The Union Budget is an annual financial statement of the government with estimates of receipts and expenditure for a particular year. Finance Minister Nirmala Sitharaman will present the Union Budget 2021-22 on February 1. More
The October GST print takes total gross GST collection for the year to Rs 8.12 lakh crore. All but one month in the current fiscal year (June, Rs 92,849 crore) have been comfortably above the Rs 1 lakh crore mark.
While the finance ministry is happy with strong tax collections on the back of a sustained economic recovery, the worry is that Covid-19 relief measures of the past six and a half months could take the fiscal deficit to 7.7 percent of GDP compared with a target of 6.8 percent.
For the current year, Finance Minister Nirmala Sitharaman has budgeted a fiscal deficit target of Rs 15.07 lakh crore, or 6.8 percent of nominal gross domestic product.
During the first half, the government borrowed Rs 7.02 lakh crore though securities or G-Secs, the Finance Ministry said in a statement on September 27.
Officials told Moneycontrol that although expenditure may be higher than budgeted this year, the Centre’s fiscal position is ‘more than comfortable’ and there is enough firepower for further economic support to some sectors
This move is aimed at ensuring that the Centre’s privatisation, asset monetisation and capital expenditure plans for state-owned companies are aligned and coordinated.
The fiscal deficit for the same period last year had reached 58.6 percent of the full year target. That was in the middle of the nationwide lockdown, when the centre's revenues had all but dried up due to lack of economic activity, and expenditure commitments had increased.
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.
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.
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.
The loans include Rs 5,000 crore to incentivise states to monetise their assets and divest their PSUs.
Speaking on the latest episode of “Moneycontrol Macro Minutes” podcast, Subramanian said that the government had been deliberately conservative in its forecasts for the current financial year. While not ruling out an economic intervention like last year should the need arise, Subramanian said any further measures announced would likely be on the fiscal support and capital expenditure side.
Out of the total provisional indirect tax collections, custom duty collections came in at Rs 1.32 lakh crore, excise and service tax collections came at Rs 3.91 lakh crore, while the net GST collection for the centre stood at Rs 5.48 lakh crore.
Hint: What a scheme pays out to subscribers as interest depends much on what the scheme earns.
Finance Minister Nirmala Sitharaman had, in her 2021-22 Union Budget, revised the fiscal deficit target for the current fiscal year to Rs 18.49 lakh crore, or 9.5 per cent of real gross domestic product, compared to budget estimates of Rs 7.96 lakh crore or 3.5 percent of GDP.
Replying to the Finance Bill debate, Nirmala Sitharaman said that the central government is ready to start discussions on bringing petrol and diesel under Goods and Service Tax if the states are on-board for talks as well.
Researchers at the RBI seem to have a less enthusiastic view of the wonders of a negative r-g than those who penned the Economic Survey
The strike by the LIC employees comes two days after the nationwide bank strike which impacted banking services throughout the country.
Krishnamurthy Subramanian’s views echo that of RBI Governor Shaktikanta Das. In July 2020, Das had said a big push for mega infrastructure projects could reignite the economy, but banks saddled with infra-related NPAs, may not be best placed to finance these projects.
The Maha Vikas Aghadi government announced a scheme worth Rs 2,000 crore for strengthening Agricultural Produce Market Committees in state.
From April 1, if the employee's contribution to PF - statutory or voluntary - exceeds Rs 2.5 lakh a year, then the interest earned on this excess contribution will become taxable at the prevailing income tax rates.
With the threshold of Rs 2.5 lakh per year, the new tax rule is expected to hurt only large contributions to the provident fund.
The finance ministry’s Department of Investment and Public Asset Management (DIPAM), the nodal body for divestment, is confident that the privatisation of BPCL and Air India can be completed by late-first quarter or early second quarter of FY22.
Setting the tone of the interactive webinar, India's Ambassador to Israel, Sanjeev Singla, said, "We have had a landmark budget that marks a directional change and leverages far-reaching reforms that the government is effecting to make our economy more resilient and competitive."
Select companies from the commodity space could also gain from the spending on infrastructure in some of the developed countries looking to revive growth, as well as in India, says Bhat.