Prasanta Sahu

Articles By Prasanta Sahu

501 Articles

Govt extends curbs on budgetary expenditure, move to help fund the fiscal stimulus

The departments which will now have to restrict the overall expenditure within 15% of BE Q2FY21 include commerce, industry, telecom, defence (civil), housing & urban affairs, school & higher education, water resources, drinki

Early adjustment: Centre cuts June tax transfers to states by 9%

The customary pattern is the Centre makes adjustments on state tax transfers based on actual receipts only during February-March, the final two months of a financial year.

In FY20, the tax devolution was a little over Rs 1 lakh crore less than in the previous year at Rs 6.5 lakh crore and the amount budgeted for FY21 is Rs 7.84 lakh crore.

Saviours In Action: CPSEs keep capex pace, meet 90% of FY20 target

In FY20, state governments developed cold feet in sustaining the capex tempo, but CPSEs, despite an erosion of their cash surplus and profits in a slowing economy, acquitted themselves.

Undue Protection? State GST ‘shortfall’ for March-May at a whopping Rs 80,000 crore

What has inflated the compensation requirement is a sharp fall in revenue in April-May due to the Covid lockdown: the gross GST collections shortfall during the two month was over 50%.

Last week, the GST Council weighed the option of the council resorting to market borrowings under sovereign guarantee and decided to hold a one-agenda meeting in this regard in July.

Odisha to offer liquidity, relaxations in labour laws to industry to tide over Covid

To handhold the industry, the state government will shortly announce sops in the forms of liquidity support and certain relaxations in labour laws to help it navigate through the Covid-19 pandemic

Covid-19 lockdown effect: Own tax receipts of states improve, yet 25-50% of normal range

Resumption of various economic activities after the easing of the lockdown restrictions and hikes in state excise duties on liquor aided the slow recovery.

Since April, at least 20 states, including Uttar Pradesh, Tamil Nadu, Karnataka, Rajasthan, West Bengal, Odisha and Kerala have increased the excise duties on liquor by 10-75%.

ETF route: Bharat Bond to help CPSEs raise Rs 34,000 crore in FY21

Debt mobilisation via this route might rise to Rs 50,000 crore or higher in FY22

Covid fallout: Spending for these centrally-sponsored flagship schemes to be cut

Expenditure on centrally sponsored schemes (CSS), which are shared in 6:4 ratio between the Centre and states, may suffer in FY21 as cash-starved states may not be able to contribute their share to be able to fully implement

5paisa.com CEO: Profitability is in our sight, but it’s not our focus

Currently, 80% of the customers the company acquires are coming to the capital market for the first time and they have never traded or invested in their life.

March was the highest in terms of acquisition and the company's growth in customer acquisition from February to March was almost 80% in a single month.

Covid effect: Spending curbs to continue in Q2

The Centre gave twice the amount it collected as taxes to states in April-May, expenditure secy

The relaxation of withdrawal norms for the so-called consolidated sinking funds (CSF) for the period till FY21-end will release an extra Rs 13,300 crore

Hike in borrowing limit: Centre issues fresh advisory to states, clarifies on riders

Replacing power subsidy with DBT, cost-linked user charges, property tax floor among key parameters; Central ministries to decide if norms are met

The package caters to cottage industry, MSMEs, labourers, middle class and industry, among others.

Borrowing spike not to deter huge public capex slippage: Analysts

“The time-frame is limited, so one can’t expect everything (all borrowings) in a year in these unprecedented times when the focus is on pure survival,” SBI’s Ghosh said.

FE has recently reported state governments have applied brakes on capital expenditure in the second half of FY20.

Why states are not liking Centre’s extra borrowing limit conditions

At least three Opposition-ruled state governments - Tamil Nadu, West Bengal and Kerala - have come up against the Centre’s decision to link 75% of the extra borrowing space accorded to them, to how they work on and achieve

State govt borrowing limit hiked to 5% of GSDP; mostly linked to reform goals

The Centre on Sunday acceded to a strident demand from states that their market borrowing limit be enhanced to meet the expenditure contingencies of the Covid-19 pandemic amid a glaring revenue deficit.

