Tags Posts tagged with "Budget"

Budget

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There are reports pouring in that the chief minister of Uttarakhand Trivendra Singh Rawat and his cabinet which had been completely ignorant, insensitive and non serious on the demand of Gairsain thinking that it will never crystalize into a serious and cohesive widespread movement and had even time and again said that Gairsain is a an impossibility, not being the core issue of BJP’s election menifesto are now looking serious towards this demand, rather backtracking, under compelling circumstances.

If reliable sources are to be believed the increasing spate of protest demonstrations, anti government processions and hunger strike protests in Gairsain and different parts of Garhwal and Kumaon in Uttarakhand including the capital of the country Delhi by journalists, literateurs, movements activists, youth, students women, senior citizens, social organisations and even activists of various political parties across ideological affiliations having far reaching implications, the BJP government in Uttatakhand under the advise of the BJP high command has finally relented and is holding the entire Budget session in Gairsain in the immediate future to assuage the feelings of the Gairsain movement activists and send across the message that the party in power in the state and the centre is really serious to give a priority thought and honour peoples’ wishes in this context.

What comes out of the widespread Gairsain movement in the hills of Uttarakhand is anybody’s guess but one thing has now become absolutely unambiguous that the massive movement at the decentralized level and the way it has acknowledged widespread coverage in the media has undoubtedly led to exerting pressure on the BJP government of the state to give a serious thinking on this issue which was earlier a non issue for them.

It may be recalled that the issue of Gairsain capital is primarily an emotional as well as a technically feasible demand of the inhabitants of Uttarakhand as not only was it propagated by the great freedom fighter and revolutionery of UK and the country Late Veer Chandra Singh Garhwali who was born in Dudhatoli, Gairsain, reverred and praised widely but Baba Mohan Singh Uttarakhandi also sacrificed his life by undertaking 100 days fast.

Moreover, having been recommended by the Kaushik Samitee as an appropriate choice technically being equi distance from Garhwal and Kumaon it has it is equally relevant and acceptable from al points of view. Apart from these factors, Gairsain has been the unanimous choice of all the separate state Uttarakhand movement activistsand forces who’d made the separate state a dream come true after years of relentless struggle and so much of sacrifice.

It is usually said that the Gairsain capital symbolises the decentralised socio economic, political, agricultural, educational and health avenues related development of the 17 year old state as the day Gairsain becomes the state’s capital the develooment process would shift in the interior areas comprising of villages. When policies and developmental activities would shift in the interior vicinities its obvious the villages and rural pupulation would achieve the fruits of development and the process of revetse migration would simultaneously gear up.

The issue of Gairsain have been heating up since 2011 and it was during the former CM Vijay Bahuguna’s tenure during 2013 that under extreme peoples’pressure and the latter’s urge to prove his political mettle due to his then bete noire Harish Rawat’s constant manipulations to challenge his leadership, did Bahuguna got the Assembly Secretariat building constructed with a massive budget of more than 500 crores and declared it as the summer capital.

At present, the capital and entire secretariat being in Dehradun, no minister, lawmaker and bureaucrat intends to go deep down to the interior villages resulting in neglible development and acute lack of health, educational, agricultural and other form of infrastructural development thus leading to the massive influx to cities and village becoming peoples less turning in ghost villages thus defeating the concept and purpose for which Uttarakhand was actually created as an independent entity.

There are indications that though declaring Gairsain as the permanent capital of UK is a distant possibility for now due to various compelling reasons but keeping in view the massive pressure of the movement it may perhaps declare it as the permanent capital of the state to timely assuage the feelings and anger of the activists.
SUNIL NEGI

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The prime minister of India Narendra Modi has termed the union budget of 2017-18 as people friendly, farmer friendly, business and investment friendly, youth friendly and poor friendly and has emphasised that the Health assurance policy AYUSH would directly benefit about fifty crore people of the country from the middle class to those living at the lowest ebb of the society.

Hailing this newly introduced health assurance scheme of his government and terming it as first initiative in the whole world benefitting 500 million people, prime minister Modi said that any person suffering from illness particularly the critical illness would be able to receive free treatment/ surgery etc worth five lakh rupees free of cost, every year.

He further said that under the Ujjwala scheme lakhs of poor and economically deprived people, particularly those living under poverty line would get free gas connections and lakhs of houses in the rural areas would be provided free electricity. He said the government would not charge a single paisa tax in Rs one lakh treatment amount of a patient and also on the premium of Rs fifty thousand.

The new Shramik” labourer would get the EPF contribution to the tune of 12% from the government’s side. About 24 new medical colleges cum hospitals would be constructed in various parts of the country to provide free treatment to the poor. However, no mention has been made on employment front and non relief to the salaried government and private sector employees on annual tax exemption. The government will provide 8% annual interest on the deposit of Rs 15 lakhs.

The former finance minister of India P Chidamram however termed the budget at mere JUMLA and said that peoples’ expectations have been fully belied on all counts especially on job generation front, health sector, slashing of funds on majority of important schemes for the welfare of the poor, tax front and farm sector.
About 700 districts of the country are being fully developed with infrastructural development and road connectivity as per the provisions made in the budget added the prime minister.

