will need to revamp 761 district hospitals in the country, although the Budget hasn't announced any hospitals would be built. The current doctor-patient ratio in northeast and central India is 9.4 to 100,000. In other areas, it is much better at 159 to 100,000 which is about 15.9 doctors for 10,000 people. In the US, the current doctor-patient ratio is 39.8 doctors for 10,000 people. The current budget does not address the doctor-patient ratio in India. Further, India has just 9 hospital beds per 10,000 for its rural population, far behind the US which has 46 hospital beds and China which has 42 per 10,000 people.

Budget healthcare challenge: India lags behind US, China in doctor-patient ratio

This is arguably Finance Minister's toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence

Union Finance Minister Arun Jaitley is presenting NDA government's last full-year budget ahead of the general elections next year. Jaitley had earlier tabled the Economic Survey on Monday targeting a 7-7.5 per cent growth in 2018-19. This year's budget session is crucial as it would be the first union budget to be presented under the Goods and Services Tax (GST) regime. All sectors and citizens of the country have high expectations from Jaitley. Here are the key points of Finance Minister Arun Jaitley's speech: No change has been proposed in personal Income Tax slab rates. Standard deduction to the salaried class of INR 40,000 in place of Medical expense reimbursements and Transport allowance. Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh, senior citizens allowed Rs 50,000 deduction on health insurance premium paid in a year from earlier Rs 30,000. Rs 8,000 crore revenue lost due to the standard deduction allowed to salaried employees. Companies with turnover of upto Rs. 250 cr to be taxed at 25%. × Demonetisation was received by honest tax-payers as 'Imaandari ka Utsav'. × 100% tax rebate for farmer producer companies having a turnover of Rs. 100 cr. × Focus on rural housing, rural roads and rural infra spend will push up employment. × Power, LPG via Ujala and Saubhagya remains the area of concern for discoms, OMCs because of lack of recovery. × Government to formulate a comprehensive gold policy to develop gold as an asset class; gold monetisation scheme to be revamped. × MP salaries to be revised with effect from 1 April, 2018. It will increase every 5 years indexed to inflation. × For Year 2018 fiscal deficit at 5.95 lakh crore (3.5% of GDP) as against expected 3.2%.For Year 2019 fiscal deficit pegged at 3.3 of GDP.Govt committed to revised fiscal glide path. × Salary of President raised to Rs 5 lakh.Vice-President salary raised to Rs 4 lakh, Guvs salary raised to Rs 3.5 lakh. × Government sets Rs 80,000 crore disinvestment target for 2018-19. × Govt does not consider cryptocurrency as legal tender or coin and will take all measures to eliminate its use in financing illegitimate activities. × Niti Aayog will establish a national programme to direct efforts towards Artificial Intelligence, including research and development of its applications. × The govt proposes to expand India's airport capacity from what it is now to more than 5 times. × 56 unserved airports and 31 unserved helipads will be covered for usage by civilians. People wearing Hawai Chappal will also be able to use Hawai Jahaj. × National Highways exceeding 9,000-km will be completed in 2018-19. × Rail Budget 2018 Finance Minister Arun Jaitley in his Union Budget 2018 speech announced a capital expenditure of Rs 1.48 lakh crore for Indian railways. According to Jaitley most of this money will be spent on capacity expansion since that is the most important priority for railways right now. There is a target of doubling 18,000 km of lines and gauge conversion is underway to eliminate capacity constraints, FM Jaitley said for Railway Budget 2018. Highlights of Rail Budget Focus on safety first, maintenance of track infrastructure is being given special attention. 12,000 wagons, 5160 coaches and 700 locomotives being procured. There are significant achievements of physical targets by Railways. All stations with more than 25,000 footfall will have escalators. 4267 unmanned railway crossing will be eliminated in next two years. All railway stations and trains will be provided WiFi and CCTVs progressively. 10 prominent tourist sites to be developed as iconic tourist spots. Redevelopment of 600 major railway stations taken up; Mumbai transport system being expanded; the suburban network of 160 km planned for Bengaluru. Foundation stone of the bullet train was laid in September 2017. An institute is coming up in Vadodara to train the manpower required for the high-speed railway projects. Physical targets of Indian Railways is also improving. Work on dedicated freight corridors is on in full-swing – both east and west – announced FM Jaitley in the Railway Budget speech. We have announced plans to set up a dedicated Railway University in Vadodara, said FM Arun Jaitley during his Union Budget 2018 speech. 70 lakh formal jobs have been created this year. Govt will contribute 12% of the wages as EPF in all sectors for the next three years. Contributions from women employees will be brought down from 12% to 8%. × Loans to women self-help groups increased 37% year over year. × AMRUT program to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19,428 core awarded. × 115 aspiration districts identified taking various indices of development into consideration, quality of life to be improved in these districts. × Technology will be the biggest driver in improving quality of education. We propose to increase the digital intensity in education and move gradually from blackboard to digital board. × Target of 3 lakh crore for lending under PM MUDRA Yojana. × Mass formalization of MSME sector is happening after demonetization and GST. × Rural infra, livelihood expenditure to be Rs 14.34 lakh cr in 2018-19. × National Health Protection Schemes to cover 10 crore poor and vulnerable families. It will benefit 50 crore poor people. Rs. 5 lakh per family per year will be provided for poor families for hospital treatments. × 24 new govt medical colleges and hospitals to be set up by upgrading existing district hospitals. × Food processing allocation doubled. Food processing sector growing at 8%. × Govt to launch 'Revitalising Infrastructure and Systems in Education by 2022. × National Livelihood Mission allocated Rs. 5,750 cr in 2018-19. × Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education. × Rs 14.34 lakh crore rupees to be spent for rural infrastructure. × By 2022, every block with more than 50% ST population will have an Eklavya Model Residential School. × Fishery and Aquaculture Development Fund and Animal Husbandry Infrastructure Fund with a total corpus of Rs. 10,000 Crore will be set up. × Proposed to raise institutional credit for agriculture to Rs 11 Lakh Crore for 2018-19. × Hardwork of farmers resulted in a record production of more than 275 million tonnes of food grain and about 300 million tonnes of horticultural produce. × Restructured National Bamboo Mission to be launched with an allocation of 1290 crore rupees to promote bamboo sector in a holistic manner. × MSP of crops shall be increased to 1.5 times that of the production cost. × Rs 500 crore allotted for Operation Green. × The manufacturing sector is back on growth path; Exports are expected to grow by 15% in 2017-18. × Government proposes to launch 'Operation Greens' on the lines of Operation Flood'. × Government proposes to launch 'Operation Greens' along the lines of Operation Flood'. × India now a global success story because of direct transfer benefits that citizens have been provided with. × Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets. × I am very happy to announce that minimum support price has been set at 1.5 times the production cost for kharif crops: Finance Minister × Latest technology provided to farmers: Finance Minister × More than 80 per cent of our farmers are small and marginal: FM × Our economy is on course to achieve high growth rate of 8%. Economy to grow at 7.2-7.5% in second half of 2018-19: Finance Minister × FDI has gone up and it is easier to do business in India; Indian economy is now a 2.5 trillion economy: Finance Minister × The Direct Benefit Transfer scheme that we have undertaken is the biggest such exercise in the world and is a global success story: FM × Structural reforms undertaken by the NDA government will help Indian economy achieve strong growth in medium and long term: FM × As we have pointed out, increasing production is fine. The problem is getting farmers 50% profit margin on top of production costs. × PM Narendra Modi has always stressed on the importance of good governance. This vision has inspired Government agencies to carry out several reforms: FM × Indian economy is on course to achieve high growth of 8 %. Economy to grow at 7.2-7.5% in second half of 2018-19: FM Jaitley × Indian economy has performed very well since our Govt took over in may 2014, It is now the seventh largest in the world: FM Jaitley × The growth of the economy at 6.3% in second quarter signalled a turnaround in economy. We hope to target 7.2 to 7.5% growth: FM × This govt has ended policy paralysis. India was in fragile five group. Today, India is one of the fastest growing economies in the world: Finance Minister × Modi govt has successfully implemented series of structural reforms. FDI has gone up, measures brought have made business to be done easily. Indirect system has been made simpler: FM Arun Jaitley × When we took over, India was considered one of the fragile five. We have successfully reversed this, India now among the fastest growing economies in the world: Finance Minister × Jaitley rises to present the Budget 2018-19. The Session begins. Lok Sabha Speaker Sumitra Mahajan speaks. Finance Minister Arun Jaitley will present the Budget shortly.

Budget 2018: Govt is focusing on rural and agricultural economy, says Arun Jaitley

<a href="http://www.wionews.com/business-economy/as-expected-budget-2018-friendly-to-farmers-big-on-health-stocks-fall-31454" target="_blank">Union Finance Minister Arun Jaitley</a>&nbsp;on Thursday presented Budget 2018, the&nbsp;<a href="http://www.wionews.com/india-news/budget-2018-focused-on-all-sectors-will-accelerate-economic-growth-pm-modi-31463" target="_blank">Narendra Modi government&rsquo;s last full budget</a>&nbsp;before the 2019 Lok Sabha elections.

A large share of as much as 76% of loan accounts are those of women with around 50% belonging to SC, ST, OBC women.&nbsp;

<a href="http://www.wionews.com/india-news/top-takeaways-from-union-budget-2018-31457">Jaitley&#39;s 2018 budget</a> will target a total lending of Rs 3 lakh crore under the&nbsp;Mudra Yojana which gives loans to women to encourage them to start new ventures.

Secondly, Jaitley announced free gas connections for women under the&nbsp;Ujjwala Yojana which will&nbsp;rise to 8 crore connections from the current 5 crore 
 
&quot;Modi govt&#39;s decision to provide 8 crore gas connections under the historic PM Ujjwala Yojana is a landmark decision. It is a testimony of government&#39;s commitment towards women empowerment and improving the quality of lives of poor, both urban and rural,&quot; said BJP president Amit Shah. 
 
The finance minister will also increase loans to women self-help groups by as much as 37%.

As for salaried women, Jaitley said that while the government will contribute 12% of the wages as Employee Provident Fund (EPF) in all sectors for the next three years, it will reduce contributions from women employees in that period to 8% from 12%.

Also, the EPF contribution reduction for women will also encourage organisation to take women on board.

Delhi Commission for Women Chairperson Swati Hind issued a statement expressing her &quot;disappointment with the Union Budget 2918.&quot;

&nbsp;

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&quot;I am very disappointed with the Union <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>. The Finance Minister hardly mentioned women and children in his speech.&quot; <a href="https://twitter.com/SwatiJaiHind?ref_src=twsrc%5Etfw">@SwatiJaiHind</a> 
 
DCW Chief Swati Jai Hind statement on Union Budget 2018 <a href="https://t.co/Xlbf8HfrXj">pic.twitter.com/Xlbf8HfrXj</a>
&mdash; Amit Mishra (@Amitjanhit) <a href="https://twitter.com/Amitjanhit/status/959065424779448321?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Deputy Chief Minister of Delhi Manish Sisodia was not very happy with the Budget for similar reasons as well.&nbsp;

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Delhi police comes under Centre. Yet no plans or schemes announced to tackle crime and issues of women safety that have made Delhi the crime capital of India. 
Highly disappointing <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>! 
 
