The prospect for FY19 is not bright either as at least six states are implementing farm loan waivers and most are to factor in Pay Commission-induced salary increases for their staff.
While the Centre will miss its fiscal deficit target even after cutting capital expenditure in FY18, the states are also compressing capex to finance rising revenue spending and adhere to their deficit targets.
Budget 2018: The Budget allocation to the corporation in 2017-18 was Rs 1.02 lakh crore (RE) and in the next year, it is budgeted to receive Rs 1.38 lakh crore. However, it is a fact that CPSE capex has been, especially over the last couple of years, a pillar of strength for the government in its effort to boost the economy, in the absence of strong private investments.
Budget 2018: An investment policy for PSUs adopted by the government two years ago has yielded rich dividends — while the economic conditions required higher public spending, PSUs have invested whopping amounts over the last couple of years and are poised to do so in the next year as well.
The Centre’s disinvestment proceeds this fiscal are poised to comfortably exceed Rs 1 lakh crore, more than double the level achieved last year.
Firms with capex budget of `500 cr+ achieve 60% of annual target in nine months; Q4 seen stronger
The absence of an auction for spectrum and lower collection of licence fee and spectrum usage charge (SUC) from operators in the wake of lower revenue due to competitive pressure from Reliance Jio will see the government’s revenue for FY18 from telecom services fall 33% from the budgeted level to Rs 29,524 crore.
The Core Group of Secretaries on Disinvestment (CGD) headed by the Cabinet secretary has approved the broad contours of Oil and Natural Gas Corporation’s proposed acquisition of the government’s 51.11% stake in Hindustan Petroleum Corporation, paving the way for the transaction later this month, sources said.
What does industry want in terms of economic policies, as well as political governance, in the wake of the recent law and order problems?
For any business, the safety of people is very important.
With several more schemes including those of textile and farm sectors coming under its ambit, direct benefit transfers (DBT) by the government touched Rs 85,809 crore in the first nine months of the current financial year, up 15% from the transfers in the whole of FY17.
Eyeing a rural outreach ahead of the general elections in 2019, the Narendra Modi government has drawn up tailor-made action plans for 115 identified “most-backward” districts in the country to improve their socio-economic profiles by making available basic services like healthcare, sanitation and education as well as basic physical infrastructure like roads and drinking water supply in a time-bound manner.
Having improved its balance sheet thanks to the new bank notes printed following demonetisation, the state-run Security Printing and Minting Corporation of India (SPMCIL) will likely buy back Rs 450 crore of its own shares from the government this month.
The government plans to tweak the land use policy to ensure affordable housing is accorded top priority.
The sources added that along with AI’s 12,000-strong workforce, its headquarters building at Delhi’s Gurudwara Rakabganj Road and 115 aircraft, the prospective buyer of AI-AIE will also have to take over the airline’s Rs 20,000-crore aircraft-related loans and AI’s Rs 8,000-crore dues to oil retailers.
With the Staff Selection Commission (SSC) anticipating a three-fold jump in its expenses to Rs 900 crore, job seekers sitting for the examinations may have to fork out much higher fee.
The Centre’s Budget allocations for scheduled castes and tribes’ (SC&ST) welfare could leapfrog 40% if a “new arrangement” proposed by a high-level committee is put in place.
When the erstwhile Planning Commission, which exercised great powers in Plan funds allocation to states, was abolished and replaced by NITI Aayog in January 2015, most believed the era of planning was to be supplanted with renewed focus on execution of infrastructure and social-sector projects, with the Aayog playing the role of a think-tank and facilitator.
Funds already raised, ONGC-HPCL deal proceeds add up to Rs 84,000 cr; a clutch of more stake dilutions, IPOs and strategic sales likely
This will partly make up for the shortfall in the Centre’s receipts from the Reserve Bank of India, which transferred just Rs 30,659 crore as surplus this year, half the amount released last year.
While a clear-cut policy for closure of perennially loss-making public sector units and redeployment of their assets/privatisation is yet to be spelt out by the government, these units continue to be an inexorable drain on the exchequer.
The government is considering parking a large chunk of the central public sector enterprises’ (CPSEs) “reserves and surpluses” with a special purpose vehicle (SPV), with the twin objectives of imparting more efficiency to the process of investing these funds and enabling the firms to fetch higher returns on their surpluses.
In a move that would enable tracking and monitoring of the end-use of its funds, the Centre has made the use of Public Finance Management System (PFMS) mandatory for transfer of funds under the central-sector schemes, which account for 31% of the Budget.
Despite a likely shortfall of revenues under some tax and non-tax heads, the Centre is on track to achieve the fiscal deficit target of 3.2% of gross domestic product (GDP) for 2017-18, without cutting the budgeted spending of Rs 21.46 lakh crore, finance secretary Ashok Lavasa told FE in an interview.
Cost overruns in central-sector infrastructure projects had worsened in the policy-paralysis phase of the UPA-II government after several years of sustained improvement.
Capex, autonomy, procurement policy, role of independent directors likely to be on agenda.
Three book-running lead managers have already been appointed for the IRFC IPO, namely IDFC, HSBC, ICICI Securities and SBI Caps. IDBI Capital Markets, SBI Caps and Axis Capital have been appointed for the Ircon IPO.
Sale of HPCL stake to ONGC a windfall, Bharat-22 ETF and GIC IPO to help too; proceeds could be higher if other plans pan out.