Ahead of the Ram Mandir Pran Pratishtha (consecration) that took place on Monday (Jan 22), Ayodhya underwent an extensive transformation, with a reported expenditure exceeding $10 billion. The city redevelopment initiative included a new airport, revamped railway station, township improvements, enhanced road connectivity and other facilities.

Tourism, contributes approximately seven per cent to India's economy, and lags behind other major emerging and developed economies. A recent report by brokerage firm Jefferies suggests that Ayodhya's monumental makeover could lead to tax revenue generation exceeding ₹25,000 crore ($3 billion) for the Uttar Pradesh government.

<a href="https://www.wionews.com/india-news/watch-moment-when-ram-lallas-idol-was-revealed-in-ram-mandir-consecration-ceremony-682381">Also read |&nbsp;Ram Lalla's idol revealed at temple consecration ceremony</a>

<h2>Cost analysis: The multifaceted makeover</h2>

Jefferies estimates the comprehensive Ayodhya makeover, encompassing infrastructure enhancements, to cost around ₹85,000 crore ($10 billion). The ambitious project aims to position Ayodhya as a premier tourist destination, attracting over 50 million visitors annually, rivaling global landmarks like the Golden Temple in Amritsar and the Tirupati temple in Andhra Pradesh.

To bolster tourism, Ayodhya has witnessed the operational commencement of phase 1 of its airport, capable of accommodating 1 million passengers. Plans are in place to expand this capacity to 6 million by 2025. The railway infrastructure has also been doubled to handle 60,000 passengers daily, signalling a concerted effort to improve connectivity.

Also watch |&nbsp;Ram Lalla Idol: What we know | Ram Mandir Inauguration

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/ram-lalla-idol-what-we-know-ram-mandir-inauguration-682516/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

With 17 hotels boasting 590 rooms currently, Ayodhya's hospitality sector is set for a substantial boost. As many as 73 new hotels, 40 of which are already under construction, are to come up to meet the demand in view of increased tourist influx. Major players like Indian Hotels, Marriott, and Wyndham have committed to new ventures, while Oyo plans to add 1,000 hotel rooms.

The transformation of Ayodhya, propelled by the inauguration of the Ram Mandir, positions the city as a potential global tourism hub.

(With inputs from agencies)

Ahead of the Ram Mandir Pran Pratishtha (consecration) that took place on Monday (Jan 22), Ayodhya underwent an extensive transformation, with a reported expenditure exceeding $10 billion.

Ahead of the Ram Mandir Pran Pratishtha (consecration) that took place on Monday (Jan 22), Ayodhya underwent an extensive transformation, with a reported expenditure exceeding $10 billion. The city redevelopment initiative included a new airport, revamped railway station, township improvements, enhanced road connectivity and other facilities. Tourism, contributes approximately seven per cent to India's economy, and lags behind other major emerging and developed economies. A recent report by brokerage firm Jefferies suggests that Ayodhya's monumental makeover could lead to tax revenue generation exceeding ₹25,000 crore ($3 billion) for the Uttar Pradesh government. Also read | Ram Lalla's idol revealed at temple consecration ceremony Cost analysis: The multifaceted makeover Jefferies estimates the comprehensive Ayodhya makeover, encompassing infrastructure enhancements, to cost around ₹85,000 crore ($10 billion). The ambitious project aims to position Ayodhya as a premier tourist destination, attracting over 50 million visitors annually, rivaling global landmarks like the Golden Temple in Amritsar and the Tirupati temple in Andhra Pradesh. To bolster tourism, Ayodhya has witnessed the operational commencement of phase 1 of its airport, capable of accommodating 1 million passengers. Plans are in place to expand this capacity to 6 million by 2025. The railway infrastructure has also been doubled to handle 60,000 passengers daily, signalling a concerted effort to improve connectivity. Also watch | Ram Lalla Idol: What we know | Ram Mandir Inauguration With 17 hotels boasting 590 rooms currently, Ayodhya's hospitality sector is set for a substantial boost. As many as 73 new hotels, 40 of which are already under construction, are to come up to meet the demand in view of increased tourist influx. Major players like Indian Hotels, Marriott, and Wyndham have committed to new ventures, while Oyo plans to add 1,000 hotel rooms. The transformation of Ayodhya, propelled by the inauguration of the Ram Mandir, positions the city as a potential global tourism hub. (With inputs from agencies)

Ayodhya’s over $10 billion revamp could generate around $3bn in tax revenue for UP

Needing final approval for a bailout package from the International Monetary Fund (IMF), Pakistan is due to <a href="https://www.wionews.com/south-asia/pakistan-to-present-austerity-centred-budget-following-imf-deal-226187">present an austerity budget on Tuesday</a> that is expected to set hugely ambitious tax revenue targets.

