This will be the first full-year Budget of the BJP-led National Democratic Alliance government since it came to power for a third consecutive term in July last year.
The government kept its nerve in the face of a massive shock. It chose not to resort to a massive fiscal stimulus. It focused instead on providing liquidity support and easing restrictions on movement in stages, observes T T Ram Mohan.
The Delhi government has announced that vehicles older than 15 years will be denied fuel at petrol pumps starting April 1.
To enable widen the fiscal deficit beyond the permissible limit under the present legislation, the government may have to propose amendment to the FRBM Act in the Finance Bill.
India's services sector activity expanded at the slowest pace in over two years in January amid softer increases in sales and output, a monthly survey said on Wednesday. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.3 in December to 56.5 in January -- its lowest level since November. In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
'Stay disciplined, and remain invested.' 'Volatile times are the best to invest in structural opportunities at the right price.'
Trump made these remarks after Elon Musk-led DOGE's (Department of Government Efficiency) disclosed that USAID contributed USD 21 million to Election Commission for boosting voter turnout.
India's manufacturing sector growth recovered from September's eight-month low to 57.5 in October fuelled by faster increases in total new orders and international sales, a monthly survey said on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from September's eight-month low of 56.5 to 57.5 in October, indicating a substantial and accelerated improvement in operating conditions.
The government will pre-pay Rs 7,500 crore (Rs 75 billion) worth of bilateral aid this fiscal, besides swapping Rs 38,000 crore (Rs 380 billion) high cost state government debts, Finance Minister Jaswant Singh told Rajya Sabha on Tuesday.
Rajiv Kumar, the 25th chief election commissioner of India, has demitted office after a nearly three-year tenure marked by both electoral successes and allegations of bias from opposition parties. Kumar oversaw the 2024 Lok Sabha elections and the Jammu and Kashmir assembly polls, among other major elections. During his tenure, he implemented reforms across various aspects of the Election Commission's functioning, including structural, technological, capacity development, communication, international cooperation, and administration. However, he faced criticism from opposition parties and activists on several issues, including the efficacy of Electronic Voting Machines, alleged fudging of voter data, and being "lenient" on the ruling BJP. While the Commission responded to the allegations, Kumar often defended himself and the poll authority through poetry. In his farewell address, Kumar expressed concerns about the timing of petitions raising doubts over poll processes and the impact of freebie promises on the fiscal health of the state. He also criticized the practice of showing early trends on counting day by news channels, calling it "nonsense". Kumar's tenure was marked by numerous controversies, with opposition parties and activists alleging bias and irregularities. While the Election Commission defended its actions, the allegations cast a shadow over his time in office.
The government should have mentioned clearly the specific structural reforms that were responsible for the deviation from the fiscal deficit target by half a percentage point, says A K Bhattacharya.
Credibility of fiscal promises is a virtue that no finance minister can afford to lose.
The government should frame new policies to assure growth.
Why did the political system in the country react to these two decisions of the Modi government in a diametrically opposite manner? asks A K Bhattacharya.
In a major shift from his earlier stance, United States-President elect Donald Trump has expressed his support for the H-1B visa programme and acknowledged frequently using it for his own properties, calling it a 'great programme', according to a report by New York Post.
Credit-focused SIFs with lower minimum investment thresholds can provide a more practical option for investors with higher risk appetite, suggests Subodh Rai.
At nearly 82 per cent of GDP, India's public debt is very high, but the country doesn't face debt sustainability issue on account of high growth rate and higher share of local currency debt, NCAER Director General Poonam Gupta has said. Participating in an event organised by NCAER, Gupta said India's high debt levels are sustainable for now because of higher real or nominal GDP and as most of the debt is held in rupee.
PM's announcement were focused on those most affected by the note ban.
India's manufacturing sector growth fell to a joint 11-month low of 56.5 in November, restricted by competitive conditions and inflationary pressures amid a softer increase in factory orders, a monthly survey said on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 57.5 in October to 56.5 in November, signalling a softer improvement in the health of the sector. However, the pace of growth remained above its long-run average.
Job creation, improving farm productivity, and mobilising public funds for infrastructure development were some of the issues that figured during the interaction between Prime Minister Narendra Modi and economists ahead of the 2025-26 Union Budget. The prime minister on Tuesday met eminent economists and sectoral experts at NITI Aayog to hear their views and suggestions for the upcoming Budget. Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2025-26 in the Lok Sabha on February 1, 2025.
