by Editor | May 25, 2021 | World
Washington : The US Congress has approved a stopgap budget that averts, for now, a partial government shutdown, which had been a strong possibility due to the failure of Republican and Democratic lawmakers to agree on a more comprehensive bill.
The approval came after President Donald Trump met Democratic and Republican congressional leaders on Thursday to negotiate an agreement that would allow federal agencies to continue receiving funding before their allocated budget money ran out on Friday, reports Efe news.
The Senate approved the deal in an 81-14 vote, allowing the government to be financed through December 22, and the House had earlier given its support to the measure in a 235-193 vote, with all the “yes” votes being cast by Republicans and all the no votes by Democrats.
The budget bill is a temporary solution that will now be sent to the White House, where Trump is expected to sign it.
Congress, which had until Friday to approve the law, now has two weeks to work out a budget bill for the next fiscal year.
Senate Republican Majority Leader Mitch McConnell said that the temporary measure gives lawmakers “the time we need” to finalize discussions on a long-term budget solution.
After Democratic congressional leaders Senator Chuck Schumer and Representative Nancy Pelosi cancelled a meeting with the president several days ago, they agreed to meet with him in the Oval office on Thursday to narrow their differences.
“We hope we can come to an agreement,” said Schumer.
“Funding the government is extremely important. Helping our soldiers is very important and helping average citizens is very important. So we’re here in the spirit of ‘Let’s get it done.'”
Also on hand for the meeting with the president were the two top Republicans in Congress: House Speaker Paul Ryan and McConnell.
However, after the meeting, Schumer and Pelosi said in a joint statement that, despite having a “productive conversation… Nothing specific” was agreed to by the participants.
The main stumbling block is the Democratic demand that they will only agree to approve a budget bill if a law is enacted safeguarding so-called Dreamers, young undocumented foreigners brought to this country as children and protected from deportation under the Deferred Action for Childhood Arrivals (DACA) programme, which was cancelled by Trump.
In September, the President cancelled DACA, which was implemented by his predecessor, Barack Obama, but he gave Congress six months to provide a legislative solution to the Dreamers’ situation.
—IANS
by Editor | May 25, 2021 | Muslim World
Riyadh (IINA) : Saudi Arabia projected a 33 percent reduction in the budget deficit for 2017.
In an extraordinary session in Riyadh on Thursday, the Council of Ministers said that next year’s budget deficit would be SR198 billion. Expenses next year will reach SR890 billion against revenues of SR692 billion. Oil revenues are estimated at SR480 billion, 46 percent higher than the 2016 projections. Non-oil revenues are estimated at SR212 billion, a SR13 billion increase over the 2016 projections, or 6.5%. It said this year’s deficit will be SR297 billion, down 8.9 percent from 2016’s original budget forecast. Revenues for this year are expected at SR528 billion, higher than projections a year ago of SR513.75 billion. Meanwhile, Custodian of the Two Holy Mosques King Salman on Thursday underlined the need for ensuring implementation of the general budget very carefully in a way achieving comprehensive and balanced development and improve the services being extended to the citizens. The King made the remarks in his speech while chairing the Cabinet session to approve the general budget. King Salman noted that the unveiling of the budget comes at a time when most of the countries are suffering from extremely volatile economic situations that led to slow pace in the global economic growth and drop in oil prices. “Despite its impact, our nation is dealing with these fluctuations so as not to affect the goals that we aspired to achieve,” the King was quoted by Saudi Press Agency (SPA) as saying.
The 2017 state budget is set to chart a course for the future that puts economic reforms on the agenda, coinciding with the country’s Vision 2030. A key objective of Vision 2030 is to reduce government spending and increase non-oil revenues to establish financial stability, diversify revenue sources, increase spending efficiency, focus on projects that have high returns and apply effective systems for performance monitoring and evaluation. The government continues to work toward achieving a balanced budget in 2020.
Throughout the past decade, the Kingdom has built a strong financial position by accumulating reserves during the period of high oil prices. This helped the country manage local and global economic volatility as well as oil price fluctuations. The Kingdom was able to significantly increase its reserves and reduce the national debt to increase future borrowing capability, with the national debt amounting to only SR44 million or 1.7% of GDP at the end of 2014.