SUNIL NEGI

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The former union finance minister P Chidambram has issued a two page statement on his twitter account after the declaration of the union budget by finance minister Arun Jaitley terming it as big let down proposals which are neither bold nor radical and belying peoples’ expectations on all counts.

Listing his dissapointments point wise on fiscal deficit, exports, agriculture, healthcare, jobs, investment & credit, tax relief and slashing allocations Chidambaram took the finance minister to task and said that he has belied peoples’ expectation on all these fronts. Accusing the finance minister of serving the interests of the rich , affluent and the haves Chidambaram said : There is no relief for the average tax payer. Only corporates with the income up to 250 crores got a tax relief of 5% whereas for individuals standard reduction is back but the long term capital gain tax is also back. For the middle class earner and saver, one cancels the other.

He adds: Actually by way of LTCG and 4 percent cess the tax payer will pay the government 31000 crore more where as the gain through standard deduction will only be Rs 8000 crores. Similarly on the government’s over ambitious insurance scheme Chidambaram termed it a big JUMLA for befooling people. He says while the target group is 10 crore families.

There is as yet no scheme. Assuming that each family will avail of Rs 50,000 ( one tenth of the 5 lakhs), the amount required per year will be Rs. 5 lakh crore. If the insurance company will foot the bill, the premium of Rs 5000 to 15000 per month, per family will outgo Rs 50000 to 1,50,000 crore per year. On the investment and credit front the former finance minister discredited Jaitley of doing nothing in the budget to boost the private investment.

There was nothing in the budget to encourage banks to lend and investors to borrow for new investments. He said: it seems that the finance minister has given up on private investment altogether. Blaming the FM for not even creating a single job prospect Chidambaran said the FM has no new ideas and has fallen back on the tried and failed Mudra scheme. The average size of the Mudra loan is Rs. 43000.

This is tokenism and will not create even one job. More Mudra loans would mean more tokenism but no additional jobs. Chidambaram took the government to task for slashing allocations on important schemes for the poor, the economically deprived and those living in the rural areas of the country. He said: the most dissapointing part of the budget is the cut n the outlays on the major schemes of2018/ 19 like MNREGA, PMAY, National Drinking Water Mission, Swach Bharat Mission, Mid Day Meals Scheme, National Health Mission, Gram Jyoti Yojana, Short Term Farm Credit etc.

Emphasising on the job front in particular Chidambaram said that jobs are not being created in the country and industrial growth too has come down to 6.8% in 2016-17 to 2.7% in 2018.
SUNIL NEGI

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It is still unclear whether the deficit target for the current fiscal year would be met or not, but a hopeful view could be taken for next year’s target of 3 % of GDP.

The next budget will focus on farmers, jobs in mostly rural areas and infrastructure while making every attempt possible to follow a path of fiscal prudence.
This means that the government may increase funding for the agricultural sector in the budget for the upcoming fiscal year 2018-19. This move of the BJP government is supposed to gather political support for the party in the countryside ahead of elections.
Government of Prime Minister Narendra Modi’s won the election in his home state of Gujarat this week, but it was under the onslaught of discontent that was fuelled by falling incomes from farms and a hiking unemployment.
In 2018 and 2019, there will be eight more state elections in the country. All of these will lead up to a national election in the year 2019. On February 1 2018, Finance Minister Arun Jaitley is most likely to present his last budget, for the 2018-19 year that begins on April 1 2018.
Annual farm growth has decreased to 1.7 % in the previous quarter, mainly because of lower prices and output. The economic growth on the other hand has accelerated to 6.3% after growing at a 3-year low of 5.7 % in the same quarter.
The government can’t afford the anger of farmers anymore & from now on, will try to boost the economic growth and supply more funds to the agricultural sector. Arun Jaitley has signalled that his priority in this budget will be allocating more funds for rural and infrastructure sectors. According to another source, PM Narendra Modi would like to achieve 7.5 % to 8 % annual economic growth before the election campaign begins.
In the next fiscal, higher procurement prices will be offered for different crops following the fall in output this year. Apart from this, there will be extensive tax reforms, concerning the corporate demand to lower tax rates. By December 15, the government had raised almost $8 billion from the sale of shares in companies, which is more than 70 % of the full-year target. PM Narendra Modi, after pushing tax reforms like the GST, cuts in subsidies for the states and allowing more FDI in new sectors, now faces a challenge to create more jobs for millions of unemployed youths.
The allocations for farm and rural development ministries could be hiked in the next fiscal year by at least 20 %. The upcoming budget of 2018-19 is likely to enhance allocations for the transport and railways ministries by 1/4th. That is almost 1.5 trillion rupees. Finance ministry could also defer some expenses to the next fiscal year to maintain the fiscal deficit of current year at 3.2 % of the gross domestic product.
It is still unclear whether the deficit target for the current fiscal year would be met or not, but a hopeful view could be taken for next year’s target of 3 % of GDP. It is certain, however, that Prime Minister Narendra Modi will take the final decisions on the upcoming budget.

