Showing posts with label Ministry of Finance. Show all posts
Showing posts with label Ministry of Finance. Show all posts

Wednesday, October 10, 2012

Can P Chidambaram keep GDP at pace with Inflation?

October 9, 2012, 2:35 PM IST
IMF Cuts India Growth Forecast to 4.9%
In a speech last month, Prime Minister Manmohan Singh said India’s economic growth could “collapse” to about 5% per year if the country can’t break free of a “policy logjam” and make advances in everything from manufacturing output to infrastructure development to agricultural growth.
Well, by that definition, the International Monetary Fund has just said India is in the process of collapsing. The IMF’s “World Economic Outlook,” released Tuesday, forecast 4.9% gross domestic product expansion in India in 2012, a downward revision of 1.3 percentage points from the July forecast — the worst mid-year recast by the IMF for any major economy.
The report said: “India’s activity suffered from waning business confidence amid slow approvals for new projects, sluggish structural reforms, policy rate hikes designed to rein in inflation, and flagging external demand.”
The government’s outlook, not surprisingly, is more bullish. Finance Minister Palaniappan Chidambaram told reporters Monday that he expected growth to rebound from the April-June level of 5.5% in coming quarters. In an interview with The Wall Street Journal, Mr. Chidambaram said he expects that India’s moves to allow greater foreign participation in a range of sectors from retail to aviation to insurance will buoy the economy, along with coming fiscal belt-tightening measures.
Indeed, the IMF does see the recent round of reforms having some impact – but it will take some time. “Improvements in external conditions and confidence––helped by a variety of reforms announced very recently––are projected to raise real GDP growth to about 6 percent in 2013,” the IMF report said.
India’s hard times aren’t out of step with the world. The IMF’s growth forecast for advanced economies including the U.S., Germany and U.K. is 1.3% for 2012; Brazil’s forecast of 1.5% represents a one percentage point downward revision.
But sub-5% growth in India has some very perilous implications for the country. Indeed, anything below 6% growth can lead to rising unemployment in a nation where millions of young people are joining the workforce each year. The Kelkar Committee, an expert panel that recently submitted recommendations to the finance ministry on fiscal policy, said growth of 6% could translate into 2.4% employment growth, too slow to keep up with 2.5% labor force growth.
Mr. Singh in his recent remarks to a Planning Commission meeting made it clear how high the stakes are. In making a case that policymakers need to break out of their state of gridlock, he said: “If this continues for any length of time, vicious cycles begin to set in and growth could easily collapse to about 5 percent per annum, with very poor outcomes on inclusion. I urge everyone interested in the country’s future to understand fully the implications of this scenario. They will quickly come to an agreement that the people of India deserve better than this.”
Amol Sharma is an India Correspondent for The Wall Street Journal.
IMF Cuts India Growth Forecast to 4.9%
About P Chidambaram
His grand uncles and grand father were the Co-founders of Indian Overseas Bank, Indian Bank, United India Insurance and Annamalai University. He is married to Nalini Chidambaram, daughter of Justice (Retd.) Kailasam, Supreme Court, and Mrs. Soundra Kailasam, a renowned Tamil Poet and author, who is a Senior Advocate and a tax lawyer practicing in the Madras High Court and the Supreme Court, primarily in litigation related to the Central Excise department of the Government of India. He has a son, Karti P. Chidambaram, who graduated with a BBA degree from the University of Texas, and a Bachelors in Law from Cambridge University. His son is also a politician in the Congress party and consultant and CEO of many companies. Chidambaram is an atheist. Click here for more...
Tail piece: Chidambaram as FM only sees $$ in FDI's... He is Master of Mathematics, Money and Magic!

Friday, September 21, 2012

OROP: Government likely to accept four demands

As per news article by Tribune News Service the govt. may accept following 4 demands related to Armed forces pay fixation & One Rank One Pension issue:
1. Armed forces be given non-functional upgradation (NFU) to match their counterparts in the IPS, IAS and paramilitary forces.
2. The grade pay can be looked into.
3. It has agreed that a common payscale be evolved for in-service jawans.
4. It has agreed on removal of all anomalies towards one rank one pension (OROP).
Meanwhile, a fresh calculation has been ordered following a Supreme Court judgment relating to a 25-year-old pay-related case filed by Major Dhanapalan. The court ruled in his favour to correct the anomaly and will impact all officers who were serving then and now.
Read full article on Tribune [click here]
One Rank One Pension: Govt may accept 4 demands
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  • Outcome of Meeting for Armed forces and One Pension One Rank issue.
  • Meeting today to discuss pay, pension of Armed forces and One Pension One Rank issue.