N/2
&mdash; Manish Sisodia (@msisodia) <a href="https://twitter.com/msisodia/status/958978539042287616?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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However, some seemed to look forward to the new initiatives introduced by Jaitley.&nbsp;

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8CR women to get free gas connections. 6CR toilets constructed. Loans to self help groups to increase. Huge boost to Nari Shakti!<a href="https://twitter.com/hashtag/NewIndiaBudget?src=hash&amp;ref_src=twsrc%5Etfw">#NewIndiaBudget</a> <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Priti Gandhi (@MrsGandhi) <a href="https://twitter.com/MrsGandhi/status/958944744452886528?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Women&#39;s contribution to EPF to be reduced for the first 3 yrs without employer contribution being reduced. This will allow more women to get into formal economy: <a href="https://twitter.com/hashtag/FinanceMinister?src=hash&amp;ref_src=twsrc%5Etfw">#FinanceMinister</a> Arun Jaitley but how will it help? It only means less saving by <a href="https://twitter.com/hashtag/women?src=hash&amp;ref_src=twsrc%5Etfw">#women</a> employees <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Jyoti Mukul (@mukuljyoti) <a href="https://twitter.com/mukuljyoti/status/958950178186285056?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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Women contribution to EPF reduced to 8% for first 3 years of employment.Yayyy!!!!! <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; arpita gupta (@sweet15arpita) <a href="https://twitter.com/sweet15arpita/status/958949754326650880?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
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&nbsp;

The finance minister started his budget speech at 11 am in the Rajya Sabha. As expected the Budget wooed rural voters and small business owners before the general assembly elections

Union Finance Minister Arun Jaitley on Thursday presented Budget 2018, the Narendra Modi government’s last full budget before the 2019 Lok Sabha elections. A large share of as much as 76% of loan accounts are those of women with around 50% belonging to SC, ST, OBC women. Jaitley's 2018 budget will target a total lending of Rs 3 lakh crore under the Mudra Yojana which gives loans to women to encourage them to start new ventures. Secondly, Jaitley announced free gas connections for women under the Ujjwala Yojana which will rise to 8 crore connections from the current 5 crore "Modi govt's decision to provide 8 crore gas connections under the historic PM Ujjwala Yojana is a landmark decision. It is a testimony of government's commitment towards women empowerment and improving the quality of lives of poor, both urban and rural," said BJP president Amit Shah. The finance minister will also increase loans to women self-help groups by as much as 37%. As for salaried women, Jaitley said that while the government will contribute 12% of the wages as Employee Provident Fund (EPF) in all sectors for the next three years, it will reduce contributions from women employees in that period to 8% from 12%. Also, the EPF contribution reduction for women will also encourage organisation to take women on board. Delhi Commission for Women Chairperson Swati Hind issued a statement expressing her "disappointment with the Union Budget 2918." "I am very disappointed with the Union #Budget2018. The Finance Minister hardly mentioned women and children in his speech." @SwatiJaiHind DCW Chief Swati Jai Hind statement on Union Budget 2018 pic.twitter.com/Xlbf8HfrXj — Amit Mishra (@Amitjanhit) February 1, 2018 × Deputy Chief Minister of Delhi Manish Sisodia was not very happy with the Budget for similar reasons as well. Delhi police comes under Centre. Yet no plans or schemes announced to tackle crime and issues of women safety that have made Delhi the crime capital of India. Highly disappointing #Budget2018! N/2 — Manish Sisodia (@msisodia) February 1, 2018 × However, some seemed to look forward to the new initiatives introduced by Jaitley. 8CR women to get free gas connections. 6CR toilets constructed. Loans to self help groups to increase. Huge boost to Nari Shakti!#NewIndiaBudget #Budget2018 — Priti Gandhi (@MrsGandhi) February 1, 2018 × Women's contribution to EPF to be reduced for the first 3 yrs without employer contribution being reduced. This will allow more women to get into formal economy: #FinanceMinister Arun Jaitley but how will it help? It only means less saving by #women employees #Budget2018 — Jyoti Mukul (@mukuljyoti) February 1, 2018 × Women contribution to EPF reduced to 8% for first 3 years of employment.Yayyy!!!!! #Budget2018 — arpita gupta (@sweet15arpita) February 1, 2018 ×

Budget 2018 reactions: New initiatives for women spark excitement in some

Tuberculosis (TB) kills more people today than HIV and malaria combined.

In 2015, there were an estimated 10.4 million new TB cases worldwide and 1.8 million TB deaths, according to the World Health Organization. And India is at the epicentre of this global epidemic, with half a million TB deaths annually. India also accounts for 16 per cent of the estimated 480,000 new cases of multi-drug-resistant TB.

Can India turn things around and control this epidemic?

The answer is a conditional yes. The Indian government has already taken several steps over the past few years to address it. This includes making TB a notifiable disease, developing the Standards for TB Care in India, introducing daily drug regimens and rolling out molecular and drug-susceptibility testing.

But there&rsquo;s an opportunity to do more and better, and for India to assume a global leadership role.

India must back ambitions with rupees

Earlier this year, India&rsquo;s Revised National TB Control Program published a draft of a new National Strategic Plan (NSP) for TB Elimination 2017-2025. The NSP, if fully funded and well implemented, could be a game changer in the fight against TB in India.

The plan aims to improve services and outcomes for the 1.5 million patients in the public system and to scale up access to new diagnostics and drugs. It also sets out a bold road map to reach private providers and support the millions of patients treated in the private sector.

Building on promising pilot results, the NSP proposes to do so by providing incentives to providers &mdash; for following standard protocols for diagnosis and treatment as well as for notifying the government of cases. Patients referred to the government will, in turn, receive a cash transfer, to compensate them for direct and indirect costs of undergoing treatment and as an incentive to complete treatment.

The cost of implementing the new NSP is estimated at US$2.5 billion over the first three years, a big increase over the current budget. Historically, despite being a highly cost-effective program and despite having a high absorptive capacity, RNTCP has struggled to receive funding that is commensurate with the scale of India&rsquo;s epidemic.

This simply cannot continue. India must start backing its ambitions with rupees. Therefore, the real test of whether the bold plan by the Health Ministry can be implemented will be whether enough resources can be mobilized &mdash; to find, treat and offer quality care to all TB patients, regardless of where they live.

Health spending an urgent priority

TB is one of many diseases that affect Indians, and India is clearly under-performing on several key health indicators, as shown by a <a href="http://dx.doi.org/10.1016/S0140-6736(17)32336-X">recent report</a> on attainment on health-related Sustainable Development Goals (SDGs) in 188 countries. This is an analysis from the Global Burden of Disease Study 2016, which measured 37 health-related indicators from 1990 to 2016.

India did very poorly in this analysis, ranking 127 among 188 countries. In fact, every single other BRICS country (Brazil, Russia, China and South Africa) ranked ahead of India.

This analysis clearly shows that India&rsquo;s economic progress is not reflected in the health of its people. India&rsquo;s National Health Policy, approved this year, proposes to increase health expenditure by the government from the existing 1.15 per cent to 2.5 per cent of the GDP, by 2025.

Ensuring this increase should be an urgent priority for India, and an absolute requirement if India is to make progress towards universal health coverage.

In the just announced 2018 Union Budget, the Finance Minister announced the launch of a &ldquo;flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to 5 lakh rupees per family per year for secondary and tertiary care hospitalization.&rdquo;

In addition, tuberculosis was specifically included in the Budget speech: &ldquo;TB claims more lives every year than any other infectious disease. It affects mainly poor and malnourished people. The Government has, therefore, decided to allocate additional 600 crore to provide nutritional support to all TB patients at the rate of INR 500 per month for the duration of their treatment.&rdquo;

The specific inclusion of financial support for TB patients is a welcome move, since TB is primarily a disease of the poor, and malnutrition is a comorbidity which is widely prevalent, severe, and persistent even after cure in Indian patients, in the absence of nutritional support. Malnutrition increases their risk of mortality, drug-induced hepatotoxicity, malabsorption of key drugs like rifampicin, performance status, and relapse even after successful treatment.

Recognizing the importance of malnutrition, WHO and the Revised National Tuberculosis Control Programme have recently published a guidance document on nutritional care and support for patients with tuberculosis in India, 2017.

However, the success of the newly announced nutritional support program will depend a lot on execution and in making sure the most vulnerable people benefit from the program, without having to deal with hassles such as mandatory Aadhaar card requirements.

A tradition of excellence

Are there areas of strength that India can leverage to fight TB?

India has made some impressive contributions in global health. India has been polio-free for more than five years and this success has propelled global efforts to eradicate polio. Indian biotech and drug manufacturers dominate the production of TB and HIV medications, accounting for more than 80 per cent of the global market.

The recent launch of a rotavirus vaccine produced in India has underscored the country&rsquo;s leadership role in childhood immunization. India also has huge strengths in IT and software that can be leveraged. And India has a long tradition of excellence in TB research, highlighted by the creation of an India TB Research Consortium.

So, with its strong research expertise in TB, and technological and pharmaceutical capacity, India has the potential to make great progress against this disease.

What is essential is a strong financial and political commitment from Prime Minister Narendra Modi to end the TB epidemic, and an overall greater investment in health. When health becomes a priority for India, TB will naturally decline, as will many other conditions that currently make India rank so poorly in health-related SDGs.

&nbsp;

This is an updated version of an article originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/indias-ambitious-new-plan-to-conquer-tb-needs-cash-and-commitment-84821" rel="nofollow" target="blank">original article</a>.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

What is essential is a strong financial and political commitment from Prime Minister Narendra Modi to end the TB epidemic, and an overall greater investment in health.

Tuberculosis (TB) kills more people today than HIV and malaria combined. In 2015, there were an estimated 10.4 million new TB cases worldwide and 1.8 million TB deaths, according to the World Health Organization. And India is at the epicentre of this global epidemic, with half a million TB deaths annually. India also accounts for 16 per cent of the estimated 480,000 new cases of multi-drug-resistant TB. Can India turn things around and control this epidemic? The answer is a conditional yes. The Indian government has already taken several steps over the past few years to address it. This includes making TB a notifiable disease, developing the Standards for TB Care in India, introducing daily drug regimens and rolling out molecular and drug-susceptibility testing. But there’s an opportunity to do more and better, and for India to assume a global leadership role. India must back ambitions with rupees Earlier this year, India’s Revised National TB Control Program published a draft of a new National Strategic Plan (NSP) for TB Elimination 2017-2025. The NSP, if fully funded and well implemented, could be a game changer in the fight against TB in India. The plan aims to improve services and outcomes for the 1.5 million patients in the public system and to scale up access to new diagnostics and drugs. It also sets out a bold road map to reach private providers and support the millions of patients treated in the private sector. Building on promising pilot results, the NSP proposes to do so by providing incentives to providers — for following standard protocols for diagnosis and treatment as well as for notifying the government of cases. Patients referred to the government will, in turn, receive a cash transfer, to compensate them for direct and indirect costs of undergoing treatment and as an incentive to complete treatment. The cost of implementing the new NSP is estimated at US$2.5 billion over the first three years, a big increase over the current budget. Historically, despite being a highly cost-effective program and despite having a high absorptive capacity, RNTCP has struggled to receive funding that is commensurate with the scale of India’s epidemic. This simply cannot continue. India must start backing its ambitions with rupees. Therefore, the real test of whether the bold plan by the Health Ministry can be implemented will be whether enough resources can be mobilized — to find, treat and offer quality care to all TB patients, regardless of where they live. Health spending an urgent priority TB is one of many diseases that affect Indians, and India is clearly under-performing on several key health indicators, as shown by a recent report on attainment on health-related Sustainable Development Goals (SDGs) in 188 countries. This is an analysis from the Global Burden of Disease Study 2016, which measured 37 health-related indicators from 1990 to 2016. India did very poorly in this analysis, ranking 127 among 188 countries. In fact, every single other BRICS country (Brazil, Russia, China and South Africa) ranked ahead of India. This analysis clearly shows that India’s economic progress is not reflected in the health of its people. India’s National Health Policy, approved this year, proposes to increase health expenditure by the government from the existing 1.15 per cent to 2.5 per cent of the GDP, by 2025. Ensuring this increase should be an urgent priority for India, and an absolute requirement if India is to make progress towards universal health coverage. In the just announced 2018 Union Budget, the Finance Minister announced the launch of a “flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to 5 lakh rupees per family per year for secondary and tertiary care hospitalization.” In addition, tuberculosis was specifically included in the Budget speech: “TB claims more lives every year than any other infectious disease. It affects mainly poor and malnourished people. The Government has, therefore, decided to allocate additional 600 crore to provide nutritional support to all TB patients at the rate of INR 500 per month for the duration of their treatment.” The specific inclusion of financial support for TB patients is a welcome move, since TB is primarily a disease of the poor, and malnutrition is a comorbidity which is widely prevalent, severe, and persistent even after cure in Indian patients, in the absence of nutritional support. Malnutrition increases their risk of mortality, drug-induced hepatotoxicity, malabsorption of key drugs like rifampicin, performance status, and relapse even after successful treatment. Recognizing the importance of malnutrition, WHO and the Revised National Tuberculosis Control Programme have recently published a guidance document on nutritional care and support for patients with tuberculosis in India, 2017. However, the success of the newly announced nutritional support program will depend a lot on execution and in making sure the most vulnerable people benefit from the program, without having to deal with hassles such as mandatory Aadhaar card requirements. A tradition of excellence Are there areas of strength that India can leverage to fight TB? India has made some impressive contributions in global health. India has been polio-free for more than five years and this success has propelled global efforts to eradicate polio. Indian biotech and drug manufacturers dominate the production of TB and HIV medications, accounting for more than 80 per cent of the global market. The recent launch of a rotavirus vaccine produced in India has underscored the country’s leadership role in childhood immunization. India also has huge strengths in IT and software that can be leveraged. And India has a long tradition of excellence in TB research, highlighted by the creation of an India TB Research Consortium. So, with its strong research expertise in TB, and technological and pharmaceutical capacity, India has the potential to make great progress against this disease. What is essential is a strong financial and political commitment from Prime Minister Narendra Modi to end the TB epidemic, and an overall greater investment in health. When health becomes a priority for India, TB will naturally decline, as will many other conditions that currently make India rank so poorly in health-related SDGs. This is an updated version of an article originally published on The Conversation. Read the original article. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: With 600 cr in nutritional support, India plans to conquer TB

Finance Minister Arun Jaitley will today present the current NDA government&#39;s fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence.

