Mangaluru is a peaceful city; media focusing only on negative things: Top cop

Mangaluru, Jul 15: A septuagenarian from Bantwal taluk died due to coronavirus infection at a hospital in the city taking the covid-19 death toll in Dakshina Kannada to 54.

The deceased was a 73-years-old and a resident of Kasaba village in Vittal, Bantwal. Recently eight members of his family were tested positive for covid-19 including his son.

He was admitted to a hospital in Mangaluru where he was tested positive for the virus. He did not respond to the treatment and breathed his last, sources said.

The final rites were carried out by a team of trained activists of Popular Front of India (PFI) at a designated graveyard. All necessary precautions were taken by the authorities concerned and police during the funeral.

Kochi, Mar 30: Kerala High Court, while hearing a petition filed against Karnataka's decision to block the border with Kerala, on Monday said that no lives should not be lost in the name of fighting coronavirus.

Kerala High Court also said that "the current problem should be resolved amicably. Both the Union government and the Karnataka government should rise to the occasion."
The Central government has informed Kerala High Court that the movement of goods and medical services qualify under essential services, which is permitted despite the lockdown, and added that directions have been issued to give priority to the movement of such goods and services.
Meanwhile, the Karnataka government has sought a day's time to clarify their stand.

The matter will be taken up for further hearing via video conference tomorrow.
Kerala government has submitted that the action of Karnataka government to close the border is illegal as all the national highways in the country come under the jurisdiction of the National Highway Authority.

Meanwhile, Congress MP Rajmohan Unnithan has also approached the Supreme Court seeking directions to open the Karnataka-Kerala border to allow movement of ambulances and other emergency vehicles for the transport of essential items to Kerala.

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.