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Balancing balance sheet: Cesses, surcharges help window-dress govt accounts

A few other instances that show the rampancy of the practice of short-transfer/mis-appropriation of cess funds.
Going by a statement tabled by the finance ministry in Parliament in December 2019 and CAG report for FY19, the short /non-transfer to designated cess funds from the CFI was to the tune of Rs 3.4 lakh crore between FY15 and FY19.

Gross market borrowing: Govt may opt for another hike, but only by November

The NSSF had financed a record 31.3% of fiscal deficit in FY20 and was budgeted to fund 30.1% (Rs 2.4 lakh crore) of it in FY21 before the pandemic struck.

The government borrowed Rs 7.36 lakh crore from the market until September 18, which was 81% higher than a year before and represented 61% of the revised, full-year market borrowing limit, show the RBI data.

Talks for merger with Clix Group on: Lakshmi Vilas Bank

In a release, signed by independent director Shakti Sinha, the bank said it would continue its focus on capital-light loans like gold loans to optimise profitability without straining capital funds.

The bank claimed its liquidity position, as on September 27, is comfortable, with liquidity coverage ratio (LCR) in excess of 250% against the minimum 100 % required.

Clearing the air: No diversion of GST compensation cess funds, says finance ministry

The auditor further noted that “the amount by which the cess was short-credited was also retained in the Consolidated Fund of India and became available for use for purposes other than what was pro

The CAG also took exception to the finance ministry transferring the cess proceeds to the compensation fund as ‘grant in aid’, rather than as 'other fiscal services', as the compensation is the state’s ‘right” not a ‘grant in aid’.

Remembering Isher Ahluwalia: She always had new ideas, looked at issues in new way, writes Kiran Mazumdar Shaw

Coming from a middle-class upbringing, a Hindi-medium background, she scaled enormous heights because of her intellectual appetite and capability.

Isher Ahluwalia (1945-2020)

In fond memory: SP Balasubrahmanyam — matchless musician, a nek insaan

Balasubrahmanyam, fondly called SPB and Balu, was admitted to the hospital on August 5 after he tested positive for Covid- 19.

International arbitration: Vodafone wins Rs 22,000-crore retrospective case against tax department

The award was unanimous with govt appointed arbitrator also ruling in the company's favour

Taxation expert and senior SC lawyer Tarun Gulati termed the development as positive.

Rs 2,610-crore deal: GMR Infra to divest 51% stake in Kakinada SEZ to Aurobindo Realty

GMR’s consolidated gross debt as on June 30, 2020, stood at Rs 32,100 crore, while net debt was at Rs 26,300 crore.

As part of the proposed transfer of stake of KSEZ, the 100% equity stake of Kakinada Gateway Port (KGPL) held by KSEZ would also be transferred to Aurobindo Realty.

Lockdown-related cancellations: Supreme Court reserves order on airfare refund

“For airlines, directing them refund would adversely impact them and will have a devastating effect. That was not a desirable outcome,” Mehta said.

Airlines through senior counsel Arvind Datar and Mukul Rohtagi contended that they were facing massive losses and that while having “frozen working capital”, they were left to bear the burden of paying refunds.

Covid-19 blues: S&P says India’s debt level to exceed 90% of GDP in FY21

It said India's economy has been hard hit “by the confluence of the Covid-19 pandemic, the country's own cyclical slowdown, and strict domestic containment measures against the coronavirus”.

Earlier this month, S&P predicted a sharper contraction in India’s real GDP to a record 9% in FY21 than the 5% announced earlier.

Will govt now challenge Vodafone award? It does so in most cases

Ditto for the award, in 2018, in favour of Reliance in the ONGC case where the latter had asked for $1.6 billion for the gas that it alleged Reliance had stolen from its field.

Just last week, the Supreme Court turned down the government’s appeal against an arbitration that Vedanta-Videocon won – the two were awarded $476 million – way back in January 2011!

On the job| Retail hires on the rise

The retail and allied sectors employed 36.3 million people in FY20, making them the second highest employment provider after agriculture.

retail sector, employment, jobs in retail sector, agriculture

Bharti Airtel, Vodafone Idea & DoT disagree on initial AGR payment; may enter another legal tussle

The order further states, “Telecom service providers have to make payment in yearly instalments commencing from 1.4.2021 up to 31.3.2031 payable by March 31 of every succeeding financial year”.

