Budget focus on agriculture, rural; income tax rates, slabs unchanged

Agencies
February 1, 2018

New Delhi, Feb 1: A slew of measures for the agriculture and rural sectors, a new health insurance scheme for the poor and some relief in income tax for the salaried class and senior citizens, were announced by Finance Minister Arun Jaitley today in the last full budget before the general elections.

Presenting his fifth straight budget in the Lok Sabha, Jaitley raised the health and education cess, levied on all taxable income, to 4 percent from current 3 percent, and introduced a social welfare surcharge of 10 percent to fund social welfare schemes.

He lowered the corporate tax for small, micro and medium enterprises with a turnover of up to Rs 250 crore to 25 percent from current 30 percent while reintroducing the tax on long-term capital gains of over Rs 1 lakh made from the sale of shares.

While keeping the income tax rates and slabs unchanged, Jaitley introduced a Rs 40,000 Standard Deduction for salaried employees and pensioners in lieu of transport and medical expenses.

For senior citizens, exemption of interest income on bank deposits was raised to Rs 50,000 from the current Rs 10,000, he said, adding that tax will not be deducted at source on fixed deposits.

Also, exemption on medical expenses on critical illness has been raised to Rs 1 lakh, he said in his 110-minute speech.

Jaitley said a 10 percent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till January 31 would be grandfathered.

A 10 percent tax on distributed income by equity-oriented mutual funds has also been proposed in the budget.

With excise duty and service tax being subsumed in the Goods and Services Tax (GST), Jaitley made changes only in customs duty -- raising them in case of mobile phones and lowering for raw cashew.

Stating that the focus of the government in the coming fiscal would be agriculture and rural India, the Finance Minister announced that all Kharif crop would be paid a minimum support price (MSP) that is 50 percent more than the cost of production.

He announced that credit to agriculture would be raised to Rs 11 lakh crore in the coming fiscal from Rs 10 lakh crore.

Kisan credit card will be extended to fisheries and animal husbandry farmers while Rs 2,000 crore provided for the development of agriculture market.

In a bid to provide universal healthcare, he announced a 'National Health Protection scheme' to provide health cover of up to Rs 5 lakh to each of the 10 crore poor families per year.

But to fund these, he let go of the fiscal consolidation roadmap. As a result, the fiscal deficit for current fiscal will widen to 3.5 percent of the GDP as against 3.2 percent previously targeted, and to 3.3 percent in FY'19 as opposed to 3 percent previously targeted.

Fiscal deficit in 2016-17 was 3.5 percent of the GDP.

"We have worked sincerely without thinking about the political cost," he said.

Jaitley also announced 100 percent tax deduction for farm producer firms with Rs 100 crore turnover. The standard deduction allowed will benefit 2.5 crore people.

The target for providing free LPG connection to poor has been raised to 8 crores from 5 crores and 4 crore poor households will be provided free electricity connections.

President's emoluments have been raised to Rs 5 lakh per month and that of Vice President to Rs 4 lakh and Governors to Rs 3.5 lakh a month.

For members of parliament, he announced a new law that would allow for an automatic revision in their emoluments every five years based on inflation.

He said the focus will be on the agricultre sector, infrastructure and education sector as he promised to provide education holistically without segmentation from pre-nursery to Class-12 and move from blackboard to digital board.

The emphasis would be on generating higher income for farmers. Our government wants to help farmers produce more and realise higher prices, Jaitley said.

Stating that crop production is at record high, Jaitley said the government is committed to giving 50 percent more than cost of crop production to farmers.

He said when the NDA government took over, India was considered one of the fragile five economies of the world and the Modi-led Government have reversed it. "India is today fastest growing economy... India is today a USD 2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest," he said, projecting exports growth at 15 percent. In the second half (October-March) the growth is expected to be 7.2-7.5 percent and firmly on path to achieve 8 percent growth.

Stating that air pollution in Delhi NCR is a cause for concern, he said the Centre will implement special scheme to support state Governments of Haryana, Punjab, UP and Delhi NCT to address it and subsidise machinery for management of crop residue. The Budget announced allocation of Rs 600 crore towards nutritional support of tuberculosis patients and setting up of 24 new medical colleges and hospitals by upgrading district level ones. The Government is slowly but steadily progressing towards universal health coverage and total budget for health, education and social security has been increased to Rs 1.38 lakh crore for 2018-19 from Rs 1.22 lakh crore in current fiscal. Stating that Rs 4.6 lakh crore has been sanctioned under MUDRA Scheme, he said government will soon announce scheme to address the issue of Non-Performing Assets in MSME sector.

