In the coming few weeks, agriculture markets in North and Central India will be full of wheat, mustard, and chana - the three main rabi crops grown in these parts. Not only will the price trajectory of these determine the course of food inflation in the months to come, but it could also have a wider impact on the rural economy in the main growing states for these crops. Wheat and chana are largely grown in Madhya Pradesh (MP).
To make possible discretionary spending including capex and that on welfare, the government decided to borrow more than planned in FY21 -- Rs 12.7 trillion.
Bimal Jalan, has recommended to the government that it cut fiscal deficit to 3.6 per cent of the GDP during 2015-16.
Providing cheap rice and wheat to 67.5% population would raise subsidy bills 45% to up to Rs 1.3 trn, and the country.
Suggestions have been invited from the public to improve the draft bill and July 19 is the last date for it.
Critics have even suggested that India is doing this because it is not prepared to take on the requirements of TFA, with a relatively weak trade infrastructure.
Late last month, India torpedoed a deal to simplify, standardise and streamline the rules for shipping goods across borders, know as 'trade facilitation', after it demanded concessions on agricultural stockpiling.
'You may see some movement indicating a simpler tax regime with less exemptions but with fewer tax rates making life simpler for taxpayers.'
The first global trade reform since the creation of the World Trade Organization is ready for agreement by ministers from the body's 159 member countries later on Friday, sources involved in the talks said.
Gogoi and Sarma have been locked in a war of words on 'X' since Wednesday on the issue of the chief minister's wife's company allegedly being given a credit subsidy of Rs 10 crore.
India has defended its decision to ban export of wheat and rice at a WTO meeting even as some member countries have flagged concerns over the country's stand, an official said. At a meeting last week in Geneva, Senegal, the US and the European Union raised questions over this decision, stating it could have adverse implications on global markets. In May, India restricted export of wheat to enhance domestic availability.
The government has decided to hold off introducing the production-linked incentive (PLI) scheme for additional sectors until it verifies the efficacy of existing initiatives. Top government officials have received mixed feedback on the scheme, including insights from the Economic Advisory Council to the Prime Minister, people aware of the matter said. "There are no new PLI schemes in the offing.
The Union Ministry of Railways runs a canteen inside Parliament, and provides subsidised food items for elected representatives.
The rise in the fiscal deficit, which is a reflection of the government's borrowing, was mainly on account of subdued tax collection. The revenue deficit also rose to 3.27 per cent, up from the revised estimate of 2.4 per cent of the GDP.
India's real GDP growth will decline marginally to 6.3 per cent in 2024 from the 6.4 per cent estimated for 2023, an American brokerage firm said on Monday. The next calendar year will be of two halves, wherein the government spending before the upcoming General Elections will be the key driver for growth, while after the elections, it will be the re-acceleration in investment growth, especially from the private sector, Goldman Sachs said in a report. From a fiscal year perspective, the brokerage said it expects growth to accelerate to 6.5 per cent for FY25 from the 6.2 per cent it has projected for the ongoing FY24, it added.
In accordance with Supreme Court directives to the states, the Madhya Pradesh cabinet approved MP Mob Lynching Victim Compensation Scheme 2023, said minister for medical education Vishwas Sarang after the cabinet meeting.
'We are not talking pennies. The milk business is as large as the automobile industry (about Rs 4 trillion in sales),' points out T N Ninan.
That's a big change that was made possible due to corporate tax cuts. Corporation tax collection in FY22 will be lower than even the FY18 levels, reports
The Budget kept away from mood dampeners such as an increase in taxes (capital gain taxes) and even the much-feared introduction of Covid cess and wealth taxes, says Nimesh Kampani, chairman, JM Financial.
'If we want real democracy, the economy itself will need to be democratised.'
Concerned over poor budget allocation for the farm sector, Agriculture Minister Sharad Pawar on Sunday said it may be difficult to implement the proposed Food Security Bill without adequate funds to boost agri-output, a must for increased foodgrain requirement.
The November 26 meeting, the first of its kind, will also take up trade facilitation agreement.
While presenting her 2021-22 Union Budget, Finance Minister Nirmala Sitharaman had set a fiscal deficit target of 6.8 per cent of nominal gross domestic product (GDP) against the 2020-21 Revised Estimate of 9.5 per cent. The fiscal correction in the upcoming 2022-23 Union Budget is unlikely to be that steep. Even as discussions among top Budget-makers are ongoing, the fiscal deficit target for 2022-23 may likely be in the range of 6.5-6.8 per cent.
While no specific state-oriented sops were rolled out, a strong thread of political wellness ran through the Budget.
Modi said there has been a 'silent revolution'.
The US has come up with a new WTO proposal to find a permanent solution to food stockpiling.
Food items in Parliament canteen will be dearer from Friday, with the rates being hiked in varying degrees in view of controversies over the items being served there at subsidised rates.
'Nirmalaji must consider herself a very lucky finance minister, partly because of the government's response to covid and partly because we as a nation have done very well as an economy, post pandemic.'
Sitharaman does away with loans from National Small Savings Fund to Food Corporation of India.
If the concerns over risking political capital are overcome, the long-term gains for the Indian economy will be immense, asserts A K Bhattacharya.
Experts say the party is undoing what it achieved through MNREGA by targeting beneficiaries
Total fuel subsidies accounted for less than 1 per cent of GDP and under 3 per cent of total government expenditures in FY14.
During the period, the dependence of petroleum companies were less as they were compensated by the government for under-recoveries through direct subsidy for which it had made a provision in the Budget.
'Will Imran compromise with the army? We are all human beings. We all compromise.'
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If India does not wish to continually violate the WTO rules, it must also continue to push the WTO to either revisit the reference point of 1986-88 prices for calculating subsidies and pitch it at a recent period, or raise the ceiling on subsidies to enable countries like India to stay within the envisaged cap.
If Modi wants to leave a real legacy, breaking India's strategic triangulation would be the real gift, notes Shekhar Gupta.
Indian growth in the rest of this fiscal year and next will be propelled by robust domestic consumption as consumer confidence improves, and by investment, including large increases in government capital expenditure, according to the Asian Development Outlook September 2023. "As slowing exports could foment headwinds for the economy, and erratic rainfall patterns are likely to undermine agricultural output, the growth forecast for FY2023 is revised down marginally to 6.3 per cent," ADB said.
Only three percent of Indians pay income tax; our tax-GDP ratio is among the lowest in the world. This must change. Our elites must realise that India's poverty has damaging consequences for them, and that they can help decrease it. The food security bill, with all its limitations, will hopefully contribute to generating such awareness, says Praful Bidwai.
It will help to control the subsidy bill.
