Tag: Budget

CAG favours policy framework for off-budget financing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government should frame a policy on off-budget financing and sources of such funding in view of its fiscal implication, a CAG report on the Fiscal Responsibility and Budget Management (FRBM) said.

In the report tabled in Parliament on Tuesday covering fiscal 2016-17, the Comptroller and Auditor General of India (CAG) said that the off-budget financing was being used to defer fertiliser arrears, food subsidy bills and outstanding dues of Food Corporation of India (FCI) through borrowings.

It said that though the off-budget financing being outside the parliamentary control, it has implication for fiscal indicators as they “understate” the government’s expenditure in the year by keeping them off the budget. “Such off-budget financial arrangement, defer committed liability (subsidy arrears/bills) or create future liability and increases cost of subsidy due to interest payment,” the report said.

In order to address these issues, it said the government should consider “putting in place” a policy framework for off-budget financing. The framework should specify the rationale and objective of off-budget financing, quantum of off-budget financing, sources of fund among others.

The CAG further said the government should also consider disclosing the details of off- budget borrowings through disclosure statements in Budget as well as in accounts.

The objective of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top 5 budget smartphones under Rs 20,000 to play PUBG Mobile

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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PlayerUnknown’s Battlegrounds, referred to by its acronym, PUBG, has created a storm in online gaming world. The game had over 30 million daily active users on its mobile version of the game in December.

As per PUBG Corporation, PUBG Mobile crossed 100 million registered users in only four months, creating one of the fastest games to achieve this performance. However, if you are playing this game on a smartphone, not every device may be up to it.

Realme U1

The Realme U1 has a teardrop notch display with the MediaTek Helio P70 (12 nm). The device has a 6.3-inch FHD+ display, a 13MP + 2MP dual rear camera, 25MP front camera, and two storage configurations: 3GB RAM with 32GB of storage and 4GB RAM with 64GB storage. Realme U1 has 3500 mAh battery and runs on ColorOS 5.2, based on Android 8.1 (Oreo). Realme U1 price in India starts from Rs 11,999.

Xiaomi Redmi Note 6 Pro

This smartphone comes with a 6.26-inch Full HD+ IPS LCD display with an aspect ratio of 19:9. The phone is powered by a 1.8GHz octa-core Qualcomm Snapdragon 600 processor paired with Adreno 509 GPU. The device has 4000 mAh battery and supports Qualcomm’s Quick Charge 3.0. The Xiaomi Redmi Note 6 Pro has a P2i Nano coating as a liquid repellent. Xiaomi Redmi Note 6 Pro price in India is Rs 13,999.

Nokia 6.1 Plus

Nokia 6.1 Plus, also known as the Nokia X6, features a 5.8-inch Full HD+ IPS LCD display running at a resolution of 2,280×1,080 pixels and aspect ratio of 19:9. The device sports display notch, powered by the Qualcomm Snapdragon 636 processor and comes with 4GB/6GB RAM options. In terms of optics, the Nokia 6.1 Plus has a dual rear camera setup that includes a 16MP autofocus sensor with f/2.0 aperture and a 5MP monochrome sensor with f/2.2 aperture. At the front, there is a 16MP camera with f/2.0 aperture. Nokia 6.1 Plus price in India is Rs 14,999.

Oppo F9

The Oppo F9 features a 6.3-inch Full HD+ display (2340 x 1080 pixels) with 19.5: 9 aspect ratio and screen-to-body ratio of 90.8 percent. The device sports waterdrop design and is powered by Octa-Core MediaTek Helio P60 SoC, coupled with 4GB/6GB RAM, paired with 64GB expandable storage. The F9 runs Android 8.1 Oreo topped with ColorOS 5.2. The Oppo F9 price in India is Rs 16,136.

Xiaomi Poco F1

This phone runs on a Snapdragon 845 (10 nm) processor. It features a 6.18″ IPS LCD capacitive touchscreen screen with an aspect ratio of 18.7:9 and a resolution of 1080 x 2246 pixels. The Pocophone F1 has dual rear cameras based on Sony’s EXMOR RS (stacked CMOS) IMX363 1/2.55″ sensor with 12 MP, f/1.9 aperture and 1.4 µm pixel size. It has dual pixel Phase Detection Auto Focus (PDAF). The secondary camera acts as a depth sensor with 5 MP, aperture f/2.0 and pixel size of 1.12 µm. Xiaomi Poco F1 price in India starts from Rs 19,999.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Theme of upcoming interim budget to be fiscal consolidation, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The upcoming interim budget, finance minister Arun Jaitley’s last before the general elections, will be presented as a “vision document” for the Modi government’s economic policy approach, as the party seeks to retain its power in the next term, Business Standard reported.

Jaitley is unlikely to strongly commit to any medium-term forecast, said the BS report on Monday, adding that he is likely to touch upon the FFC recommendations.

The recommendations of the 15th Finance Commission (FFC) are expected to be released in October 2019, the most crucial aspect of which will be how much of the centre’s tax kitty will pass on to the states and how much grants-in-aid of the revenues of the states should be paid out of the Consolidated Fund of India, said the report.

