BUSINESS
GST Council cuts rates on key Covid items till September 30
A top official told Moneycontrol that after the Group of Ministers submitted its recommendations, the central government also took the views of vaccine manufacturers and companies which make key COVID-related items.
TRENDS
GST Council: Group of Ministers suggests rate cuts on some COVID essentials
The Group of Ministers (GoM), formed after the last GST Council meeting on May 28 to deliberate on possible reductions in COVID-related items, has however not suggested a reduction in COVID-19 vaccines, the rate of which stands at 5 percent. The GoM submitted its report on June 8.
ECONOMY
INTERVIEW | See FY22 GDP growth at 10.5%, economic pick-up to continue: Morgan Stanley's Upasana Chachra
In an interview with Moneycontrol, Morgan Stanley's Upasana Chachra said that the Centre was on the right track by focusing on infrastructure and public investment, and that an income-support programme might not be feasible from a fiscal deficit perspective.
ECONOMY
Exclusive | Additional procurement may hike centre's vaccination budget to Rs 50,000 crore
In simple terms, the extra cost arising from the Prime Minister’s 7 June announcements that the Centre will pay for vaccines to be distributed to the states and supply free food grain to the poor until Diwali is Rs 95,000 crore. How much impact the measures will have on the Centre’s finances will, however, depend on many other factors.
ECONOMY
As PM Modi centralizes vaccine procurement, FinMin to seek Parliamentary approval for more funds
The budgeted vaccination expenditure and any amount further sought through Supplementary Demand for Grants in the upcoming sessions of Parliament should be enough to fund the centre’s expanded vaccination programme, a senior government official said.
BUSINESS
GST collection for May at Rs 1.02 lakh crore, 27.6% lower month-on-month
The May GST collections saw a 27.6 per cent drop from record sum of Rs 1.41 lakh crore in April, which was the highest monthly collection since the introduction of the nationwide tax.
ECONOMY
INTERVIEW | Economic revival needs higher fiscal stimulus, not cash transfer: NITI Aayog VC Rajiv Kumar
Fiscal stimulus is needed for the economy to bounce back, but cash transfers may not be useful because people may keep the money in the bank instead of increasing consumption – a trend visible in the swelling balances in the Jan Dhan accounts of the poor, NITI Aayog Vice-chairman Rajiv Kumar told Moneycontrol.
TRENDS
EXCLUSIVE | Surprised at RBI cutting estimates, still see double-digit growth: Niti Aayog's Rajiv Kumar
In an interview with Moneycontrol, Kumar said that a fiscal stimulus is needed to 'revive animal spirits' of the economy, but added that direct income support would not be the way to do it. “You might see that in the third quarter, people who have reduced their estimates today will be revising them upwards again,” he said.
ECONOMY
SDG Goals – India improves score but falls in economic development and infrastructure
In 2020-21, Kerala and Bihar retained their top and bottom ranks respectively, in the Niti Aayog's SDG India Index 2020-21, which measures the progress of states and Union Territories on social, economic, and environmental parameters
ECONOMY
Even limited available data shows May was bad for the economy
Chief Economic Advisor Krishnamurthy Subramanian admitted that regional lockdowns and a devastating second wave of pandemic had hit the economy in May 2021, compared to April and March
INDIA
EXPLAINED | The relationship between Monsoon and Inflation
The south-west monsoon hits Kerala on June 3, the first normal rainfall in three years after two above-average monsoon rains in the last two years. It is welcome news for an economy dented by a second 'wave' of COVID-19 cases
ECONOMY
India’s per Capita GDP to reach 2019 levels in 6 months: OECD
South Africa and Argentina will take the longest to reach their December 2019 per-capita GDP levels
ECONOMY
GDP data: Looking ahead, pace of vaccination key to minimising COVID impact on economy
Chief Economic Advisor Subramanian added that the overall impact of the second wave of Covid-19 is unlikely to be significant, although there is uncertainty over possible double-digit growth in the current financial year.
INDIA
India FY21 GDP contracts 7.3%, much improved than govt's own forecasts
The 2020-21 GDP contraction is much better than the forecasts of the Reserve Bank of India and the Ministry of Statistics and Programme Implementation, both of which had expected GDP for the full year to contract by 8 percent.
BUSINESS
India GDP data: Key things to watch out for in FY21 GDP estimates to be released today
The Centre will release India GDP data for Q4FY21 and full-year FY21 later today. Find out what to look for
BUSINESS
Centre expands scope of ECLGS to Civil aviation, removes loan outstanding ceiling for a few sectors
The government also removed the loan outstanding ceiling of Rs 500 crore on sectors like hospitality, travel and tourism, leisure and sporting, and civil aviation, which means that even bigger entities with even higher outstanding loans in these sectors can avail of the ECLGS scheme.
ECONOMY
EXCLUSIVE | New Group of Ministers will discuss zero-rating of COVID items
The proposal of zero-rating covid items was first proposed by by Bharatiya Janata Party’s Rajya Sabha member and former Bihar Deputy Chief Minister Sushil Kumar Modi earlier this week and was backed by experts.
BUSINESS
GST Council Meet | Paid imported donations exempt from IGST, more talks on other items, compensation soon
On the row over GST compensation to the states, Finance Minister Nirmala Sitharaman said that a special session only to discuss the issue of compensation cess beyond July 2022 will be called soon.
ECONOMY
GST Council Meeting: Major tax breaks with 'zero rating' of COVID essentials feasible, experts say
43rd GST Council Meeting: GST Council’s meeting on May 28 can consider total tax exemption for medical supplies needed for combating COVID-19, and may also discuss tax tweaks to help sectors that have been hit hard by the second wave as well as compensation for states, experts say.
INDIA
COVID-19: As vaccine shortage bites, Centre unlikely to take over procurement completely
With their procurement tenders getting tepid response from global pharma majors, more states now want the Centre to once again take over as the sole procurer of vaccines. The Centre is unlikely to do so even as a supply-side shortage is expected, at least for the next three months
BUSINESS
Cairn Energy tax dispute: Open to an amicable solution, says Centre
The government said that the CEO and representatives of Cairn Energy have approached it for discussions to resolve the matter.
ECONOMY
RBI surplus provides fiscal boost to Centre in a tough year
Provided all other budget assumptions regarding revenue and expenditure remain the same, the additional surplus from RBI will reduce the fiscal deficit as a percentage of nominal gross domestic product to 6.56% for 2021-22, compared to a budgeted target of 6.8%, Moneycontrol calculations show.
ECONOMY
Centre hikes fertilizer subsidy for FY22 by Rs 14,775 crore
The government said that a decision was taken to increase the subsidy for diammonium phosphate (DAP) fertilizer from Rs 500 to Rs 1200 per bag, an increase of 140 per cent.
ECONOMY
WPI to remain high in coming months but no fear of stagflation, say analysts
“WPI will remain elevated in the months to come for two reasons: rising global commodity prices and low base effect. This may sound good for corporates who could be regaining some purchasing power,” said Madan Sabnavis, Chief Economist with Care Ratings.