Prime Minister Imran Khan's government was forced to seek IMF help to stabilise an economy that has seen growth plunge, and while teetering on the verge of a balance of payments crisis. The rupee has lost about a third of its value this year and inflation has jumped to above 9%.

In April, the government secured a provisional agreement for Pakistan's 13th IMF bailout the late 1980s, but the $6 billion loans are contingent on measures being put in place to cut a budget deficit that the IMF forecast to hit 7% this year.

"We are faced with a fundamental question: how to broaden the tax net," Hafeez Shaikh, the country's de facto finance minister, told reporters late on Monday. "This is a big issue - if we cannot collect taxes, we cannot meet our expenses or settle our debts."

Media reports say Shaikh will set revenue targets for the financial year ending June 2020 that will mark an increase of 35%, when he delivers the government's first budget since it took power last August.

With Pakistan spending almost 70% of government revenues on the <a href="https://www.wionews.com/south-asia/cut-in-annual-defence-budget-wont-impact-our-response-to-any-threat-pakistan-army-chief-224877">military</a> and interest payments, the room for major spending cuts is limited.

Handicapped by a weak tax system and Pakistan has historically struggled to collect revenues. Only 1.8 million people file income tax returns in a fast-growing nation with a population of 208 million people and a large informal economy.

The agricultural sector, dominated by politically connected big landowners, makes up around 20% of the economy but accounts for only 0.22% of direct tax revenues, according to the World Bank.

Shaikh is expected to announce cuts to various subsidies, most notably in the power sector.

The austerity measures that the government needs to take are expected to pile pressure on Khan, who came to power promising to lift millions out of poverty.

Pakistan has already cut its growth forecast to 3.3% for the year ending June, some way off the 6.2% forecast at the last budget, and below IMF's estimates around 2.9% this year. Pakistan sees growth at 4% next year.

Under the IMF's loan terms, the government is expected to let the rupee depreciate to help correct an unsustainable current account deficit and aim for a primary budget deficit, not including debt servicing costs, of 0.6 per cent of gross domestic product.

That would require cuts or extra revenues worth about $5 billion.

One area that is expected to be trimmed is the military's hefty budget, a rare move in a nation where the military wields huge political power. Khan said earlier this month that the military had volunteered to rein in spending, but it is unclear by how much the military budget will be cut.

Last year the government hiked the defence spending to 1.1 trillion rupees, allocating the military about 20% of the 5.6 trillion federal government budget. However, officials say the military has since overshot that figure, in part due to a flare up with India earlier this year.

Needing final approval for a bailout package from the International Monetary Fund (IMF), Pakistan is due to present an austerity budget on Tuesday that is expected to set hugely ambitious tax revenue targets.

