Nearly 50% of total covid cases in India recorded during 4th phase of lockdown

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.

Ahmedabad, Mar 15: Four Congress MLAs in Gujarat have tendered their resignation to Assembly Speaker Rajendra Trivedi ahead of the election to the four Rajya Sabha seats in the state to be held on March 26.

The four Congress legislators tendered their resignation on Saturday, which Trivedi has accepted.

Trivedi told this to PTI on Sunday.

He said he will announce the names of the legislators in the Legislative Assembly on Monday.

"Four Congress MLAs tendered their resignation to me on Saturday, and I will announce their names in the Assembly tomorrow," he said.

With this, the strength of the Congress party in the 182-member Gujarat Assembly has come down to 69 from 73.

The Congress had on Saturday shifted its 14 MLAs to Jaipur fearing horse-trading by the ruling BJP ahead of the Rajya Sabha polls.

The BJP has fielded Abhay Bhardwaj, Ramila Bara and Narhari Amin for the election.

Given its number in the Assembly, the ruling party can only win two seats unless it manages cross-voting from the opposition camp or ensures defection of Congress MLAs to win the third seat.

The Congress has fielded senior leaders Shaktisinh Gohil and Bharatsinh Solanki.

New Delhi, May 23: India witnessed the biggest ever spike of 6,654 positive cases in the last 24 hours, taking the total number of COVID-19 cases to 1,25,101, according to the Union Ministry of Health and Family Welfare.

As many as 137 deaths have been reported in the last 24 hours, taking the death toll to 3,720.
Out of the total number of cases, 69,597 are active and 51,784 have been cured/discharged or have migrated.

Maharashtra continues to remain the worst-affected state with 44,582 COVID-19 cases. It is followed by Tamil Nadu (14,753), Gujarat (13,268), and Delhi (12,319).

The nationwide lockdown imposed as a precautionary measure to contain the spread of COVID-19 has been extended till May 31.