The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

With the recent elections in Gujarat indicating erosion of BJP&#39;s rural vote base, Jaitley may also unveil incentives for the farm sector. 
Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit.

Also on Jaitley&#39;s menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

But he has to do all this while sticking to the road map of narrowing one of Asia&#39;s largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop.

This will be India&#39;s first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia&#39;s third largest economy. 
There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years.

He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them.

Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can&#39;t be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target.

In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget.

The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

While P Chidambaram had presented the previous UPA government&#39;s vote-on-account in February 2014, Jaitley had presented a full budget in July that year. 
The Budget for 2018-19 will be the first budget post implementation of the GST regime.

Even though independent India&#39;s biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers.

With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change.

While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.&nbsp;

Finance Minister Arun Jaitley will present this government's fifth and arguably toughest Budget today

Finance Minister Arun Jaitley will today present the current NDA government's fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence. The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance. With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector. Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation. There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit. Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low. But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade. The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow. Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop. This will be India's first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia's third largest economy. There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years. He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them. Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit. Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship. There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target. In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL. Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year. The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year. Also, the nearly century old tradition of having a separate budget for the railways was scrapped and merged with the general budget. The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government. While P Chidambaram had presented the previous UPA government's vote-on-account in February 2014, Jaitley had presented a full budget in July that year. The Budget for 2018-19 will be the first budget post implementation of the GST regime. Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers. With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change. While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

Jaitley has tough task of choosing between populism, prudence in today's Budget

Union Finance Minister Arun Jaitley presented the most awaited<a href="http://www.wionews.com/business-economy/key-highlights-from-union-budget-2018-31455"> budget</a> which started off with a positive note on how the&nbsp;<a href="https://www.aninews.in/search?query=India">India</a>n economy has reversed course with&nbsp;<a href="https://www.aninews.in/search?query=GDP">GDP</a>&nbsp;at 6.3 percent signalling a turnaround of the economy.

Allocation to Digital India scheme has been doubled to Rs 3073 crore. Moreover,&nbsp;5 lakh WiFi HotSpots will&nbsp;provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 crore.&nbsp;

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/union-budget-2018-full-text-of-finance-minister-arun-jaitleys-speech-to-parliament-31464" target="_blank">Full text of Finance Minister Arun Jaitley&#39;s speech to Parliament</a>

He also announced initiating a national program along with the NITI Aayog to direct efforts in artificial intelligence.

Arun Jaitley also allocated Rs&nbsp;1 trillion to a new scheme called Revitalizing Infrastructure in School Education or RISE to integrate its school education sector-from pre-school to class 12-implying merger of several school schemes in the near future to revitalize the infrastructure of schools in the country.

Also watch:&nbsp;<a href="http://www.wionews.com/videos/fm-arun-jaitley-technology-will-be-the-biggest-driver-in-improving-quality-of-education-8083">FM Arun Jaitley: Technology will be the biggest driver in improving quality of education</a>

Here&#39;s what the people of the nation had to say:&nbsp;

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From food processing to fiber optics, roads to shipping, youth to senior citizen, rural India to Ayushmaan Bharat, Digital India to Start Up India, this budget strengthens hopes &amp; aspirations of crores of Indians: PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> <a href="https://twitter.com/hashtag/NewIndiaBudget?src=hash&amp;ref_src=twsrc%5Etfw">#NewIndiaBudget</a><a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>
&mdash; Priti Gandhi (@MrsGandhi) <a href="https://twitter.com/MrsGandhi/status/958975355699810304?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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&nbsp;

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In the rapidly changing landscape, the distinction between telecom, IT and broadcasting technology has disappeared and a convergence of these sectors is required. A positive consideration of this demand in the <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a> will certainly help in the rapid growth &amp; employment.
&mdash; Punit Goenka (@punitgoenka) <a href="https://twitter.com/punitgoenka/status/958917903083913216?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
From <a href="https://twitter.com/hashtag/GIFTcity?src=hash&amp;ref_src=twsrc%5Etfw">#GIFTcity</a> to <a href="https://twitter.com/hashtag/AI?src=hash&amp;ref_src=twsrc%5Etfw">#AI</a> to crypto currencies to <a href="https://twitter.com/hashtag/5G?src=hash&amp;ref_src=twsrc%5Etfw">#5G</a>, there is a rising sensitivity to technology in <a href="https://twitter.com/hashtag/Budget2018?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2018</a>. 
These may not need big budgetary outlays but are strong enablers of future growth and will have deep impact on the economy. Look at them as investments.
&mdash; Gautam Chikermane (@gchikermane) <a href="https://twitter.com/gchikermane/status/958954095229919233?ref_src=twsrc%5Etfw">February 1, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

Meanwhile, In the Budget for 2018-19, finance minister Arun Jaitley increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10% to 15%.

The government also raised custom duty on specified parts/accessories of motor vehicles, motor cars, motor cycles from 7.5% to 15%. Besides, imported duty on truck and bus radial tyres has been increased from 10 to 15%.

Further, duty on CBU (completely built units) imports of motor vehicles (trucks and buses) has been hiked from 20% to 25%.

A large number of imported items including mobile handsets, cars and motorcycles, fruit juices, perfumes and footwear will become costlier.&nbsp;

This will impact luxury car and bike manufacturing companies such as Mercedes-Benz, BMW, Audi, Volvo, Jaguar Land Rover, Harley-Davidson, Triumph, who have set up assembly plants.&nbsp;

Roland Folger, Managing Director &amp; CEO, Mercedes-Benz India&nbsp;said:&nbsp;&ldquo;The increase in the basic customs duty of auto parts, accessories and CKD components varying from 5% to 10%, clubbed with the new Social Welfare Surcharge at 10%, at a time when the auto industry is reviving, is unfortunate, and comes as a surprise. We believe it is going to impact the auto industry, the consumers and is also against the spirit of &lsquo;Make in India&rsquo;. The auto industry was expecting the Government to formulate policies and take decisions that would create demand, create additional jobs and help the industry to grow. As the overall costs due to various duty increase is imminent, we are left with no option but to pass on the resulting increase in price to the customers.&quot;

Folger further added,&nbsp;&ldquo;The increase in basic customs duty hike will highly restrict the growth of the luxury car industry and this will only result in the loss of additional revenue, which would have increased significantly with increase in volume. The auto industry which contributes 7.2% of the GDP is likely to be affected and further job creation might be impacted with this decision.&quot;

&nbsp;Sohinder Gill, Director- Corporate Affairs, Society of Manufacturers of Electric Vehicles said: &ldquo;As the EV Policy is not a part of the budget, we were not expecting any major announcement related to electric vehicles in today&rsquo;s budget. However, we are happy to note that there are general announcements made today, which will support the cause.&quot;&nbsp;

&quot;The only thing we were expecting from the budget was rationalization of GST rate i.e. currently 12% for EVs and 28% for EV batteries. Also, we had requested that GST should be made at least either 0 or 5% for initial years. But we didn&rsquo;t find any mention of the same. Perhaps it will be covered in the policy, later. Overall we are happy with the outcome of the budget&rdquo;&nbsp;Gill added.&nbsp;

Society of Indian Automobile Manufactures (SIAM) deputy director general Sugato Sen said that the move to increase duty on components would impact the entire automobile industry.

&ldquo;Since every company has to import some kind of components, the increase is going to impact everyone. Companies with greater exposure to imported articles would be impacted more,&rdquo; Sen said.

In the Budget for 2018-19, finance minister Arun Jaitley increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10% to 15%

Union Finance Minister Arun Jaitley presented the most awaited budget which started off with a positive note on how the Indian economy has reversed course with GDP at 6.3 percent signalling a turnaround of the economy. Allocation to Digital India scheme has been doubled to Rs 3073 crore. Moreover, 5 lakh WiFi HotSpots will provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 crore. Also read: Full text of Finance Minister Arun Jaitley's speech to Parliament He also announced initiating a national program along with the NITI Aayog to direct efforts in artificial intelligence. Arun Jaitley also allocated Rs 1 trillion to a new scheme called Revitalizing Infrastructure in School Education or RISE to integrate its school education sector-from pre-school to class 12-implying merger of several school schemes in the near future to revitalize the infrastructure of schools in the country. Also watch: FM Arun Jaitley: Technology will be the biggest driver in improving quality of education Here's what the people of the nation had to say: From food processing to fiber optics, roads to shipping, youth to senior citizen, rural India to Ayushmaan Bharat, Digital India to Start Up India, this budget strengthens hopes & aspirations of crores of Indians: PM @narendramodi #NewIndiaBudget#Budget2018 — Priti Gandhi (@MrsGandhi) February 1, 2018 × In the rapidly changing landscape, the distinction between telecom, IT and broadcasting technology has disappeared and a convergence of these sectors is required. A positive consideration of this demand in the #Budget2018 will certainly help in the rapid growth & employment. — Punit Goenka (@punitgoenka) February 1, 2018 × From #GIFTcity to #AI to crypto currencies to #5G, there is a rising sensitivity to technology in #Budget2018. These may not need big budgetary outlays but are strong enablers of future growth and will have deep impact on the economy. Look at them as investments. — Gautam Chikermane (@gchikermane) February 1, 2018 × Meanwhile, In the Budget for 2018-19, finance minister Arun Jaitley increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10% to 15%. The government also raised custom duty on specified parts/accessories of motor vehicles, motor cars, motor cycles from 7.5% to 15%. Besides, imported duty on truck and bus radial tyres has been increased from 10 to 15%. Further, duty on CBU (completely built units) imports of motor vehicles (trucks and buses) has been hiked from 20% to 25%. A large number of imported items including mobile handsets, cars and motorcycles, fruit juices, perfumes and footwear will become costlier. This will impact luxury car and bike manufacturing companies such as Mercedes-Benz, BMW, Audi, Volvo, Jaguar Land Rover, Harley-Davidson, Triumph, who have set up assembly plants. Roland Folger, Managing Director & CEO, Mercedes-Benz India said: “The increase in the basic customs duty of auto parts, accessories and CKD components varying from 5% to 10%, clubbed with the new Social Welfare Surcharge at 10%, at a time when the auto industry is reviving, is unfortunate, and comes as a surprise. We believe it is going to impact the auto industry, the consumers and is also against the spirit of ‘Make in India’. The auto industry was expecting the Government to formulate policies and take decisions that would create demand, create additional jobs and help the industry to grow. As the overall costs due to various duty increase is imminent, we are left with no option but to pass on the resulting increase in price to the customers." Folger further added, “The increase in basic customs duty hike will highly restrict the growth of the luxury car industry and this will only result in the loss of additional revenue, which would have increased significantly with increase in volume. The auto industry which contributes 7.2% of the GDP is likely to be affected and further job creation might be impacted with this decision." Sohinder Gill, Director- Corporate Affairs, Society of Manufacturers of Electric Vehicles said: “As the EV Policy is not a part of the budget, we were not expecting any major announcement related to electric vehicles in today’s budget. However, we are happy to note that there are general announcements made today, which will support the cause." "The only thing we were expecting from the budget was rationalization of GST rate i.e. currently 12% for EVs and 28% for EV batteries. Also, we had requested that GST should be made at least either 0 or 5% for initial years. But we didn’t find any mention of the same. Perhaps it will be covered in the policy, later. Overall we are happy with the outcome of the budget” Gill added. Society of Indian Automobile Manufactures (SIAM) deputy director general Sugato Sen said that the move to increase duty on components would impact the entire automobile industry. “Since every company has to import some kind of components, the increase is going to impact everyone. Companies with greater exposure to imported articles would be impacted more,” Sen said.

