Govt looks at more taxes, dividends to meet deficit target.
The Budget decides to take the lead in revving up infrastructure.
Against a turbulent and uncertain background, Budget 2017-18 hewed a steady, forward-looking course, says Shankar Acharya, former chief economic adviser to the government.
There are doubts about the meeting of indirect tax collection target for the current fiscal as there is slowdown in the economy.
This is slightly better than the fiscal deficit position last year when it was 85.6 per cent of the Budget target.
Most families had high value currency notes and they used it for making payments during the pre-demonetisation era.
While the session will begin with the President's address to the joint sitting of the two Houses, the same day the pre-budget economic survey will be tabled.
It is also likely to assume a deflator of around 4 per cent. That could take the nominal GDP outlook for FY21 to around 10 per cent. It is this nominal GDP forecast on the basis of which the finance ministry is calculating key Budget targets like the fiscal deficit as a percentage of GDP and tax revenue growth for the coming year.
Govt may tighten presumptive taxation norms and also do away with some deductions.
On the revenue front, the finance ministry was expecting higher proceeds from non-tax revenue.
The Budget process is a massive exercise. The exercise has different stages and each stage kicks off at a different stage of Budget making process.
The Indian Constitution requires the government to present to Parliament a statement that shows separately the expected revenues and expenditures, both current and capital by heads of account.
The fiscal deficit, estimated at 4.6 per cent of the gross domestic product, is expected to be around 5.6 per cent, mainly on account of factors like subdued revenue collection, poor disinvestment receipts, high global commodity prices and increasing subsidy bill.
Leaving behind apprehensions of a rise in interest rates and petro duty cut impacting budget numbers, the officials are now confident of keeping the fiscal deficit within the targeted 4.6 per cent of the gross domestic product.
While people voted in a fifth round that will set the tone as this election rounds into the straight, and while Modi on the stump chews the cud of personal grievances and hackneyed promises that have long since passed their use-by date, there is a rogue wave rising -- what damage it will do, we will know 16 days from today, observes Prem Panicker.
The government was exploring options to secure higher dividend payment from state-run companies.
'We will prioritise our requirements so that the country's maritime interests are not compromised.'
If the Centre and states are keen on spending more to meet the COVID-19 challenges in the coming year, they must bear in mind the need to raise more resources through taxes and non-tax revenues, suggests A K Bhattacharya.
Rural budget set to increase; likely to enhance market linkages for agri commodities
There is a link between objectives and commitments.
'The household sector, which is still the largest contributor of financial savings, has been experiencing a decline in the last six years, and it has fallen below 8% of GDP.'
The government would fall short of its target for direct tax collections for the second consecutive year, with the revenue department estimating its direct tax receipts at Rs 3,70,000 crore (Rs 3700 billion) for 2009-10.
Because of global economic meltdown and stimulus packages provided to industry.
The immediate revenue loss could worsen the Centre's fiscal deficit, from the budgeted 3.3 per cent of gross domestic product (GDP) to 3.7 per cent of GDP -- a massive 40-basis-point increase. It was stabilised at 3.4 per cent since 2016-17, report Abhishek Waghmare and Dilasha Seth.
An aggressive rate hike by the US Fed and the possibility of a recession can trigger a slide in these stocks, which will be a good opportunity to buy from a long-term perspective.
The central government's fiscal deficit touched 67.8 per cent of the full-year target at the end of January due to higher expenses and lower revenue realisations, according to official data released on Tuesday. In actual terms, the fiscal deficit or gap between the expenditure and revenue collection during April-January period stood at Rs 11.9 lakh crore, as per the data from the Controller General of Accounts (CGA). The fiscal deficit in the comparable period of 2021-22 was 58.9 per cent of that year's Revised Estimate (RE) in the Budget.
The Budget gave a big boost to power reforms programme by increasing allocation to Rs 2,080 crore (Rs 20.80 billion), or a rise of 160 per cent from the previous fiscal.
They may be on the same side of political power, but that did not stop Railway Minister Mamata Banerjee and her predecessor Lalu Prasad from taking pot-shots at each other during the presentation of Railway Budget in the Lok Sabha.
The highest collection target has been given to Mumbai at Rs 4.39 trillion, followed by Delhi and Bengaluru.
The capital outlay to cover the modernisation programmes have got a hike of 10.05 per cent.
Though India is one of the fastest growing economies, how big is the country's budget compared to other countries in the world?
On the basis of Budget projections, the Centre needs Rs 7.3 trillion revenue during December-March and its expenditure must be limited to Rs 6.7 trillion.
This time Modi has no emotive message to take to the stump. Muscular nationalism doesn't work against the backdrop of China's successive inroads into Indian territory. Rising prices is a sore point that cuts across class and caste barriers; unprecedented levels of unemployment has the youth in a ferment. This has reduced the BJP campaign to a laundry list of recycled grievances and thinly veiled communal appeals, neither of which are working as well as they have in the past, argues Prem Panicker.
The finance ministry on Friday withdrew expenditure curbs on various departments and ministries imposed in June in the wake of the COVID-19 second wave, reflecting improvement in public finances and the urgency to step up growth.
True to word, here's a hotel chain that gives you more than your budget.
Current account deficit in 2010-11 will be well below 3.0 per cent of GDP.
Nirmala Sitharaman is proving to be a better finance minister than her initial rookie status might have led people to expect, observes T N Ninan.
Sitharaman said the government will bring in a new national education policy to transform India's higher education system into one of the best in the world.
CBDT has been given a collection target of Rs 5.69 trillion in personal income tax in the fiscal year 2019-20 - 19.2 per cent more than the Rs 4.77-crore collection in the previous year.
Even if the same party returns to power, what is important to debate is that having introduced an entitlement, how challenging it is to reverse such decisions, says Mukesh Butani.
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