India offers $1 billion loan for development of Russia’s Far East

Islamabad, Jan 3: The United Arab Emirates has extended USD 200 million aid to Pakistan for the development of the small and medium-sized enterprises in the country, Finance Adviser to Prime Minister Imran Khan said.

The announcement came after Abu Dhabi Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan concluded his one-day visit to the country on Thursday.

"The money will be spent on small business promotion and jobs. This support is testimony to the expanding economic relations and friendship between our countries," the adviser, Abdul Hafeez Shaikh, on Thursday said.

The Crown Prince directed the Khalifa Fund for Enterprise Development to allocate USD 200 million in order to assist the Pakistani government's efforts to create a stable and balanced national economy that will help achieve the country's sustainable development, Dawn News reported on Friday.

During the visit, the prince met Prime Minister Khan and held talks on bilateral, regional and international issues.

The UAE is Pakistan's largest trading partner in the Middle East and a major source of investments. The UAE is also among Pakistan's prime development partners in education, health and energy sectors.

It hosts more than 1.6 million expatriate Pakistani community, which contributes remittances of around USD 4.5 billion annually to the GDP.

This is the Crown Prince's second visit to Pakistan since Khan took office in August 2018. He had last visited Pakistan on January 6 last year, just weeks after his country offered USD 3 billion financial assistance to Pakistan to deal with its balance of payment crisis.

The Crown Prince's visit was considered by experts as an attempt to woo Pakistan against the backdrop of recent developments when Saudi Arabia and UAE apparently used pressure to stop Pakistan from attending the Kuala Lumpur summit held last month.

The summit from December 19-21 was seen by Saudis as an attempt to create a new bloc in the Muslim world that could become an alternative to the dysfunctional Organisation of Islamic Cooperation led by the Gulf Kingdom.

Washington, Jun 1: Police fired tear gas outside the White House late Sunday as major US cities were put under curfew to suppress rioting as anti-racism protestors again took to the streets to voice fury at police brutality.

With the Trump administration branding instigators of six nights of rioting as domestic terrorists, there were more confrontations between protestors and police and fresh outbreaks of looting.

Violent clashes erupted repeatedly in a small park next to the White House, with authorities using tear gas, pepper spray and flash bang grenades to disperse crowds who lit several large fires and damaged property.

Local US leaders appealed to citizens to give constructive outlet to their rage over the death of an unarmed black man in Minneapolis, while night-time curfews were imposed in cities including Washington, Los Angeles and Houston.

One closely watched protest was outside the state capitol in Minneapolis' twin city of St. Paul, where several thousand people gathered before marching down a highway.

"We have black sons, black brothers, black friends, we don't want them to die. We are tired of this happening, this generation is not having it, we are tired of oppression," said Muna Abdi, a 31-year-old black woman who joined the protest.

"I want to make sure he stays alive," she added in reference to her son, aged three.

Hundreds of police and National Guard troops were deployed ahead of the protest.

At one point, some of the protestors who had reached a bridge were forced to scramble for cover when a truck drove at speed after having apparently breached a barricade.

The driver was later taken to hospital after the protestors hauled him from the vehicle, although there were no immediate reports of other casualties.

There were other large-scale protests in cities including New York and Miami.

Washington's mayor ordered a curfew from 11:00 pm until 6:00 am, as a report in the New York Times said that President Donald Trump had been rushed by Secret Service agents into an underground bunker at the White House on Friday night during an earlier protest.

Stores ransacked

Large-scale violence has rocked many US cities in recent days, and looters ransacked stores in a neighborhood of Philadelphia on Sunday.

In the Los Angeles suburb of Santa Monica, looting was reported at stores in a popular beachside shopping center.

Officials in LA -- a city scarred by the 1992 riots over the police beating of Rodney King, an African-American man -- imposed a curfew from 4:00 pm Sunday until dawn.

"Please, use your discretion and go early, go home, stay home and help us make sure that those who want to change this conversation from being about racial justice to be about burning things and looting things, don't win the day," the city's mayor Eric Garcetti said on CNN.

The shocking videotaped death last Monday of an unarmed black man, George Floyd, at the hands of police in Minneapolis ignited the nationwide wave of outrage over law enforcement's repeated use of lethal force against unarmed African Americans.

Floyd stopped breathing after Minneapolis police officer Derek Chauvin knelt on his neck for nearly nine minutes.

Chauvin has been charged with third-degree murder and is due to make his first appearance in court on Monday. Three other officers with him have been fired but for now face no charges.

Governor Tim Walz has mobilized all of Minnesota's National Guard troops  -- the state guard's biggest mobilization ever -- to help restore order.

Police fired tear gas and stun grenades to clear streets of curfew violators Saturday night in Minneapolis.

Walz extended a curfew for a third night Sunday and praised police and guardsmen for holding down violence. "They did so in a professional manner. They did so without a single loss of life and minimal property damage," he said.