The finance minister, in her Budget speech, should focus more on what she is directly responsible for, rather than on programmes where her role is largely supportive, notes Nitin Desai.
The government on May 17 formed a five-member committee.
"It is just that Fadnavis and I have swapped our chairs. Only Ajit Pawar's chair is fixed," said Shinde, who was the CM before the assembly elections with Fadnavis and Pawar as his deputies then.
'The intensity and frequency of heatwaves will be much higher than in previous years over Punjab, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Odisha.'
BJP's reversals in rural Gujarat has prompted many policy watchers to predict that the Budget would have incentives for the agriculture sector and the rural economy.
Sri Lanka is facing 'a very serious crisis' that makes India naturally worried, External Affairs Minister S Jaishankar told an all-party meeting in New Delhi on Tuesday and dismissed suggestions about such a situation arising in India.
An Income-Tax Department internal committee reviewing the old direct tax law to pave the way for a new one has "largely" received suggestions for "simplifying" the language, better "structuring" the provisions and enlarging the ambit of schemes like presumptive taxation, CBDT chairman Ravi Agrawal said Sunday. Speaking to PTI during a post-Budget interview at his North Block office, Agrawal said the panel also "studied" the deliberations and processes of countries like the UK, Australia and some others where a similar tax law simplification exercise was undertaken.
India's Finance Minister Nirmala Sitharaman has announced an ambitious plan to develop the country's top 50 tourist destinations in a "challenge mode", with the aim of boosting employment-led growth and attracting international visitors. The Ministry of Tourism has received a significant budget increase for 2025-2026, with a focus on enhancing tourism infrastructure, promoting domestic and international travel, and ensuring the safety of tourists, particularly women. The government plans to promote homestays, improve connectivity to tourist spots, and provide performance-linked incentives to states that demonstrate effective destination management. The budget also includes investments in public enterprises, skill development programs, and initiatives to promote medical tourism and spiritual tourism.
'For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada'
Schemes like the Mukhyamantri Majhi Ladki Bahin Yojana strain fiscal resources amid rising unemployment and prices of food items.
Union Finance Minister Nirmala Sitharaman, along with her team of bureaucrats, delved into the fine print of the 2024-25 Budget documents in a press conference, detailing the government's road map on bringing down the debt-to-GDP ratio and bold tax measures.
'I am optimistic about the Budget because of the fiscal discipline the government has committed to.'
'Given the 50 per cent or thereabouts increase in borrowing that has been announced, it is a reasonable estimate to say that at this time, an increase of 1.7-1.8 per cent on the 3.5 per cent budgeted fiscal deficit target is being anticipated,' Chief Economic Adviser Krishnamurthy Subramanian said on Friday.
These are valuable suggestions and one hopes the Budget will make a start on that.
United States President Donald Trump for the fourth time in recent days claimed that the Biden administration allocated $21 million funding to India for 'voter turnout', evoking a sharp response from the Congress which urged Prime Minister Narendra Modi to 'talk to his friend' and strongly refute the allegation.
India's fiscal deficit trends are a bit like an alcoholic trying, unsuccessfully, to reform. Virtue does not last for too long, says Shankar Acharya.
India's manufacturing sector growth moderated in August as output and sales rose at slowest rates since January, while competitive pressures and inflation concerns hampered business confidence, a monthly survey said on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 57.5 in August, below July's reading of 58.1 but above its long-run average of 54.0, signalling a substantial improvement in operating conditions.
The central government is on track to meet its fiscal deficit target of 6.4 per cent of the GDP for 2022-23 on the back of strong growth in revenue collections, the World Bank said in its India Development Update on Tuesday. High nominal GDP growth in the first quarter supported strong growth in revenue collection, especially Goods and Services Tax (GST), despite tax cuts on fuel. Notwithstanding an increase in spending due to expanded fertilizer subsidies and food subsidies for vulnerable households in response to the commodity price shock, the government is on track to meet its FY22/23 fiscal deficit target of 6.4 per cent of GDP and the general government deficit is projected to decline to 9.6 per cent from 10.3 per cent in FY21/22 and 13.3 per cent in FY20/21.
Few finance ministers announce any taxation measure that could upset the stock market. Ms Sitharaman decided to take that risk, observes A K Bhattacharya.
On the revenue front, the finance ministry was expecting higher proceeds from non-tax revenue.
