by admin | May 25, 2021 | Banking, Economy, Finance, News
New Delhi : India’s budgetary fiscal deficit for the April-December period stood at Rs 7.01 lakh crore or 112.4 per cent of the budgeted target of Rs 6.24 lakh crore, official data showed on Monday.
The data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit during the corresponding nine months of the previous fiscal was 13.6 per cent.
Till December, the government’s total expenditure stood at Rs 18.32 lakh crore (75 per cent of the budget estimates) while the total receipts were Rs 11.30 lakh crore (62.2 per cent of the budget estimates).
This is as compared to 67.4 per cent of budget estimates received in the same period of 2017-18.
According to Devendra Kumar Pant, Chief Economist, India Ratings and Research said: “Fiscal deficit in 9MFY19 came in at 112.4 per cent of FY19 (BE) and 110.6 per cent of FY19 (RE).”
“The pressure is more visible on the revenue side rather than on the expenditure side. In order to meet FY19 (RE), monthly revenue receipts during January-March 2019 has to be 1.8x of average monthly collections in 9MFY19, which appears difficult to achieve.”
—IANS
by admin | May 25, 2021 | Finance, Markets, News, Online Marketing, Politics, Social Media, Technology
Himanta Biswa Sarma
Guwahati : The Assam Finance Department has decided to use social media platforms to inform and engage citizens on the state’s 2019-20 Budget, Finance Minister Himanta Biswa Sarma said in a statement on Monday.
Sarma said that social media is an effective tool to engage the public and acquire feedback for the upcoming Budget which will be presented at the Assam Legislative Assembly on Wednesday.
He said that the use of this dynamic medium, in addition to other traditional means, has been inspired by Prime Minister Narendra Modi’s slogan “Sabka Saath Sabka Vikas” and also “in keeping with our commitment to adhere to the principles of participatory governance”.
“The use of social media for seeking people’s participation and inputs in the Budget is also a first of its kind experiment in the country and has been very effective. We have reached out to more than 1.6 lakh people by posting 200 feeds on Twitter, Facebook and Instagram in 11 days with a combined Followers base of over 3,200,” he added.
The state government’s budget app called “Assam Budget”, available both on Android and iOS, is also a unique initiative towards a ‘Digital India’, according to the Minister.
“We are planning to continue to engage citizens as well as gather critical information using the social media platforms. Among others, one of the key objectives of our social media campaign outreach strategy has been to create a bonding with our vibrant pool of youngsters and many other tech-savvy people of Assam,” Sarma added.
—IANS
by admin | May 25, 2021 | News, Politics
New Delhi : Hailing the Interim Budget 2019-20 presented by Finance Minister Piyush Goyal in the Lok Sabha, BJP president Amit Shah on Friday said the Budget has met the expectations of every section of society, including farmers, labourers and the middle class.
“The Budget has fulfilled what was being expected by the people from Prime Minister Narendra Modi. It has met with the expectations of every section of the society,” Shah said.
By bearing a cost of Rs 75,000 crore, he said, the government will implement the Pradhan Mantri Kisan Samman Nidhi scheme providing Rs 6,000 to each farmer owning land up to two hectares. This scheme will also benefit those farmers who do not take loans.
Speaking on ‘Kamdhenu Yojana’, Shah said it is a great step taken by the Prime Minister for the welfare and protection of cows.
“A Kamdhenu Samvardhan Aayog will look after the welfare and protection of different breeds of cows. The Aayog will also manage construction of cowsheds and other schemes for cows.”
Shah congratulated the Government for announcing an over Rs 3 lakh crore outlay for the defence sector.
“Modiji has tried to ensure the security of the country by providing One Rank One Pension and a record amount for defence sector in this Budget,” Shah said.
The government in the Budget, Shah said, has also given space to fishermen as they play a big role in the country’s Gross Domestic Product (GDP).
“By making a separate department for fisheries, the Modi-led government will have more focus on the sector.”
The BJP chief said that the Rs 3,000 pension for labourers after attaining the age of 60 years will benefit them at a time when they will not be able to do hard work. The Budget, he said, also mentions about the bonus for labourers working in the organised sector.
He said the government is also committed to the development of the northeastern states. “After putting the North-East on the railway as well as the airport map, the government now has increased the budget by 21 per cent over the previous year. This is the highest budgetary increase so far.”
Shah also said the government will create an Aayog for the nomadic community for their welfare.
“To benefit the middle class, the Government has doubled their income tax limit from Rs 2.50 lakh to Rs 5 lakh in this Budget. The Prime Minister has given more than what was expected.”
—IANS
by admin | May 25, 2021 | Corporate, Corporate finance, Corporate Governance, Economy, Finance, News, Politics
D. Raja, National Secretary, Communist Party of India, addressing concluding session of a national consultation on “Budget Justice: Agenda for the Next Five Years” in New Delhi.