Budget 2018 reactions: Technology rises, automobile takes a hit

The healthcare industry has welcomed the budget proposal to launch the world&#39;s largest publicly-funded healthcare programme and the proposed National Health Protection Scheme to cover around 50 crore people.

&quot;The plan to invest in creating a healthy nation by launching the Ayushman Bharat programme is a welcome step. Such ambitious, out-of-the-box thinking was the need of the hour and the government has not disappointed.

&quot;The move to cover 10 crore families with 5 lakh per family/per year for secondary and tertiary healthcare will be a game-changer,&quot; Apollo Hospitals chairman Prathap Reddy said.

The Budget today announced the world&#39;s largest government-funded healthcare programme, aimed at benefiting 10 crore poor families by offering a Rs 5 lakh cover per family annually for secondary and tertiary care hospitalisation.

The finance minister also said government will set up 24 new government medical colleges and hospitals by upgrading existing district hospitals.

&quot;While the minister has presented a moderate Budget, he continues to lay emphasis on overall infrastructure development and strengthening of the rural economy. Increased focus on healthcare augurs well.

&quot;On the corporate side, there are no significant changes which was expected. Overall the budget was as per expectations,&quot; Glenmark chairman Glenn Saldanha said.

The Budget highlighted the availability of low-cost medicines. This should lead to a reasonable presumption that there will be further action on the price control front going forward, Khaitan &amp; Co&#39;s Sameer Sah said.

The National Health Protection Scheme will be an interesting initiative and if the private players are allowed in, this will have an additional opportunity to serve more patients, Sah added.

Jaitley committed Rs 1,200 crore for the National Health Policy. This would go towards 1.5 lakh health and wellness centres to bring healthcare closer to the homes.

Metropolis Healthcare managing director Ameera Shah said overall, this has been a pro-people and a pro-poor Budget. For the first time, universal healthcare has got the impetus it needs. The plan to introduce 24 new medical colleges will address the glaring lack of talent.

&quot;NHPS rollout will need an effective gatekeeping system with an immediate focus and strengthening of primary care services. Such systems will ensure equity by judicious referral system to secondary and tertiary care&quot; KPMG India&#39;s Nilaya Varma said. PTI&nbsp;

The Budget today announced the world's largest government-funded healthcare programme, aimed at benefiting 10 crore poor families

The healthcare industry has welcomed the budget proposal to launch the world's largest publicly-funded healthcare programme and the proposed National Health Protection Scheme to cover around 50 crore people. "The plan to invest in creating a healthy nation by launching the Ayushman Bharat programme is a welcome step. Such ambitious, out-of-the-box thinking was the need of the hour and the government has not disappointed. "The move to cover 10 crore families with 5 lakh per family/per year for secondary and tertiary healthcare will be a game-changer," Apollo Hospitals chairman Prathap Reddy said. The Budget today announced the world's largest government-funded healthcare programme, aimed at benefiting 10 crore poor families by offering a Rs 5 lakh cover per family annually for secondary and tertiary care hospitalisation. The finance minister also said government will set up 24 new government medical colleges and hospitals by upgrading existing district hospitals. "While the minister has presented a moderate Budget, he continues to lay emphasis on overall infrastructure development and strengthening of the rural economy. Increased focus on healthcare augurs well. "On the corporate side, there are no significant changes which was expected. Overall the budget was as per expectations," Glenmark chairman Glenn Saldanha said. The Budget highlighted the availability of low-cost medicines. This should lead to a reasonable presumption that there will be further action on the price control front going forward, Khaitan & Co's Sameer Sah said. The National Health Protection Scheme will be an interesting initiative and if the private players are allowed in, this will have an additional opportunity to serve more patients, Sah added. Jaitley committed Rs 1,200 crore for the National Health Policy. This would go towards 1.5 lakh health and wellness centres to bring healthcare closer to the homes. Metropolis Healthcare managing director Ameera Shah said overall, this has been a pro-people and a pro-poor Budget. For the first time, universal healthcare has got the impetus it needs. The plan to introduce 24 new medical colleges will address the glaring lack of talent. "NHPS rollout will need an effective gatekeeping system with an immediate focus and strengthening of primary care services. Such systems will ensure equity by judicious referral system to secondary and tertiary care" KPMG India's Nilaya Varma said. PTI

Budget 2018: Industry leaders hail national healthcare programme

According to Transparency International India (TII), India&#39;s budget provides less information in the public domain and therefore is less transparent.&nbsp;

The anti-corruption watchdog noted on Wednesday the fact that less transparency would trigger severe economic problems.&nbsp;

TII called the budget &quot;intractable&quot; and &quot;incomprehensible&quot; for the citizens, therefore it becomes difficult for a common man to participate in shaping public policy.

The watchdog also noted that very little budgetary information is available in the public domain which makes the Indian budget less transparent when accessed according to the international parameters.

India scored 48 on 100 in the Open Budget Survey of 2017.

The TII report aimed at highlighting the inadequacies and gaps in the Indian budgetary process and called for improvement. It also noted that Bangladesh&#39;s budget is more transparent than the Indian system.&nbsp;

The watchdog also noted that the budget must be completely transparent and accessible to the common public so that they could understand it better and participate in policy formulation.&nbsp;

The knowledge associated with the budgetary revenue and expenditure statements must not be limited to strategists and experts, emphasised TII.&nbsp;

Union Finance Minister Arun Jaitley will be presenting the NDA&#39;s last budget for the term today.&nbsp;

The anti-corruption watchdog noted on Wednesday the fact that less transparency would trigger severe economic problems

According to Transparency International India (TII), India's budget provides less information in the public domain and therefore is less transparent. The anti-corruption watchdog noted on Wednesday the fact that less transparency would trigger severe economic problems. TII called the budget "intractable" and "incomprehensible" for the citizens, therefore it becomes difficult for a common man to participate in shaping public policy. The watchdog also noted that very little budgetary information is available in the public domain which makes the Indian budget less transparent when accessed according to the international parameters. India scored 48 on 100 in the Open Budget Survey of 2017. The TII report aimed at highlighting the inadequacies and gaps in the Indian budgetary process and called for improvement. It also noted that Bangladesh's budget is more transparent than the Indian system. The watchdog also noted that the budget must be completely transparent and accessible to the common public so that they could understand it better and participate in policy formulation. The knowledge associated with the budgetary revenue and expenditure statements must not be limited to strategists and experts, emphasised TII. Union Finance Minister Arun Jaitley will be presenting the NDA's last budget for the term today.

Indian budget 'incomprehensible' to citizens: Transparency International

The Union Budget is just around the corner.&nbsp;With Finance Minister Arun Jaitley getting ready to present the Budget on February 1, it&rsquo;s also time for us to learn and ready ourselves for the Budget speech.&nbsp;

To make things easier, WION digital simplifies the important Budget items for its readers.&nbsp;

Here is a glossary of commonly used terms in the Budget:

Union Budget

Union Budget Union Budget is the most comprehensive report of the Government&#39;s finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government&#39;s accounts for the next Fiscal year called Budgeted Estimates.

Union Budget actually lays down the statement of the estimated receipts and expenditure of the Govt. of India for the coming financial year.&nbsp; It sets out exactly how the govt proposes to allocate the financial resources among the various agencies that make claim on it and how it proposes to raise the finances for this.&nbsp; &nbsp;&nbsp;

Union Budget is undoubtedly the most extensive account of the government&#39;s finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget.

Gross Domestic Product

GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country.&nbsp;

Direct and Indirect Taxes

Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

GST

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

&ldquo;Goods&rdquo; means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply.

&ldquo;Services&rdquo; means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

Customs Duty

These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer.

Fiscal Deficit&nbsp;

When the government&#39;s non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit.

Revenue Deficit&nbsp;

The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government&#39;s current receipts over current expenditure.

Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government&#39;s borrowings are going towards meeting expenses other than interest payments.

Fiscal policy

It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy.

Monetary Policy

This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy or change the interest rates.

Inflation

A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.

Capital Budget

The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget

The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments.

Finance Bill

The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.

Vote on Account

The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of&nbsp;new&nbsp;financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.

Excess Grants

If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the Annual Budget, i.e. through the presentation of Demands for Grants and passing of Appropriation Bills.

Budget Estimates

Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Revised Estimates

Revised Estimates are the mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Revised Estimates are not voted by the Parliament, and hence by itself do not provide any authority for expenditure. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament&#39;s approval or by Re-appropriation order.

Re-appropriations

Re-appropriations allow the Government to re-appropriate provisions from one sub-head to another within the same Grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller &amp; Auditor General and the Public Accounts Committee reviews these re-appropriations and comments on them for taking corrective actions.

Outcome Budget

From the fiscal year 2006-07, every Ministry presents a preliminary Outcome Budget to the Ministry of Finance, which is responsible for compiling them. The Outcome Budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all Government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.

Guillotine

Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House. This process is popularly known as &#39;Guillotine&#39;.

Cut Motions

Motions for reduction to various Demands for Grants are made in the Form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.

Consolidated Fund of India

All revenues raised by the Government, money borrowed and receipts from loans given by the Government ?ow into it. All Government expenditure other than certain exceptional items met from Contingency Fund and Public Account are made from this account. No money can be appropriated from the Fund except in accordance with the law.

Contingency Fund of India

A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure.

Public Account

Under provisions of Article 266(1) of the Constitution of India, Public Account is used in relation to all the fund flows where Government is acting as a banker. Examples include Provident Funds and Small Savings. This money does not belong to the government but is to be returned to the depositors. The expenditure from this fund need not be approved by the Parliament.

Corporate Tax

This is the tax paid by corporations or firms on the incomes they earn.

Minimum Alternative Tax (MAT)

The Minimum Alternative Tax is a minimum tax that a company must pay, even if it is under zero tax limits.

Disinvestment

By disinvestment, we mean the sale of shares of public sector undertakings by the Government. The shares of government companies held by the Government are earning assets at the disposal of the Government. If these shares are sold to get cash, then earning assets are converted into cash, So it is referred to as disinvestment.

