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Economic Times | 27 Jan, 2021 | 11.55PM IST

Budget 2021 Updates: Gita Gopinath favours extension of pandemic support measures in Budget

“We have to also keep in mind that as these pandemic measures are lifted, there would very likely be an increase in non-performing loans,” Gopinath said.

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09:49 PM

Scope for tax concession very limited, higher capex may be focus: EY

Finance minister may prefer to inject stimulus into the economy through increased expenditure , mainly in infrastructure, EY India Economist D K Srivastava said
08:46 PM

Plan for march to Parliament on Budget day on February 1 cancelled: Farmer leader Darshan Pal

07:51 PM

Economic Survey 2020-21 to be presented in Parliament on January 29

06:09 PM

Budget FY22 to provide clear roadmap for economic growth: KPMG

05:25 PM

What the pre-budget KPMG survey 2021-22 shows

The KPMG survey conducted in January 2021 has tried to capture the expectations of all important stakeholders on various tax aspects of the budget. In all, 250 respondents across sectors participated in the survey.
  • 20% held that the Govt's revenue needs can be met through increased collections fuelled by an economic recovery as well as improved technology-driven enforcement (49%).
  • 29% expect that a new Covid-19 cess may be imposed in the Budget.
  • 74% felt that an enhancement in the standard deduction on salary income from the existing Rs 50,000 should be considered.
  • 77% of respondents felt that a mediation scheme should be introduced in the Budget to enable negotiated settlements of tax disputes.
  • 40% respondents felt that the introduction of the General Anti-Avoidance Rules (GAAR) and the implementation of the Multilateral Instrument (MLI) could lead to increase in tax disputes.
04:47 PM

Govt may address inverted duty structure for certain steel products in Budget: Sources

  • The government is likely to address the issue of inverted duty structure for certain steel products in the Budget next week to boost domestic manufacturing, sources said.
  • Inverted duty structure refers to taxation of inputs at higher rates than finished products that result in build-up of credits and cascading costs.
  • Sources said that the government may consider removing customs duties on raw materials used for manufacturing of certain flat-rolled products of stainless steel.
  • Presently the import duty on key inputs for stainless steel flat products - Ferro Nickel and SS scrap -- is higher than the import duty on final goods coming in from free trade agreement (FTA) partners.
04:19 PM

Govt may increase customs duty on certain components in Union Budget 2021: Sources

  • According to the sources, to boost the Make in India initiative, the Centre is considering increasing customs duty on certain parts of various components. Sources added that discussion and deliberations on various proposals are still going on, but no final decision had been taken yet.
  • Last year while presenting her second Budget, Sitharaman had announced customs duty hike on a range of items including toys, furniture, electronic goods, footwear, freezers, refrigerating equipments, grinders and mixers, headphones and earphones, colour TV and chargers.
04:01 PM

Grant of Rs.12,351 crore released for Rural Local Bodies

Total grant of Rs. 45,738 crore has been released to Rural Local bodies so far in 2020-21
03:41 PM

Gita Gopinath's recommendations

Ahead of India's annual budget presentation next week, IMF's Chief Economist Gita Gopinath has favoured the extension of the pandemic support measures, thrust on investment in infrastructure and expanding health sectors programmes like Ayushman Bharat, and a very credible divestment path for commercially viable companies.
02:48 PM

Govt hikes MSP of milling copra by Rs 375 per quintal; ball copra up Rs 300/qtl

  • The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the minimum support prices (MSPs) of copra for 2021 season.
  • The MSP for fair average quality (FAQ) of milling copra has been increased to Rs 10,335 per quintal from Rs 9,960 per quintal for 2020 season, while the MSP for ball copra has been increased to Rs 10,600 per quintal from Rs 10,300 per quintal last year.
  • Briefing the Cabinet decision, Information and Broadcasting Minister Prakash Javadekar said the MSP of milling copra is higher by 52 per cent than the production cost, while the support price of ball copra is 55 per cent higher.
01:43 PM

Sentiment in real estate turns optimistic

  • The sentiment in the real estate industry turned optimistic during October-December 2020 and the outlook for the next six months is positive on the back of revival in demand for both residential and office properties, according to a survey by Knight Frank India-FICCI-Naredco.
  • "The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector," Rajani Sinha, Chief Economist and National Director Research, Knight Frank, said.
01:03 PM

RS chairman calls meeting of floor leaders on Jan 31

Rajya Sabha Chairman M Venkaiah Naidu has called a meeting of the floor leaders of the Upper House at his residence on January 31 ahead of the budget session of Parliament.
12:46 PM

Bulk clearance for e-commerce imports and exports

  • The government in the budget next week is expected to announce measures such as extending the facility of bulk clearance for e-commerce imports and exports with a view to promoting the growth of this fast-growing segment in the country, sources said.
  • "Extending the facility of bulk clearance is a good idea. Globally this facility is there. It will help in reducing transaction cost. If it is permitted, it would hugely benefit the e-commerce trade,' Federation of Indian Export Organisations Director General Ajay Sahai said.
12:13 PM

Will the Budget take WFH into account when framing the new tax rules?

