Indian Economy News & Discussion - Nov 27 2017

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Austin
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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 09 Feb 2019 10:09

US Considers Withdrawal Of Zero Tariffs For India: Report

https://www.ndtv.com/india-news/us-cons ... rt-1990573

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby rgosain » 09 Feb 2019 13:47

disha wrote:
French economist Thomas Piketty has defended the Congress party’s poll promise of minimum income guarantee (MIG), saying that India’s poor have been “badly treated by the country’s elite”.

“It is high time to move from the politics of caste conflict to the politics of income and wealth distribution,” Piketty said in an email response to ThePrint, confirming that he was helping the Congress frame the proposed MIG scheme.


We had the belgian idiot jean druze who advised NAC for the dig-dirt/fill-dirt scheme and now we have a piketty, future advisor to NAC of UPA on how to bring Indian economy to bakistani levels.


India's english speaking elite who populate the congress circuit are those who will have read his tome or have used its for ornamental effect. India's elite speak the same language as Dreze and Piketty.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Singha » 09 Feb 2019 13:58

american and euro "developmental economists" ie leftist cabal who get no traction @ home have used india as their laboratory since Banditji days.
to our great ruin.

sad that congressi minds still consider them gods worthy of framing policy here.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby rgosain » 09 Feb 2019 14:22

Singha wrote:american and euro "developmental economists" ie leftist cabal who get no traction @ home have used india as their laboratory since Banditji days.
to our great ruin.

sad that congressi minds still consider them gods worthy of framing policy here.

Absolutely right. UPA, NGOs are all cut from the same cloth as these gurus, and their fellow travellers.
In France, any attempt to redistribute wealth is met with violence and riots, and in the USA gun-sales increase .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A Nandy » 10 Feb 2019 01:47

From the comments:
This is an irony. RG is the elite that Thomas is rallying against. His dynasty bankrupted this country, and now we are going to give the money to the thief to be distributed!

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Katare » 10 Feb 2019 23:41

Supratik wrote:No thats not true. It is by voting. In this case it was 4-2 in favor.

Thanks for the factual information saar!

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Indian Economy News & Discussion - Nov 27 2017

Postby Peregrine » 11 Feb 2019 00:48

Mods : If Inappropriate on this Tread then please move it to the correct Thread - Thanks in Advance.

SAIL's Bhilai Steel Plant capacity to increase to 7.5 million tonnes – PTI

"Achieving an important milestone towards the completion of modernisation and expansion programme, SAIL's Bhilai Steel Plant (BSP) has blown in the Blast Furnace No 8 – Mahamaya successfully," it said.

Steel Authority of India Ltd (SAIL) said its Bhilai Steel Plant has successfully blown in the Blast Furnace – Mahamaya on Saturday.

With the new furnace on-stream, SAIL Bhilai Steel Plant's hot metal capacity will go up to 7.5 million tonnes per annum from the present production level of around 5 MT, SAIL said in a statement.

"Achieving an important milestone towards the completion of modernisation and expansion programme, SAIL's Bhilai Steel Plant (BSP) has blown in the Blast Furnace No 8 – Mahamaya successfully," it said.

This is the first step towards commissioning of Mahamaya which has a useful volume of 4060 cubic metre and capacity of producing 8030 tonnes of hot metal per day or and 2.8 million tonnes per annum, it added.

"The entire SAIL team is making tremendous efforts and results are quite visible also in all areas like production, revenues, cost of production, quality, our projects, our market share," SAIL Chairman P K Singh said.

SAIL is increasing its saleable steel capacity and is targeting to increase sales volume by 10 percent every year from the 14 MT in 2016-17, the statement said.

Cheers Image

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 12 Feb 2019 12:56

Average deposits in PM Modi’s Jan Dhan accounts jump by over 145%
Prime Minister Narendra Modi’s ambitious financial inclusion programme – Jan Dhan scheme, which was once criticised for zero balance or no deposits in a large number of accounts, has been gradually changing the saving behaviour of poor and rural people in the country. Average deposit in these Jan Dhan accounts have been steadily rising in last four years, crossing the mark of average Rs 2,500 per Jan Dhan account in January this year.
According to the latest data given by the ministry of finance in Parliament, the average deposit size in more than 34 crore Jan Dhan Accounts was Rs 2,603 on January 23 this year. The average deposit size was Rs 1,065 on March 03, 2015 and in nearly last four years it has jumped by 145% to over Rs 2,600.

As per the latest official data, the cumulative deposit in more than 34 crore Jan Dhan accounts at the end of January this year was more than Rs 88,566 crore.

In fact the number of inoperative bank accounts under the Jan Dhan Yojana have also registered a significant decline.

