Connect with us
Wednesday,04-June-2025
Breaking News

Business

Budget to focus on fiscal consolidation while pushing private capex

Published

on

 Union Budget 2022 will focus on gradual fiscal consolidation while pushing public capex, creating a conducive environment for private capex, and raising resources via strategic divestments, Morgan Stanley said in a report.

The budget is likely to focus on gradual fiscal consolidation, continuing to favour investment-driven growth with a push for both public and private capex, and raising additional resources through strategic divestments and asset monetization.

“Apart from this, we would be looking for clarity for Indian bonds to be included into global bond indices. Indeed, the overall focus of the government should be to utilize all revenue levers effectively (tax compliance to improve tax to GDP, strategic asset sales) to sustainably improve the health of the public sector balance sheet”, Morgan Stanley said.

The impact of the budget on the market has been on a secular decline. Nevertheless, market participants still need to negotiate volatility. Factors that will likely have maximum impact include a credible fiscal deficit target, the government’s spending plans vs fiscal consolidation, changes to long-term capital gains tax, lower taxes for the services sector, resolution of tax issues for FAR bonds, and the timing and quantum of asset sales.

The disruptions from the pandemic have weighed heavily on India’s fiscal metrics, with the central government’s fiscal deficit rising to an all-time high of 9.2 per cent of GDP in FY21. However, the story has changed in FY2022 with a positive surprise from tax revenue, which has seen improved buoyancy. As such, gross tax revenue is expected to track at 10.9 per cent of GDP in F2022 vs the budget estimate of 9.9 per cent of the GDP. As such, we expect the fiscal deficit to be at 6.8 per cent of GDP, assuming the LIC IPO is deferred to F2023. If the IPO happens in F2022, the fiscal deficit could be lower at 6.4 per cent of GDP, Morgan Stanley said.

“We expect the fiscal deficit to be 6 per cent of GDP in F2023, driven by some reduction in pandemic-related spending and continued tax buoyancy. A gradual fiscal consolidation path will also give the government flexibility to provide any additional support to the economy should Covid-related disruptions continue into F2023”, it added.

Business

India red-flags $800 million ADB aid package to Pakistan

Published

on

New Delhi, June 4: India has expressed deep concerns over the potential misuse of the $800 million ADB aid package to Pakistan as the country is increasing its defence expenditure, despite the poor fiscal position, with the army exercising de facto control over the government in Islamabad.

The army top brass now leads the Special Investment Facilitation Council, which gives it more control over the economic policy. India has warned that this entrenched military role poses serious risks of policy reversal and poor reform implementation, according to reliable sources.

Pakistan’s tax-GDP ratio has been declining, with the country going through an economic crisis. The foreign exchange reserves have hit rock bottom, and inflation has soared to double-digit figures. However, despite the dire economic situation, the military-driven government has gone for increasing expenditure on defence.

India has also pointed out that Pakistan has a very poor track record in implementing the economic reforms that are mandatory with these aid packages from multilateral institutions.

India’s concern is that these funds can be diverted for defence expenditure. The fighter jets purchased from China and the large number of drones used by Pakistan in the wake of Operation Sindoor reflect the increased spending on military hardware, an official said.

It pointed out that Pakistan recently approached the International Monetary Fund (IMF) for the 24th bailout, indicating policy ineffectiveness. This further shows that the previous ADB and IMF-supported programmes have failed to create sustainable macroeconomic stability.

India has also highlighted that Pakistan’s policy of promoting cross-border terrorism has led to a worsening of the security situation in the region.

It has further pointed out that Islamabad’s track record on implementation of the FATF action points related to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets is also highly unsatisfactory.

Continue Reading

National

Monsoon session of Parliament from July 21 to August 12

Published

on

New Delhi, June 4: The Monsoon Session of Parliament will begin on July 21 and conclude on August 12, Union Parliamentary Affairs Minister Kiren Rijiju announced on Wednesday.

Both the Lok Sabha and Rajya Sabha will convene at 11 a.m. on the opening day, marking the start of the first parliamentary session in over three months.

The session is expected to be politically charged, especially against the backdrop of heightened demands by the Opposition for a special session.

Sixteen opposition parties had written to Prime Minister Narendra Modi on Tuesday, pressing for an immediate session to discuss the recent Pahalgam terror attack and the retaliatory Operation Sindoor — a cross-border military operation targeting nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK).

In response, the government has now formalised the Monsoon Session schedule, asserting that all issues, including those raised by the Opposition, can be taken up during the scheduled sitting.

The Budget Session earlier this year ran from January 31 to April 4 in two phases and saw the passage of several key legislations, including the Waqf Amendment Bill which seeks to focus on improving the management of waqf properties, empowerment of stakeholders relevant to management of waqf properties, improving the efficiency in survey, registration and case disposal process, and development of waqf properties.

While the core purpose remains to manage waqf properties, the aim is to implement modern and scientific methods for better governance. The Mussalman Wakf Act, 1923, was also repealed.

Apart from the Waqf Amendment Bill, the government also passed the ‘Tribhuvan’ Sahkari University Bill, 2025, for the establishment of ‘Tribhuvan’ Sahkari University to provide education, training, and capacity building in the cooperative sector and undertake research and development activities in related areas.

The Immigration and Foreigners Bill, 2025, was also passed to simplify the laws for the requirement of passports or other travel documents in respect of persons entering into and exiting from India and for regulating matters related to foreigners, including the requirement of a visa and registration.

Continue Reading

Crime

Man arrested for raping, murdering 80-year-old woman in Karnataka

Published

on

Kolar, June 4: A man has been arrested on charges of raping and murdering an 80-year-old woman in Srinivasapura town of Karnataka’s Kolar district.

The police have apprehended the accused, who has since been remanded to judicial custody.

The accused has been identified as 37-year-old Baba Jaan, a resident of Gaffar Khan Mohalla in Srinivasapura.

According to the police, the victim’s body was discovered on Monday evening at a garage near an open field on Mulbagal Road in Srinivasapura town.

Preliminary investigations revealed that the victim had been raped and murdered.

The victim had left home two days ago, informing her family that she would visit the church at Srinivasapura.

The woman stayed in Srinivasapura for two days, and on Monday evening, when the woman was waiting for a bus to return home, the accused targeted her.

The accused spoke to her to ensure she was alone.

He then allegedly lifted and carried her to an isolated place, where he brutally raped her before strangling her to death.

The accused also robbed Rs 15,000 from her bag.

During their investigation, the police obtained CCTV footage from a nearby shop, which captured the accused lifting the victim and hurriedly carrying her away.

While the police were gathering information, the accused returned to the crime scene to observe the unfolding events. Alert police personnel identified and apprehended him.

The accused later confessed to committing the crime to rob the victim’s money and jewellery.

The victim’s family has urged the police to “kill” the accused due to the heinous nature of the crime.

More details regarding the incident are yet to emerge.

On August 21, 2024, the Chintamani police had arrested a 28-year-old labourer for sexually assaulting a 65-year-old woman on the hospital premises in the wee hours.

Based on a complaint by the staffers at the Chintamani government hospital, the police launched a hunt and nabbed the accused.

Continue Reading

Trending