Under attack from social activist and anti-graft crusader Anna Hazare, Union Agriculture Minister Sharad Pawar on Wednesday quit the Group of Ministers on corruption, saying he does not want to be "associated" with the panel anymore.
With the new financial year kicking in and the equity markets showing signs of stability, the government is expected to soon initiate its divestment programme with renewed vigour.
Mere retirement will not be a ground for dropping proceedings against corrupt government servants who will now face a 10 per cent cut in pension in case of minor penalty.
"The commitment to moderate levels of inflation has led to higher interest rates. In this environment, banks need to keep a strong vigil on their asset quality. These are turbulent times and we should watch every step that we take," Mukherjee said at 106th foundation day of Bank of India in New Delhi.
The government is considering to roll back 10 per cent excise duty on branded garments, due to large scale protest by industry bodies in many parts of the country, including West Bengal, which goes to polls next month.
Ahead of the Word Cup semi final match between India and Pakistan on March 30, Finance Minister Pranab Mukherjee has said that sports should not be mixed with politics. Referring to Pakistan Prime Minister Yousuf Raza Gilani's visit to Mohali, to watch the semi-final match between India and Pakistan on Wednesday, Mukherjee said sports and politics must be treated separately and not mixed.
'The inflow of FII or FDI has not distorted the market sentiments and therefore there is no question of putting any curbs.'
The launch of the US-India Economic and Financial Partnership on Tuesday is significant because the two countries have traditionally been wary of opening up their markets and services to each other.
Rejecting the 'protectionist policies' of the US, Finance Minister Pranab Mukherjee said on Thursday free flow of goods, services and capital would ease the global financial crisis.
White Papers, which are issued by the government, lay out the policy or proposed action on topics of current concern.
The finance minister also provided some relief to readymade garment manufacturers by raising the abatement available for levy of taxes on retail price of some branded garments and textile made-ups.
India's per capita expenditure on defence is less than $10, while the average expenditure of the top ten spenders in Asia is $800 approximately.
The manual, released by Finance Minister Pranab Mukherjee, details various aspects about the Budget, including the constitutional provisions, structure of government accounts and budget preparation.
The five-member Group of Ministers (GoM) also include Agriculture Minister Sharad Paward, Heavy Industries Minister Vilasrao Deshmukh, Petroleum Minister Murli Deora and Chemical and Fertiliser Minister M K Azhagiri, official sources said.
There are also concerns on the central government finances for the current fiscal, he said, adding, performance during the first half on the fiscal front poses some risks in both receipts as well as expenditure estimates.
Kapil Sibal, telecom minister, said many companies borrowed heavily to pay for 3G licences late last year. These companies were now facing difficulty in raising resources for the business, upsetting the calculations they had made while bidding aggressively for the licences, he said.
The International Air Transport Association (IATA) has termed the service tax charged on air tickets by the Indian government as illegal according to the Chicago Convention.
Facing stiff opposition over the Nuclear Liability Bill, the government on Friday said it will consult all political parties before tabling the draft legislation in Parliament. "
The House approved the supplementary demand for the current financial year after Finance Minister Pranab Mukherjee replied to general discussion on the Budget in the Lower House.
Reserve Bank of India (RBI) Executive Director Anand Sinha is set to replace Usha Thorat as deputy governor. Finance Minister Pranab Mukherjee has recommended Sinha's candidature to the Appointments Committee of the Cabinet (ACC).
Mukherjee said the high inflationary pressure, specially in food and some non-food articles, existed in other emerging economies also.
Ahead of the all-party delegation's visit to Kashmir Valley next week, Congress President Sonia Gandhi held deliberations with senior party leaders on the strategy for the troubled state.
The ice may have broken between the Congress and the Dravida Munnetra Kazhagam after a standoff in the last two days, but the issues on which the allies were quarrelling still remain.
Amid divergent views within the Congress on tackling Maoists, Finance Minister Pranab Mukherjee has said that Naxals are political elements out to capture power and the issue of development was "more imaginary than actual".
Union Finance Minister Pranab Mukherjee's son Abhijit Mukherjee on Monday quit his job from Steel Authority of India Limited to join politics and contest the upcoming West Bengal assembly elections.
The DMK on Monday put on hold the resignations of its six ministers from the UPA Government in a dramatic new turn, with the party and Congress engaged in hectic negotiations to sort out their seat-sharing problems in Tamil Nadu. Senior Congress leader Pranab Mukherjee telephoned DMK chief M Karunanidhi twice, and urged him not to pull out his ministers from the cabinet during the Budget Session, and sought a day's time to resolve problems.
The global airlines body International Air Transport Association also said that such taxes would compromise the industry's ability to maintain margins. Ravi said he would also appeal to all state governments to reduce sales tax on aviation turbine fuel.
The Dravida Munnetra Kazhagam-Congress alliance appeared headed for a break with six Union Ministers of the regional party set to resign on Monday even as Finance Minister Pranab Mukherjee appealed to Tamil Nadu Chief Minister M Karunanidhi to reconsider his decision to pull out of the United Progressive Alliance government.
He reminded the officials that it was because of increased tax buoyancy and collection efforts of Revenue departments that the government was able to waive off the loans to farmers amounting to Rs 71,000 crore (Rs 710 billion).
The standoff over Women's Reservation Bill ended on Thursday with the government announcing that the proposed legislation would be brought in the Lok Sabha only after consultations with all sections.
This is a rather cavalier treatment of one of the most important items of the government's expenditure statement.
At a meeting of the Institute of International Finance, a global association of financial institutions, Standard Chartered Bank Chief Economist, Gerard Lyons, raised doubts over the Centre's projections of reducing fiscal deficit from 2010-11's estimate of 5.1 per cent. "I am skeptical whether fiscal deficit can be reduced as planned," he said.
In the pre-budget Economic Survey 2010-11, the Union finance ministry made a strong pitch for the pro-growth impact of investment in human capital adding, "fortunately, there is awareness of this in India and efforts are afoot in terms of budgetary allocation and actual initiatives to boost the development of skill and human capital."
This scheme would help salaried people, especially those working in far-flung and remote areas with armed forces and para-military forces.
Instead of taking loans from banks, they believe in forming groups - some acting as treasurers, others as accountants, credit officers or recovery agents - with Bandhan, one of the most active microfinance institutions (MFI) in the region.
RBI is expected to raise its short-term borrowing and lending rates at its September 16 mid-quarter review.
Some of the initiatives are aimed specifically at the poorer sections of the society.
India Inc on Tuesday described Finance Minister Pranab Mukherjee as industry's Sachin Tendulkar saying the veteran leader was steering the economy "with ease of a seasoned player" in difficult times.
Car and two-wheeler manufacturers have heaved a sigh of relief after Finance Minister Pranab Mukherjee proposed to maintain the excise duty at present levels while inviting companies to step up investments in the sector.
Congress General Secretary Rahul Gandhi, whose absence from the Lok Sabha was noticed by Union Finance Minister Pranab Mukherjee while presenting the Union Budget for 2011-12, has injured himself while exercising and has been advised complete rest for four weeks.
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