Depressed Nirbhaya convicts kept under close watch

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.

New Delhi, Jul 2: India's COVID-19 tally breached the 6 lakh cases mark with 19,148 new coronavirus cases being reported in the last 24 hours, informed the Union Ministry of Health and Family Welfare on Thursday.

The total cases now stand at 6,04,641 of which there are 2,26,947 active cases while 3,59,860 patients have been cured/discharged/migrated.

434 deaths have been reported in the last 24 hours taking the number of COVID-19 deaths in the country to 17,834.

Maharashtra, the worst-hit state, has a total of 1,80,298 cases including 8,053 fatalities. Meanwhile, Tamil Nadu has 94,049 cases inclusive of 1,264 deaths.

Delhi has 89,802 coronavirus cases including 2,803 deaths.

Washington, Jan 12: US president Donald Trump said Saturday the United States was monitoring Iranian demonstrations closely, warning against any new “massacre” as protests broke out after Tehran admitted to shooting down a passenger plane.

Iran said earlier it unintentionally downed a Ukrainian jetliner outside Tehran, killing all 176 people aboard, in an abrupt about-turn after initially saying that it had crashed due to mechanical failure. The firing came shortly after Iran launched missiles at bases in Iraq housing American forces.

President Hassan Rouhani said a military probe into the tragedy had found that “missiles fired due to human error” brought down the Boeing 737, calling it an “unforgivable mistake.”

Trump told Iranians -- in tweets in both English and Farsi -- that he stands by them and is monitoring the demonstrations.

“To the brave, long-suffering people of Iran: I've stood with you since the beginning of my Presidency, and my Administration will continue to stand with you,” he tweeted.

“There can not be another massacre of peaceful protesters, nor an internet shutdown. The world is watching,” he added, apparently referring to an Iranian crackdown on street protests that broke out in November.

“We are following your protests closely, and are inspired by your courage," he said.

The new demonstrations follow an Iranian crackdown on street protests that broke out in November. Amnesty International has said it left more than 300 people dead. Internet access was reportedly cut off in multiple Iranian provinces ahead of memorials planned a month after the protests.

On Saturday evening, police dispersed students who had converged on Amir Kabir University in Tehran to pay tribute to the victims, after some among the hundreds gathered shouted "destructive" slogans, Fars news agency said.

State television reported that students shouted "anti-regime" chants, while the news agency Fars reported that posters of Soleimani had been torn down.