“The percentage of inoperative PMJDY accounts have declined from 19.8% in December 2017 to 16.3% in December 2018,” finance minister Piyush Goyal informed the Lok Sabha, adding that the number of operative accounts have gone up from 60% of the Jan Dhan accounts in March 2017 to nearly 84% Jan Dhan accounts in January 2018.

In August last year, the NDA government has made several changes in Jan Dhan Yojana to make it more popular among the poor and rural people. The Overdraft facility was enhanced from Rs 5,000 to Rs 10,000 per account and Jan Dhan account holders were allowed to unconditionally avail the OD facility of Rs 2,000 per account.

The government has also increased the amount of in-built insurance coverage for over 27 crore RuPay Debit Cards issued under the scheme from Rs 1 lakh to Rs 2 lakh per account holder.

Finance Ministry seeks transfer of Rs 27,380 crore from RBI retained towards risks, reserves
The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in the previous years, said sources.

The RBI had retained Rs 13,190 crore towards risks and reserves during 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, retained amount is Rs 27,380 crore.

The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 12 Feb 2019 20:46

Retail inflation dips further to 2.05% in January, lowest in 19 months
Industrial production jumped to 2.4 per cent in December, 2018 from 0.5 per cent in November, 2018


A solid evidence in support of the latest Monetary policy. This in addition to strengthening INR leaves even more room for rate cut and/or liquidity boost.

I am not sure what Acharya was thinking when he voted against reducing interest rate. We definitely needed that rate cut. A little more liquidity push will not hurt either.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby jaysimha » 13 Feb 2019 16:00


ArjunPandit
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Re: Indian Economy News & Discussion - Nov 27 2017

Postby ArjunPandit » 14 Feb 2019 00:05

Uttam wrote:Retail inflation dips further to 2.05% in January, lowest in 19 months
Industrial production jumped to 2.4 per cent in December, 2018 from 0.5 per cent in November, 2018


A solid evidence in support of the latest Monetary policy. This in addition to strengthening INR leaves even more room for rate cut and/or liquidity boost.

I am not sure what Acharya was thinking when he voted against reducing interest rate. We definitely needed that rate cut. A little more liquidity push will not hurt either.

viral acharya is a risk heavy guy. That's the inherent difference between a risk guy and trading guy. Trader would talk about possibilities, risk guy will talk about risks of those possibilities. Have a look at the topic of his papers. He has honed his skills on two major crises. They leave their scars
http://pages.stern.nyu.edu/~sternfin/vacharya/

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 14 Feb 2019 00:19

It's fine. He's doing his job and the MPC needs representation from different perspectives to make an informed decision, including risk-averse perspectives.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Katare » 14 Feb 2019 00:23

Acharya must be thinking about core inflation staying well above 5% for most of the last 18 months. With fuel and food prices at historic low they have no where to go but up which would eventually heat of the inflation.

Saving grace is that it has been coming down for last couple months from ahigh of 6%. Historically CPI is more often than not runs higher than core/WPI so the current situation is more of a aberration of long term trend.

Anyhow a little easing at this point of time, even at the cost of higher cost later, is preferable. We need hard nose people like Viral Acharya to balance out doves.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Austin » 14 Feb 2019 12:50

The US and India are heading for a showdown on trade

https://edition.cnn.com/2019/02/13/econ ... index.html

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby jpremnath » 14 Feb 2019 13:04

Katare wrote:With fuel and food prices at historic low they have no where to go but up which would eventually heat of the inflation.



IMHO, we should have an alternate figure to address the inflation that really hits common man. People are no longer that bothered by the price increases of rice and dal...its the cost of children's education and quality healthcare that is fast going out of reach for many..Not to mention how property prices were already not affordable for most...most of the jobs now in market are temp and people who end up working like this cannot afford the above 2. This angst will only go up unless something is done here...

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Kashi » 14 Feb 2019 14:00

jpremnath wrote:People are no longer that bothered by the price increases of rice and dal...


That's an incorrect assumption. People ARE bothered if the essentials start getting pricey, just as they are worried about education, healthcare, jobs and property. Rising prices of food stuffs is immediately visible and immediately impacts the household budgets and therefore, causes much anger that most often spills over on the streets.

This is not to say that the others are less important.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby jpremnath » 14 Feb 2019 15:18

What I meant was that there is a misconception that when headline inflation reaches lows like 2%, people are going to be happy...After all prices are rising very less right?...but if you see the reality, people react cynically to such numbers and the general feel is that life is getting more difficult and expensive...

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Kashi » 14 Feb 2019 15:50

That's true. Low inflation does not necessarily indicate the everything is hunky-dori. It's just one less thing to worry about when it comes to jod-ghataav at the end of the month.

