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Corporate tax cut would not bring growth: Abhijit

Agencies
October 22, 2019

New Delhi, Oct 22: Nobel laureate Abhijit Banerjee on Monday said the government's stringent commitment to low inflation has resulted in farm distress by adversely impacting support price for agricultural produce.

Striking a note of caution, he said Prime Minister Narendra Modi has more faith in corporates than he did.

"I think Mr. Modi has more faith in the corporate sector than I do. The recent tax cuts show that someone in the administration believes that you have to give the corporate sector lots of money to get growth. I do not believe that," Banerjee, who has been awarded this year's Nobel Prize for Economics along with two others, said here.

Banerjee added that the corporate tax cut would not bring growth but probably moderation in direct tax could push the growth northward.

The government last month slashed the corporate tax rate to 22 per cent for domestic companies to push the sagging economy.

"The commitment to low inflation dove it to clamp down on support price...agricultural income went down relative to the rest of the country. This was agricultural distress. Farmers are unhappy," he said.

As a result, he said the government was forced to put money for PM-KISAN.

On the stress in the banking sector, he said part of the problem is that decision-making is absolutely frozen.

The economy hit a six-year low of 5 per cent for the first quarter of the current financial year.

The tax rate was brought down further lower at 15 per cent for new manufacturing companies.

Speaking on the government's drive to divest its stake in public sector enterprises, the economist said that selling government stake in PSUs was not a long-term solution to bridge the fiscal deficit target.

"In short term, selling PSU is a good idea but it is not a long term solution," he said.

The government aims to raise Rs 1.05 lakh through disinvestment in the current fiscal.

He also said disinvestment is not a long-term solution for bridging fiscal deficit.

Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of (plus, minus) 2 per cent, while supporting growth.

The headline inflation, as measured by the Consumer Price Index (Combined), rose to a 14-month high of 3.99 per cent in September from 3.28 per cent the previous month.

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Agencies
February 11,2020

New Delhi, Feb 11: Cheaper lending rates in the country along with the government's booster via tax cuts seem to have had little effect on vehicle sales in January, with car sales decreasing by over 14,531 units, or slightly over 8 per cent, compared to January last year.

According to Rajan Wadhera, President of industry body Society of Indian Automobile Manufacturers (SIAM), which gives out the auto sales numbers, the overall slump in vehicle sales in India was due to the "rising cost of vehicle ownership and slower growth in GDP".

Barring three-wheelers, all other segments showed de-growth.

Vehicle sales across segments have been declining for over a year now. SIAM sales data last month compared with that of January 2019 showed that domestic passenger vehicle sales slipped 6.2 per cent to 262,714 units. The decline in car sales stood at 8.1 per cent, and two-wheelers 16.06 per cent.

Sales of commercial vehicles, an indicator of industrial health in the economy, slipped by 14.04 per cent to 75,289 units last month, while the vehicle sales across categories registered a de-growth of 13.83 per cent to 17,39,975 units from 20,19,253 units in January 2019, SIAM said.

However, Wadhera said, they were hopeful that recent government announcements on infrastructure and rural economy would support growth of vehicle sales, especially in the commercial and two-wheeler segments.

"We are looking forward to the early announcement of an incentive-based scrappage policy in the context of the recent assurances by the government," Wadhera said.

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News Network
March 5,2020

Bharuch, Mar 5: Vijay Kumar, a resident of the Tamil Nadu has sought help from his friend Abdulkhuda Mohd Hanif Shaikh who is residing in Gujarat to build a temple in his village.

Abdulkhuda Mohd Hanif Shaikh, who also belongs to Tamil Nadu's Paraipatti village and has been residing in Gujarat' Bharuch for a decade has collected Rs 3 lakh from his friends as a donation to build the temple in Paraipatti village in Dindigul district.

"They'd told me 4 months ago and came to me 10 days back. From Vapi to Mehsana, there are several Madrasis, even here in the village too. I personally went to them and collected around Rs 3 Lakh," Shaikh said.

Vijay Kumar said that he stayed in Gujarat for ten days and collected Rs 3 Lakh with him.

"I had sought help from him. I stayed here in Gujarat for 10 days, and went with him from people to people and collected Rs 3 Lakh. No one lives like Hindus or Muslims in our village, everyone lives like friends," he said.

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News Network
July 27,2020

New Delhi, Jul 27: India's COVID tally on Monday crossed 14 lakh mark with the highest single-day spike of 49,931 cases reported in the last 24 hours, said the Union Ministry of Health and Family Welfare.

The total COVID-19 cases stand at 14,35,453, including 4,85,114 active cases, 9,17,568 cured/discharged/migrated, it added.

With 708 deaths in the last 24 hours, the cumulative toll reached 32,771.

India had crossed 13 lakhs COVID-19 cases on July 25.

Maharashtra has reported 3,75,799 coronavirus cases, the highest among states and Union Territories in the country.

A total of 2,13,723 cases have been reported from Tamil Nadu till now, while Delhi has recorded a total of 1,30,606 coronavirus cases.

According to the Indian Council of Medical Research (ICMR), 5,15,472 samples were tested for coronavirus on Sunday and overall 1,68,06,803 samples have been tested so far.

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