Gurdaspur LS bypoll: Congress' Sunil Jakhar wins by over 1,90,000 Votes

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, Jun 19: Petrol price on Friday was hiked by 56 paise per litre and diesel by 63 paise a litre, taking the cumulative increase in rates to Rs 7.11 and Rs 7.67 per litre respectively in less than two weeks.

Petrol price in Delhi was hiked to Rs 78.37 per litre from Rs 77.81, while diesel rates were increased to Rs 77.06 a litre from Rs 76.43, according to a price notification of state oil marketing companies.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

This is the 13th daily increase in rates in a row since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus in rate revision.

In 13 hikes, petrol price has gone up by Rs 7.11 per litre and diesel by Rs 7.67 a litre.

The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices to two decade low.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

Jan 28: After Union minister Anurag Thakur, on Tuesday, BJP MP Parvesh Verma has stoked a controversy by saying that "Shaheen Bagh protesters will enter houses and rape sisters, daughters." The BJP MP even went on to say that if BJP is voted to power in Delhi, they "will clear Shaheen Bagh protest within an hour."

"If the BJP comes to power in Delhi on February 11, we will clear Shaheen Bagh of all protests and protesters within one hour. Not a single person will be visible," Parvesh Verma said during a meeting at Vikaspuri assembly constituency.

"Lakhs of people gather there [Shaheen Bagh]. People of Delhi will have to think and take a decision. They will enter your houses, rape your sisters and daughters, kill them. There's time today, Modi ji & Amit Shah won't come to save you tomorrow..." the BJP MP told news agency ANI.

"If our government is formed, then give me just a month after February 11, and I will remove all mosques built on government land in my Lok Sabha constituency," the BJP parliamentarian added.

Well, these statements didn't go down well with the netizens, who took to Twitter to express what they felt about the BJP leader's comments. A user wrote, "This is pure, unadulterated hate speech." While other user said, "Only when you thought BJP couldn't stoop any lower."

Earlier, on Monday, BJP leader and Union Minister Anurag Thakur triggered a row after he led the crowd to raise an incendiary slogan that "traitors should be shot". At the rally, Thakur, the Minister of State (MoS) for Finance, shouted: "desh ke gaddaron ko" to which the crowd responded, "goli maro saalo ko" (shoot down the traitors).

Addressing the meeting in support of BJP candidate from Rithala, Manish Chaudhary, Thakur raised the pitch of nationalism as he linked opposition parties with anti-CAA protests in Shaheen Bagh and with alleged anti-India slogans, and then asked the crowd to raise the controversial slogan.

For more than a month, over 200 women have been joined by hundreds of others every day at South East Delhi's Shaheen Bagh at a sit-in protest against the CAA which promises citizenship to only non-Muslim refugees from three neighbouring countries.

Protests have been ongoing in different parts of the country against the amended Citizenship Act (CAA) which grants citizenship to Hindus, Sikhs, Jains, Parsis, Buddhists and Christians fleeing religious persecution from Pakistan, Afghanistan, and Bangladesh if they entered India on or before December 31, 2014.