“The Prime Minister and the finance minister are big supporters of fiscal discipline. Apart from 2017-2018, when there was uncertainty regarding revenue targets due to the goods and services tax (GST) implementation, the target has been met every year and will be met this fiscal year as well,” officials were quoted as saying in the report.

The interim budget will be announced on February 1.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s April-November fiscal deficit touches nearly 115 percent of FY target

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India risks missing its budget deficit target for the current fiscal year, data released on Thursday suggested, and economists said the government had already started to cut capital spending in an attempt to narrow the gap.

The data showed the fiscal deficit in the April-November period stood at Rs 7.17 lakh crore, or 114.8 percent of the budgeted target for the fiscal year that ends in March.

It is the second consecutive month that the deficit has come in above 100 percent of the budgeted target. In the April-October period India reported a fiscal deficit of Rs 6.49 lakh crore, or 103.9 percent of the budgeted full-year target.

The government has set a fiscal deficit target of 3.3 percent of gross domestic product for the current fiscal year.

Net tax receipts in the April-November period were Rs 7.32 lakh crore, against a full-year target of Rs 14.81 lakh crore, while total spending stood at Rs 16.13 lakh crore, against the full-year target of Rs 24.42 lakh crore.

“There are several risks to meeting the budgeted targets for revenues and expenditures, with one of the predominant concerns arising from a possible shortfall in indirect tax collections,” said Aditi Nayar, principal economist at ratings agency ICRA.

Nayar said 93 percent of the budget estimate for fuel subsidies had been released in the April-November period and that the government might need more funds for fuel subsidies in the coming months.

The government also reported April-November capital expenditure – for use in construction of roads, improved railways and the creation of other physical assets – of Rs 1.91 lakh crore, which is 63.8 percent of the full-year target.

One economist said the government had started cutting capital spending for the year to counter the fiscal deficit slippage.

“It appears course correction has already begun and the axe has fallen on capex. Monthly average capex in October-November is 46 percent lower than the monthly average in the April-September period,” said Devendra Pant, chief economist at India Ratings.

The government also faces the risk of missing its divestment target from the sale of state assets as it has garnered less than half of the Rs 800 lakh crore target set for the year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s a look at events that impacted your personal finances in 2018

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The year 2018 was notable for various events that had an impact on the common man’s purse and financial aspirations.

Here is a look at some of the key events during the year that impacted the personal finances of millions:

Changes made in the PAN card application form

The application procedure for the PAN card saw key changes this year, not once but twice. Firstly, a separate option of transgender has been included along with male and female in forms 49A and 49AA. Secondly, the requirement of mentioning father’s name in the application form has been done away with this year.

Tax exceptions introduced in National Pension System (NPS)

In what is seen as a big relief to thousands of Indians, the government this year declared that investors in the NPS will be allowed 100 percent tax-exemption for the 60 percent withdrawal, which is allowed from the corpus at the time of maturity. This is a significant development as earlier the tax exemption was provided only for 40 percent.

In addition, several other benefits were announced in the scheme by the government including, making withdrawals from the NPS at the time of maturity tax-exempt and tax saving benefits for central government employees.

Also Read: Personal finance outlook for 2019

Aadhaar made mandatory for PAN card application

 After the apex court upheld Section 139AA of the Income Tax Act in its judgement, Aadhaar has become mandatory for applying for PAN card. In addition to this, individuals who have already obtained PAN card have been asked to link it with Aadhaar by March.

No TDS on interest up to Rs 50,000 for senior citizens

Aimed at providing relief for country’s senior population, a new amendment was introduced in to the Income Tax act that made it clear that banks should refrain from deducting TDS from interest paid to senior citizens for any amount that is not above Rs 50,000.

Changes in ITR

Another significant event was key changes that were made in relation with the filing of income tax returns. From imposing a fine for late ITR filing to reduction in time limit to revise ITR from two years to the end of the financial year, significant changes were introduced.

Changes in LTCG tax and 54EC bonds

This year’s budget introduced long-term capital gains (LTCG) tax on equity sales and equity mutual funds. The new rules extended the minimum period of investing in 54EC bonds to five years from earlier three.

Other changes

There were also several other reforms as well. This included rectification in the amended Section 139A of the Income Tax Act that made it clear that 31st May of next financial year will be the last date for non-individuals to apply for Pan without penalty.

Also the Budget in 2018 paved the way for the introduction of 10 percent tax on dividend received from equity mutual funds since last April.

In addition, the RBI increased its grip on money transactions this year by making PAN mandatory for sending money abroad under the Liberalised Remittance Scheme (LRS). The increase in cess levied on tax payments from 3 to 4 percent following its renaming as ‘Education and Health Cess’ too will have a significant affect on individuals pocket.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Railways seeks Rs 80,000 crore in budgetary support, FY20 capex may be pegged around Rs 1.60 lakh crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian Railways, the mammoth public sector undertaking, has sought nearly Rs 80,000 crore under gross budgetary support for the next financial year starting April 1 but it may receive Rs 60,000-65,000 crore, sources familiar with the matter told CNBC-TV18.