Glossary of commonly used terms on the Budget

The Union Budget is just around the corner. With Finance Minister Arun Jaitley getting ready to present the Budget on February 1, it’s also time for us to learn and ready ourselves for the Budget speech. To make things easier, WION digital simplifies the important Budget items for its readers. Here is a glossary of commonly used terms in the Budget: Union Budget Union Budget Union Budget is the most comprehensive report of the Government's finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next Fiscal year called Budgeted Estimates. Union Budget actually lays down the statement of the estimated receipts and expenditure of the Govt. of India for the coming financial year. It sets out exactly how the govt proposes to allocate the financial resources among the various agencies that make claim on it and how it proposes to raise the finances for this. Union Budget is undoubtedly the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. Gross Domestic Product GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country. Direct and Indirect Taxes Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc. GST The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government. “Goods” means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. “Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Customs Duty These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer. Fiscal Deficit When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit. Revenue Deficit The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure. Primary Deficit The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments. Fiscal policy It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy. Monetary Policy This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy or change the interest rates. Inflation A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Capital Budget The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties. Revenue Budget The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments. Finance Bill The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget. Vote on Account The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act. Excess Grants If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the Annual Budget, i.e. through the presentation of Demands for Grants and passing of Appropriation Bills. Budget Estimates Amount of money allocated in the Budget to any ministry or scheme for the coming financial year. Revised Estimates Revised Estimates are the mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Revised Estimates are not voted by the Parliament, and hence by itself do not provide any authority for expenditure. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament's approval or by Re-appropriation order. Re-appropriations Re-appropriations allow the Government to re-appropriate provisions from one sub-head to another within the same Grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller & Auditor General and the Public Accounts Committee reviews these re-appropriations and comments on them for taking corrective actions. Outcome Budget From the fiscal year 2006-07, every Ministry presents a preliminary Outcome Budget to the Ministry of Finance, which is responsible for compiling them. The Outcome Budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all Government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage. Guillotine Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'. Cut Motions Motions for reduction to various Demands for Grants are made in the Form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance. Consolidated Fund of India All revenues raised by the Government, money borrowed and receipts from loans given by the Government ?ow into it. All Government expenditure other than certain exceptional items met from Contingency Fund and Public Account are made from this account. No money can be appropriated from the Fund except in accordance with the law. Contingency Fund of India A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure. Public Account Under provisions of Article 266(1) of the Constitution of India, Public Account is used in relation to all the fund flows where Government is acting as a banker. Examples include Provident Funds and Small Savings. This money does not belong to the government but is to be returned to the depositors. The expenditure from this fund need not be approved by the Parliament. Corporate Tax This is the tax paid by corporations or firms on the incomes they earn. Minimum Alternative Tax (MAT) The Minimum Alternative Tax is a minimum tax that a company must pay, even if it is under zero tax limits. Disinvestment By disinvestment, we mean the sale of shares of public sector undertakings by the Government. The shares of government companies held by the Government are earning assets at the disposal of the Government. If these shares are sold to get cash, then earning assets are converted into cash, So it is referred to as disinvestment.

Here are key terms you should know to understand the Budget

Indian shares fell for a second consecutive session on Wednesday, as investors stayed cautious a day before the government unveils its annual&nbsp;budget, but indexes still posted their best month since October amid signs of recovering earnings.

The broader NSE index fell 0.20 per cent to 11,027.70, but gained 4.72 per cent for the month, posting its second consecutive monthly gain.

The benchmark BSE index closed down 0.19 per cent at 35,965.02 but ended the month 5.6 per cent higher.

Indian shares fell for a second consecutive session on Wednesday, as investors stayed cautious a day before the government unveils its annual budget

Indian shares fell for a second consecutive session on Wednesday, as investors stayed cautious a day before the government unveils its annual budget, but indexes still posted their best month since October amid signs of recovering earnings. The broader NSE index fell 0.20 per cent to 11,027.70, but gained 4.72 per cent for the month, posting its second consecutive monthly gain. The benchmark BSE index closed down 0.19 per cent at 35,965.02 but ended the month 5.6 per cent higher.

Sensex, Nifty fall ahead of budget, but see best month since October

India is expected to unveil only modest stimulus at this week&#39;s budget, a Reuters poll of analysts showed, despite it being the last before the next election, with government spending likely limited by longer-term efforts to trim the fiscal deficit.

Fiscal consolidation was first proposed by Prime Minister Narendra Modi&#39;s Bharatiya Janata Party (BJP) government in its maiden budget in fiscal 2014/15, aiming to break a long line of Indian governments that preferred to borrow and spend.

But in following budgets, the timeframe for reaching a reduction to a 3.0 percent fiscal deficit target was pushed back.

The latest Reuters poll shows the government is expected to delay the timeframe for hitting that target by another year, for the third year in a row, due to setbacks in the economic outlook.

The median forecast from over 40 economists polled Jan 24-29 was for India&#39;s government to borrow 3.2 per cent of gross domestic product (GDP) in fiscal 2018-19.

&quot;As the current government will present its last full-year budget before the 2019 general elections, many in the market expect a heavier dose of populism. However, the government has limited financial resources to propose any targeted scheme for the poor,&quot; wrote Gautam Duggad, head of research at Motilal Oswal Securities, in a research note.

&quot;We also do not expect much relief on the tax front, except some reduction in the corporate tax rate for medium-sized companies.&quot;

The government&#39;s own economic survey presented to Parliament on Monday suggested that pushing further out the fiscal deficit target would give the economy some momentum.

For the current fiscal year, the target is 3.2 per cent and the government is unlikely to meet that as it has already overshot its full-year goal. With less than one quarter of the fiscal year left, the government is unlikely to meet its deficit target.

Three-quarters of the 40 economists polled, based in India, Singapore and Europe, said that fiscal consolidation is likely to be Finance Minister Arun Jaitley&#39;s dominant theme when he unveils his budget on Thursday.

Just under 10 per cent of survey respondents said he will focus on boosting subsidies while about 18 per cent expect a significant increase in borrowing and spending.

Among those expecting a more populist budget are economists that say the government will announce new subsidies, such as loan waivers for farmers, an increase in healthcare spending, a cut to taxes on fuel and a ramp up in rural housing schemes.

Some also said the focus on the potential budget provisions could address rising rural dissatisfaction shown by the increase in farmer protests and suicides across India.

&quot;We expect India&#39;s upcoming Union Budget to focus extensively on the agriculture sector, especially given that the government has only one year left in its current term and will want to boost its popularity before the next election,&quot; noted Kunal Kundu, India economist at Societe Generale.

With the Reserve Bank of India holding interest rates for now, demand for fiscal stimulus has increased after the ban of high-value currency notes in November 2016 and the implementation of a goods and services tax (GST) last year.

The economy, which likely marked its weakest pace of growth in four years in fiscal year ending in March, is still recovering from those two measures.

Shilan Shah, senior India economist at Capital Economics, a consultancy, wrote in a note to clients that the government is unlikely to meet its deficit targets for this year and next.

India&#39;s economy is forecast to grow by 6.6 per cent in the current fiscal year, which would be its weakest since before a new calculation was introduced in fiscal 2014-15, a Reuters poll of economists found earlier in January.

It is forecast to pick up to 7.3 per cent in 2018-19.

The government's own economic survey presented to Parliament on Monday suggested that pushing further out the fiscal deficit target would give the economy some momentum.

India is expected to unveil only modest stimulus at this week's budget, a Reuters poll of analysts showed, despite it being the last before the next election, with government spending likely limited by longer-term efforts to trim the fiscal deficit. Fiscal consolidation was first proposed by Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) government in its maiden budget in fiscal 2014/15, aiming to break a long line of Indian governments that preferred to borrow and spend. But in following budgets, the timeframe for reaching a reduction to a 3.0 percent fiscal deficit target was pushed back. The latest Reuters poll shows the government is expected to delay the timeframe for hitting that target by another year, for the third year in a row, due to setbacks in the economic outlook. The median forecast from over 40 economists polled Jan 24-29 was for India's government to borrow 3.2 per cent of gross domestic product (GDP) in fiscal 2018-19. "As the current government will present its last full-year budget before the 2019 general elections, many in the market expect a heavier dose of populism. However, the government has limited financial resources to propose any targeted scheme for the poor," wrote Gautam Duggad, head of research at Motilal Oswal Securities, in a research note. "We also do not expect much relief on the tax front, except some reduction in the corporate tax rate for medium-sized companies." The government's own economic survey presented to Parliament on Monday suggested that pushing further out the fiscal deficit target would give the economy some momentum. For the current fiscal year, the target is 3.2 per cent and the government is unlikely to meet that as it has already overshot its full-year goal. With less than one quarter of the fiscal year left, the government is unlikely to meet its deficit target. Three-quarters of the 40 economists polled, based in India, Singapore and Europe, said that fiscal consolidation is likely to be Finance Minister Arun Jaitley's dominant theme when he unveils his budget on Thursday. Just under 10 per cent of survey respondents said he will focus on boosting subsidies while about 18 per cent expect a significant increase in borrowing and spending. Among those expecting a more populist budget are economists that say the government will announce new subsidies, such as loan waivers for farmers, an increase in healthcare spending, a cut to taxes on fuel and a ramp up in rural housing schemes. Some also said the focus on the potential budget provisions could address rising rural dissatisfaction shown by the increase in farmer protests and suicides across India. "We expect India's upcoming Union Budget to focus extensively on the agriculture sector, especially given that the government has only one year left in its current term and will want to boost its popularity before the next election," noted Kunal Kundu, India economist at Societe Generale. With the Reserve Bank of India holding interest rates for now, demand for fiscal stimulus has increased after the ban of high-value currency notes in November 2016 and the implementation of a goods and services tax (GST) last year. The economy, which likely marked its weakest pace of growth in four years in fiscal year ending in March, is still recovering from those two measures. Shilan Shah, senior India economist at Capital Economics, a consultancy, wrote in a note to clients that the government is unlikely to meet its deficit targets for this year and next. India's economy is forecast to grow by 6.6 per cent in the current fiscal year, which would be its weakest since before a new calculation was introduced in fiscal 2014-15, a Reuters poll of economists found earlier in January. It is forecast to pick up to 7.3 per cent in 2018-19.

No spending spree due in last Indian budget before elections: Poll

Since his election four years ago, Indian markets have welcomed Prime Minister Narendra Modi&#39;s campaign to mend patchy public finances and develop new areas of growth in Asia&#39;s third largest economy.

To keep investors&#39; confidence, however, Modi&#39;s government will need to be seen containing the fiscal deficit, while also increasing spending in key areas of the slowing economy.

Markets will be focused on how much India widens its fiscal deficit beyond the 3 per cent of gross domestic product projected for 2018/19.

A Reuters poll showed most economists expect a 3.2 per cent deficit as the government looks to increase investments in key areas such as agriculture to bolster its re-election prospects in elections due by 2019.

A modest widening of that nature would calm investors worried that the government may slip away from its judicious spending. Traders say bond yields could fall 10 to 15 basis points, while shares could hit new record highs. Gains could be more pronounced if India sticks to its 3.0 per cent target.

But a deficit above 3.2 per cent could hit shares and send bond yields up by 20-25 basis points, depending on the size of the blowout, on fears of populist policy ahead of next year&#39;s elections.

Markets remain nervous after the government&#39;s annual economic survey on Monday suggested &quot;a pause&quot; in fiscal consolidation, sending bonds plummeting.

&quot;I think the budget will be focused on both investors as well as the common man,&quot; said A Balasubramanian, chief executive officer at Aditya Birla Sun Life Asset Management, adding he expects a deficit of 3.2 per cent.

&quot;The government will take care so that the budget is neither inflationary nor fiscally less prudent.&quot;

A prudent budget could also soothe the Reserve Bank of India, which holds a policy review on Feb. 6-7 amid worries it could raise rates in coming months after inflation hit a 17-month high in December, well above its 4 per cent target.

CRITICAL JUNCTURE

Benchmark 10-year bond yields have fallen 135 bps and the NSE share index has surged 55 per cent since Modi took power in May 2014.

But a recent spike in inflation, tightening cash conditions, and worries about fiscal slippage have sent the 10-year bond yield up more than 80 basis points since July, the biggest move since the 2013 rupee crisis.

Stocks have been more resilient, gaining 4.9 percent this year and hitting records amid signs earnings are recovering after years of poor performance.

While investors expect some spending to support an economy that&#39;s expected to post its weakest growth in four years, they will want to see such stimulus is well-financed.

Growth has been hampered by rollout of the goods and service tax last year and the move to ban high value currency notes in late 2016, which hit tax revenues and increased the chances the fiscal deficit shortfall would hit 3.2 per cent target for the year to March.

An expected pickup in growth next fiscal year and state asset sales estimated to raise 1 trillion rupees ($15.74 billion) should boost tax revenues.

Despite an expected revenue increase, investors don&#39;t believe India will swing to profligacy, with a rally in oil prices likely to constrain government spending.

India imports 80 percent of its energy requirements, and the government may need to respond to higher crude prices like it did in October, by cutting fuel duties. The risk that such a contingency is needed could keep the government in check.

&quot;I believe that there is a high chance that fiscal discipline is more likely to be maintained in this budget,&quot; said Lakshmi Iyer, fixed income head at Kotak Mutual Fund.

Markets will be focused on how much India widens its fiscal deficit beyond the 3 per cent of gross domestic product projected for 2018/19.