 

-Archit

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You should know that there is nothing more thrilling than giving an identity to something you formed, out in this highly competitive world. Bringing out your business in the market is an interesting, entertaining but at the same time a challenging and rewarding part. From this you can make this out that your future is really in your own hands. Ensure that you work really hard to attain success.

Taking out this mask of an “easy” image of your business, this is really important for you to notice that apart from all its positives it also has some negatives. There exist some bleak actualities that you need to know. You just need to know on how to face these challenges while running your business in order to make it a hit amongst your competitors.

Ÿ Finance Management

In order to let the small businesses survive cash flow is mandatory. It is the most vital component of a business, whether small or big. Entrepreneurs specially engaged in the small businesses face this financial issue. The main problem that stands here is “delayed payments”. Whenever you serve any of your customer, then the payment made by him/her may take a couple of days. Under these couple of days you have to pay your bills, hire employees, and give salaries and incentives to your employees. All this has to be done by you, whether you pay them from your pockets or business’s old earnings.

Ÿ Time planning

   The major obstacle faced by a small business entrepreneur is the “time management”. A small business has to work on so many products and the clients of varied nature that it many times fails to manage the time effectively. If you’d have more time, you’d have acquired more work and money. You just have to be smart enough on how to manage time and planning every task/operation accordingly. Managing your time leads to making money.

Ÿ Hiring staff members

The hiring procedure of the employees may consume a lot of time of yours. It includes examining your aspirants’ resumes, taking their interviews, mailing them the confirmation etc. After all this is done the only thing left with you is hoping that you can provide the best salary package and take out the best employee for your business to start working and take your enterprise to great heights. You just have to focus in how to build up the relationship between the boss and the employees.

Ÿ Impoverished Budget

Your cash budget seems fine, does it? But are you fully satisfied with this? One of the major problems for a small business is that even if your cash flow is doing fine you do not have enough budgets to take your company to its full potential. You need to spend your money in the areas where there are worthy to be spent. You can save the cash and keep it for all the other miscellaneous and operating expenses in the near future. Spend in those operating areas where you are sure of or are expecting the returns and ensure you are never in a loss.

Ÿ Choose what to deal in

   You should know what to sell. Just seek out in the market and see what your competitors are dealing in and what different and unique you can do to stand out in the crowd. You can examine the tastes, preferences and the trending things among your target customers. If you are weak in identifying the prosperous niches then choose the person who is stronger in this area to work on. You don’t need to spend a huge amount of money in this, just hire a freelance researcher who is an expert in the field you are interested to work on.

 

Thus, having a look at the above pointers you can conclude that an entrepreneur either of a small business or a big enterprise has to face many challenges while struggling to get his business to the new heights. Just keep this mind, you are not the sole person who is struggling there are much more like you but you can seek the help of people who can take you out of the darkest days of your struggling to the brightest day of Success.

 

 

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This year’s Economic Survey contains the mid-term economic analysis that is usually presented in December. Just one day prior to the Economic Survey, the Finance Minister presented to Parliament the Medium-Term Expenditure Framework statement FRBM Act, 2003.

According to the Economic Survey, India has moved to a low inflation trajectory, given that current inflation at 1.5% is running well below the 4% target.

The data presented suggests that both the consumer price index (CPI) and the whole-sale price index (WPI) have risen quickly in July mainly due to food inflation and the housing index reflecting the 7th Pay Commission recommendations, and so did the core index. Analysts now expect the inflation to rest at the 4%, which is the RBI target.

Deflationary pressure generates from fiscal tightening by States due to Ujwal DISCOM Assurance Yojana (UDAY), farm loan waivers, declining profitability of some key sectors like power and telecom, the shadow of unresolved twin balance sheet problems and transitional issues of the GST. The key to Macroeconomic stability is continued fiscal rectitude and inflation targeting. The Economic Survey cautions policymakers of a possible deflationary cycle.

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Modi government has advanced the presentation of the Budget by one month

Modi government has advanced the presentation of the Budget by one month, it has removed the separate Railways Budget and it has merged the two categories of “planned” and “non-planned” spending.

According to the Part I of the Economic Survey presented at the beginning of Budget session, growth for fiscal year 2016-17 was 7.1%. Its deflated value is due to demonetisation. Survey implicitly blames the high interest policy of the RBI for thwarting industrial growth.

According to it, the continuing deflationary trends rise from:

  • Lower investment ratio.
  • Low farm prices.
  • The cutting back on development spending by State governments.
  • The twin balance sheet problem.

The Survey mentions Uttar Pradesh which had to slash its development spending by 13% in order to waive the farm loan.

However, the situation at the Centre is improving. Exports are positive. Four major reforms are taken:

  • GST.
  • A new insolvency and bankruptcy code to deal with NPAs.
  • A new monetary policy framework.
  • Aadhaar linkage.