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.
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%.
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.
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.
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
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
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.
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.
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%.
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.
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.
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.
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
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.
‘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.
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.
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.
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.
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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