North-East exodus: Bulk SMS, MMS banned in country

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.

Alappuzha, Apr 5: Coming to the rescue of a toddler in need of crucial treatment for cancer, the Kerala health department scrambled its resources for transporting a toddler from here to Hyderabad on Sunday.

In a co-ordinated action, the department arranged for an ambulance and necessary travel permits for the nearly 16-hour 1,100 km inter-state journey that started at 7.15 am from Cherthala in this district with the entire cost to be borne by the state government.

Health Minister K K Shailaja on Saturday said all steps have been taken to facilitate the travel of the toddler and her family members to Hyderabad after local media reports highlighted the plight of the child.

The state Chief Secretary had discussed the matter with his counterparts of other states en route to ensure a smooth journey,the Health Ministry said.

"The travel permit and directions to other states through which the ambulance has to pass were issued from the police headquarters. All district police chiefs were given instructions from the headquarters to arrange for passage of the ambulance," it said in a release.

The journey started at 7.15 am and they are expected to reach Hyderabad at 11 pm.

"The state government will bear the expenses incurred for the journey. The ambulance will remain in Hyderabad and will return with the family," it said.

The first phase of treatment was done at the L V Prasad Hospital in Hyderabad and the family was supposed to travel again within 21 days for the next phase of treatment.

As the family could not undertake the journey in view of the nation-wide lockdown to check coronavirus scare, the state government swung into action to help the child.

The number of confirmed novel coronavirus cases in the country climbed to 3,374 on Sunday while the death toll rose to 77, according to Union Health Ministry data.

New Delhi, Jan 8: Jawaharlal Nehru University Students Union (JNUSU) President Aishe Ghosh has filed a complaint over the violence that took place at the varsity campus on Sunday.

"I am filing this complaint for the incident in which a mob conspired and acted with common intention to assault, intimidate and attempt to murder me, and request you to register an FIR and apprehend culprits at the earliest," the complaint read.

She said that on January 5, in the afternoon, she received information from students in the campus that some students affiliated to ABVP along with other unidentified men and women had gathered with weapons like rods, sledgehammers and lathis near Ganga Bus Stop.

"I along with Nikhil Mathew (MA Labour Studies) who was also present there, were surrounded by a group of persons of that mob most of whom were wearing masks. The mob of 20-30 persons dragged me behind a car standing near the 24*7 and surrounded me and despite my pleading did not let me go and attacked me with rods while I had fallen down. I remember that one of the people was of medium height wearing a brownish-red sweatshirt with UCLA written on it. I saw his face as he was facing me and did not have a mask on and can identify him if I see him," Ghosh wrote in her complaint.

"I was attacked by the above-mentioned persons collectively and was hit on the head multiple times with iron rods. I fell to the ground and my head started bleeding, and some of them kicked me and hit me with the rod on my hand and rest of the body including my head, chest and back."

"I am attaching with this complaint a copy of the MLC which details my injuries. Nikhil Mathew tried to save me but was also hit with an iron hammer and other weapons on his head and arms. The intention of the group of men and their acts was definitely to murder me and other persons associated with me," she said.