However, due to the decline in oil prices, the government needed to finance its budget deficit partly by issuing local and international debt instruments with a value of SR 200.1 billion in 2016, in addition to drawing from reserves. The Kingdom’s revenues were impacted by fluctuations in the price of oil. The financial strategy in the medium term aims to achieve a balanced budget by 2020 by increasing non-oil revenues, benefiting from efficiency savings on expenditures and ensuring greater fiscal discipline.
The main pillar for effective national financial management will be to provide more transparency primarily through a clear and comprehensive fiscal reform program over the next five years. These measures will increase financial stability and limit the effects of oil price fluctuations on the Kingdom’s financial position.
by Editor | May 25, 2021 | Economy, News, World
Kathmandu, (IANS) Nepalese government on Saturday unveiled a record-breaking annual budget of nearly $10 billion for the next fiscal 2016-17 year.
Finance Minister Bishnu Poudel presented the budget of 1,048 billion Nepalese rupees (about $10 billion) for the next fiscal year with emphasis on post-earthquake reconstruction, infrastructure, and social security and enhancing connectivity with both China and India, Xinhua news agency reported.
The size of the budget has been increased 28 percent compared to last year’s $7.6 billion.
As agitating Madhesi political parties did not participate during budget presentation at the parliament, it is expected to pose challenge to implementation of budget as political instability has remained as one of the factors for poor budget implementation in the recent years.
However, the budget has introduced many programs that are focused on southern Tarai where agitating parties are based. The budget has been allocated for border area development program focused on 20 districts of southern Tarai and Postal. Roads connecting many districts of Tarai have been allocated significant budget.
With expectation that the post-earthquake reconstruction works would speed up in the next fiscal year, the budget for the reconstruction has been increased by 53 percent to 140 billion rupees.
As Nepal aims to become bridge between India and China, the budget has given high emphasis to develop roads connecting India and China border.
As the country went through difficult period when prolonged blockade was imposed in southern border points recently, creating shortage of fuel and other essentials, the new budget announced constructing storage tanks to sustain the fuel demands for at least 90 days. Currently, Nepal’s fuel storage capacity is just for 17 days.
by Editor | May 25, 2021 | Economy, News
New Delhi (IANS) Finance Minister Arun Jaitley presented India’s national budget for 2016-17 in the Lok Sabha on Monday, saying the country was a bright spot of the global economy today, while outlining his nine focus areas in which rural development took the top slot.
“I am presenting the budget when the global economy is in crisis,” Jaitley said in his opening remarks, adding that India, however, remained the bright spot in this gloom, turning difficulties into opportunities.
He said India’s growth has expanded 7.5 percent, despite slowdown in exports, even as inflation had eased, bringing big relief to the general public. He also said foreign exchange reserves were robust. “Indian growth is at an extraordinary high.”
Jaitley said his budget will look at three pillars in right earnest: A prudent fiscal policy, raise domestic demand and carry out reforms. He also said farm, rural sector, infrastructure and social sector will be allotted more money.
“Recapitalization of banks also to be done during next fiscal year,” he said, as much concern have emerged over the quantum of exposure of Indian scheduled banks in terms of gross non-productive assets, re-cast loans and write-offs, which amounts to Rs.9.5 lakh crore.
He said the nine pillars of this year’s budget will be: agriculture, social programmes, rural development, education with skill development, infrastructure, financial reforms, policy reforms in terms of ease of doing business, fiscal discipline and tax reforms.
“A unified agriculture platform to be dedicated to the nation on the birth anniversary of Dr.B.R. Amebdkar,” the finance minister said, amid applause from the benches.
He said the government had targeted agriculture credit of Rs.8.5 lakh crore in 2015-16, which was being enhanced to Rs.9 lakh crore in the next fiscal. He also said Rs.19,000 crore will be allocated for rural roads development programme.
Overall, Rs.87,765 crores was being allocated for rural development as a whole.
At the same Rs.35,984 crore was being allocated for agriculture in the next fiscal. This apart, the outlay under the job guarantee programme was being enhanced to get Rs.38,500 crore. These enhanced allocations are capable of transforming villages and towns, Jaitley said.
He said there was also the need to spread digital literacy in rural areas. In addition, he added, Rs.8,500 crore was being allotted towards rural electrification, targeting 100 percent rural electrification by May 1, 2018.
