The Government has brought out Rs 7.46 lakh crore stimulus to overcome the current economic slowdown. Two critical sectors – highways and public-sector banks will share the stimulus. Announcing the programme, Finance Minister Arun Jaitley said that the stimulus will be completed in the next two years. First beneficiary of stimulus are the PSBs, who will be recapitalized by Rs 2.11 lakh crore. The major portion of the stimulus goes to the road sector as the proposed Bharatmala Pariyojana will be funded with Rs 5.35 lakh crores. Bharatmala’s main thrust is to construct a coastal highway of nearly 34800 km. Funding of the programme The funding of the programme is cru
The CSO’s GDP data for the first quarter 2017-18 shows GDP growth rate scooping to three year’s low of 5.7%. In an unusual quarterly trend, the manufacturing sector growth crashed to 1.2%, that is just one-tenth of the growth registered in the same quarter last year. New data indicate a worrying trend as the previous quarter of Q4, 2016-17 registered just 6.1% growth under a suffocating demonetization impact. Some economists doubt the triggering of a slowdown along with the short-term factors like demonetization and GST launch impacts for two successive below par performances. Chief statistician TCA Anant pointed out sharp fall in industry output as the factor behind
The Aadhaar Act 2016, that serve as the base for several government initiatives extending from tax compliance searches to the delivery of government subsidy to the poor will pass the privacy test implied in the SC verdict according to UNDAI. Speaking about the future of these initiatives after the verdict, the CEO of Unique Identification Authority of India- Ajay Bhushan Pandey said that all the present programmes that uses the 12 - digit Aadhaar id will continue to serve their purposes. He said that the “judgement has not said anything about the Aadhaar Act so the Aadhaar Act is a valid Act passed by the Parliament (and) is the law of the land,”. According to him, t
In a historical judgement, the nine bench Constitutional bench of the Supreme Court declared that privacy is a fundamental right. The rather unexpectedly progressive stand of the Court will make exceptional ramifications on the way in which citizens live. Supreme Courts’ unanimous verdict is against the opinion expressed by the centre and almost all states except Kerala. The Kerala government has argued for giving more protection to privacy in its opinion. This is the second major verdict by the SC in two days; the previous one outlawing the triple talaq. Affirming fundamental right to privacy is perhaps one of the progressive judicial contribution in the history of the Rep
The Hamburg meeting of the G20 has isolated the US President’s anti-climate stand on the Paris Accord. Leaders of the 20 developed and large developing countries who met for twelfth time since its formation in 1999, passed a declaration criticizing the US approach to climate protection. The final communique at Hamburg exposes US isolation: “We take note of the decision of the United States of America to withdraw from the Paris agreement.” Besides the rejection of the US stand on climate protection the communique reassured its stand on Paris: “The leaders of the other G20 members state that the Paris agreement is irreversible.” The US President Donal
The GST is considered to be the ultimate tax reform in indirect taxes globally. Several countries have adopted it and those who have unitary financial structure or where there is only one central government, GST launch is rather simple. But in India’s case, the situation is much different. Merging of central and state taxes needed constitutional arrangements and political consensus. Indian conditions are also much different with the business communities consists of largely small and medium enterprises that have several hurdles to establish and manage the GST infrastructure. It doesn’t mean GST is a higher order reform given the capability of the business community. Ra
The Goods and Services Tax (GST)’s life starts on July first as the centre and states decided to merge more than a dozen of their small and big taxes under it. Now, nearly 70% of the country’s indirect tax revenues are covered under the GST. Importance of the event is well reflected as the Parliament is going to hold a midnight function on its launch. The rare gesture shows the pain and effort taken by the centre and the states to give away their pet taxes since independence while creating the GST. GST is rightly one of the biggest reforms since 1991 New Industrial Policy and the biggest tax reform since independence. It had the conceptual launch in 2000. But it
India’s GDP statistics for the last year shows steep fall in the fourth quarter from January to March 2017. Growth registered an unprecedented slow down to 6.1% during the quarter and thus bringing down overall performance of the year to 7.1% compared to 8% in the previous year. The fall in quarterly growth is attributed to the demonetisation induced negative feedback effects. Statistics about the third quarter that was published earlier has not revealed the same declining trend. According to the Central Statistical Office’s Provisional GDP estimate, the construction sector witnessed contraction during the fourth quarter. The sector registered a contraction of -3.7% c
Country’s macroeconomic policy think tank- the NITI Ayog has finally come out with a daft policy proposal in the form a three-year action agenda for the economy. The draft agenda seems to be a very diluted copycat of the erstwhile Planning Commission’s Five year plans. The agenda includes general themes like doubling farmer’s income by 2022, expanding tax base, shifting additional revenues to the priority sectors, creation of employment, bringing down land prices etc. The agenda was unveiled at a press meeting chaired by NITI’s Vice Chairman Arvind Panagaria. According to institution, the action agenda will be implemented by executive decisions. Need
The Agricultural Ministry came out with an amended Model APMC Act that brings significant changes in the existing rule proposed in 2003. Fresh changes include several steps to stop fragmentation of agricultural markets by establishing a common fee and licensing for statewide agricultural marketing. The model AMPC also abolishes the earlier concept of notified area that caused fragmentation of the agricultural markets within a state. Centre has already asked States to modify their APMC Acts by introducing a single license and single point of levy of market fee at the State level. Objective is to make a gradual migration towards a single license and single point of levy of market fe
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