Mass formalisation of MSME sector is happening after demonetisation and GST and the target for loan disbursement under Mudra scheme has been set at Rs 3 lakh crore for next fiscal. Employees PF Act will be amended to reduce contribution of women to 8 percent from 12 percent for first three years, with no change in employer's contribution, Jaitley said. The Government will contribute 12 percent of wages of new employees in EPF for all sectors for the next 3 years, he said. He said Rs 50 lakh crore is needed for infrastructure building and Government will allocate Rs 7,140 crore for textiles sector in next year National Highways exceeding 9,000-km will be completed in 2018-19 and allocation of over Rs 1.48 lakh crore has been planned for railways.

Regional air connectivity scheme shall connect 56 unserved airports and 31 unserved helipads and Government will expand capacity of airports by five times to cate to one billion trips a year.

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News Network
March 29,2020

New Delhi, Mar 29: Prime Minister Narendra Modi on Sunday said that people should not think of COVID-19 quarantine facilities as a prison and spoke with two survivors of the infection during his radio show 'Mann Ki Baat' to establish that it was curable.
The Prime Minister spoke to coronavirus survivors -- Ramagampa Teja and Ashok Kapoor - and urged them to share their success against the infection with people.
The Prime Minister asked people to listen to the survivors who had successfully defeated the coronavirus.
"I have spoken to a few people who were infected from the virus and speaking to such people. While I tried to boost their morale they also lifted my spirits when I talked to them," he said.
Speaking to the Prime Minister during the show, Ramagampa Teja, an IT professional, who tested positive for COVID-19 after returning from Dubai, said that he was frightened when he tested positive for the disease and could not believe that this has happened to him.
He said even his family was very stressed after finding out his COVID-19 positive status. "But their test results came negative, which I took as a great blessing. And since then, there were improvements every day," he said.
Teja was admitted to a government hospital in Hyderabad and was released after 14 days as he successfully overcame the infection. "The first few days were the hardest but the dedicated doctors and nurses at the hospital ensured that I recovered," he added.
He asked people not to be afraid of being quarantined. "People feel that going into quarantine means going to prison. They should know that the government quarantine is for them and their families. I want to emphasise that people must get tested and do not fear quarantine," he added.
The Prime Minister congratulated him and his family and asked him to share an audio clip of his experience. "I would like you to make an audio of your experiences and share it on social media so that it goes viral and removes fear from people's minds," the Prime Minister said.
The Prime Minister also spoke to another coronavirus survivor, Ashok Kapoor, six members of whose family in Agra were tested positive for the deadly virus.
On being asked by the Prime Minister whether they had feared for their lives, Kapoor said, "We were not scared as we received excellent cooperation from the doctors and support staff at Delhi's Safdarjung Hospital."
The six of them were shifted to Delhi and put under quarantine for 14 days where all of them successfully recovered from the infection.
The Prime Minister also commended the spirit of Ashok Kapoor and said: "Your experience came in handy for all. My best wishes to you and your family."
He also urged the Kapoor family to spread awareness regarding COVID-19 in the way they see fit. "Please spread awareness your way and you can feed whoever is hungry, look out for the poor and also spread awareness to people urging them to follow the rules," the Prime Minister said.
"If everyone follows the rules, the country will be saved," the Prime Minister said.
The Prime Minister also thanked the people involved in ensuring the continuous supply of goods and services in the country and advised them to "follow all the safety precautions, take care of themselves and their family members."
Earlier in his address, Modi had asked for the forgiveness of all countrymen, and especially the poor, for the nationwide lockdown in the country in the view of the novel coronavirus. He had then termed it a necessary measure needed to defeat the infection in India.

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News Network
March 21,2020

New Delhi, Mar 21: A couple was deboarded from a Delhi-bound Rajdhani train on Saturday after co-passengers observed a home quarantine seal on the husband's hand, the Railways said Saturday.

Officials said the Delhi-based couple boarded the Bangalore City-New Delhi Rajdhani at Secunderabad on Saturday morning.

When the train reached Kazipet in Telangana at 9:45 am, a co-passenger noticed the quarantine mark authorities are putting on suspected coronavirus cases —on the husband's hand when he was washing his hands. Other co-passengers then informed the TTE onboard.