Since his election four years ago, Indian markets have welcomed Prime Minister Narendra Modi's campaign to mend patchy public finances and develop new areas of growth in Asia's third largest economy. To keep investors' confidence, however, Modi's government will need to be seen containing the fiscal deficit, while also increasing spending in key areas of the slowing economy. Markets will be focused on how much India widens its fiscal deficit beyond the 3 per cent of gross domestic product projected for 2018/19. A Reuters poll showed most economists expect a 3.2 per cent deficit as the government looks to increase investments in key areas such as agriculture to bolster its re-election prospects in elections due by 2019. A modest widening of that nature would calm investors worried that the government may slip away from its judicious spending. Traders say bond yields could fall 10 to 15 basis points, while shares could hit new record highs. Gains could be more pronounced if India sticks to its 3.0 per cent target. But a deficit above 3.2 per cent could hit shares and send bond yields up by 20-25 basis points, depending on the size of the blowout, on fears of populist policy ahead of next year's elections. Markets remain nervous after the government's annual economic survey on Monday suggested "a pause" in fiscal consolidation, sending bonds plummeting. "I think the budget will be focused on both investors as well as the common man," said A Balasubramanian, chief executive officer at Aditya Birla Sun Life Asset Management, adding he expects a deficit of 3.2 per cent. "The government will take care so that the budget is neither inflationary nor fiscally less prudent." A prudent budget could also soothe the Reserve Bank of India, which holds a policy review on Feb. 6-7 amid worries it could raise rates in coming months after inflation hit a 17-month high in December, well above its 4 per cent target. CRITICAL JUNCTURE Benchmark 10-year bond yields have fallen 135 bps and the NSE share index has surged 55 per cent since Modi took power in May 2014. But a recent spike in inflation, tightening cash conditions, and worries about fiscal slippage have sent the 10-year bond yield up more than 80 basis points since July, the biggest move since the 2013 rupee crisis. Stocks have been more resilient, gaining 4.9 percent this year and hitting records amid signs earnings are recovering after years of poor performance. While investors expect some spending to support an economy that's expected to post its weakest growth in four years, they will want to see such stimulus is well-financed. Growth has been hampered by rollout of the goods and service tax last year and the move to ban high value currency notes in late 2016, which hit tax revenues and increased the chances the fiscal deficit shortfall would hit 3.2 per cent target for the year to March. An expected pickup in growth next fiscal year and state asset sales estimated to raise 1 trillion rupees ($15.74 billion) should boost tax revenues. Despite an expected revenue increase, investors don't believe India will swing to profligacy, with a rally in oil prices likely to constrain government spending. India imports 80 percent of its energy requirements, and the government may need to respond to higher crude prices like it did in October, by cutting fuel duties. The risk that such a contingency is needed could keep the government in check. "I believe that there is a high chance that fiscal discipline is more likely to be maintained in this budget," said Lakshmi Iyer, fixed income head at Kotak Mutual Fund.

Budget to test investors' faith in Modi government

The ruling Telangana Rashtra Samiti (TRS) in Telangana is on board with the BJP on the issue of simultaneous polls to Lok Sabha and state assemblies, a senior party leader has said.

The TRS floor leader in the Lok Sabha, AP Jithender Reddy, said that such a synchronised exercise will cut costs, save time and ensure governments focus on development. &quot;We are for it,&quot; Reddy said.

&quot;It will give us time to focus on administration for five years, instead of every time going to elections,&quot; he said.

&quot;It will save money and time; you can focus yourself on the development of the state,&quot; the Lok Sabha member from Mahbubnagar said.

On January 29, President Ram Nath Kovind had called for a &quot;sustained debate&quot; on holding simultaneous polls, saying all parties need to reach a consensus on the issue.

In his maiden address to the joint sitting of the two houses of Parliament at the beginning of the Budget session, Kovind said citizens alive to the state of governance in the country were concerned about frequent elections in one part of the country or another, which adversely impacted the economy and development.

His remarks came days after Prime Minister Narendra Modi made a fresh pitch for holding the polls together.

Modi had said that like festivals, elections should be held on fixed dates so that governments can function for five years.

He also said that barbs exchanged during campaigning in one state have a bearing in other parts of the country which were not going to polls.

Modi was of the view that once the elections are held together, the central and the state governments can devote the next five years to governance.

The TRS floor leader in the Lok Sabha, AP Jithender Reddy, said that such a synchronised exercise will cut costs, save time and ensure governments focus on development. 'We are for it,' he said

The ruling Telangana Rashtra Samiti (TRS) in Telangana is on board with the BJP on the issue of simultaneous polls to Lok Sabha and state assemblies, a senior party leader has said. The TRS floor leader in the Lok Sabha, AP Jithender Reddy, said that such a synchronised exercise will cut costs, save time and ensure governments focus on development. "We are for it," Reddy said. "It will give us time to focus on administration for five years, instead of every time going to elections," he said. "It will save money and time; you can focus yourself on the development of the state," the Lok Sabha member from Mahbubnagar said. On January 29, President Ram Nath Kovind had called for a "sustained debate" on holding simultaneous polls, saying all parties need to reach a consensus on the issue. In his maiden address to the joint sitting of the two houses of Parliament at the beginning of the Budget session, Kovind said citizens alive to the state of governance in the country were concerned about frequent elections in one part of the country or another, which adversely impacted the economy and development. His remarks came days after Prime Minister Narendra Modi made a fresh pitch for holding the polls together. Modi had said that like festivals, elections should be held on fixed dates so that governments can function for five years. He also said that barbs exchanged during campaigning in one state have a bearing in other parts of the country which were not going to polls. Modi was of the view that once the elections are held together, the central and the state governments can devote the next five years to governance.

Telangana Rashtra Samiti supports BJP on issue of simultaneous Lok Sabha, Assembly polls

Prime Minister Narendra Modi would visit Tripura twice to hold public meetings ahead of the February 18 Assembly election, state BJP president Biplab Kumar Deb said.

Modi would come on February 8 and address two public meetings at Kailashahar in Unakoti district and Shantirbazar in South Tripura district. He would again visit the state on February 15 and address a public meeting here.

The party&#39;s national president Amit Shah would be in the state for a week to campaign in favour of the candidates of the BJP-Indigenous People&#39;s Front of Tripura (IPFT) alliance, Deb told reporters.

The election for the 60-member Assembly will be held in the state on February 18 and results would be announced on March 3.

From here, Shah would also visit Meghalaya and Nagaland, where Assembly polls would be held on February 27, the state BJP chief said.

He said 40 top BJP leaders including Union Home Minister Rajnath Singh, Defence Minister Nirmala Sitharaman, External Affairs Minister Sushma Swaraj, UP Chief Minister Yogi Adityanath and Muktar Abbas Naqvi would also visit the state for campaigning.

Modi would come on February 8 and address two public meetings at Kailashahar in Unakoti district and Shantirbazar in South Tripura district. He would again visit the state on February 15 and address a public meeting here

Prime Minister Narendra Modi would visit Tripura twice to hold public meetings ahead of the February 18 Assembly election, state BJP president Biplab Kumar Deb said. Modi would come on February 8 and address two public meetings at Kailashahar in Unakoti district and Shantirbazar in South Tripura district. He would again visit the state on February 15 and address a public meeting here. The party's national president Amit Shah would be in the state for a week to campaign in favour of the candidates of the BJP-Indigenous People's Front of Tripura (IPFT) alliance, Deb told reporters. The election for the 60-member Assembly will be held in the state on February 18 and results would be announced on March 3. From here, Shah would also visit Meghalaya and Nagaland, where Assembly polls would be held on February 27, the state BJP chief said. He said 40 top BJP leaders including Union Home Minister Rajnath Singh, Defence Minister Nirmala Sitharaman, External Affairs Minister Sushma Swaraj, UP Chief Minister Yogi Adityanath and Muktar Abbas Naqvi would also visit the state for campaigning.

PM Modi to visit Tripura twice for campaigning

India&#39;s finance minister <a href="http://www.wionews.com/india-news/budget-2018-finance-minister-has-tough-task-to-choose-between-populism-fiscal-prudence-31344">Arun Jaitley will be presenting NDA&#39;s </a>last federal budget ahead of the elections next year amid mounting pressure to balance the fiscal deficit.

Jaitley had earlier tabled the &nbsp;<a href="http://www.wionews.com/business-economy/budget-to-test-investors-faith-in-modi-government-31327">Economic Survey on Monday targeting</a> a 7-7.5 per cent growth in 2018-19. The finance minister will, however, have to look at a number of things as presents his budget on Thursday in Parliament.

The budget would need to address housing, taxation, inflation and a roadmap for corporate India as the country aims to surge ahead of other economies in the near and long-term.

Monu Ratra, ED and CEO, India Infoline Housing Finance said: &quot;Considering the government`s vision to achieve Housing for All by 2022, we believe affordable housing development requires a long-term perspective supported by easy home finance at very affordable interest rates.&quot;&nbsp;

Getamber Anand, Chairman, CREDAI and CMD, ATS Infrastructure Ltd. said, &quot;The real estate opportunity to boost GDP mustn`t be missed by the finance ministry in this budget. We expect the government to increase the exemption limits for deduction of interest from the income of the middle class and salaried homebuyer.&quot;

Arjunpreet Singh Sahni, Executive Director, Solitaire Group.Pankaj Kumar Jain, Managing Director, KW Group said, &quot;We have a lot of expectations from this year`s budget as the real estate sector is completely marred by rising input cost and week buying sentiments. We expect the&nbsp;finance minister to announce a specific mechanism to regulate the cost of key raw materials like cement and steel to help the industry produce affordable housing units for the masses.

The finance minister will also be expected to provide a vision statement for the government&#39;s GST scheme with several traders still demanding more relaxation in several products across the board.

Siddharth Gupta, MD, Hicks India said, &quot;We expect the government to re-look at GST rates on medical devices since currently it is pegged at 12 per cent which could affect the overall cost structure of the healthcare sector and even a minor relief may result in delivery of affordable healthcare services to the wider population. Also, some basic products like thermometers and hot water bottles should be moved to tax slab of 5 from 18 per cent.&quot; 
&nbsp; 
Meanwhile, political parties are bracing for the budget with UPA chairperson Sonia Gandhi likely to chair a meeting of opposition leaders on Thursday to plan a joint strategy for the ongoing budget session.

West Bengal chief minister Mamata Banerjee has already declared the government will be presenting an &quot;election budget&quot;, with most other opposition parties of the same the view.

The budget would need to address housing, taxation, inflation and a roadmap for corporate India as the country aims to surge ahead of other economies

India's finance minister Arun Jaitley will be presenting NDA's last federal budget ahead of the elections next year amid mounting pressure to balance the fiscal deficit. Jaitley had earlier tabled the Economic Survey on Monday targeting a 7-7.5 per cent growth in 2018-19. The finance minister will, however, have to look at a number of things as presents his budget on Thursday in Parliament. The budget would need to address housing, taxation, inflation and a roadmap for corporate India as the country aims to surge ahead of other economies in the near and long-term. Monu Ratra, ED and CEO, India Infoline Housing Finance said: "Considering the government`s vision to achieve Housing for All by 2022, we believe affordable housing development requires a long-term perspective supported by easy home finance at very affordable interest rates." Getamber Anand, Chairman, CREDAI and CMD, ATS Infrastructure Ltd. said, "The real estate opportunity to boost GDP mustn`t be missed by the finance ministry in this budget. We expect the government to increase the exemption limits for deduction of interest from the income of the middle class and salaried homebuyer." Arjunpreet Singh Sahni, Executive Director, Solitaire Group.Pankaj Kumar Jain, Managing Director, KW Group said, "We have a lot of expectations from this year`s budget as the real estate sector is completely marred by rising input cost and week buying sentiments. We expect the finance minister to announce a specific mechanism to regulate the cost of key raw materials like cement and steel to help the industry produce affordable housing units for the masses. The finance minister will also be expected to provide a vision statement for the government's GST scheme with several traders still demanding more relaxation in several products across the board. Siddharth Gupta, MD, Hicks India said, "We expect the government to re-look at GST rates on medical devices since currently it is pegged at 12 per cent which could affect the overall cost structure of the healthcare sector and even a minor relief may result in delivery of affordable healthcare services to the wider population. Also, some basic products like thermometers and hot water bottles should be moved to tax slab of 5 from 18 per cent." Meanwhile, political parties are bracing for the budget with UPA chairperson Sonia Gandhi likely to chair a meeting of opposition leaders on Thursday to plan a joint strategy for the ongoing budget session. West Bengal chief minister Mamata Banerjee has already declared the government will be presenting an "election budget", with most other opposition parties of the same the view.

