Am already 71; faced 13 elections so far... it’s time to retire: Siddaramaiah

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.

While it makes perfect sense for IT employees to work from remote locations via video conferencing and collaboration tools seamlessly - especially in the case of tech giants like Google or Microsoft -- workers from the non-IT companies and small and medium enterprises (SMBs) are the worst-hit in India as most of them have little or no clue about how these messaging and collaboration tools work amid the coronavirus pandemic.

Small companies -- from corporate to education verticals -- are scrambling to get their act together as new coronavirus threat has reached their premises, prompting them to send employees home who have age-old laptops, poor network and connectivity with no UPS backups and little knowledge about how to handle group chat and collaboration software like Zoom, Google Hangouts Meet, Microsoft Teams and Flock etc.

Instead of halting operations, however, businesses can choose to shift towards remote working methods with teaching non-IT staff on how to use the latest digital software to connect and work, say industry experts.

The training will take some time and may hamper productivity in the short run but is a win-win situation for the non-tech companies in the long run, in case any such global emergency arises in the future.

According to a latest report by Gartner, 54 per cent of HR leaders have cited that poor technology and/or infrastructure for remote working is the biggest barrier to effective remote working.

Sandy Shen, Senior Director Analyst, Gartner, says that with COVID-19 disrupting the business landscape, CIOs should relook at the digital fulfillment of market demand.

"The value of digital channels, products and operations is immediately obvious to companies everywhere right now. This is a wake-up call for organisations that have placed too much focus on daily operational needs at the expense of investing in digital business and long-term resilience," warned Shen.

Businesses that can shift technology capacity and investments to digital platforms will mitigate the impact of the outbreak and keep their companies running smoothly now, and over the long term.

"Videoconferencing, messaging, collaboration tools and document sharing are just a few examples of technologies that facilitate remote work. Additional bandwidth and network capacity may also be needed, given the increasing number of users and volume of communications," informed Shen.

The IT industry's apex body Nasscom has asked the government to relax norms for a month to allow work-from-home for technology and back-office employees as a measure to deal with the spread of Covid-19 in India.

Networking giant Cisco said that it has seen "significant growth" in the usage of its web conferencing and video-conferencing service Webex in India.

According to Muneer Ahmad, Business Head, ViewSonic India, due to COVID-19 pandemic, the corporate and educational sector is severely getting affected in the country.

"ViewSonic IFP has a cloud-based software which help teachers and corporates to connect through video conferencing to multiple people at the same time and can split the screen into six screens. It can also connect with various tools like Skype, Cisco WebEx, Zoom, Google Hangouts and GoToMeeting," Ahmad told IANS.

Co-working sector has also taken a hit and the industry is looking at several measures to tackle it -- from ensuring supply of juices rich in Vitamin C to supply of disinfectants and giving work from home facilities.

"The scheduled visits of the clients at our co-working offices have been postponed. Few of our clients have cancelled their outstation meetings and have now started audio/video conferencing for virtual meetings," said Nakul Mathur, MD, Avanta India.

According to reports, India has approximately 1,000 co-working locations (as of September 2019) and is the second-largest market for the co-working industry after China.

As India's first licensed B2B Virtual Network Operator, CloudConnect Communications offers a collaborative platform that allows companies to overcome the COVID-19 threat while maintaining seamless business continuity and optimum employee productivity.

"We offer a secure, robust, reliable, scalable and trackable mobile-first unified communication infrastructure that aids remote teleworking so that businesses can continue operating even under any unforeseen circumstances," said Gokul Tandon, Executive Chairman, CloudConnect Communications.

Mangaluru, Jan 11: CISF officials detained a passenger at Mangaluru International Airport here and seized from him currencies of foreign countries worth about Rs five lakh here on Saturday.

Official sources said that the passenger, identified as Shahul Hameed Theruvath, was supposed to take the Spice jet flight SG 059 for Dubai.

During the X BIS screening process, CISF officials noticed some suspicious image in Shahul’s hand baggage.

The thorough check of bag revealed foreign currencies of various countries worth Rs 5.48 lakh. The seized currencies were 76 US dollars of 100 denomination, Chinese Yuan, Malaysian Ringgits and Turkish Lira of smaller denomination. The currencies that were in his possession did not have any legal permission.

The personnel handed over the foreign currency recovered and the passenger to Customs officials for further inquiry.