CSK beat Sunrisers Hyderabad by 8 wickets to win third IPL title

Feb 2: Prime Minister Narendra Modi’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy.

The fiscal plan -- delivered by Finance Minister Nirmala Sitharaman on Saturday -- proposed tax cuts for individuals and wider deficit targets but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped as a proposal to scrap the dividend distribution tax for companies failed to impress investors.

"Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary."

India has gone from being the world’s fastest-growing major economy three years ago, expanding at 8%, to posting its weakest performance in more than a decade this fiscal year, estimated at 5%.

While the government has taken a number of steps in recent months to spur growth, they’ve fallen short of spurring demand in the consumption-driven economy. Saturday’s budget just added to the glum sentiment.

Okay Budget

“It’s an okay budget but not firing on all cylinders that the market was hoping for,” said Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies in Mumbai.

The government had limited scope for a large stimulus given a huge shortfall in revenues in the current year. The slippage induced Sitharaman to invoke a never-used provision in fiscal laws, allowing the government to exceed the budget gap by 0.5 percentage points. The result: the deficit for the year ending March was widened to 3.8% of gross domestic product from a planned 3.3%.

On Friday, India’s chief economic adviser Krishnamurthy Subramanian said reviving economic growth was an “urgent priority” and deficit goals could be relaxed to achieve that. The adviser’s Economic Survey estimated growth will rebound to 6%-6.5% in the year starting April.

The fiscal gap will narrow to 3.5% next year, as the government budgeted for gross market borrowing to rise marginally to 7.8 trillion rupees from 7.1 trillion rupees in the current year. A plan to earn 2.1 trillion rupees by selling state-owned assets in the year starting April will also help plug the deficit.

Total spending in the coming fiscal year will increase to 30.4 trillion rupees, representing a 13% increase from the current year’s budget, according to latest data.

Key highlights from the budget:

* Tax on annual income up to 1.25 million rupees pared, with riders

* Dividend distribution tax to be levied on investors, instead of companies

* Farm sector budget raised 28%, transport infrastructure gets 7% more

* Spending on education raised 5%

* Fertilizer subsidy cut 10%

Analysts said the muted spending plan to keep the deficit in check will lead to more downside risks to growth in the coming months.

“It is very doubtful that the increase in expenditure will push demand much,” Chakravarthy Rangarajan, former governor at the Reserve Bank of India told BloombergQuint, adding that achieving next year’s budget deficit goal of 3.5% of GDP was doubtful.

With the government sticking to a conservative fiscal path, the focus will now turn to central bank, which is set to review monetary policy on Feb. 6. Given inflation has surged to a five-year high of 7.35%, the RBI is unlikely to lower interest rates.

What Bloomberg’s Economists Say:

The burden of recovery now falls solely on the Reserve Bank of India. With inflation breaching RBI’s target at present, any rate cuts by the central bank are likely to be delayed and contingent upon inflation falling below the upper end of its 2%-6% target range.

-- Abhishek Gupta, India economist

Governor Shaktikanta Das may instead focus on unconventional policy tools such as the Federal Reserve-style Operation Twist -- buying long-end debt while selling short-tenor bonds -- to keep borrowing costs down.

Dhaka, Apr 22: Star Bangladesh all-rounder Shakib Al Hasan has decided to auction the bat he used during the 2019 ODI World Cup to help raise money for the fight against deadly coronavirus pandemic.

Shakib, who is currently serving a two-year ban from all forms of cricket -- one of which is suspended -- for not reporting corrupt approaches, is the second Bangladeshi cricketer after wicket-keeper batsman Mushfiqur Rahim to auction a personal cricketing gear to raise money for the cause.

"I had said before that I want to put up a bat for auction. I have decided to auction the bat I used in the 2019 World Cup. It's a favourite bat of mine," Shakib said during a Facebook live session.

The 33-year-old all-rounder had a hugely successful World Cup in England last year, scoring 606 runs in eight matches at an average of 86.57, which included two centuries and five fifties.

Besides, he also picked up 11 wickets in the tournament and became the only cricketer to score 600 plus runs and scalp 10 wickets in a single edition of the World Cup.

"I had a good World cup with the bat and ball. There were some good performances especially with the bat. I had used a single bat throughout the World Cup and even used tapes on it to get through games," Shakib said.

"It's not that this bat has only been used at the World Cup. I have scored over 1500 runs with this bat and had used it prior to the tournament and after it as well.

"Although I like the bat a lot but I have decided to put it up for auction with the thought that maybe it can leave some contribution to forming a fund during the ongoing coronavirus crisis."

The money raised from the auction will go to the Shakib Al Hasan foundation.

"This is a very special bat to me, but my people are even more special to me," Shakib said.