  • It will be interesting to see how the finance ministry deals with the issues of presumptive tax and standard deduction in a year when almost the entire country worked out of home.
  • The pandemic-induced lockdown and subsequent restrictions on movement meant that salaried employees and professionals alike spent on office infrastructure at home. This new normal is unlikely to vanish in a hurry.
11:39 AM

Budget schedule

  • The union budget will be presented on February 1.
  • Lok Sabha Speaker Om Birla had said the first part of the budget session will start on January 29 and continue till February 15, and the second part of the session will be from March 8 to April 8.
  • Birla said that Rajya Sabha will function from 9 am to 2 pm and Lok Sabha from 4 pm to 9 pm with Zero Hour and Question Hour.
11:19 AM

Govt may announce FRA in Budget

  • The government is looking to set up a Financial Redressal Agency (FRA) to examine all consumer complaints against regulated financial services providers.
  • A government official confirmed that deliberations have been held and an announcement could be made in the budget for FY22 that will be presented on February 1.
  • India’s existing consumer redressal system is fragmented and overseen by sectoral regulators such as the Reserve Bank of India (RBI) for banks and the Insurance Regulatory and Developmental Authority (Irda) for insurance-related grievances.
  • The government is of the view that this fragmented regulatory architecture leads to inconsistent treatment of both consumer complaints and micro-prudential regulation.
10:46 AM

What should be the mantra for FM in Budget 2021?

  • The prime minister has launched the initiative of ‘Honouring the Honest’. In keeping with this spirit, in times of crisis, the focus may need to be on stability, encouraging compliance, broadening the tax base and boosting consumption to improve tax collections. To this effect, certain measures have already been announced and it is expected that Budget 2021 will be constructed around these themes.
  • In the circumstances, any additional burden on existing taxpayers or any new taxes like wealth tax/estate duty, which were discontinued earlier for reasons of high administrative costs and low revenue yield, may not be in sync. The mantra for the FM in Budget 2021 should be ‘No New Tax’.
10:12 AM

New laws for ICAI, ICWAI and ICSI

  • The government is set to amend laws to streamline the functioning, especially the disciplinary aspects, of three professional institutes — the Institute of Chartered Accountants of India (ICAI), Institute of Cost and Works Accountants of India (ICWAI) and Institute of Company Secretaries of India (ICSI).
  • A bill to amend relevant provisions of laws governing the three bodies is expected to be introduced during the second half of the budget session of Parliament. The idea is to step up oversight on the three bodies after a committee suggested several changes almost three years ago. In fact, some of the proposals have been accepted, the legal changes are being undertaken in consultation with the institutes.
09:49 AM

Meeting of BAC (Business Advisory Committee) of Rajya Sabha to be held on 29th January, in the Parliament

09:25 AM

The budget will aim to continue expenditure as growth is the only way India can come out of recent setbacks

- Hugo Erken, head of international economics at Rabobank

09:16 AM

We expect global economic activity to return to normality in fiscal Q2 and India to grow in fiscal 2021/22, with government stimulus packages expecting to contribute

- Hugo Erken, head of international economics at Rabobank

08:57 AM

Rajya Sabha Chairman M Venkaiah Naidu has called a meeting of floor leaders of Rajya Sabha on 31st January at his residence for Budget session of Parliament.

08:57 AM

Union Cabinet meeting to be held today, via video conferencing.

08:36 AM

Coming soon: One forum for all financial complaints

  • Govt may announce Financial Redressal Agency during this Budget
  • It will look into all consumer financial complaints
  • It will cover Irda, PFRDA, RBI, Sebi etc
07:57 AM

FM to go on a splurge?

  • According to the Reuter's poll of economists, India will focus on fiscal expansion in next week's budget and revise its borrowing target higher for the 2021/22 fiscal year
  • Around 55% of economists, 18 of 33, who answered an additional question about the focus of the budget said it would be more on fiscal expansion than prudence.
07:33 AM

As per the Reuter poll, the economy would grow 21.1%, 9.1%, 5.9% and 5.5% in each quarter of the 2021/22 fiscal year

07:01 AM

Acche Din coming back?

According to a poll of economists by Reuters, Indian economy would grow 9.5% next fiscal year - the highest since polling began for the year in March 2020 - after contracting 8.0% in the current fiscal year.
06:49 AM

We expect global economic activity to return to normality in fiscal Q2 and India to grow in fiscal 2021/22, with government stimulus packages expecting to contribute

- Hugo Erken, head of international economics at Rabobank

06:21 AM

Time for a budget for courts

  • A lawyer has filed a petition in the Supreme Court seeking direction to the respondents, Central and State Governments, to allocate a certain percentage of the annual budget to the judiciary which will spend the amount itself depending upon the priorities for such spending.
  • The petition, filed by lawyer Reepak Kansal, before the Supreme Court sought a direction for the constitution of a separate Secretariat with the Supreme Court and High Courts to manage the funds allocated to the judiciary.
  • The petition stated that the judiciary needs to be separately dealt with in the plans by the Planning Commission and the Finance Commission.
06:19 AM

FM Sitharaman may not announce major changes in taxes, according to Kotak Institutional Equities

06:18 AM

We expect the budget to strengthen the Atmanibhar Bharat vision and focus on health, physical infrastructure, and financial sector along with rural India

- Suvodeep Rakshit, Vice President and Senior Economist at Kotak Institutional Equities

06:17 AM

The brokerage said that the government needs to aim at increasing stable incomes for large parts of the population in the middle and bottom of the pyramid which have been the worst hit from the pandemic.

06:17 AM

Kotak Institutional Equities in a pre-budget note said that the Union Budget may see the trade-off to become more acute between stimulating growth, and maintaining fiscal rectitude

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