The other aspirations are extremely important and require long term institutional reforms. Ayushman Bharat is a step in addressing one of those concerns.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Bart S » 14 Feb 2019 17:14

Most salary hikes are also linked to inflation at least partly, so psychologically the effect of a lower salary hike (though better in real terms than a higher hike in a high-inflation year) might also make people unhappy. But not much that anyone can do about that.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby jpremnath » 14 Feb 2019 17:52

In addition, the quality of jobs which are being generated are also not good...most companies give temporary jobs,to circumvent our rigid and stupid labour rules...If we talk about the white collar jobs, even the software jobs dont pay well..which means people struggle even when they reach their 30s. It was not the case during the heydays of India's tech boom (2000-2008)

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Gus » 14 Feb 2019 18:06

people whine a lot when inflation is high, but don't appreciate it when it is low.

People get used to things, especially the good things and take it for granted.

There's a reason why parties use fear and outrage to motivate people to vote.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby jpremnath » 14 Feb 2019 19:02

Gus wrote:people whine a lot when inflation is high, but don't appreciate it when it is low.



Its the middle class that whine..The reason is the low inflation doesnt really reflect in their house budget..Rents go up, medical bills are bloody high(everyone goes to pvt hospitals as govt ones are so and so..), getting admission to a decent school is tough and they end up paying higher fees...

I guess the situation for the poor is probably better..

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 15 Feb 2019 01:27

disha wrote:
Karan M wrote:
Kindly reread what I wrote. This entire dance about deductions reducing the income below 5L is meaningless for many families who can't afford the expenditure on the deduction in the first place.


Sir, I think you are shifting goal posts from your original post to now go to a 80C based solution.

You were alluding that the expenditure of somebody earning @7.5-8.0 lakhs is so high that they will not be able to avail *any* meaningful deductions to avail any tax benefit. You did not present any data backing up your claim. You went into whatsapp's angry forwards and all the side show around that.


Disha, don't make silly posts about shifting goal posts and what not. First, you can't understand what has been written and instead of asking politely start getting very arrogant in your demeanor.

Unfortunately, all the concessions vis a vis deductions on NPS, home rent etc to portray a 10L etc income as being tax free are quite disingenuous because given cost of living concerns in India, and the lack of a safety net, few will or can lock up all their excess income above expenses, in deduction oriented instruments.

The manner in which the Govt has done this, has been deeply disappointing to many, and the usual WhatsApp et al angry forwards have begun.


And then you went on to claim that

Unlike 80C whose expansion would have provided more deduction options without significantly compromising liquidity.


What you are now stating that:

1. There will be *no* meaningful deductions for tax savings by somebody earning in @7.5-8.0 lakh per annum range to save @15k in taxes.
2. GOI only tweaked the rules and not change the slabs.
3. Expand 80C

For both 1 & 2, you have not provided any data. Item #3 is your solution which may or may not have its merits.
[/quote]

Dude, do you even live in India or fill any Indian tax form to get so cock-sure about folks whose lifestyle concerns you seem completely ignorant of?

I fill these forms every year. I count my Rs and very well know the living expenses in the urban metros.

For instance, just poll anyone who has a family with one earning member a wife, 1-2 kids and elderly parents (many of whom don't even have pension). Living expenses per month easily average between Rs 50K to 80K. All depending on the compromises made.

Their LIQUIDITY is next to nil. Most don't even have emergency funds.

In this case, where is the leeway to sit & claim significant concessions by investing heavily into fixed income or locked in schemes of the kind the GOI has already introduced?

Regarding 1, the fact is self-evident, the average income left over is hardly enough to go-all into any significant investment plan.

Regarding 2, if you followed any news, it would be evident to YOU ALREADY, that the GOI didn't change any slabs. They just gave a deduction which only benefits people with income upto 5L, and moment they cross that deductions have to come into play and to add any deductions beyond that again depends on available excess income, circumstances, meeting all sorts of rules and regulations and SPENDING MONEY WHICH THEY DONT HAVE TO BEGIN WITH. For instance, its very easy to claim that folks should max out premium on medical insurance to claim deductions.

Fact, many families depend on work insurance to get around elderly parent commitments. No insurance company wants to touch elderly folks in India with a barge pole. The state owned PSUs have a few plans for super senior citizens and they come with so many tests and exclusions, they are meaningless! And what happens to these parents when the bread-earner no longer has corporate cover? This is the difference between REALITY and some copy-pasta newspaper article.

