Accept Rs 700-cr from UAE or compensate us: Flood-ravaged Kerala tells Modi govt

Jan 6: India’s Finance Ministry has delivered a challenge to its revenue collectors: meet tax targets despite $20 billion of corporate tax cuts.

Through a video conference on Dec. 16, officials were exhorted to meet the direct tax mop-up target of 13.4 trillion rupees ($187 billion), a government official told reporters. Collection in the eight months to November grew at 5% from a year earlier, against the desired 17%.

The missive shows Prime Minister Narendra Modi’s urgent need to buoy public finances in a slowing economy where April-November tax collections were half the amount budgeted. Authorities withheld some payments to states and have capped ministries’ expenditure as the fiscal deficit ballooned beyond the target.

The government’s efforts to maintain its deficit goal goes against advice from some quarters, including central bank Governor Shaktikanta Das, who urged more spending to spur economic growth.

It’s uncertain though how much room Modi’s administration has to boost expenditure, given that it may already be borrowing as much as 540 billion rupees through state-run companies, a figure that isn’t reflected on the federal balance sheet. Uncertainty about public finances pushed up sovereign yields in November and December, compelling Das to announce unconventional policies to keep costs in check.

“This is not a time to conceal the fiscal deficit by off-budget borrowing or deferring payments,” said Indira Rajaraman, an economist and a former member of the Reserve Bank of India’s board. “If they were to stick to the target, that would be catastrophic because there is so much pump-priming that is needed right now.”

GDP grew 4.5% in the quarter ended September, the slowest pace in more than six years as both consumption and investments cooled in Asia’s third-largest economy. Only government spending supported the expansion, piling pressure on Modi to keep stimulating.

S&P Global Ratings warned in December it may downgrade India’s sovereign ratings if economic growth doesn’t recover. Government support seems to be waning now, with ministries asked to cap spending in the final quarter of the financial year at 25% of the amount budgeted rather than 33% allowed earlier. This new rule will hamstring sectors including agriculture, aviation and coal, where not even half of annual targets have been disbursed.

As the federal government runs short of money, it’s been delaying payouts to state administrations.

Private hospitals have threatened to suspend cash-less services to government employees over non-payment of dues, while a builder informed the stock exchange about delayed rental payments from no less than the tax office itself.

India is considering a litigation-settlement plan that will allow companies to exit lingering tax disputes by paying a portion of the money demanded by the government, the Economic Times newspaper reported Saturday.

The move will help improve the ease of doing business besides unlocking a part of the almost 8 trillion rupees ($111 billion) caught up in these disputes. The step, which is being considered as part of the annual budget, could also bridge India’s fiscal gap.

Finance Minister Nirmala Sitharaman has refused to comment on the deficit goal before the official budget presentation due Feb. 1.

A deviation from target, if any, “will need to be balanced with a credible consolidation plan further-out,” said Radhika Rao, an economist at DBS Group Holdings Ltd. in Singapore.

Mysuru, Feb 1: The local police have arrested a man stabbed his irresponsible wife after she apparently hurt him with her naughty TikTok videos in Periyapatna of Mysuru district.

According to police, Srinivas stabbed his wife Savitha for TikTok videos where the latter featured with a different man.

The couple was not in good terms and was staying separately since few years. Savitha was residing in Mysuru and she used to send TikTok videos posing with another man to Srinivas.

The couple had two children, who reside with Srinivas, who was upset with the videos and invited Savitha to the birthday party of one of their children at Periyapatna.

He attacked her with a knife soon after she reached the function venue, Police said.

Washington, Jun 30: Researchers in China have discovered a new type of swine flu that is capable of triggering a pandemic, according to a study published Monday in the US science journal PNAS.

Named G4, it is genetically descended from the H1N1 strain that caused a pandemic in 2009.

It possesses "all the essential hallmarks of being highly adapted to infect humans," say the authors, scientists at Chinese universities and China's Center for Disease Control and Prevention.

The researchers then carried out various experiments including on ferrets, which are widely used in flu studies because they experience similar symptoms to humans -- principally fever, coughing and sneezing. 

G4 was observed to be highly infectious, replicating in human cells and causing more serious symptoms in ferrets than other viruses.

Tests also showed that any immunity humans gain from exposure to seasonal flu does not provide protection from G4.

According to blood tests which showed up antibodies created by exposure to the virus, 10.4 percent of swine workers had already been infected.

The tests showed that as many as 4.4 percent of the general population also appeared to have been exposed.

The virus has therefore already passed from animals to humans but there is no evidence yet that it can be passed from human to human -- the scientists' main worry.

"It is of concern that human infection of G4 virus will further human adaptation and increase the risk of a human pandemic," the researchers wrote.

The authors called for urgent measures to monitor people working with pigs.

"The work comes as a salutary reminder that we are constantly at risk of new emergence of zoonotic pathogens and that farmed animals, with which humans have greater contact than with wildlife, may act as the source for important pandemic viruses," said James Wood, head of the department of veterinary medicine at Cambridge University.

A zoonotic infection is caused by a pathogen that has jumped from a non-human animal into a human.