  • Wednesday, June 6, 2012

    With economy plummeting Planning Commission enhances its peeing ambiance

    New Delhi: The Planning Commission has issued a statement in an attempt to explain why it spent 35 lakh rupees on renovating two toilets in its office.
    Montek Singh Ahluwalia, the Deputy Chairman of the Commission, avoided questions on Wednesday morning about the controversy. The expenditure was revealed by a Right to Information application filed by activist Subhash Agarwal who points out, "Cost of installation of Door Access Control System is Rs. 5,19,426 for two toilets. Cost of renovation of two toilets where door access control system is installed is Rs. 30,00,305."
    Social activist Nikhil Dey links that controversial statement to the swanky toilet plan. "There is almost everything that is wrong with what was done and with the justification for it. The Planning Commission represents planning for whom, the poor of the country. And there has been a dispute with their figures because there has been a perception with everyone that within the planning commission they have one standard for the poor and another for the rich. They were placing smart cards for entry into those toilets. That privatizes, reduces the number of those who can use it...it's a huge amount of money and it's that same planning commission that not only decides what the poverty line is but also decides on how much money can be spent on a toilet across the country," he says.
    Apart from the poverty line estimates issue, Mr Ahluwalia was also criticized recently after a newspaper reported, based on an RTI reply, that Rs. 2.02 lakh a day was spent by him on foreign travel between May and October, 2011. Another report said that he undertook 42 official trips (between June 2004-January 2011) of 274 days at a cost of Rs. 2.34 crore.
    Planning Commission renovates its Rest Rooms for Rs 35 lakhs
    Comment: What an irony? An American Bill Gates trying to build cheap toilets for Indian masses and sample Planning Commission's wasteful expenditure of Rs 35 lakhs on one single toilet...
    Reinventing a toilet that has an operational cost of $0.05 per user, per day, that does not rely on water to flush waste and does not discharge pollutants is Bill Gates' latest mission. "One of my ultimate dreams now is to reinvent the toilet - find a cheaper alternative to the flush toilet that does not require running water, has smell characteristics better than the flush toilet and is cheap."
    Reinventing the toilet is Bill Gates's new mission: click here

    Thursday, February 16, 2012

    Is Home Minister walking diplomatic tight rope?

    The portions in colour hit the nail on the head. The bureaucrats have no urgency and no accountability with the result our police and security agencies are severely handicapped.
    Same is the case with the Defence Services!
    Till funtioning of IAS and Finance is reformed, our governance and security will NOT repeat NOT come to required standards.
    Lt Gen Harbhajan Singh (Retd)

    Israel attack: Is Home Min walking diplomatic tight rope?
    February 14, 2012 21:56 IST

    While Home Minister P Chidambaram has declared the Israel embassy car bombing as a terror strike, he has opted not to name the perpetrators of the attack. Anil Chowdhry wonders why...
    One watched with concern the explosion in an Israeli embassy car near the prime minister's 7 Race Course house in New Delhi [ Images ] on television news channels on Monday. On Tuesday, a similar incident took place in Bangkok -- the Thailand capital was rocked by three explosions.
    While the Israeli establishment was prompt and forthright in holding Hezbollah and the Iranian government responsible for the attacks, Home Minister P Chidambaram has opted to not name any outfit. Whether he is clueless or trying to walk the diplomatic tight rope is anybody's guess.
    The vent sets me thinking as an ex-security person whether such incidents, apparently caused by highly trained and motivated terrorists can be prevented?
    Well, in my view, it is difficult for the police to prevent them, keeping in mind the volume of persons at any public place in the city and the chaotic condition of our roads. Detection of such cases, of course, depends a lot on public cooperation and technical and forensic expertise available to the police of the metropolis that is attacked.
    Well-planned deep penetration intelligence operations backed by technical intelligence inputs are very complex and need dexterous handling by experienced sleuths. Moreover, they need full support from the government to succeed in preventing terrorist attacks in public places.
    In both these areas our police and intelligence agencies are seriously handicapped by tight bureaucratic controls in the matter of recruitments, procurements, and purchases. I don't know about the other metropolitan police forces in the country but in Delhi, the police commissioner is rather tied up with several proposals from the home ministry aimed at making the police and intelligence agencies effective to counter terrorist organisations.
    Files keep making their endless journeys up and down the corridors of North Block between the Union Territory -- police divisions of the MHA to the expenditure division of the Ministry of Finance, all located on the same floors. And the blame game between the state police and central intelligence agencies invariably starts after such incidents. In Delhi it is less pronounced since both report to MHA.