Regarding 3, fact is even under 80C, the only real benefit possible for folks who want a relatively liquid investment which at least provides some income (the great middle class hope, regular income) is to invest in fixed income instruments like tax saving FDs with a five year lock-in or a 3 year MF ELSS, which can be redeemed thereafter! Either ways, the liquidity hit is significant but can somehow be justified or managed by some families by cutting down heavily on expenses. The GOI could have extended this coverage anyhow, given DDT has mangled investment returns from Dividend Oriented funds (which along with LTCG has hit at 2 key areas where middle class was increasingly parking its funds, equity and equity MF). Further, as debt funds are also roiled by scandal after scandal, many with Govt regulators sleeping at the wheel so FDs are again in the news for "safety".

Lets look at EPF and PPF, PPF has a 15 year lock in and hence avoided by many families. EPFO is a disaster perception wise. More and more families are preferring to withdraw their entire corpus upfront, both because of the ham-handed way in which GOI went about trying to put new rules about it earlier, and also because withdrawals from EPF remain a black-box with literally very little progress made. NPS is no better, even with its new EEE status because it forces you to stay invested till 60, personal emergencies be darned, and then you are forced to reinvest at least partly in an annuity.

However, the GOI had a chance to ask people with more investing capability to invest in further areas beyond the NPS investment and expand 80C. The average middle class investor who was earning ~10L and above, would also have benefited beyond the guys who took advantage of the deduction (~5L income). These folks could have been roped in to invest a bit more into ELSS or tax saving FDs. These would have done three important things.

First, given people the perception, the GOI cared about their needs and was maximizing their investment choices. This is a VERY BIG DEAL. Thanks to constant yammering about MF etc, people who can afford to are investing heavily in equity. These guys could have seen an excel stating "ah, the 50K extra I get out of 80C will amount to so 3x the amount in a decade and add up with each years investment! In practical terms, he is only saving ~15K at the highest slab (30%) but its a big step forward for his "retirement".

Second, it would have brought more money (domestic, retail) into the equity or fixed income markets (Indian equity and banks), both of whom are struggling with different issues and more capital would always be welcome. Former, beholden to FII, latter struggling with NPAs.

Third, this would have directly contributed to national goals. You are not just boosting non directed consumption (which might go to the next phone launch at Amazon, imported from China) but increasing the pool of money available to both domestic industry and domestic financial system without the GOI having to run to RBI or come up with complicated bail-outs.

Yes, GOI did not change the slab. What GOI has done is ability to move to a lower tax slab easier and meaningful.

Here, I am providing data on how a family earning @7.5-8.0 lakhs per year can avail the tax benefit of @15k by moving to a lower tax slab.

https://economictimes.indiatimes.com/wealth/tax/how-a-salaried-person-with-income-up-to-rs-7-75-lakh-can-now-pay-zero-tax/articleshow/67792680.cms


"Here you are providing data".. sure, copypasting the usual stuff floating around WhatsApp university. No, GOI has NOT changed the slab. Guys like you making these absurd claims are the bane of people who try to make reasoned arguments. Govt has given a deduction under EXISTING slabs and left them UNCHANGED. Learn your tax codes and regulations before giving gyan to everyone else.

I can come up with similar rubbish like all these blogs and newspaper wallahs about how a family can survive on air, and claim all sorts of fancy deductions to somehow pay zero taxes.

Do you even realize that to claim a deduction, first the expenditure on "something else" has to be made. Many families can't even afford that.

Do check the table in the above link.

Here is what you *can* deduct from your 7.75 lakhs per annum salary:

1. Standard deduction of Rs. 50k


This is actually 10K, because the deduction of 40K already existed. Only thing is it was made standard in the previous budget and made +10K this time around. And the previous 40K subsumed both the travel allowance and medical exemption. No great freebie.

2. Rs. 1.5 lakhs per annum in 80C *OR* use tuition fees paid for children to claim a deduction of the same amount from the gross total income (or a mix of both) <- major expense for middle class is education, do find a teacher which gives you a receipt though or send them to educational institutes that give receipt


My goodness, there really is no sense in these sort of claims. 1.5L in 80 C exists already!!

And given the out of control rampant inflation in educational expenses, this sort of mix and match is at best a band-aid for most families.

3. Rs. 50 thousand in NPS 80CCD <- this is for your own future. Social net for retirement.


At this point its obvious to me, you have no idea about the topic and are just making the usual partisan claims.

First, this NPS 50K deduction has already existed for a while now.
Second, NPS remains highly unpopular beyond tax saving because of its limitations. Even EPF allows you to make a 75% withdrawal (one good thing done by the Govt) after a month of unemployment. The NPS corpus is locked in till 60. After which you have to deploy it partly to annuity products, most of which are still lousy.

In short, what exactly are you touting here, a "safety net" with significant flaws which policy has already existed.