Jaitley also assured that the government intended to double the income of farmers in five years, besides allotting Rs.35,984 crore towards welfare of farmers. The proposals also included universal coverage of cooking gas in the country, with a massive mission towards this aimed at the poor people.
In this regard, he said, the government appreciated the 75 lakh middle class and lower middle class families for willingly giving up cooking gas subsidy.
On health, he said, a new scheme will provide cover upto 1.lakh per family,
by Editor | May 25, 2021 | Corporate, Economy, News
* Services provided by EPFO exempted from service tax
* Limited tax compliance window from June 1 – September 30 for declaring undisclosed income at 45 percent including surcharge and penalties
* Clean energy cess increased from Rs.200/tonne to Rs.400/tonne on coal, lignite and peat
* Moving towards a low tax regime with non-litigious approach
* Committed to provide a stable and predictable taxation regime
* Relief of Rs.3,000 per year to taxpayers with income below Rs.5 Lakh per year to benefit one crore taxpayers
* Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent
* Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana
* Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India
* Plan, Non-Plan distinction to be removed from 2017-18
* For income below Rs.5 lakh per annum, tax ceiling has been raised from Rs.2,000 to Rs.5,000
* Relief to those in rented houses: Deduction raised from Rs.24,000 to Rs.60,000 under Section 88G
* Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies
* Fiscal deficit for 2016-17 targeted at 3.5 percent
* Committed to implementing General Anti-Avoidance Rules (GAAR) from April 1, 2017
* New policy for managing assets of public enterprises
* Comprehensive approach to be adopted for government investment in central public sector enterprises
* Three initiatives for better delivery of public services
* Increased allocation of Rs.1,80,000 crore under PM MUDRA Yojana
* Market Stabilization Fund for Pulses gets Rs.900 crore
* Financial Data Management Centre for integrated data collection and analysis
* RBI Act being amended to provide statutory basis for monetary policy framework
* 100 percent FDI to be allowed through FIPB route in food products produced and marketed in India
* Department of Disinvestment to be renamed Department of Investment and Public Asset management
* Comprehensive plan being drawn up to be implemented in the next 15-20 years for exploiting nuclear energy
* Government to provide health insurance of up to Rs.1 lakh per family; 300 generic drug stores to be opened under PM Jan Aushadhi Yojana
* Roads and highways allocated Rs.55,000 crore, 50,000 km of state highways to be taken up for upgradaing to national highways
* Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs
* Government to incentivise gas production from deep sea and other unutilised deep sources
* Public Utility Resolution of Disputes Bill for resolution of infra sector disputes
* Pradhan Mantri Kaushal Vikas Yojan gets Rs.1,700 crore
* Digital depository for school leaving certificates
* Higher education financing agency to be set up with fund of Rs.1,000 crore
* National Skill Development Mission has imparted training to 76 lakh youth; 1,500 multi-skill training institutes to be set up
* Model Shops and Establishments Bill to be circulated for voluntary adoption by states
* Current account deficit down to $14.4 billion
* Rs.2.87 lakh crore for rural and urban local bodies
* Animal welfare programme, animal health card, e-marketing platform for connecting breeders
* 100 percent village electrification to be achieved by May 1, 2018
* Appreciation for 75 lakh middle class and lower middle class families for willingly giving up LPG
subsidy
* Rs.19,000 crore allotted for PMGSY
* Rs.8.5 lakh crore of agricultural credit targetted in 2015-16; and Rs.9 lakh crore in 2016-17
* Rs.35,984 crore allocated for agriculture in 2016-17
* Five lakh acres to be brought under organic farming over three-year period
* MGNREGA to get Rs.38,500 crore
* Recapitalisation of banks during next fiscal
* Prudent fiscal policy needed, domestic demand should be raised, reforms need to be carried out
* Farm, rural sector, infra and social sector to get more funds
* Need to prioritise expenditure given recommendations of 7th Pay Commission and OROP implementation
* Nine pillars for reforming India, among them agriculture, social sector, education, infra, fiscal discipline, and tax reforms
* Presenting budget when global economy in a serious crisis
* Amidst global headwinds, the Indian economy has held its own
* Converted challenges we inherited into opportunities
* CPI inflation down to 5.4 percent from 9 percent-plus, bringing big relief to the public
* Forex reserves at highest-ever level