The train was briefly detained and the couple was taken to a hospital. The coach was completely sanitised in Kazipet and was locked, officials said.

The air conditioning was also switched off.

The train left for its destination at 11.30 am.

People fleeing quarantine has been a common problem reported from different parts of the country.

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News Network
May 7,2020

United Nations, May 7: An average of 80,000 COVID-19 cases were reported each day in April to the World Health Organization, the top UN health agency has said, noting that South Asian nations like India and Bangladesh are seeing a spike in the infections while the numbers are declining in regions such as Western Europe.

WHO Director-General Tedros Adhanom Ghebreyesus said on Wednesday that countries must also be able to manage any risk of the disease being imported into their territories, and communities should be fully educated to adjust to what will be a "new norm".

He said as the countries press forward in the common fight against COVID-19, they should also lay the groundwork for resilient health systems globally.

"More than 3.5 million cases of COVID-19 and almost 250,000 deaths have now been reported to the WHO. Since the beginning of April, an average of around 80,000 new cases have been reported to the WHO every day," Ghebreyesus said in Geneva yesterday.

Asserting that the virus cases were not just numbers, he said: "every single case is a mother, a father, a son, a daughter, a brother, sister or friend".

He said while the numbers are declining in Western Europe, more cases are being reported every day from Eastern Europe, Africa, South-East Asia, the Eastern Mediterranean and the Americas. Even within regions and within countries, there are divergent trends, the agency added.

While some countries are reporting an increase in COVID-19 cases over time, many have seen caseloads rise because they have ramped up testing, the WHO official said.

"We've also seen in Europe and Western Europe a fundamental decrease in the number of cases, but we have seen an associated increase in the number of cases reported in places like the Russian Federation. Southeast, the Western Pacific areas are relatively on the downward trend like Korea and others, but then we do see in South Asia, in places like Bangladesh, in India, some trends towards increase.

"So it's very difficult to say that any particular region is improving or (not improving). There are individual countries within each region that are having difficulties getting on top of this disease and I am particularly concerned about those countries that have (an) ongoing humanitarian crisis," WHO's Executive Director Michael Ryan said.

The death toll due to COVID-19 in India rose to 1,783 while the number of cases climbed to 52,952 on Thursday, registering an increase of 89 deaths and 3,561 cases in the last 24 hours, the Union Health Ministry said.

The number of active COVID-19 cases stood at 35,902 while 15,266 people have recovered, it said.

Noting that while seeing an increase in the number of cases is not good in terms of transmission, WHO's Emerging Diseases and Zoonoses Unit head Maria Van Kerkhove said: "but I don't want to equate that with something (being) wrong".

"I want to equate that with countries are working very hard to increase their ability to find the virus, to find people with the virus, to have testing in place to identify who has COVID-19, and putting into place what they need to do to care for those patients," Kerkhove said.

With more countries considering easing restrictions implemented to curb the spread of the coronavirus, the WHO has again reminded the authorities of the need to maintain vigilance.

"The risk of returning to lockdown remains very real if countries do not manage the transition extremely carefully, and in a phased approach," Ghebreyesus said.

He urged countries to consider the UN agency's six criteria for lifting stay-at-home measures.

That advice includes ensuring surveillance is strong, cases are declining and transmission is controlled. Health systems also must be able to detect, isolate, test and treat cases, and to trace all contacts.

Additionally, the risk of outbreak in settings such as health facilities and nursing homes needs to be minimised, while schools, workplaces and other public locations should have preventive measures in place.

"The COVID-19 pandemic will eventually recede, but there can be no going back to business as usual. We cannot continue to rush to fund panic but let preparedness go by the wayside," he said.

He said the crisis has highlighted the importance of strong national health systems as the foundation of global health security: not only against pandemics but also against the multitude of health threats that people across the world face every day.

"If we learn anything from COVID-19, it must be that investing in health now will save lives later," Ghebreyesus said.

While the world currently spends around USD 7.5 trillion on health annually, the WHO believes the best investments are in promoting health and preventing disease.

"Prevention is not only better than cure, it's cheaper, and the smartest thing to do," he said.

The deadly coronavirus, which originated from the Chinese city of Wuhan in December last year, has infected over 3.7 million people and killed 263,831 people globally, according to a tally by Johns Hopkins University.

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