4. Rs. 25 k premium for medical insurance (Section 80D). If you are paying for your parents insurance, your deductions can be higher. <- Social net for health


Another example of opinions completely at odds with urban reality in India! Do you even realize that for many families, even paying this 25K is a very big deal! Where will they spend the money to claim the deduction?
Second, that 25K option is meaningless for families with elders whose premium loading goes through the roof. I was just talking to a person whose "bank insurance" stopped and moving to a standard insurance, meant a premium of 20K per parent! He has elected to drop the whole thing for now, because he can't afford it, and is relying purely on his corporate floater insurance in which his entire family is now "covered". Matter of fact, if he wants to re-expand the cover to himself, his wife and children, by buying a secondary insurance, then he again has to spend alot more money and that parental deduction can't be adjusted against this expense and his "tax concession" via personal insurance in 80D, only expands to a fraction of money he spends ( you spend x, your effective money available is (slab rate)*x).

After all of the above (retirement, education, medical deductions), are you saying that Rs. 40,000 per month take home for everything else is not enough to live?


Your deductions are out of touch, just like the rest of your post which would be laughed out of the door if you took it to anyone serious managing with a ~7.5-8L income in any metro.

Till elections at least, please stop sharing such "opinions" in such a high handed manner with folks. All you'll do is ensure more votes for pappu and his ilk, while you sip your pina colada elsewhere patting yourself on your back about your "convincing skills".

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 15 Feb 2019 01:56

Further, there is this opinion that takes Govt claims of low inflation as being the be-all gift to the middle class (as versus real, on the ground inflation regarding items beyond the Govt mandated "goods basket"). Lets take some real expenses for a second, with a sick member in the family.

- Attender (from any local agency): Rs10-15K per month
- Medicines (which BTW ARE NOT covered by insurance unless they precede or come after a hospitalization): ~8K per month (yeah, check the charges on everyday stuff)
- Doctors visits: Apollo rates in an urban metro for a decent specialist, Rs 750 per visit (NOT PAID by Insurance). First visit within 7 days is free. Ok, go to a cheaper local clinic. Anywhere from Rs 200-300 upwards.
- Insurance premium: All over the place, I have even seen figures as high as 40K per year.

These are REAL expenses. Imagine what they do to a family. Where is the amount left over for some fancy deductions?

Can you claim any of these expenses against the tax? Only if the 80D, 80DDB exemptions allow it. And even there you are not making any money, at best, you save some tax at the slab rate corresponding to the overall limit.

Now, whats pissing off the middle class, and TBH there is merit to the anger is the current Govts obsession with its chosen votebanks means everyone else is excluded.

Lets assume a guy is earning 7L per year, TDS etc.
Ayushman Bharat insurance. Not eligible. "Will be extended", but when?
The new Insurance system for unorganized guys. Not eligible.
The new SC/ST centers for SMEs and what not. If you are not a SC/ST, not eligible.
......

And then the PM harping on the "poor" and "farmers" in every speech. And DD Kisan runs 24/7 reruns of episodes where falana dikhana farmer has gone to Israel, learned some crop, and now makes crores without tax.

Yeah, he is an outlier but the show doesn't say that and people who watch the show will come out incensed. These games around perception count.

Now there is the latest hit on Amazon and Flipkart discounting, it makes ample sense from a national POV not to have these guys predatorily undercut the local stores. But the visceral reaction of everyday people to such news is worth watching. "We had something good and you guys take it away, while giving our tax money to x,y,z".

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby disha » 15 Feb 2019 05:17

^Personal attacks and that too from a "BRF Moderator". I choose not to respond. However I have reported above two posts.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Gus » 15 Feb 2019 09:21

Touching the slab would mean giving up 12.5k from all taxpayers. That's a bigger hit for revenue.

For the ones who can't get below 5L taxable, Std exemption increased by 10k should help.

80c should be expanded to 2 or 2.5. 2 kids at school means you are already close to or over 1.5 :lol:

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Re: Indian Economy News & Discussion - Nov 27 201.

Postby kittigadu » 15 Feb 2019 09:45

12.5k crore is less than 2 billion dollars. Would have increased the deficit by 0.07 pts. Not sure why the slab can’t be changed.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Yagnasri » 15 Feb 2019 09:58

The problem is very small direct tax base. If you see the number of people with higher taxable above say 20 Lakhs as per official records you will know what kind of joke that is.

We need to bring back wealth tax with no exceptions and all properties including non agri land, buildings, shares gold etc etc shall be charged say 1% or even 0.25%. Subsidize health insurance for each and everyone with that money along with payment of a fixed about for the education cost of two kids per family when they are going to any private school say 12k to 25k per kid per year. Huge help for middle class.

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Re: Indian Economy News & Discussion - Nov 27 201.

Postby Gus » 15 Feb 2019 11:02

kittigadu wrote:12.5k crore is less than 2 billion dollars. Would have increased the deficit by 0.07 pts. Not sure why the slab can’t be changed.


