Corporate tax cut would not bring growth: Abhijit

Agencies
October 22, 2019

New Delhi, Oct 22: Nobel laureate Abhijit Banerjee on Monday said the government's stringent commitment to low inflation has resulted in farm distress by adversely impacting support price for agricultural produce.

Striking a note of caution, he said Prime Minister Narendra Modi has more faith in corporates than he did.

"I think Mr. Modi has more faith in the corporate sector than I do. The recent tax cuts show that someone in the administration believes that you have to give the corporate sector lots of money to get growth. I do not believe that," Banerjee, who has been awarded this year's Nobel Prize for Economics along with two others, said here.

Banerjee added that the corporate tax cut would not bring growth but probably moderation in direct tax could push the growth northward.

The government last month slashed the corporate tax rate to 22 per cent for domestic companies to push the sagging economy.

"The commitment to low inflation dove it to clamp down on support price...agricultural income went down relative to the rest of the country. This was agricultural distress. Farmers are unhappy," he said.

As a result, he said the government was forced to put money for PM-KISAN.

On the stress in the banking sector, he said part of the problem is that decision-making is absolutely frozen.

The economy hit a six-year low of 5 per cent for the first quarter of the current financial year.

The tax rate was brought down further lower at 15 per cent for new manufacturing companies.

Speaking on the government's drive to divest its stake in public sector enterprises, the economist said that selling government stake in PSUs was not a long-term solution to bridge the fiscal deficit target.

"In short term, selling PSU is a good idea but it is not a long term solution," he said.

The government aims to raise Rs 1.05 lakh through disinvestment in the current fiscal.

He also said disinvestment is not a long-term solution for bridging fiscal deficit.

Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of (plus, minus) 2 per cent, while supporting growth.

The headline inflation, as measured by the Consumer Price Index (Combined), rose to a 14-month high of 3.99 per cent in September from 3.28 per cent the previous month.

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News Network
July 3,2020

Kanpur,  Jul 3: A total of eight police personnel including Deputy Superintendent of Police Devendra Mishra have lost their lives after they were fired upon by criminals in the early hours of Friday.

The incident took place when a police team had gone to raid history-sheeter Vikas Dubey's house.

Senior Superintendent of Police and Inspector General of Police have reached the spot and forensics team is examining the area.

State Chief Minister Yogi Adityanath has expressed his condolence to the families of the eight Police personnel who lost their lives after being fired upon by criminals in Kanpur. He has directed Director General of Police HC Awasthi to take strict action against criminals. He also sought a report of the incident. 

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News Network
May 20,2020

May 20: Prime Minister K P Sharma Oli on Tuesday asserted that Lipulekh, Kalapani and Limpiyadhura belong to Nepal and vowed to "reclaim" them from India through political and diplomatic efforts, as his Cabinet endorsed a new political map showing the three areas as Nepalese territory.

Addressing Parliament, Oli said the territories belong to Nepal “but India has made it a disputed area by keeping its Army there”. “Nepalis were blocked from going there after India stationed its Army,” he said.

“India has deployed its troops in Kalapani since 1962 and our rulers in the past hesitated to raise the issue,” he said, asserting, “We will reclaim and get them back.”

The prime minister asserted that the Nepal government will make political and diplomatic efforts to reclaim the territory.

Oli also expressed the hope that India will “follow the path of truth, shown by Satya Meva Jayate, which is mentioned in the Ashoka Chakra, the national symbol of India”.

The prime minister’s remarks came a day after the Cabinet headed by him endorsed a new political map showing Lipulekh, Kalapani and Limpiyadhura under Nepal’s territory.

Foreign Minister Pradeep Kumar Gyawali said the official map of Nepal will soon be made public by the Ministry of Land Management. The move announced by Gyawali came weeks after he said that efforts were on to resolve the border issue with India through diplomatic initiatives.

Nepal''s ruling Nepal Communist Party lawmakers have also tabled a special resolution in Parliament demanding return of Kalapani, Limpiyadhura and Lipulekh to Nepal.

The Lipulekh pass is a far western point near Kalapani, a disputed border area between Nepal and India. Both India and Nepal claim Kalapani as an integral part of their territory - India as part of Uttarakhand’s Pithoragarh district and Nepal as part of Dharchula district.

Gyawali last week summoned the Indian Ambassador Vinay Mohan Kwatra and handed over a diplomatic note to him to protest against the construction of a key road connecting the Lipulekh pass with Dharchula in Uttarakhand.

India has said that the recently-inaugurated road section in Pithoragarh district in Uttarakhand lies completely within its territory. Indian Army chief Gen MM Naravane last week said that there were reasons to believe that Nepal objected to India''s newly-inaugurated road linking Lipulekh Pass with Dharchula in Uttarakhand at the behest of "someone else", in an apparent reference to a possible role by China on the matter.

He said there was no dispute whatsoever between India and Nepal in the area and road laid was very much within the Indian side.

The 80-KM-long strategically crucial road at a height of 17,000 KM along the border with China in Uttarakhand was thrown open by Defence Minister Rajnath Singh earlier this month.

Nepal has raised objection to the inauguration of the road, saying the "unilateral act" was against the understanding reached between the two countries on resolving the border issues. China on Tuesday said the Kalapani border issue is between India and Nepal as it hoped that the two neighbours could refrain from "unilateral actions" and properly resolve their disputes through friendly consultations.

After the endorsement of Nepal’s new map senior ruling party leader and member of Nepal Communist Party Standing Committee Ganesh Shah said the new move may escalate unnecessary tension between Nepal and India at a time when the country is fighting the coronavirus.

"The Nepal government should soon start a dialogue with India to resolve the matter through political and diplomatic moves," he said.

The new map includes 335-km land area including Limpiyadhura in the Nepalese territory.

The new map was drawn on the basis of the Sugauli Treaty of 1816 signed between Nepal and then the British India government and other relevant documents, which suggests Limpiyadhura, from where the Kali river originated, is Nepal''s border with India, The Kathmandu Post quoted an official at the Ministry of Land Reform and Management as saying.

India and Nepal are at a row after the Indian side issued a new political map incorporating Kalapani and Lipulekh on its side of the border in October last year.

The tension further escalated after India inaugurated the road link connecting Kailash Mansarovar, a holy pilgrimage site situated at Tibet, China, that passes through the territory belonging to Nepal.

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News Network
January 6,2020

Hyderabad, Jan 6: AIMIM president Asaduddin Owaisi on Monday expressed solidarity with students of Jawaharlal Nehru University in Delhi, following violence in the campus and said the "cruel attack" was meant to "punish"the students as they "dared to stand up".

"In solidarity with the brave students of JNU. This cruel attack is meant to 'punish' JNU students because they dared to stand up. It's so bad that even Union Ministers are tweeting helplessly. Modi Sarkar must answer why cops aresiding with goons," the Hyderabad MP tweeted.

The AIMIM has also tweeted expressing solidarity with the "students of JNU". "AIMIM stands in solidarity with the students of Jawaharlal Nehru University. Who feels threatened by the voice of students?," the party said in a tweet.

Violence broke out at the JNU on Sunday night as masked men armed with sticks and rods attacked students and teachers and damaged property on the campus, prompting the administration to call in police which conducted a flag march.

At least 28 people, including JNU Students' Union president Aishe Ghosh, were injured as chaos reigned on the campus for nearly two hours.

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