As is known, as per the SC order after paying the 10% dues, the operators are required to pay the balance dues over the next 10 years in equal installments.

Tax base growth: Note ban gains gone with the wind

Direct tax buoyancy reached a temporary peak in 2018-19 and has since fallen; the buoyancy fell into an abyss in 2019-20 itself. Much worse in store for the current year.

Needless to say, the scenario would be much worse in the current financial year, as the pandemic has dealt a body blow the economy.

Tax talk: CAG busts myth of reduced tax disputes

At the CIT-Appeals, the first forum of appeal against tax demands, the amount locked up rise from Rs 5.19 lakh crore in 2017-18 to Rs 5.63 lakh crore in 2018-19, the CAG noted.

“Increase in demand difficult to recover in FY 2018-19 was more than the increase in total arrears of demand during the same year by Rs 5,566 crore,” the CAG wrote.

Insolvency suspension for Covid defaults extended by 3 months

FE had, on Wednesday, reported that the government might grant a six-month extension in one go but a final call on it would be taken by finance and corporate affairs minister Nirmala Sitharaman.

The IBC amendment Bill was brought in to replace an ordinance that was promulgated in June to protect thousands of firms from being dragged into insolvency proceedings.

Terrible Thursday: Stocks crash, rupee weakens, bonds steady

The dollar continued to gain as other currencies globally continued to weaken, after the "risk on" sentiment took a hit amidst dwindling hopes of a quick economic recovery.

The Sensex crashed 1114.82 points (2.96%) to close at 36,553.6 while the Nifty50 gave up the 11,000 mark after falling 326.3 points (2.93%) to close at 10,805.55.

Swiss Challenge: Banks seek bids as Matix Fertilisers puts OTS on table

The interested lenders are now soliciting bids for settlement of their debt through the Swiss challenge method, with the existing OTS offer as the anchor offer.

Lenders, who account for approximately 70.74% of the outstanding debt, have agreed to the terms of the OTS offer, which other interested parties can now match or better through the Swiss Challenge process.

Farm Bills row: Tomar rules out legal backing for MSPs

Agri reforms won't disrupt govt procurement, APMCs to co-exist with other markets; signals export bans avoidable

MSPs were administrative measures and these had never been part of any law.

Bon appétit! India eating more at home; small towns leading recovery in food delivery

Pan-India deliveries are now nearing 85% of pre-Covid GMV, higher than the 75% recorded in August.

Even in mid-June analysts at HSBC had observed food –delivery was making a comeback across the globe and estimated volumes in India were back at 50-55% of pre-Covid levels.

KKR invests Rs 5,550 crore in Reliance Retail for 1.28% stake

With Silver Lake earlier investing Rs 7,500 crore for 1.75% the company has raised a total of Rs 13,050 crore during this month

Jio Platforms has attracted investments from 13 global investment firms investing Rs 1,18,318.45 crore for 25.24% stake.

Skewed system: Power subsidies refuse to go away

The National Tariff Policy, 2016 caps cross-subsidy among electricity consumers at 20% of average of cost of supply.

Power subsidies, National Tariff Policy 2016, electricity consumers, industrial electricity consumers, economy

The final countdown: Tata Sons offers to buy stake, Mistry says time to part ways

The decision to part ways has been triggered by concerns on the part of the Tata Group that shares of Tata Sons, pledged by the SP Group, could end up in the wrong hands.

Both groups traded charges with the Ratan Tata camp alleging Mistry had mismanaged the affairs of the group,which Mistry countered showing how the Tata Group had suffered because of several acquisitions.

Smell a RAT: The COVID-19 curve may not be flattening

Low positivity in UP, Bihar and Gujarat which account for a high share of tests, mainly RATs, is driving down India’s positivity

On Monday, for instance, Delhi nearly halved testing levels from 62,669 a week ago to 33,733 while Bihar conducted 1.73 lakh tests, most of them using RAT kits.
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