New PSE policy to cut number of such firms, force all to co-exist with private firms

Centre will soon come out with a new policy to privatise all central public enterprises (CPSEs) in non-strategic space and some in strategic sector in order to open all the industries to private players.

Currently, there is no clear definition of strategic sector.

States’ tax revenue slipped even before COVID-19 outbreak

Even though data for February is not yet available, in the first 10 months of FY20, Maharshtra reported just 3.8% growth in tax revenues while Tamil Nadu's tax receipts in the period grew by an even lower 1.5%.

As for the states' mentioned move, only 58% of the FY20 capex target of Rs 3.6 lakh crore was achieved in the first eleven months.

Hike MSP, levy cess on sugar: NITI task force

The report of the panel on sugarcane and sugar industry, headed by NITI Aayog member Ramesh Chand, was submitted on April 21.

To add to the woes, the sale of ethanol has been poor due to non-lifting by the oil marketing companies and power dues of Rs 1,500 crores have pending with Uttar Pradesh Power Corporation (UPPCL) for more than a year.

Coronavirus lockdown 3.0: States up taxes on auto fuels, liquor for income

At least 13 states hike VAT on petrol/diesel since mid-March, many make liquor costlier with new imposts.

Delhi came out with a hefty corona tax of 70% of MRP on liquor

Lockdown effect: States’ tax receipts shrink nearly 80% in April, May could be worse

State governments seem to have collected the lowest-ever inflation-adjusted monthly tax revenue in April.

Supposing the buoyancy in FY21 to be 0.5, the same level as in FY20, and nominal GDP growth at 8%, the shortfall from the budgeted gross tax receipts in FY21would be a massive Rs 2.2 lakh crore.

Big boost: No cut in states’ tax share till January

Centre to stick to convention, transfer 70% of budgeted FY21 tax share of states in 10 months

Indian economy, state taxes, covid-19 pandemic

COVID Combat: Now, states seek forest funds

A finance ministry official said some other state governments have also shown interest in borrowing from their respective state CAMPA funds, but refused to name them.

The CAMPA funds have been transferred to the states over the past few years by the Central CAMPA on the direction of the Supreme Court.

‘Our report tries to balance interest of workers and industry’

As labour is in the concurrent list, the Union government should come out openly relating to this number in the law itself.

The central government was of the opinion that FTE is the norm of the day and should be open ended. (Represnetative image)

Coronavirus effect: FY21 disinvestment plan to be reviewed

Among the possibilities, the government could garner some revenues from sale of the BPCL’s 61% stake sale in Numaligarh Refinery, which will be sold to state-run firms.

Further, a substantial amount was planned to be raised by selling up to 10% stake in state-run insurer LIC through its listing.

Low-cost funds: Odisha, Maharashtra eye loans from rich PSUs instead of market

Like Maharashtra and Telangana, Odisha has also been forced to cut expenditure and defer some others, including salary payments to manage the finances at the current juncture.

This was the highest level of deficit for the Centre since FY13, when it had stood at 4.8%.

COVID-19 crisis: Stimulus of 5% of GDP needed, says NITI Aayog

Lack of such a package may lead to a far greater damage to livelihoods, economy and financial sector, CEO Kant warns.

Expenditure rejig: Q1 spending curbs to help govt save Rs 1.4 lakh crore

Going by the trend in recent years, the Centre was estimating to collect about Rs 2.45 lakh crore in net tax receipts in Q1FY21, but the actual collections will be very low under the current environment, officials admit.

Less-than-budgeted level of spending may continue for many departments in Q2 as well.

States to borrow more, at higher cost

Due to cash shortages, many states including Maharashtra, Telangana and Odisha are being forced to cut expenditure and defer some others, including salary payments.

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