Needing final approval for a bailout package from the International Monetary Fund (IMF), Pakistan is due to present an austerity budget on Tuesday that is expected to set hugely ambitious tax revenue targets. Prime Minister Imran Khan's government was forced to seek IMF help to stabilise an economy that has seen growth plunge, and while teetering on the verge of a balance of payments crisis. The rupee has lost about a third of its value this year and inflation has jumped to above 9%. In April, the government secured a provisional agreement for Pakistan's 13th IMF bailout the late 1980s, but the $6 billion loans are contingent on measures being put in place to cut a budget deficit that the IMF forecast to hit 7% this year. "We are faced with a fundamental question: how to broaden the tax net," Hafeez Shaikh, the country's de facto finance minister, told reporters late on Monday. "This is a big issue - if we cannot collect taxes, we cannot meet our expenses or settle our debts." Media reports say Shaikh will set revenue targets for the financial year ending June 2020 that will mark an increase of 35%, when he delivers the government's first budget since it took power last August. With Pakistan spending almost 70% of government revenues on the military and interest payments, the room for major spending cuts is limited. Handicapped by a weak tax system and Pakistan has historically struggled to collect revenues. Only 1.8 million people file income tax returns in a fast-growing nation with a population of 208 million people and a large informal economy. The agricultural sector, dominated by politically connected big landowners, makes up around 20% of the economy but accounts for only 0.22% of direct tax revenues, according to the World Bank. Shaikh is expected to announce cuts to various subsidies, most notably in the power sector. The austerity measures that the government needs to take are expected to pile pressure on Khan, who came to power promising to lift millions out of poverty. Pakistan has already cut its growth forecast to 3.3% for the year ending June, some way off the 6.2% forecast at the last budget, and below IMF's estimates around 2.9% this year. Pakistan sees growth at 4% next year. Under the IMF's loan terms, the government is expected to let the rupee depreciate to help correct an unsustainable current account deficit and aim for a primary budget deficit, not including debt servicing costs, of 0.6 per cent of gross domestic product. That would require cuts or extra revenues worth about $5 billion. One area that is expected to be trimmed is the military's hefty budget, a rare move in a nation where the military wields huge political power. Khan said earlier this month that the military had volunteered to rein in spending, but it is unclear by how much the military budget will be cut. Last year the government hiked the defence spending to 1.1 trillion rupees, allocating the military about 20% of the 5.6 trillion federal government budget. However, officials say the military has since overshot that figure, in part due to a flare up with India earlier this year.

Pakistan budget expected to set hefty tax revenue targets

Every five years, a finance commission decides how to split India's tax revenue between the Centre and India's states.&nbsp;

A major factor deciding the split is a state's population. The bigger a state's population, the greater the share of tax revenue given to it.&nbsp;

That however, say the experts, is also unfair for it punishes the states that have done the hard work of controlling their populations.&nbsp;

There is at the moment a massive difference in fertility rates — the rate at which a state's population grows — between the southern and other states, with the southern states of Tamil Nadu, Kerala, Karnataka, Andhra, Telangana, and the western state of Maharashtra having a fertility rate of about 1.5.&nbsp;

Bihar on the other hand has a fertility rate of about 3.5, and the other Bimaru states a rate of about 2.5.&nbsp;

The problem cropped up when the previous finance commission switched over to the 2011 Census to decide&nbsp;the split the commissions had so far been using the 1971 Census.&nbsp;

Tamil Nadu's politicians, including Chief Minister E Palaniswami and Leader of the Opposition MK Stalin, have said a division on the basis of the 2011 Census will be patently unfair. They say they have done the hard work of controlling their populations and instead of being rewarded for having done so, they are now being punished.&nbsp;

They have also accused the Centre of "highway robbery". And are insisting the current 15th finance commission go back to the 1971 Census.&nbsp;

BJP general secretary Ram Madhav met on Wednesday with Finance Commission Chairperson NK Singh, news reports said, and promised that the southern states would not lose out.&nbsp;

The reports however did not say how he would ensure that.&nbsp;

&nbsp;

&nbsp;

Tax revenue is divided on the basis of population. The larger a state's population, the higher its share of revenue. That, say the southern states and experts, is patently unfair

Every five years, a finance commission decides how to split India's tax revenue between the Centre and India's states. A major factor deciding the split is a state's population. The bigger a state's population, the greater the share of tax revenue given to it. That however, say the experts, is also unfair for it punishes the states that have done the hard work of controlling their populations. There is at the moment a massive difference in fertility rates — the rate at which a state's population grows — between the southern and other states, with the southern states of Tamil Nadu, Kerala, Karnataka, Andhra, Telangana, and the western state of Maharashtra having a fertility rate of about 1.5. Bihar on the other hand has a fertility rate of about 3.5, and the other Bimaru states a rate of about 2.5. The problem cropped up when the previous finance commission switched over to the 2011 Census to decide the split the commissions had so far been using the 1971 Census. Tamil Nadu's politicians, including Chief Minister E Palaniswami and Leader of the Opposition MK Stalin, have said a division on the basis of the 2011 Census will be patently unfair. They say they have done the hard work of controlling their populations and instead of being rewarded for having done so, they are now being punished. They have also accused the Centre of "highway robbery". And are insisting the current 15th finance commission go back to the 1971 Census. BJP general secretary Ram Madhav met on Wednesday with Finance Commission Chairperson NK Singh, news reports said, and promised that the southern states would not lose out. The reports however did not say how he would ensure that.

Southern states accuse Centre of 'highway robbery', say not getting fair share of tax revenue

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