"Congratulations to our National Guard for the great job they did immediately upon arriving in Minneapolis, Minnesota, last night," President Donald Trump tweeted, adding that they "should be used in other States before it is too late!"

The Department of Defense said that around 5,000 National Guard troops had been mobilized in 15 states as well as the capital Washington, with another 2,000 on standby.

The widespread resort to uniformed National Guards units is rare, and it evoked disturbing memories of the rioting in US cities in 1967 and 1968 in a turbulent time of protest over racial and economic disparities.

Trump blamed the extreme left for the violence, saying he planned to designate a group known as Antifa as a terrorist organization.

"The violence instigated and carried out by Antifa and other similar groups in connection with the rioting is domestic terrorism and will be treated accordingly," added Attorney General Bill Barr.

'A nation in pain'

Atlanta Mayor Keisha Lance Bottoms said Trump, who has often urged police to use tough tactics, was not helping matters.

"We are beyond a tipping point in this country, and his rhetoric only enflames that," she said on CBS.

Joe Biden, Trump's likely Democratic opponent in November's presidential election, visited the scene of one anti-racism protest.

"We are a nation in pain right now, but we must not allow this pain to destroy us," Biden tweeted, posting a picture of him speaking with an African-American family at the site where protesters had gathered in Delaware late Saturday.

Floyd's death has triggered protests beyond the United States, with hundreds rallying outside the US embassy in London in solidarity.

"I'm here because I'm tired, I'm fed up with it. When does this stop?" Doreen Pierre told AFP at the protest.

In Germany, England football international Jadon Sancho marked one of his three goals for Borussia Dortmund against Paderborn by lifting his jersey to reveal a T-shirt bearing the words "Justice for George Floyd".

When it comes to the economy, dark days do loom large over India. May it be growth (lowest since 2008), inflation (highest in the last six years), or revenue collection (lowest in 10 years), the Indian economy is faltering. Hence, there is little leeway that can be assumed in the incumbent Union Budget 2020 (the first of the decade) if the economy needs to be boosted.

While presenting the decade's first Budget for India, finance minister Nirmala Sitharaman said on Saturday in Parliament:

Taxation

•             AADHAR based tax verification introduced

•             Review of customs duty exemptions in September 2020

•             GST refund process simplified

•             Electronic invoice implementation in phases

•             New digital scheme for tax litigation

•             PAN to be instantly allotted online against Aadhar

•             Vivaad se Vishwas Scheme: Defaulter to pay only disputed tax and no penalty or interest by 31 March 2020, post which additional amount can be paid till June 2020

•             Measure to promote affordable housing - tax holiday extended for developers

•             Concession on real estate transactions

•             Turnover threshold for audit raised to Rs 5 crore from 1 crore

•             Company audit requirements eased

•             Taxes on ESOPs (employee stock ownership) in start-ups deferred by 5 years

•             100% per cent tax exemption

•             Corporate Tax at 15%

•             Dividend Distribution Tax removed, dividend taxed only for recipients

•             No tax for 0-5 lakh

•             30% above 15 lakh

•             25% for income between Rs 12.5-15 lakh

•             20% for income between Rs 10-12.5 lakh

•             15% for income between Rs 7.5-10 lakh

•             10% for income between Rs 5-7.5 lakh, against the prevailing 20%

•             A new, optional simplified personal income tax regime for those not seeking exemptions

Major steps and initiatives taken by the government in finance

•             3.8 percent fiscal deficit estimated

•             GDP nominal growth expected at 10 per cent

•             Govt to sell part of holding LIC via IPO (initial public offering)- partial LIC disinvestment

•             Partial credit guarantee for NBFCs

•             New law for netting of financial contracts

•             Mechanism to end liquidity crisis

•             NRIs (non resident Indians) can invest in certain govt securities

Aspirational India: Caring society

•             App-based invoice financing loans for MSMEs

•             Amendment to Factoring Regulation Act to aid MSMEs

•             Pension Fund Regulatory and Development Authority (PFRDI) Act amendments

•             No criminal liabilities for civil acts

•             Auto-enrolment in universal pension scheme

•             5958 cr allocated for Ladakh

•             30757 cr allocated for J&K

•             Insurance for depositors raised to 5 lakh from 1 lakh

•             Robust mechanisms in place to monitor all PSU banks

•             Depositors’ money safe

•             100 cr for hosting G20 in 2022

•             National Recruitment Agency to be set up

•             Tax payers’ charter to be enshrined in statutes

•             Amendments for Companies Act

•             Tax payer charter proposed to free citizens from tax harassment

•             Businesses should have confidence that system is fair

•             4400 crore allocation for clean air and climate change policy

•             Aim to reduce carbon footprint - Warning to old thermal plants

•             Committed to preserve environment, tackle climate change

•             23150 crore for culture ministry

•             2500 crore for tourism sector

•             Institute of Heritage and Conservation to come up soon

•             Aim to set up more museums

•             5 archaeological sites to be made iconic

•             Proposal to end manual scavenging

•             53700 crore for welfare of STs

•             85000 crore for SCs and OBCs for 2021

•             35600 crore for nutritional schemes

•             Gross enrollment ratio of girls higher than boys in elementary level

