70% of expenditure related to 7th Pay Commission provided for, with the remainder likely to be accounted for in FY18, according to an estimate by Kotak Institutional Equities. The government has budgeted a total payment of Rs 3.2 lakh crore for wages and pensions (excluding railways), an increase of 18% over the FY16 revised estimates of Rs 2.7 lakh crore.
Rs 206 cr is the amount the government will get after hiking the securities transaction tax (STT) on options not exercised to 0.05% from 0.017%. Going by the annualised premium turnover of Rs 4.11 lakh crore, this is just Rs 135.9 crore more than what was being collected earlier.
Rs 40,000 cr is the amount Economic Affairs Secretary Shaktikanta Das expects to get from various dispute and litigation that the telecom industry is embroiled in. This number is critical since, based on the annual license fees of Rs 20,000 cr and installments of Rs 10,000-12,000 crore due from previous auction rounds, the budget target of Rs 99,000 crore would have required the next round of telecom auctions to get bids of Rs 240,000 crore as opposed to the Rs 109,000 crore fetched in the last auction. The problem, of course, is that the amounts Das is talking of have been stayed by courts.
Rs 160 cr is the expected tax revenue from dividend distribution tax on individuals, HUFs, and firms earning more than Rs 10 lakh annually, based on FY15 data. To arrive at this estimate, firms that paid out dividends of more than Rs 500 crore in FY15 were considered and it was assumed all 143 individual investors with more than a 1% stake in these companies and received over Rs 10 lakh as dividend have a resident status and so can be taxed.
Rs 25,000 cr allocated to recapitalise state-owned banks, seen as inadequate. Finance MoS Jayant Sinha clarified the RBI’s new rules for capital calculation, issued on Tuesday, would give banks another Rs 25,000 crore. He said of the Rs 1.8 lakh crore needed to capitalise banks, Rs 70,000 crore would be provided by the government, though whether the remaining Rs 1.1 lakh crore can be raised from the market was a question mark.
10-12 p/unit is the rise in power tariff due to the coal cess, while halving of the accelerated depreciation and withdrawing IT exemption for new plants could bump up renewable tariffs by 10 paise per unit.
6% is the ‘equalisation levy’ on specified services used by Indian residents from non-resident providers, and may hurt local start-ups. Digital platforms like Facebook, Google or Yahoo, not resident in India, do not pay taxes if a resident company advertises on them. Domestic firms advertising on such channels will now have to withhold tax at 6% of the gross amount and paid, on a monthly basis, provided the sum being paid to the non-resident exceeds or is going to exceed Rs 1 lakh in the relevant financial year.