Padmavati: Karni Sena threatens Deepika; cops beef up security

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.

Jun 8: The Shiv Sena has sought to take a different stand on Bollywood actor Sonu Sood’s help in ferrying migrants back home in the midst of the nationwide lockdown induced by the coronavirus pandemic. On Sunday evening, the actor met Maharashtra Chief Minister Uddhav Thackeray at his residence ‘Matoshree’. The CM’s son and Maharashtra minister Aaditya Thackeray and MLA Aslam Shaikh were also present during the meeting.

Sonu Sood’s visit to the Shiv Sena supremo’s residence came after Sanjay Raut, one of the most vocal leaders of the party, criticised the actor and sought to draw a BJP link to his help to migrants in order to show the ruling dispensation in poor light.

“Sood is an actor whose profession is to deliver dialogues scripted by someone else and make a living out of it. There are many people like Sood who would promote any political party if paid well,” Raut wrote in Shiv Sena mouthpiece Saamna.

Referring to the actor’s help to migrants, Raut wondered if the sudden generosity of “Mahatma” Sood in Mumbai was at BJP’s behest and said that he would “soon meet Prime Minister Narendra Modi and become the celebrity manager of Mumbai.”

As Raut’s remarks fuelled a controversy in political circles, Aaditya Thackeray tweeted in praise of Sood in an apparent attempt to distance the party and its leadership from the leader’s remarks.

“This evening Sonu Sood met up with Maharashtra CM Uddhav Thackeray ji along with Minister Aslam Shaikh ji and me. Better Together, Stronger Together to assist as many people through as many people. Good to have met a good soul to work for the people together.”

“The CM was glad to meet Sonu Sood and discussed the work everyone is doing for the people during covid relief. Misunderstandings don’t exist but what does is a commitment to help people,” Aaditya tweeted.

Sonu Sood too sought to downplay Raut’s remarks and expressed gratitude to all political parties for having supported him. “They (Shiv Sena) are also supporting it and it’s not about any particular party. We have to support all the people who are suffering. Every party from Kashmir to Kanya Kumari has supported me,” the actor told reporters after his meeting with the Chief Minister.

Sonu Sood has earned immense praise for providing help to stranded migrant workers during the Covid-19 lockdown. He has launched a helpline for migrants and has helped hundreds of migrants return to their native places in Bihar, Uttar Pradesh, Jharkhand and Karnataka.

Tehran, Jun 29: Iran has issued an arrest warrant and asked Interpol for help in detaining President Donald Trump and dozens of others it believes carried out the drone strike that killed a top Iranian general in Baghdad, a local prosecutor reportedly said Monday.

While Trump faces no danger of arrest, the charges underscore the heightened tensions between Iran and the United States since Trump unilaterally withdrew America from Tehran’s nuclear deal with world powers.

Tehran prosecutor Ali Alqasimehr said Trump and more than 30 others whom Iran accuses of involvement in the Jan. 3 strike that killed Gen. Qassem Soleimani in Baghdad face “murder and terrorism charges,” the semiofficial ISNA news agency reported.

Alqasimehr did not identify anyone else sought other than Trump, but stressed that Iran would continue to pursue his prosecution even after his presidency ends.

Interpol, based in Lyon, France, did not immediately respond to a request for comment.

Alqasimehr also was quoted as saying that Iran requested a “red notice” be put out for Trump and the others, which represents the highest level arrest request issued by Interpol. Local authorities end up making the arrests on behalf of the country that request it. The notices cannot force countries to arrest or extradite suspects, but can put government leaders on the spot and limit suspects’ travel.

After receiving a request, Interpol meets by committee and discusses whether or not to share the information with its member states. Interpol has no requirement for making any of the notices public, though some do get published on its website.

It is unlikely Interpol would grant Iran’s request as its guideline for notices forbids it from “undertaking any intervention or activities of a political” nature.

The U.S. killed Soleimani, who oversaw the Revolutionary Guard’s expeditionary Quds Force, and others in the January strike near Baghdad International Airport. It came after months of incidents raising tensions between the two countries and ultimately saw Iran retaliate with a ballistic missile strike targeting American troops in Iraq.