Friday, May 7News That Matters

Tag: Business news

Business

Indian Economy: Budget positions India towards its target of $5 trillion economy: USISPF | India Business News – Times of India

WASHINGTON: Applauding the annual budgetary presentation by finance minister Nirmala Sitharaman, the US-India Strategic and Partnership Forum (USISPF) described it on Monday as bold and visionary, which would launch India's economy into a growth trajectory. "We applaud India's budget. It is bold and visionary, launching the economy into a growth trajectory. The budget positions India towards its target of a $5 trillion economy," USISPF president Mukesh Aghi said. Union Budget 2021-22: Complete coverageThe Union Budget 2021-22 has taken into consideration the needs of all sectors of the economy, reflecting a robust growth plan for India to become a $5 trillion economy, he added. Increased government spending in critical areas of the economy such as agriculture, infrastructure, healthcare...
Business

Public to private: Selling 2 banks, 1 insurer – Times of India

NEW DELHI: Nearly two decades after an NDA government’s unsuccessful bid to reduce government holding in public sector banks, finance minister Nirmala Sitharaman has bit the bullet and announced a fresh plan to privatise two public sector banks. Simultaneously, a move to divest stake in one non-life insurance company enables government to target higher revenue without forsaking strategic objectives. Privatisation will reduce fiscal pressure as the Centre has been infusing capital year after year even though market valuation of government-owned banks has shrunk. Many expect a merger with a large private lender to be one of the options. An RBI-appointed panel, with government representatives, had said that well-run non-banking finance companies (NBFCs), including those owned by corporates...
Business

Street rocks as FM turns up the volume, tunes into market playlist – Times of India

NEW DELHI: Dalal Street investors gave a big thumbs-up to the FM’s Budget proposal that boosted government investments at a time when private sector players are unable to act simlarly, mainly due to Covid-induced uncertainties. According to Jaideep Hansraj, MD & CEO, Kotak Securities, the government has sacrificed fiscal deficit for growth. “No tinkering on taxes, including personal tax and a giant leap of divesting two state-run banks and opening up of the market by making way for the LIC IPO and foreign ownership in insurers have been a welcome move and the primary reason for the rise in stock market.” “The Budget rightly decided to focus on economic growth by raising expenditure and allowing for a wider fiscal deficit in these pandemic times. Importantly, a far higher spend on ca...
Business

Fiscal Deficit: Fiscal discipline not junked, govt aims at 4.5% deficit by 2025-26 | India Business News – Times of India

NEW DELHI: The government will continue on its path of fiscal consolidation and intends to reach a fiscal deficit of below 4.5% of gross domestic product (GDP) by 2025-2026, finance minister Nirmala Sitharaman said in her budget speech. The government expects a fairly steady decline over the years. “We hope to achieve the consolidation, first, by increasing the buoyancy of tax revenue through improved compliance and, secondly, by increased receipts from monetisation of assets, including public sector enterprises and land,” Sitharaman said as she pegged the fiscal deficit for the current fiscal year at 9.5% of GDP in the revised estimate. The Centre has estimated the deficit to be at 6.8% of GDP next year and the gross borrowing from the market next year would be around Rs 12 lakh crore....
Business

Budget 2021: Census to go digital, FM sets aside 3,700cr – Times of India

NEW DELHI: Allocation for the home ministry in the Budget was marginally lower at Rs 1,66,547 crore as compared to Rs 1,67,250 crore allocated in the last Budget. Though a sum of Rs 4,568 crore was earmarked in last budget for Census 2021 and National Population Register (NPR) exercise, their postponement due to Covid-19 left it largely unutilised, with the revised estimate for 2020-21 being just Rs 755 crore. Though no fresh start date has been announced yet for Census/NPR exercise, the finance minister said she was earmarking Rs 3,768 crore for the “first digital census in the history of India”. “For this monumental and milestone-marking task, I have allocated Rs 3,768 crore in the year 2021-2022,” she stated in her budget speech in the Lok Sabha. The home ministry has allocated Rs 1,...
Business

India enters scrap-age, gets 18,000 crore bus boost – Times of India

NEW DELHI: The government on Monday announced the rollout of the voluntary vehicle scrapping policy to phase out old and unfit vehicles. In her budget speech, FM Nirmala Sitharaman also said a Rs 18,000 crore scheme will be launched for a city bus system to increase the availability of public transport in urban areas. Sitharaman said the details of the voluntary vehicle scrapping policy for commercial vehicles older than 15 years and over private vehicles older than 20 years would be announced by the road transport ministry. Welcoming the decision, Union transport minister Nitin Gadkari said around 17 lakh commercial vehicles are older than 15 years and do not have valid fitness certificates and similarly there are about 51 lakh private vehicles that are more than 20 years old. “All tho...
Business

Budget 2021: Sebi to be notified as gold exchange regulator, says finance minister – Times of India

NEW DELHI: The government on Monday said capital market watchdog Securities and Exchange Board of India (Sebi) will be the designated regulator for gold exchanges, which will infuse transparency in gold transactions. "In the budget of 2018-19, the government had announced its intent to establish a system of regulated gold exchanges in the country. For the purpose, Sebi will be notified as the regulator," finance minister Nirmala Sitharaman announced in the Union Budget 2021-22. Further, warehousing development and regulatory authority will be strengthened to set up a commodity market ecosystem arrangement including vaulting, assaying and logistics in addition to warehousing, she added. Narindra Wadhwa, president of Commodity Participants Association of India (CPAI), said the government ...