Union budget 2018: Jaitley must address housing, inflation, taxes & GST, say experts

Ahead of the Budget, a survey has revealed that 87.5 per cent small and medium enterprises from the transport sector expect more projects to be announced such as Bharatmala road building programme, while 54 per cent of retail and e-commerce SMEs want a national retail policy.

The Dun &amp; Bradstreet SAP SME Survey on the Budget expectations of SMEs across various segments also found that 43 per cent respondents from the metal and mining sector want the government to expand profit-linked incentives to include capital-intensive industries. However, 88 per cent feel the government is likely to maintain a protectionist mindset, promoting indigenous manufacturing.

According to the survey, 56 per cent SMEs from the automotive sector expect the reduction in GST rates on ancillaries as suggested by Automotive Component Manufacturers Association of India, whereas 88 per cent expect encouraging steps towards Bharat Stage?VI adoption.

Besides, one out of three respondents from the industrial machine components segment want nil taxation for import of capital goods for technological upgradation and environment protection.

Moreover, 50 per cent respondents from the chemical and pharma sectors want government to change weighted deduction provisions to 200 per cent for R&amp;D in the budget.

On the professional services front, 48 per cent desire the benefit of presumptive taxation to be extended to Limited Liability Partnerships.

Among the retail and e-commerce respondents, 52 per cent prefer a Unified National Market for retail and FMCG sector combined while 88 per cent from the transport and logistics sector want logistic parks to be set up.

The survey highlighted a whopping 91 per cent of respondents endorsing the need of technology adoption with the support of encouraging government policies and schemes.

The study also found that SMEs view technology as an enabler for their business growth. Over 63.59 per cent stated that technology adoption is not a survival tactic but in anticipation of thriving growth, and hence is on the top of their priority list.

Besides, 29 per cent of respondents highlighted access to credit for SMEs as the most important change they expect from the budget. In addition, around 21 per cent expressed the need for the government to extend incentives for SME startups, while 20 per cent want no threshold for investment allowance on capital expenditure.&nbsp;

The study also found that SMEs view technology as an enabler for their business growth.

Ahead of the Budget, a survey has revealed that 87.5 per cent small and medium enterprises from the transport sector expect more projects to be announced such as Bharatmala road building programme, while 54 per cent of retail and e-commerce SMEs want a national retail policy. The Dun & Bradstreet SAP SME Survey on the Budget expectations of SMEs across various segments also found that 43 per cent respondents from the metal and mining sector want the government to expand profit-linked incentives to include capital-intensive industries. However, 88 per cent feel the government is likely to maintain a protectionist mindset, promoting indigenous manufacturing. According to the survey, 56 per cent SMEs from the automotive sector expect the reduction in GST rates on ancillaries as suggested by Automotive Component Manufacturers Association of India, whereas 88 per cent expect encouraging steps towards Bharat Stage?VI adoption. Besides, one out of three respondents from the industrial machine components segment want nil taxation for import of capital goods for technological upgradation and environment protection. Moreover, 50 per cent respondents from the chemical and pharma sectors want government to change weighted deduction provisions to 200 per cent for R&D in the budget. On the professional services front, 48 per cent desire the benefit of presumptive taxation to be extended to Limited Liability Partnerships. Among the retail and e-commerce respondents, 52 per cent prefer a Unified National Market for retail and FMCG sector combined while 88 per cent from the transport and logistics sector want logistic parks to be set up. The survey highlighted a whopping 91 per cent of respondents endorsing the need of technology adoption with the support of encouraging government policies and schemes. The study also found that SMEs view technology as an enabler for their business growth. Over 63.59 per cent stated that technology adoption is not a survival tactic but in anticipation of thriving growth, and hence is on the top of their priority list. Besides, 29 per cent of respondents highlighted access to credit for SMEs as the most important change they expect from the budget. In addition, around 21 per cent expressed the need for the government to extend incentives for SME startups, while 20 per cent want no threshold for investment allowance on capital expenditure.

Union Budget 2018: SMEs expect more projects, lower taxes

Finance minister Arun Jaitley will unveil Union Budget 2018-19 on Thursday. With investors expecting increased investment in key areas, such as e-commerce, healthcare, education, and agriculture; reduction in tax slabs, improvement of tech infrastructure, and data security remain the key concerns for the Information Technology (IT) sector.

Here are some expectations from the sector, ahead of this year&#39;s Union Budget:

Acer

&quot;India as a country imports a large number of electronic goods from neighbouring countries. There should be a focus to substitute imports with domestic manufacturing. This can again be achieved with attractive tax slabs. We have some success in that field but the value addition is still low. There is a need to provide an edge to domestic manufacturing. Similarly, there are a lot of low-end items being imported, and if produced locally they present a good opportunity to indigenous companies by providing local employment. We hope this budget would be sympathetic towards the sector so as to resurrect the affected businesses again. Overall, we are hopeful for the new budget to create a conducive environment for new job creation, exports and future economic growth of the country,&quot; said CFO, Acer, Alok Dubey.

DataWind

&quot;In the upcoming budget, we are hoping for some relief in terms of the Goods and Services Tax (GST) from the government. As we have always stated, DataWind aims to fill the gap between conventional and smart education by providing affordable devices and internet connectivity. Tablet PCs carried a five percent sales tax before the implementation of GST. Due to tax rebates in certain Indian states, as part of Make-in-India, the five percent was waived. In the last financial year, we have seen a steep rise due to GST from zero percent to 18 percent. The GST rate for 7&quot; tablets is also at disparity with 6&quot; smartphones, which have a 12 percent, while both sets of products carry the same functionality. This made educational tablets costlier and unaffordable among low-income groups. We look forward to reduction in GST on low-cost educational tablets from 18 percent to five percent and if possible remove it completely. We are hopeful that the process of GST refunds gets expedited thus helping to run the business with ease,&quot; said CEO and President, DataWind, Suneet Singh Tuli.

Verizon Enterprise Solutions

&quot;The Government of India has made great strides to foster the growth and development of the Indian IT and telecommunication sector, strengthening the economic and digital transformation in the country. As the industry grapples with competition caused by digital disruption, we hope that the Union Budget 2018-19 will take into consideration key issues such as reforms in the telecom regulatory framework via industry consultation as part of new National Telecom Policy - 2018 deliberations to promote legal certainty, predictability and global consistency which will further foster innovation and investments in the IT and telecom sector. The key to success of the Digital India initiative also lies in making the necessary reforms to the tax structures including GST that have played an integral role in developing the country&#39;s economic prowess,&quot; said head of ASPAC Public Policy and Regulatory Counsel, Verizon Enterprise Solutions, Priya Mahajan.

Kaspersky Lab

&quot;Looking at the current situation and the government initiatives like digitization in India, it is expected that the budget which is soon to be announced will focus a lot more on creating funds to battle the growing concern of cyber security in India. Cybersecurity according to me deserves to be in the top five list of concerns in India,&quot; said General Manager, Kaspersky Lab (South Asia), Shrenik Bhayani.

Teradata India

&quot;Budget 2018 assumes significance as it comes post two historical reforms made by the government, demonization and the implementation of GST. It is great to finally see digitization assume its rightful importance and all-pervasive relevance for more effective governance in our robust economy. The government is already paying heed to the rise of disruptive technologies such as automation, advanced analytics, blockchain, internet of things, artificial intelligence and machine learning, and we hope that it facilitates the adoption of some of these technologies both, for itself to improve governance and citizen services as well as by industry and enterprise to hasten the development of new products and services. We are also looking forward to new measures by the government that will fuel the growth of innovation and R&amp;D in India and further enhance ease-of-doing-business,&quot; said MD, Teradata India, Souma Das.

NetApp India

&quot;In the past few years, The Indian Government has initiated a series of initiatives, directed at driving overall change for the positive in the economy, and results are sure to follow suit. One positive impact, for example, is the fact that The World Bank now ranks India as one of the top 100 nations in terms of business friendliness, a significant jump of 30 points from the preceding year. I believe more success and impact is yet to come. The upcoming budget will be an important one, as it will be expected to provide the booster to this forward direction. This government has demonstrated that it values technology led governance for transparency and efficiency. A stronger thrust on research and development that enables more indigenous innovation and increased investments in future technologies will be welcome. I do believe that we will see more of citizen-focused and friendly decisions, and initiatives to bolster investment in India,&quot; said President, NetApp India and SAARC, Anil Valluri.

On a related note, the Union Budget will be presented on February 1.

This will be the last full-fledged budget to be presented by the Narendra Modi-led government, and the first one post the rollout of the GST.

The Union Budget will be presented on February 1

Finance minister Arun Jaitley will unveil Union Budget 2018-19 on Thursday. With investors expecting increased investment in key areas, such as e-commerce, healthcare, education, and agriculture; reduction in tax slabs, improvement of tech infrastructure, and data security remain the key concerns for the Information Technology (IT) sector. Here are some expectations from the sector, ahead of this year's Union Budget: Acer "India as a country imports a large number of electronic goods from neighbouring countries. There should be a focus to substitute imports with domestic manufacturing. This can again be achieved with attractive tax slabs. We have some success in that field but the value addition is still low. There is a need to provide an edge to domestic manufacturing. Similarly, there are a lot of low-end items being imported, and if produced locally they present a good opportunity to indigenous companies by providing local employment. We hope this budget would be sympathetic towards the sector so as to resurrect the affected businesses again. Overall, we are hopeful for the new budget to create a conducive environment for new job creation, exports and future economic growth of the country," said CFO, Acer, Alok Dubey. DataWind "In the upcoming budget, we are hoping for some relief in terms of the Goods and Services Tax (GST) from the government. As we have always stated, DataWind aims to fill the gap between conventional and smart education by providing affordable devices and internet connectivity. Tablet PCs carried a five percent sales tax before the implementation of GST. Due to tax rebates in certain Indian states, as part of Make-in-India, the five percent was waived. In the last financial year, we have seen a steep rise due to GST from zero percent to 18 percent. The GST rate for 7" tablets is also at disparity with 6" smartphones, which have a 12 percent, while both sets of products carry the same functionality. This made educational tablets costlier and unaffordable among low-income groups. We look forward to reduction in GST on low-cost educational tablets from 18 percent to five percent and if possible remove it completely. We are hopeful that the process of GST refunds gets expedited thus helping to run the business with ease," said CEO and President, DataWind, Suneet Singh Tuli. Verizon Enterprise Solutions "The Government of India has made great strides to foster the growth and development of the Indian IT and telecommunication sector, strengthening the economic and digital transformation in the country. As the industry grapples with competition caused by digital disruption, we hope that the Union Budget 2018-19 will take into consideration key issues such as reforms in the telecom regulatory framework via industry consultation as part of new National Telecom Policy - 2018 deliberations to promote legal certainty, predictability and global consistency which will further foster innovation and investments in the IT and telecom sector. The key to success of the Digital India initiative also lies in making the necessary reforms to the tax structures including GST that have played an integral role in developing the country's economic prowess," said head of ASPAC Public Policy and Regulatory Counsel, Verizon Enterprise Solutions, Priya Mahajan. Kaspersky Lab "Looking at the current situation and the government initiatives like digitization in India, it is expected that the budget which is soon to be announced will focus a lot more on creating funds to battle the growing concern of cyber security in India. Cybersecurity according to me deserves to be in the top five list of concerns in India," said General Manager, Kaspersky Lab (South Asia), Shrenik Bhayani. Teradata India "Budget 2018 assumes significance as it comes post two historical reforms made by the government, demonization and the implementation of GST. It is great to finally see digitization assume its rightful importance and all-pervasive relevance for more effective governance in our robust economy. The government is already paying heed to the rise of disruptive technologies such as automation, advanced analytics, blockchain, internet of things, artificial intelligence and machine learning, and we hope that it facilitates the adoption of some of these technologies both, for itself to improve governance and citizen services as well as by industry and enterprise to hasten the development of new products and services. We are also looking forward to new measures by the government that will fuel the growth of innovation and R&D in India and further enhance ease-of-doing-business," said MD, Teradata India, Souma Das. NetApp India "In the past few years, The Indian Government has initiated a series of initiatives, directed at driving overall change for the positive in the economy, and results are sure to follow suit. One positive impact, for example, is the fact that The World Bank now ranks India as one of the top 100 nations in terms of business friendliness, a significant jump of 30 points from the preceding year. I believe more success and impact is yet to come. The upcoming budget will be an important one, as it will be expected to provide the booster to this forward direction. This government has demonstrated that it values technology led governance for transparency and efficiency. A stronger thrust on research and development that enables more indigenous innovation and increased investments in future technologies will be welcome. I do believe that we will see more of citizen-focused and friendly decisions, and initiatives to bolster investment in India," said President, NetApp India and SAARC, Anil Valluri. On a related note, the Union Budget will be presented on February 1. This will be the last full-fledged budget to be presented by the Narendra Modi-led government, and the first one post the rollout of the GST.

