Disinvestment: BPCL, Air India deals to conclude by July-August
Even though the department of investment and public asset management (Dipam) had set a target to complete the transactions by June-end, the government may have to give shortlisted bidders a little bit of extra time if needed
New performance related pay criteria for CPSEs: Revised pay matrix for employees seen to aid privatisation
The revised MoU guidelines are aimed at building skin in the game for the management of the CPSEs while aiding the Centre to fetch more non-debt receipts from disinvestment, a source said.
Apr-Dec FY21: States’ budgetary capital expenditure down nearly a quarter
In contrast, Centre sees a 30% rise in capex in FY21, and budgets a 26% jump for FY22
Covid-19 impact: CPSEs weather blow, regain capex pace
67% of capex target achieved till January end; depleting internal investible resources could reflect in FY22
FY22: Budget spend seen above recent trend
Union Budget 2021 India: Sharp increases in outlays are seen for FY22, in many areas including grants in aid to states, 'water supply and sanitation”, 'medical and public heath', and transfers to the north-eastern states (s
‘Revised spending target within reach’
Nomura had termed the government plans to spend 1.6% of GDP in Q4 “an ambitious target”, as it requires an 18% y-o-y growth in Q4, compared with 8% in April-December.
Disinvestment: Strategic-sector sales to boost Centre’s non-debt receipts
He said the disinvestment receipts target of Rs 1.75 lakh crore for the next fiscal would surely be met, if not exceeded. The process has already commenced for big-ticket sales, so achieving the target won't be difficult at a
Finance Commission: Tax devolution unchanged at 41% for FY22-FY26
Union Budget 2021 India: In the Commission’s assessment, gross tax revenues for the FY22-FY26 period are expected to be Rs135.2 lakh crore, of which divisible pool (after deducting cess and surcharges & cost of collection)
Union Budget 2021: Privatisation high on agenda, FY22 target conservative
Union Budget 2021: Privatisation of two public sector banks and one general insurance company to be taken up in FY22.
CPSEs may raise capex target by 50% in FY22
“While a smaller part of this enhanced investments next year will be supported by budget, a large part will likely be funded via enhanced borrowings and asset monetisation proceeds of the CPSEs, such as railways, NHAI, GAIL
Disinvestment: FY22 target to be around Rs 2 lakh crore
FY21 receipts to be barely a fifth of target; BPCL sale, LIC IPO unlikely to materialise this fiscal
DBT scheme for fertiliser subsidy may be rolled out in FY22
The department of fertilisers and the ministry of agriculture are working out the details of the DBT scheme, which may be announced in the Budget for FY22, sources told FE.
Tax transfer to states down a fifth
The Centre hiked special additional excise/cess levied on petrol and diesel sharply in October 2019, March 2020 and then in May. These taxes are not part of divisible pool, only the basic excise is.
Big jump in CPSE capex, Q3 matches H1
State governments have slowed down investments significantly in the current fiscal year and the Centre's Budget capex also looks constrained, due to the pandemic-induced revenue shortfalls.
CAG to improve audit of local bodies
Currently, these entities are audited by state government appointed organisations/local fund examiners.
Sharp Drop: States’ capex seen down a quarter
To be sure, many states have in recent months seen a rise in own tax revenues (OTR) from the lows witnessed in the lock-down period.
EBRs, PPP power investments into infra despite Budget squeeze
While infrastructure investment was predominantly made by the public sector (the Centre and state governments had a share of over 70%) between FY08 and FY17, the share of private sector was ~30%.
Privatisation plan: Concor land lease to be longer, rentals to halve
The government is planning to sell 30.8% out of its 54.8% holding in Concor, a railway PSU, along with management control to a strategic buyer.
Public capex seen at Rs 7.5 lakh crore in H2, 80 percent higher than H1
Overall spending, including revenue expenditure, by the Centre and states will, however, rise only 15% or thereabouts on year to over Rs 33 lakh crore in H2.
Amid acute budget constraints, states slash capex to focus on Covid spend
Borrowings by the twelve states whose finances were reviewed by FE rose 50% on-year to Rs 2.28 lakh crore in April-October of this fiscal compared with 2.6% increase in the year ago period.
Centre cuts tax transfers to states by a fifth in October
Despite a sharp revenue slump, the Centre transferred budgeted amounts to state governments as their tax share from divisible pool in April-May, but has since found this practice unsustainable – October transfers were a fif
Ease of doing biz: More minor offences to be decriminalised
Income tax, customs, excise, pharma, labour acts are also being reviewed. Certain ministries feel that some aspects of criminalisation is necessary for efficient enforcement.
Tight budget: Outlays for most ministries slashed
In Q4 last year, the government lowered spending ceiling from 33% to 25%, keeping in mind the weak cash position of the government.
Steep capex targets being set for 3 dozen public sector companies
The idea is to soften the blow to the economy from the sharp drop in private investments and slashing of capital expenditures by revenue-starved states.
State capex down nearly a quarter in the first half of the current fiscal
If public-sector fixed capital formation has held up in recent years even amid a worrisome, prolonged decline in private investments, the contribution of state governments have been vital; state capex is also seen to have a h
H1 spend: Farm and rural ministries record huge jump
Overall budget expenditure in April-Sept was flat on year, spending seen picking up in H2
Changing matrix: CPSE staff’s pay to depend on M-cap too, greater role for asset sales
CPSE heavyweight ONGC’s stock (the CPSE in terms of highest M-cap), has lost 57% value between March 29, 2019, and August 24, 2020. Similarly, NTPC has lost 37% and PowerGrid 18% during the period.
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