Union budget is often Corporate-centric: D. Raja
By Pervez Bari, Maeeshat.in,
New Delhi: D. Raja, National Secretary, Communist Party of India, has said that in the preparation of Union Budget the pre-budget consultation before its presentation in Parliament has become a ritual. The voices of various sectors of civil society are rarely heard while the corporate sector has its say all the way capturing lion’s share. Thus, the final outcome of the budget that is presented often becomes Corporate-centric.
Raja made these remarks while speaking as chief guest in the concluding session of day-long national consultation on “Budget Justice: Agenda for the Next Five Years” which was organized here on September 14, 2018 under the aegis of the People’s Budget Initiative, (PBI). The session was chaired by Amitabh Behar of PBI/Wada Na Todo Abhiyan.
It may be noted here that the PBI is a coalition of civil society organisations from across the country which promotes people’s voice in policy making processes related to government budgets in India. The national consultation was a part of its campaign on ‘Budget Justice for Disadvantaged Sections’.
As the country is gearing up for the upcoming general elections both at the Centre and in a few States in 2019, efforts are being made by PBI to capture people’s budget related expectations from the new governments. In this regard, State Consultations on ‘People’s Expectations on Budgetary Priorities’ were held in Assam, Andhra Pradesh, Jharkhand, Maharashtra, Rajasthan and Uttar Pradesh. The National Consultation brought together civil society coalitions, grassroots level organisations, budget groups and leaders of people’s movements from across the country for consolidating the demands emerging at the state consultations.
Bezwada Wilson of Safai Karmachari Andolan delivering keynote address in the national consultation on “Budget Justice: Agenda for the Next Five Years” in New Delhi.
Continuing Raja lamented that the “Revenue Foregone”, which is the amount reflecting the loss to the government on account of tax cuts offered to the Corporate, is huge. This amount can be used to finance essential services like Education and Health, which should be free to People, he added.
It may be pointed out here that tax expenditures or the revenue forgone are sanctioned in the tax laws. A statement of the same, (as far as Federal/Union/Central Government is concerned) is presented to the Parliament at the time of Union Budget by way of a separate budget document titled “Statement of Revenue Foregone”.
Raja said that neo-liberal economic policies adopted by India since the 1990s has resulted to broaden the gap between the poor and the rich. This fact has been corroborated by the IMF (International Monetary Fund) which has admitted that the neo-liberal economic policies have not only widened further the economic disparity between countries but also within the country, he pointed out.
He said the present government at the Centre is not people’s government as it was elected by just 31 per cent votes. As such, Abraham Lincoln’s well-known quote: “Government of the people, by the people, for the people, shall not perish from the Earth” does not apply at the present dispensation. The anti-people policies of the NDA Government will spell its doom.
Meanwhile, the theme of the inaugural session was “The Governance Agenda for the Next Five Years from the Lens of Equity and Social Justice”. Anjali Bhardwaj and Subrat Das, Co-convenors of PBI, introduced the topic while Bezwada Wilson (Safai Karmachari Andolan) delivered the keynote address in the session.
Bezwada Wilson in his address said that all Indians are tax payers and equal in political sphere. He, however, lamented that though the country gained freedom in 1947 but the common man by and large is still a slave as the fruits of freedom have not reached him. He continues to be ravaged by poverty, illiteracy, poor health conditions etc.
Wilson moaned that the preamble of the Indian Constitution is not being followed while preparing Union or state budgets. The preamble clearly states to secure to all its citizens Justice, Liberty, Equality and Fraternity. Justice which entails social, economic and political aspect is missing out as we have not been able to implement even the Constitution’s preamble by building an equal society.
According to a report, he said, one per cent people of the country have grabbed the 73 per cent wealth of India. It should have been equal opportunity for all to access the wealth of the country. The economic policy of the country, however, is not right and there is total devastation due to political system in the country, he added.
Speaking on the occasion Subrat Das, Executive Director, Centre for Budget and Governance Accountability, (CBGA), said that Budget is a political issue, not a technical issue, and therefore the process of budget making should be inward having people at its centre. He pointed out that unless locally relevant budget information is made available in public domain in a timely manner, people can’t engage with budget issues. A tokenistic participation in this important process doesn’t lead to anything, it is people’s right to have a meaningful participation at every level.
While Anjali Bhardwaj, Co-Convenor, National Campaign for People’s Right to Information (NCPRI), said that efforts and acts towards directed at diluting the accountability institutions needs to be squarely addressed. The issues discussed will feed into the ‘People’s Agenda’ for the next five years to be developed by PBI. The discussion also noted that the big tax reforms initiated recently hurt the unorganised sector. Members discussed the need for greater reliance on direct taxes for mobilisation of resources by the government.
In the coming months, PBI will campaign to advocate for progressive changes in policies and budgets that address inequalities faced by disadvantaged sections of population.
Delegates from all over the country attending the PIB session in New Delhi.