•             Beti Bachao, Beti Padhao - tremendous results

Aspirational India: Infrastructure and economic development

•             Further reforms for transparent price discovery for natural gas

•             22000 crore for power sector

•             8000 crore for quantum technology in next 6 years

•             Two national level science schemes

•             Expand Jan Aushadhi Scheme

•             1 lakh gram panchayats to be connected via Bharat Net

•             6000 crore for Bharat Net

•             Data Centre parks to be set up across the country

•             National Gas Grid to be expanded

•             Reforms to help stressed DISCOMS (distribution companies)

•             Delhi-Mumbai Expressway by 2023

•             100 more airports by 2024

•             Plans to energise economic activity along river banks

•             Need to enhance sea ports

•             High Speed Mumbai-Ahmedabad train

•             More Tejas-type trains

•             4 station redevelopment projects under PP model

•             2000 km of strategic highways to be built, 11000 km of track electrification

•             Accelerated development of highways

•             National Logistics Policy to be released soon

•             Big push on infrastructure - 100 lakh crore

•             National Technical Textiles Mission to be set up

•             1480 crore outlay for textile sector

•             27300 crore for industrial development by 2021

•             Digital refund of duties for exporters

•             Boost domestic manufacturing - electronic equipment, mobile phone, medical devices

•             5 new smart cities in collaboration with states

•             Investment clearance cell to be set up for end to end facilitation

•             Entrepreneurship has been the strength of India

Aspirational India: Education and skills

•             High need for medical teachers and paramedics

•             Internships for engineers in panchayats

•             Rs 99300 cr for education sector

•             Large hospitals to be encouraged to start PG courses

•             Attach medical colleges to district hospitals

•             National police university to be set up

•             IND-SAT programme for overseas students for studying in India

•             New courses in 159 universities by 2026

•             Focus on education for jobs

•             Propose a fresh education policy

•             Urban local bodies should give opportunities to new engineers

•             Education needs more finances

Aspirational India: Healthcare

•             AI (artificial intelligence) to be used for Ayushman Bharat Scheme

•             69000 crore for health sector

•             Propose to set up more hospitals

•             Holistic vision for national healthcare

Aspirational India: Agriculture, Irrigation and rural development

•             Need to liberalise farm markets

•             108 million metric tonne milk production by 2021

•             2.83 lakh cr allocation for agriculture and irrigation

•             Propose raising fish production to 200 lakh tonne

•             Zero budget national farming

•             NABARD refinance scheme to be expanded

•             Village credit card scheme

•             Agriculture credit target for 2020 set at Rs 15 lakh crore

•             Village storage scheme for farmers, zero budget natural farming

•             Dhanya Lakshmi scheme for women in villages

•             Krishi Udaan by civil aviation ministry for air transport of such commodities over longer distances

•             Indian railways to set up 'kisan rail'

•             Govt to provide help to geo-tag warehouses

•             Financial inclusion has helped raise farm incomes

•             Plan for 100 water stressed districts

•             Scheme for 20 lakh farmers to set up solar pumps

•             Doubling farm income - model agricultural land leasing act, balanced use of fertilisers, solar pumps for 20 lakh farmers

Budget 2020 and its three focuses

•             Budget's first focus is 'Aspirational India'. Second focus: economic development for all. Third focus: building a caring society.

•             FDI at 284 billion dollars, achieved 7.84% growth

•             GST formalised the economy

•             Efficiency gained in logistics

•             16 lakh new tax payers added

•             Fundamentals of economy hold strong

•             Scaled up implementation of pro-poor schemes

Key challenges FM faces

•             India needs to grow by 9 per cent to 10 per cent a year to become the $5 trillion economy by 2024, as projected by the government. The government is now forecasting growth will come in at 5 per cent

•             The IMF, which had originally predicted 6.1 per cent growth for India in 2019, has revised that downwards to 4.8 per cent

•             The government’s likely to miss its fiscal deficit target for the current fiscal year of 3.3 per cent and hike its target to as much as 4 per cent for the next financial year

•             India will struggle to achieve 5 per cent GDP growth in 2020 - Economist Steve Hanke, Johns Hopkins University

•             Investment is forecast to grow at less than 1 per cent -- the lowest since 2004-05

•             India's unemployment rate rose to 7.5 per cent during September-December 2019 quarter, according to data released by think-tank Centre for Monitoring Indian Economy