Budget 2018: Tech sector hopes for reduction in tax slabs

Finance Minister Arun Jaitley will tomorrow present the current NDA government&#39;s fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence.

Also read: <a href="http://www.wionews.com/business-economy/budget-to-test-investors-faith-in-modi-government-31327" target="_blank">Budget to test investors&#39; faith in Modi government</a>

The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

With the recent elections in Gujarat indicating erosion of BJP&#39;s rural vote base, Jaitley may also unveil incentives for the farm sector.

Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit.

Also on Jaitley&#39;s menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

But he has to do all this while sticking to the road map of narrowing one of Asia&#39;s largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop.

This will be India&#39;s first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia&#39;s third-largest economy.There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years.

He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them.

Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can&#39;t be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target.

In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

Also, the nearly century-old tradition of having a separate budget for the railways was scrapped and merged with the general budget.

The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

While P Chidambaram had presented the previous UPA government&#39;s vote-on-account in February 2014, Jaitley had presented a full budget in July that year.

The Budget for 2018-19 will be the first budget post implementation of the GST regime.

Even though independent India&#39;s biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers.

With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change.

While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance

Finance Minister Arun Jaitley will tomorrow present the current NDA government's fifth and arguably his toughest Budget yet as he seeks to address agriculture distress, create jobs and boost growth while at the same time stick to fiscal prudence. Also read: Budget to test investors' faith in Modi government The Budget, in view of upcoming assembly polls in eight states - including three major states ruled by the BJP - and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance. With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector. Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation. There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit. Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low. But he has to do all this while sticking to the road map of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade. The target Jaitley had previously set out was to lower the fiscal deficit to 3.2 per cent of the GDP in the current fiscal and to 3 per cent in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow. Prime Minister Narendra Modi seemed to have already lowered expectations of mass voter swaying announcements when he indicated that the Budget may not be resort to populism and that it was a myth that common man wants sop. This will be India's first post-GST and is being keenly watched to see what Jaitley does to boost growth in Asia's third-largest economy.There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25 per cent from 30 per cent over four years. He has to manoeuvre all this within limited scope of tinkering with tax rates given that central excise duty, which was levied on goods manufactured in the country, and service tax have both been subsumed in the GST and he no longer has the sole power to fix rates on them. Also constraining him would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit. Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship. There have been mixed signals on deficit target, with Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog vice chairman Rajiv Kumar saying the government is likely to stick to the target. In the first eight months of 2017-18, fiscal deficit reached 112 per cent of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL. Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year. The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year. Also, the nearly century-old tradition of having a separate budget for the railways was scrapped and merged with the general budget. The Union Budget 2018-19 would be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per the practice, a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government. While P Chidambaram had presented the previous UPA government's vote-on-account in February 2014, Jaitley had presented a full budget in July that year. The Budget for 2018-19 will be the first budget post implementation of the GST regime. Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April- March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax alongside direct tax numbers. With excise duty and service tax being subsumed in the GST, the classifications in the forthcoming budget may undergo change. While a new classification for revenues to be accrued from GST will be included in the Budget for the next fiscal, for the current year two sets of accounting may be presented, one for actual accruals during April-June for excise, customs and service tax, and the other for July-March period for GST and customs duty.

Budget 2018: Finance Minister has tough task to choose between populism, fiscal prudence

The Modi government has attracted the considerable attention in the global affairs. There is an increasing global recognition of India&rsquo;s assertive role in the international affairs.

&nbsp;

PM Modi&rsquo;s policy broadly operates within the foundational structure and principles of non-alignment; albeit in more realist manner and has been successful in protecting and securing India&rsquo;s interest first. This policy is most visible and evident in the region of West Asia, particularly in relations with GCC, Iran, Saudi Arabia and Israel.

&nbsp;

PM Modi will be on 4 days, 3 nation tour from 9th to 12th February to Palestine, Oman and UAE during which he will hold talks with the leadership in these countries on &quot;matters of mutual interest.&rdquo; This visit to Palestine also comes after Modi hosted Israeli Prime Minister Benjamin Netanyahu on six-day visit to India between 14-19 January as the two countries marked the completion of 25 years of the establishment of diplomatic relations.

&nbsp;

PM Modi&rsquo;s visit is significant as he is the first Prime Minister to visit Palestine which has dispelled the considerable perception at the global and domestic level that India is ignoring the legitimate cause of Palestinian nationhood at the behest of Israel and Israeli lobby at the USA. In this context, it may be noted that India under the leadership of Modi has opposed the Trump&rsquo;s administration declaration of recognising Jerusalem as the capital of Israel.

&nbsp;

PM Modi will be visiting Ramallah alone and not Israel, like the way he did last year when he visited only Tel Aviv, not Ramallah. As a visit to both these places is considered a customary stop for world leaders. In the past, President Pranab Mukherjee, Vice-President Hamid Ansari, External Affairs Minister Sushma Swaraj had done so.

&nbsp;

PM Modi is wedded to the doctrine of realism and he recognises the fundamental change that has taken place in the structure of International Relations in post-Soviet era. This demands that India must pursue a pragmatic foreign policy with centers of global powers.&nbsp;

&nbsp;

Since 1991 all prime ministers have diluted the ideological component of nonalignment and brought necessary pragmatism in its foreign policy by cultivating a strong relationship with all major powers of the world, such as Western European countries, USA, Israel, Japan, Australia, Russia, Saudi Arabia and Iran. In his upcoming visit, PM Modi will attend the World Government Summit in the UAE where he has been accorded &ldquo;guest of honour&rdquo; status. This is his second visit to the Emirates. PM Modi had previously visited the UAE in August 2015. Also, he will be visiting Oman, to strengthen cooperation in key sectors such as trade and defence.

&nbsp;

The same trend has been pursued more rigorously under the dynamic leadership of PM Modi.

&nbsp;

However, contrary to the critical perception, PM Modi has paid more attention in cultivating good relationships with the countries of West Asia than other regions and countries of the world. This can be seen from a number of visits that PM Modi has made to countries of West Asia particularly UAE, Iran, Saudi Arabia, Israel as well as making the crown prince of Abu Dhabi as a republic day guest in 2017.

&nbsp;

The underlying reasons behind PM Modi intensive policy in West Asia are the following:

&nbsp;

1) India has a strong diasporic presence in this world, with the largest concentration in the Gulf countries.

&nbsp;

The region contributes largest remittance which is critical for the stability of India&rsquo;s economy. Seven million Indians live and work in the Arab region and sends back remittances between $35 and $4o billion annually.

&nbsp;

2) India needs to acquire an uninterrupted supply of gas and oil and store at a time when the global price of oil and gas is very low

&nbsp;

3) The region has a huge basket of sovereign wealth and they are looking towards India as a major destination country for their investment.

&nbsp;

4) The region is a critical source of support to Pakistan. PM Modi has successfully exposed the terror face of Pakistan and has isolated it in the region.

&nbsp;

However, at the same time, the Indian government is keenly aware of the Arab sensitivity on the question of Palestine and, therefore, he is successful in maintaining a diplomatic balance between Israel and Palestine. To conclude, Indian foreign policy has become more realistic, pragmatic in orientation and less concerned about ideological and symbolic actions.

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

The Indian government is keenly aware of the Arab sensitivity on the question of Palestine and, therefore, Narendra Modi is successful in maintaining a diplomatic balance between Israel and Palestine.

The Modi government has attracted the considerable attention in the global affairs. There is an increasing global recognition of India’s assertive role in the international affairs. PM Modi’s policy broadly operates within the foundational structure and principles of non-alignment; albeit in more realist manner and has been successful in protecting and securing India’s interest first. This policy is most visible and evident in the region of West Asia, particularly in relations with GCC, Iran, Saudi Arabia and Israel. PM Modi will be on 4 days, 3 nation tour from 9th to 12th February to Palestine, Oman and UAE during which he will hold talks with the leadership in these countries on "matters of mutual interest.” This visit to Palestine also comes after Modi hosted Israeli Prime Minister Benjamin Netanyahu on six-day visit to India between 14-19 January as the two countries marked the completion of 25 years of the establishment of diplomatic relations. PM Modi’s visit is significant as he is the first Prime Minister to visit Palestine which has dispelled the considerable perception at the global and domestic level that India is ignoring the legitimate cause of Palestinian nationhood at the behest of Israel and Israeli lobby at the USA. In this context, it may be noted that India under the leadership of Modi has opposed the Trump’s administration declaration of recognising Jerusalem as the capital of Israel. PM Modi will be visiting Ramallah alone and not Israel, like the way he did last year when he visited only Tel Aviv, not Ramallah. As a visit to both these places is considered a customary stop for world leaders. In the past, President Pranab Mukherjee, Vice-President Hamid Ansari, External Affairs Minister Sushma Swaraj had done so. PM Modi is wedded to the doctrine of realism and he recognises the fundamental change that has taken place in the structure of International Relations in post-Soviet era. This demands that India must pursue a pragmatic foreign policy with centers of global powers. Since 1991 all prime ministers have diluted the ideological component of nonalignment and brought necessary pragmatism in its foreign policy by cultivating a strong relationship with all major powers of the world, such as Western European countries, USA, Israel, Japan, Australia, Russia, Saudi Arabia and Iran. In his upcoming visit, PM Modi will attend the World Government Summit in the UAE where he has been accorded “guest of honour” status. This is his second visit to the Emirates. PM Modi had previously visited the UAE in August 2015. Also, he will be visiting Oman, to strengthen cooperation in key sectors such as trade and defence. The same trend has been pursued more rigorously under the dynamic leadership of PM Modi. However, contrary to the critical perception, PM Modi has paid more attention in cultivating good relationships with the countries of West Asia than other regions and countries of the world. This can be seen from a number of visits that PM Modi has made to countries of West Asia particularly UAE, Iran, Saudi Arabia, Israel as well as making the crown prince of Abu Dhabi as a republic day guest in 2017. The underlying reasons behind PM Modi intensive policy in West Asia are the following: 1) India has a strong diasporic presence in this world, with the largest concentration in the Gulf countries. The region contributes largest remittance which is critical for the stability of India’s economy. Seven million Indians live and work in the Arab region and sends back remittances between $35 and $4o billion annually. 2) India needs to acquire an uninterrupted supply of gas and oil and store at a time when the global price of oil and gas is very low 3) The region has a huge basket of sovereign wealth and they are looking towards India as a major destination country for their investment. 4) The region is a critical source of support to Pakistan. PM Modi has successfully exposed the terror face of Pakistan and has isolated it in the region. However, at the same time, the Indian government is keenly aware of the Arab sensitivity on the question of Palestine and, therefore, he is successful in maintaining a diplomatic balance between Israel and Palestine. To conclude, Indian foreign policy has become more realistic, pragmatic in orientation and less concerned about ideological and symbolic actions. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: PM Modi's visit to Palestine will be a step in right direction. This is why.

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