Meanwhile, apart from the inaugural and concluding session there were three plenary sessions. After the inauguration session a session was held on the topic “Challenges in Accessing Public Services: Voices from the Communities”. The session was chaired by Sachin Jain (Vikas Samvad, Madhya Pradesh). In this session panellists were Amit Tripathi (Youth Policy Advocacy Network, Uttar Pradesh); Chandrakala Sharma (Ekal Nari Shakti Sangathan, Rajasthan); Dhrubo Jyoti (Journalist and LGBTQ Activist); Mithilesh Kumar (NREGA Watch, Jharkhand); Pushpa Latha and Amrita Johri (Satark Nagrik Sangathan / NCPRI); Saira Begum (Bharatiya Muslim Mahila Andolan, West Bengal); Usha Rani (All India Federation of Anganwadi Workers and Helpers, Punjab).
The second session was on the topic of “Issues and Priorities Emerging from the PBI State Consultations” which was chaired by Subrat Das of People’s Budget Initiative who is also Executive Director CBGA. The panellists in the session included: Hilda Grace (People’s Monitoring Committee, Andhra Pradesh); Monisha Behal (North East Network, Assam); Nesar Ahmad (Budget Analysis Resource Centre, Rajasthan); Sangeeta Maurya (Sahayog / Health Watch, Uttar Pradesh); Sunil Minj (National Campaign on Dalit Human Rights, Jharkhand); Trupti Joshi (SATHI/ Jaganyacha Hakkache Andolan – Movement for Right to Live, Maharashtra).
While the third session of the day was titled “Priorities and Demands of National Campaigns / Movements on Budget Justice”. The session was chaired by Prof. Praveen Jha of Jawaharlal Nehru University. In this session speakers were Ambarish Rai (Right to Education Forum); Ms Beena Pallical (National Campaign on Dalit Human Rights); Chandan Kumar (Working People’s Charter); Dipa Sinha (Right to Food Campaign); Ravi Duggal (Jan Swasthya Abhiyan); Soma K. P. (Mahila Kisan Adhikaar Manch – MAKAAM); Venkatesh Nayak (National Campaign for Peoples’ Right to; Information); Ms Zakia Soman (Bharatiya Muslim Mahila Andolan).
by admin | May 25, 2021 | Opinions
By Rahul Agarwal,
In this age of instant gratification — especially among the young and salaried (Gen Y) individuals — buying a big budget item is almost hassle-free. They can easily be bought with little to no down payment and banks and other financial firms line up with attractive offers and EMIs that are sometimes too hard to ignore.
However, to reach an objective conclusion between the choice of saving now to buy a big budget asset later, over buying something right away on EMIs, one needs to evaluate various pros and cons regarding the purchase.
First and foremost is the differentiation between want and need: If you want something, then, in most cases, you have the luxury of time to plan and save for the same; on the other hand, if the item you are planning on buying is an actual and immediate need, then buying the item upfront with cash or financing it’s purchase and paying an EMI is a feasible option.
Besides the fact that buying an asset through loans increases your indebtness, there are other important factors or situations that occur due to buying on loans:
Added financial obligation: Financing through EMI results in creating long-term debt and commitments which, if not honored, can cause problems.
Extra cost to be paid: Every EMI has two parts, principle and the interest; the interest part is extra cost that one has to pay to own an asset. The longer the duration of the loan, the higher is the cost of acquisition of the asset.
Opportunity cost: Owning an asset through financing does entail an opportunity cost in the form of the interest one pays in owning the asset. In doing that, one forgoes the opportunity to invest the same amount and earn interest and generate income
Losing financial freedom: Having to pay a certain amount every month towards an existing EMI leads to loss in financial freedom; not paying or delaying payments leads to fines and fees and negatively impacts one’s credit history, thereby restricting access to credit in the future or during emergencies. Once in debt, all the financial planning for one’s free cash flow after basic expenses is focused on first paying of the debt, therefore restricting one’s legroom for making financial decisions.
The economic sense to buy an asset only after saving for it, rather than buying it through a loan, can be better understood through an example. The basic assumption is that the big budget item that one is planning on buying is not an immediate need and the buyer has at-least two to three years to plan and save for the purchase.
It can thus be seen that the effective cost that one pays through the EMI route is almost 30 per cent higher than the scenario in which one first saves and then buys. The primary reason for this difference is that in the first cast one is spending money as interest on the loan whereas in the second case one is accruing interest thereby reducing his/her cost of acquisition.
The example clearly establishes that saving first and then buying a big-ticket item is always a better option as opposed to taking a loan and buying it right away.
One, of course, will be denied the pleasure of instant gratification and would have to wait to own the asset; but at the same time, the savings thus realised are significant and can be used to buy a smaller item or can be used for other productive purposes at zero upfront cost. This further reinforces the fact that postponing expenses creates wealth, whereas advancing the date of their purchase leads to erosion of wealth. This basic personal finance tip can help individuals build long-term wealth through small steps.
(Rahul Agarwal is Director Wealth Discovery/EZ Wealth. The views expressed are personal)
—IANS