5% of 2.5L to 5L = 12,500 = 12.5K != 12.5k crore.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 15 Feb 2019 12:37

disha wrote:^Personal attacks and that too from a "BRF Moderator". I choose not to respond. However I have reported above two posts.


You can report away, but everyone reading the above posts can see how you were responded to and how arrogant your responses were.

Furthermore, your posts have a long history of abusive, borderline abusive replies to multiple posters. There is hardly a single topic that you have not jumped into, from this thread to some ISRO one or some mil-tech one or the sabarimala one, wherein you were NOT abusive to multiple posters.

You have been given far too much leeway already and are busy abusing it. Continue, and you will have to work out your anger on your own mirror, ending up with yet another ban.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 15 Feb 2019 13:01

Gus wrote:Touching the slab would mean giving up 12.5k from all taxpayers. That's a bigger hit for revenue.

For the ones who can't get below 5L taxable, Std exemption increased by 10k should help.

80c should be expanded to 2 or 2.5. 2 kids at school means you are already close to or over 1.5 :lol:


The whole problem with slab changes is both the, tax hit on a small direct base and the moral hazard. Constant exemptions budget after budget can't be allowed.
Having said that, after discussions with multiple folks, the real issues affecting people tend to be very similar.

Concerns about long term investments being insufficient for retirement
No real fallback or social safety net, however small
Concerns about next to zilch law and order protecting their investments in any real estate/predatory real estate guys
Health insurance being very discriminatory or insufficient in coverage
Inability to understand why "safe" investments in debt funds etc are affected by IL&FS debacle type events

Each of these points can be affected positively in some way by the GOI.

1.For first, moving to NPS helps the Govt by forcing a market linked rationale from the current EPF/PPF system which guarantees a fixed income albeit with a long lock-in.
But NPS needs to be made more flexible. The low ER in the NPS plans if it was linked to more flexible withdrawals (rather than a paternalistic we know best state attitude towards withdrawals), would automatically make the NPS far more attractive to many investors.
It would also give GOI some more freedom not to use LIC as the salvage company for firms which are struggling as equity investments would rise. Second, keep the annuity investment part of NPS as consumer dependent.

2. Allow the pension plans created for the poor to be extended, announce a roadmap for a long term plan to work with private insurers, and annuity companies to provide a range of hybrid products with low ER. This could be unnecessary if NPS is fixed actually.

3. This is a real big one, we need central involvement to even rationalize state level record keeping and management and also penalize erring officials heavily and break up predatory cartels.

4. Another big one. Ayushman Bharat needs to be extended, no ifs and buts. Modi did announce that, and so lets wait and watch. In the meanwhile, insurance firms need to be asked to extend coverage to senior and super senior citizens in a more effective manner. Right now only UIIC and NIC have such plans and full of this, that tests.

5. Better governance. This entire business of "safe" AAA firms turning out to be anything but needs to be seen in context. Altman was in India other day, making a comment about how India had too many highly rated firms which shouldn't have had that rating anyhow.
We need to get more specialists into GOI led bodies and also effective measures to be taken against both crooked private and public folks. Kocchar, IL&FS.. a PMS guy refers to these as "chor corporates".

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby hnair » 15 Feb 2019 13:04

disha wrote:However I have reported above two posts.


the reports have been studied and closed. Stop wasting admin time by reporting on something you started

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 15 Feb 2019 13:40

Yagnasri wrote:We need to bring back wealth tax with no exceptions and all properties including non agri land, buildings, shares gold etc etc shall be charged say 1% or even 0.25%. Subsidize health insurance for each and everyone with that money along with payment of a fixed about for the education cost of two kids per family when they are going to any private school say 12k to 25k per kid per year. Huge help for middle class.


You do this sir, and I can give it in writing this GOI whom I support, will find it hard to ever come back to power. Most people have 1 flat, one ancestral property away someplace which is basically their rainy day answer for unforeseen expenses. From loved ones problems to losing the job etc. The true HNIs can afford fancy CA or wealth or property management help which create complicated trusts, HUF type setups or all sorts of legedemain which the average mango man cannot afford, and these tricks allow them to escape the tax net. This sort of move will be seen as a complete betrayal of trust by the ordinary family. They can't be expected to understand this is against the Mallya types, all they will see is what happens to their own precarious finances. For instance, 54EC Bonds coupon rate has decreased, lock-in period extended. Over a period of time, everyone comes to the conclusion, all this GOI wants is our money to redistribute for votes. This then allows opportunists to come in. The LTCG tax was again seen as a betrayal by many.