“The finance ministry has indicated to the railways that they can provide some 10 percent more than the current year’s gross budgetary support number which is Rs 55,088 crore. So the expectation is somewhere between Rs 60,000-65,000 crore,” one of the sources said, requesting anonymity.

Railways is likely to keep a capital expenditure (capex) target of around Rs 1.60 lakh crore, however, the earlier estimate was Rs 1.78 lakh crore.

“A meeting was held between the finance ministry officials and railway officers and after those discussions, the target has now been trimmed. It may be around Rs 1.60 lakh crore but the figures are yet to be formalised… that will be in another 10 days or so,” another source said.

The union budget for 2018-19 allocated Rs1.48 lakh crore for Indian Railways to increase its carrying capacity and improve travel experience. Of this, Rs 1.46 lakh crore was capital expenditure.

“Strengthening the railway network and enhancing railways’ carrying capacity has been a major focus of the government. Railways’ capex for the year 2018-19 has been pegged at Rs 1,48,528 crore. A large part of the capex is devoted to capacity creation. 18,000 km of doubling, third and fourth line works and 5,000 km of gauge conversion would eliminate capacity constraints and transform the almost entire network into Broad Gauge,” finance minister Arun Jaitley had said in his budget speech in February.

The expenses incurred by Railways are met by three components, comprising gross budgetary support, borrowings and internal resources.

In terms of borrowings, CNBC-TV18 has learnt that borrowings for next fiscal are likely to be higher than the current year’s borrowing figure of Rs 80,000 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Interim budget may include income tax announcements, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The upcoming interim budget that will come before the Lok Sabha elections, could include new tax proposals, reported Business Standard, citing sources.

According to the report, sources familiar with the development, said that discussions have already been held at the top to include a number of direct tax announcements in finance minister Arun Jaitley’s speech. However, no final decision has been made, the report added.

“There are short finance bills which accompany the interim budgets, just to extend the prevailing tax rates to April-July. So, all that needs to be done is to add new tax proposals in the finance bill. The problem is that once the finance bill is tabled, you can expect political opposition. That is something for the leadership to deal with,” an official aware of the deliberations was quoted as saying in the report.

The interim budget is likely to be presented in February.

The development would be interesting as only a very limited number of tax-related announcements are made in budget speeches immediately preceding a Lok Sabha election, the report added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government may cut expenditure by Rs 50,000 crore, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Centre may have to trim the annual budgetary expenditure for the current financial year by Rs 50,000 crore, reported Financial Express.

According to the report, the cut, which is valued at 2 percent of the estimated level, is part of the centre’s effort to keep the fiscal numbers from going awry. The report added that the cut in expenditure would primarily affect defence and some social-sector spending as the government wants to keep the public spending robust.

“The ministries or departments which are laggards in spending in the first half of this year may see budget cuts,” an official was quoted as saying in the report.

The development is significant as the move is a divergence from the policy followed by the ruling NDA government till now, the report said. While the previous UPA government had resorted to heavy expenditure reductions to keep the fiscal numbers healthy, the report said that the NDA government hasn’t messed up with its original budget estimates much till now.

The development, however, comes after seeing shortfall in disinvestment, telecom and GST receipts, added the report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dividend cut from oil companies unlikely; disinvestment target to be met, says Finance Ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The finance ministry Tuesday said it does not expect a cut in dividend from oil marketing companies despite these retailers absorbing Rs 1 per litre from last week. Economic Affairs Secretary in a tweet said there is no plan for reduction in subsidy and disinvestment target will also be met.

He was reacting to reports of reduction of dividend from oil marketing companies, subsidies cut, lesser disinvestment revenue etc during this fiscal from the Budget estimates.

“…This is completely fabricated. Nothing of this is true at all,” he tweeted.

As far as disinvestment is concerned, an ambitious target of Rs 80,000 crore has been set for the current financial year.

In the Budget for 2018-19, Finance Minister Arun Jaitley said the Department of Investment and Public Asset Management (DIPAM) will move forward to bring in more exchange traded fund (ETF), including launching a debt fund.

Also three insurance companies National Insurance, United Assurance and Oriental Insurance will be merged to create a single entity, which would be listed on the bourses, he had said.

With regard to hit on state-owned fuel retailer for absorbing Re 1 per litre of petrol and diesel prices, industry sources said the move will bring down their profit by Rs 9,000 crore on an annualised basis.

For the remainder of the ongoing fiscal, it would be Rs 4,500 crore, with IOC’s share being roughly half and the rest is split equally between HPCL and BPCL.

Almost half of the fuel price is made up of taxes. The Centre, prior to the excise duty cut, levied a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy value-added tax (VAT).

The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. States saw their VAT revenue rise from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18.

Petrol and diesel prices were cut by a minimum Rs 2.50 on October 5 when the government’s cut in excise duty of Rs 1.50 per litre and state-owned fuel retailers providing a Re 1 per litre subsidy came into effect. In BJP-ruled states, the reduction was higher as they matched the cut with a similar reduction local sales tax or VAT.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow