Sushil and Aware strike gold, Babita settles for silver

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.

Washington, Feb 6: The US has expressed concern over the current situation of religious freedom in India and raised the issue with Indian officials, a senior State Department official has said.

The remarks came in the wake of widespread protests held across India against the Citizenship Amendment Act (CAA).

The senior State Department official, on condition of anonymity, said that he has met with officials in India about what is taking place in the nation and expressed concern.

"We are concerned about what's taking place in India. I have met with the Indian foreign minister. I've met with the Indian ambassador (to express my concern)," the official, who was recently in India, told reporters on Wednesday.

The US has also "expressed desire first to try to help and work through some of these issues", the official said as Secretary of State Mike Pompeo launched a 27-nation International Religious Freedom Alliance.

"To me, the initial step we try to do in most places is say what can we do to be of help you work through an issue to where there's not religious persecution. That's the first step, is just saying can we work with you on this," the official said.

India maintains that the Indian Constitution guarantees fundamental rights to all its citizens, including its minority communities.

It is widely acknowledged that India is a vibrant democracy where the Constitution provides protection of religious freedom, and where democratic governance and rule of law further promote and protect fundamental rights, a senior official of the Ministry of External Affairs has said.

According to the CAA, members of Hindu, Sikh, Buddhist, Jain, Parsi and Christian communities who have come from Pakistan, Bangladesh and Afghanistan till December 31, 2014 following religious persecution there will get Indian citizenship.

The Indian government has been emphasising that the new law will not deny any citizenship rights, but has been brought to protect the oppressed minorities of neighbouring countries and give them citizenship.

Defending the CAA, Prime Minister Narendra Modi last month said that the law is not about taking away citizenship, it is about giving citizenship.

"We must all know that any person of any religion from any country of the world who believes in India and its Constitution can apply for Indian citizenship through due process. There's no problem in that," he said.

Mumbai, Mar 3: India on Tuesday retained their number one spot and captain Virat Kohli remained static at second in the ICC rankings despite a dismal Test series against New Zealand.

India have 116 rating points, six more than New Zealand with third-placed Australia accumulating 108 points. The 0-2 result against New Zealand was India's first series loss in the World Test Championship.

Kohli remains in second position in the batting rankings despite a forgettable Test series in which he made 38 runs in four innings, the ICC said in a statement.

New Zealand opener Tom Blundell and his Indian counterpart Prithvi Shaw and debutant paceman Kyle Jamieson were among the biggest movers in the rankings, released on Tuesday.

Blundell had a successful series against India, scoring 117 runs in four innings, with one half-century, which put him among the top two run-scorers in the series.

The performance meant he was rewarded with a jump of 27 places to No. 46. Shaw, who returned for his first series since his Test debut against West Indies in 2018, and made a punchy 54 in the first innings of the Christchurch Test, rose 17 places to No.76.

Australia's Steve Smith retained his top spot, holding a 25-point advantage over Kohli. Smith's apprentice Marnus Labuschagne jumped one spot to round off the top three, taking the place of New Zealand captain Kane Williamson.

England all-rounder Ben Stokes and India opener Mayank Agarwal moved a spot each and swapped places to break into and fall out of the top 10 respectively.

Among bowlers, Tim Southee's Player of the Series winning performance against India took him into the top five, with a jump of two places to No.4, while Jasprit Bumrah and Trent Boult returned to the top 10, gaining four places each to occupy the seventh and ninth positions respectively.

But the biggest gainer was Jamieson, who rose from No. 80 to 43.

There was only one change in the top ten among all-rounders, with Southee dropping a spot to No.10 and team-mate Neil Wagner falling out of the top 10 with a drop of four spots.

As with the bowling rankings, Jamieson, who frustrated India with handy lower order runs, gained big on the all-rounders' table, rising 26 places to No. 22.