What GOI needs to do is what Modi promised, maximum Governance, minimal interference or something like that. Stop harassing ordinary mango man with more and more taxes etc and make tangible difference to everyday existence. Right now GOI focus on infra @ national level will only show up at state level perception over a period of time. This is the same challenge faced by ABV in 2004 but let me give one example, despite Modi's efforts, many central run agencies like EPFO, Passport office etc continue to run on outdated systems and staffers who are completely chalta hain. First, let GOI fix that, rather than again increasing taxes.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 16 Feb 2019 00:52

Hi, please keep the discussions on topic. While rises in cost of living impacts everyone, arguing with one another about who's being realistic vs not realistic, is not productive discussion. Instead, it's worth analyzing the existing inflation and CoL indices and presenting your case on what their weaknesses are. If you're going to argue that a current index is unrealistic, fine, but quote reference material to it, so we can all understand what it contains and what's missing.

Discussions on things like passport office are not pertinent to this thread at all.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Karan M » 16 Feb 2019 01:57

Suraj fair enough, back on topic.

The point regarding indices is this, I haven't come across anyone (yet), in a wide circle of acquaintances et al who agree with the GOI regarding "inflation" being in control, even though objectively it may be so per the basket the GOI has chosen.
Reason being there are so many unregulated sectors in the current system - to my awareness, healthcare is the biggest one, because of which the "inflation" and "CoL" argument is weakened substantially. WPI as mentioned here does not seem to track that.
http://eaindustry.nic.in/cmonthly.pdf as it comes under services and as mentioned, it is not covered by insurance until and unless there is a hospitalization, unlike western nations where there is either a safety net (NHS in UK) with free visits, or extremely cheap (France) or insurance for medical visits (US).

Second, about passport offices etc, they were brought up because one of the key issues the current Govt has been stressing on is how its governance has been a sea change from earlier. Unfortunately, where they are succeeding (such as files moving in the PMO), their work is invisible or too long in the gestation to show up overnight (investments in infra boosting the economy). But, where it is visible, or should be, such as passport offices, EPFO and other "central run organizations" with a public interface even at the state level, their performance remains sub-par. I remain concerned that unless these are addressed, much of what the GOI does is dismissed as PR speak, because where the citizens directly interact with their Govt, there is no significant change. This also has a spill-over effect because when GOI speaks of "ease of doing business" and so forth, many peoples interaction with the Govt via the babu-outsourced vendor brigade remains quite negative.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 16 Feb 2019 03:12

Unfortunately this is not the thread for general governance . Some areas fall under the ambit if the Urban Development and Public Policy thread , though .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 21 Feb 2019 03:34

Adding November and December 2018 Services Trade data:
November 2018:
Exports: $16.7 billion
Imports: $10.1 billion
December 2018:
Exports: $17.9 billion
Imports: $11.4 billion

April-December 2018
Exports: $152.5 billion
Imports: $94.2 billion
Surplus: $58.3 billion

Trending towards finishing the fiscal year at ~$205 billion in services exports, first time above the $200 billion mark. Merchandise trade data is separate.

Suraj wrote:Services trade data for October were released mid Dec:
Services trade data October 2018
October 2018:
Exports: $16.8 billion
Imports: $10.1 billion

April-Oct 2018:
Exports: $117.9 billion
Imports: $72.7 billion
Surplus: $45.2 billion


PIB has started reporting combined trade data now:
INDIA’S FOREIGN TRADE: January 2019
Image
Combined trade volume April-Jan of $970 billion.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 21 Feb 2019 04:18

7.16 lakh jobs created in December, 72.32 lakh in last 16 months: Payroll data
Employment generation in the formal sector almost trebled to touch a 16-month high of 7.16 lakh in December 2018 compared to 2.37 lakh in the year-ago month, according to the latest EPFO payroll data. Around 72.32 lakh new subscribers were added to social security schemes of the Employees’ Provident Fund Organisation (EPFO) from September 2017 to December 2018, the data showed. This indicates that these many jobs were created in the last 16 months.

The EPFO, however, revised downwards its payroll data for November 2018 by 23.44 per cent to 5.80 lakh against the earlier estimate of 7.16 lakh released last month. It also revised the cumulative job addition data from September 2017 to November 2018 downwards 11.36 per cent to 65.15 lakh from earlier forecast of 73.50 lakh. The sharpest revision was for the month of March 2018 in the latest report which showed net addition of 5,498 subscribers against 55,831 subscribers in the last month’s estimate.

The EPFO data statement explained that March 2018 figure is low due to large number of exits reported in the month of March, in view of it being the closing month of the financial year. During December 2018, the maximum number of 2.17 lakh jobs were created in the 18-21 years age group followed by 2.03 lakh in the 22-25 years age bracket. Since April 2018, the EPFO has been releasing payroll data covering the period September 2017 onward.

