'Votes going in BJP's account due to EVM malfunction'

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.

Mumbai, Jan 19: After Kerala and Punjab, the Maha Vikas Agadi (MVA) government is also mulling over a resolution against the Citizenship (Amendment) Act, 2019 in Maharashtra Assembly.

Speaking to news agency, Congress spokesperson Raju Waghmare said: "Our senior party leader Balasaheb Thorat has also shared his stand on the CAA. Even Chief Minister Uddhav Thackeray has said that we are against the CAA. As far as the resolution against CAA is concerned, our senior leaders of MVA will sit together and decide."

If this happens, then Maharashtra will be the third state to pass a resolution against CAA, which grants citizenship to non-Muslim refugees from Pakistan, Afghanistan, and Bangladesh, who came to India on or before December 31, 2014.

Emphasising that CAA is 'unconstitutional,' senior lawyer and Congress leader Kapil Sibal has said that every state Assembly has the constitutional right to pass a resolution and seek CAA's withdrawal.

He added that it would be problematic to oppose the CAA if the law is declared to be 'constitutional' by the Supreme Court.

"I believe the CAA is unconstitutional. Every State Assembly has the constitutional right to pass a resolution and seek its withdrawal. When and if the law is declared to be constitutional by the Supreme Court then it will be problematic to oppose it. The fight must go on!" Sibal tweeted.

Earlier speaking at the Kerala Literature Festival on Saturday, the Congress leader had said that constitutionally no state can say that it will not implement the amended Citizenship Act, as doing so will be "unconstitutional".

Kerala government has also approached the Supreme Court against the CAA following the passage of a resolution against it in the state Assembly.

Punjab chief minister Amarinder Singh has also announced that the Congress state government is going to join Kerala in the Supreme Court in the case.

New Delhi, Jun 20: A rare celestial event, annular solar eclipse, which is popularly known as the "ring of fire" eclipse, will be visible this Sunday in India.

It will be the first solar eclipse of this year takes place on the summer solstice, which is the longest day in the Northern Hemisphere.

While people living along the path annular eclipse passing through Anupgarh, Suratgarh, Sirsa, Jakhal, Kurukshetra, Yamunanagar, Dehradun, Tapowan and Joshimath will be able to see the annular phase, people in rest of India can witness a partial eclipse, said the Ministry of Science and Technology.

When Moon comes between the Sun and Earth, the shadow falls on the surface of the Earth. The Sun is entirely covered by the Moon for a brief period. Those places that are engulfed by the dark, dense umbral shadow of the Moon experience the total solar eclipse. In the regions that plunge into the soft diffused penumbral shadow of the Moon experience the partial eclipse.

"Annular solar eclipse is a particular case of the total solar eclipse. Like the total solar eclipse, the Moon is aligned with the Sun. However, on that day, the apparent size of the Moon happens to be a wee smaller than the Sun. Hence the Moon covers the central part of the Sun, and the rim of the Sun appear like a 'ring of fire' in the sky for a very brief moment" explains Samir Dhurde of The Inter-University Centre for Astronomy and Astrophysics, Pune.

During the solar eclipse, the apparent size of the Moon is smaller than that of the Sun by 1 per cent, the expert said.

Allying rumours that the eclipse will mark the end of coronavirus, Aniket Sule, Chairperson, Public Outreach and Education Committee of the Astronomical Society of India, said: "Solar eclipse is caused when the Moon comes in front of the Sun for a short time. As seen from Earth eclipses occur somewhere in the Earth 2 to 5 times a year. Eclipses do not impact microorganisms on Earth. Likewise there no danger in eating of stepping out during an eclipse. No mysterious rays come out of the Sun during an eclipse."