Saudi Crown Prince sees ‘useful returns’ from expected $100 billion investment in India
RBI bonanza for government! Shaktikanta Das to soon take call on Rs 28,000 crore dividend transfer
India’s central bank will consider an early transfer of a part of its profit to the government, which is desperate for cash to fund populist pledges ahead of a national election.

The Reserve Bank of India’s central board will decide on the interim dividend, Governor Shaktikanta Das said after a meeting where Finance Minister Arun Jaitley briefed members about the budget and the economic outlook in New Delhi Monday. The board may announce its decision later today. The government has budgeted for 280 billion rupees ($4 billion) in interim payment from the RBI.

Government’s disinvestment proceeds touch Rs 53,558 crore in current fiscal year
The government’s disinvestment proceeds have touched Rs 53,558 crore so far in the current fiscal, as against the full year budget target of Rs 80,000 crore. Last week, as much as Rs 10,000 crore came in from Bharat-22 ETF and, another Rs 5,379 crore from the sale of Specified Undertaking of Unit Trust of India (SUUTI) stake in Axis Bank.

The government has sold as much as 3 per cent stake in Axis Bank held via SUUTI through an offer for sale (OFS) and raised about Rs 5,300 crore. Besides, the additional offering or Bharat-22 Exchange Traded Fund (ETF) garnered about Rs 10,000 crore to the exchequer.

The issue got bids worth Rs 49,528 crore, with foreign investors pouring in Rs 38,000 crore and retail buyers Rs 2,000 crore. Share buyback by Indian Oil corporation (IOC) fetched Rs 2,647 crore to the disinvestment kitty, while BHEL, NHPC and Cochin Shipyard garnered Rs 992 crore, Rs 398 crore and Rs 137 crore, respectively.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Supratik » 21 Feb 2019 19:31


Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 22 Feb 2019 03:03

Wheat harvest to cross 100 million tonnes in 2019: Agri Commissioner
Wheat production in the current rabi season would cross 100 million tonnes with the States reporting very good crop having was no incidence of diseases, said a top agriculture ministry official on Thursday.

“The recent rains have not affected the wheat crop. This year we would have the highest level of wheat production, which would more 100 tonnes production, which is higher than 99 million tonnes produced last year,” SK Malhotra, Agricultural Commissioner of India, on the sidelines of a meeting at FICCI.

India is now looking at productivity-led growth in production, not area-led growth, he said, adding that the area under wheat cultivation is 1 lakh hectares lower than the last rabi season, but the harvest is expected to be more. As per the data available from wheat-growing states, the area sown under the wheat crop this season was 297 lakh hectares. “From lesser area, we are producing more. This is the scenario that is emerging,” Malhotra said.

According to him, gram production too is expected to be good this year. This year, the total production of pulses is estimated to touch 25 million tonnes, which would be yet another year of bumper production. “In the coming years, we simply need to sustain such high levels,” Malhotra said.

Similarly, oilseeds production would touch 32-33 million tonnes this year, up from 31 million tonnes produced last year. “What we produce is enough to give give us only 10 million tonnes of edible oil, whereas the demand in the country is around 25 millions of oil,” Malhotra said.

Interest rate on EPFO to be raised to 8.65% for the fiscal year 2018-19
The Central Board of Trustees (CBT) has recommended hiking interest rate by 10 basis points on Employees Provident Fund (EPF). This will benefit over 4.71 crore salaried persons working in various industrial and business units across the country as on March 31, 2018.

“The CBT decided to recommend raising rate to 8.65 per cent for the fiscal year 2018-19,” Santosh Kumar Gangwar, Labour Minister and Chairman of the CBT, told reporters here on Thursday. The rate was 8.55 per cent for 2017-18.

Interest rate is calculated on the basis of income earned and liability and it is hiked in case of surplus. As on date, the surplus is ₹151.67 crore. The Employees’ Provident Fund Organisation (EPFO) is the nodal authority for the scheme.

President okays changes in Stamp Act, to help curb tax evasion
President Ram Nath Kovind on Thursday gave assent to changes in the Indian Stamp Act, 1899, which will rationalise and harmonise stamp duty and help curb tax evasion.

The Amendments to the Indian Stamp Act, 1899, were introduced as part of the Finance Act 2019, and was approved by Parliament.

The amendments propose to create the legal and institutional mechanism to enable States to collect stamp duty on securities market instruments at one place by one agency (through the Stock Exchanges or Clearing Corporations authorised by the stock exchange or by the Depositories), the Finance Ministry said in a statement.

A mechanism for appropriately sharing the stamp duty with relevant State governments based on state of domicile of the buying client is also proposed, it added.

“Subsequent to the enactment of the Act, it is proposed to create a Coordination Council under Article 263 of the Indian Constitution by a separate order/notification of the President,” the Ministry said.


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