    It is unimaginable that a capital city with a high level of threat from religious terrorist groups does not have in position a CCTV network even in its high security zone. It is yet not known if the Delhi police has been able to get hold of the number plate and photographs of the motorbike and its rider who is believed to have stuck the magnetic explosive device on the embassy car.
    I know that the IB's counter-terrorism wings and the operations unit of the Delhi police are manned by some of the best intelligence officers, but the lack of adequate technical intelligence support is a handicap for both.
    Let's hope that the HM, who has shown that he is a man of action and not words, is able to quickly fill this critical gap.
    (The writer is a retired member of the Indian Police Service.)
    Is Home Min walking diplomatic tight rope

    Wednesday, October 5, 2011

    Forces Rank Degradation: High Powered Committee a Farce

    Indian Military Duped?
    Readers would recall that during the rank-equation chaos days after the 6th CPC, the PMO had ordered the constitution of a High Powered Committee to resolve command & control and status issues vis-à-vis civil officers including those of the CAPFs and the IPS. The PMO had not issued any orders related to the members of the committee.
    The HPC has not been formulated or actually constituted till date. Many of us remain eager for its formulation in the hope that the HPC would go on to resolve and restore the lost status and sheen of the forces.
    I am personally of the opinion that we should not clamour for the committee.
    Why you may ask ?
    Because, in consequence to the directions of the PMO, the Finance Minister had issued a note to the MoD asking them to constitute the committee, a look at the members directed by the FM would be interesting :-
    The Cabinet Secretary as the Head of the Committee with the Defence Secretary, the Home Secretary, the Secretary (Personnel) and Secretary (Expenditure) as members.
    Now what do you expect out of a committee which does not even have one member from the actual stake holders, that is, the Defence Services?
    Zilch. Don’t wait for it.

    And by the way, what is the locus standi of the FM in directing the composition of the committee? Is it even a subject matter of the Fin Min?
    Posted by Navdeep / Maj Navdeep Singh
    Click here for the original post

    Friday, August 27, 2010

    Tax Exemption Limit to go up to Rs 2 Lakhs

    Outlook India New Delhi | Aug 26, 2010
    In a move that could leave more money in the hands of people, the Government today proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.

    The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to a select committee of members of both houses of Parliament.

    The bill also seeks to remove surcharge and cesses on corporate tax, which could provide relief to business houses.

    When asked what will be the limit of exemptions for income tax, Finance Minister Pranab Mukherjee told reporters after the Cabinet meeting that it is proposed to be raised to Rs 2 lakh from the current Rs 1.6 lakh.

    "The whole objective is that a plethora of exemptions will be limited. (Income) tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year," he said.

    On the corporate tax, he said it is sought to be retained at the present level of 30 per cent, but there will not be any surcharge or cesses on it.

    According to sources, the DTC bill is likely to be tabled in Parliament on Monday. Thereafter, it will be referred to the select committee, they added.

    When asked what the new income tax slabs would be, Mukherjee said, "that will be discussed in Parliament."

    Sources, however, said income between Rs 2-5 lakh is likely to attract a rate of 10 per cent, 20 per cent for Rs 5 -10 lakh bracket and 30 per cent above Rs 10 lakh.

    For senior citizens and females, the tax slabs are likely to be relaxed further, they added

    When contacted, senior officials in the Finance Ministry declined to comment on the slabs.

    At present, income between Rs 1.65 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for income above Rs 8 lakh.

    The first draft of the bill had suggested 10 per cent tax on income between Rs 1.60 lakh and Rs 10 lakh, 20 per cent on income between Rs 10 and Rs 25 lakh and 30 per cent beyond that.

    However, finance ministry officials had later said those slabs were just illustrative.

    The Bill, approved by Cabinet today, also seeks to impose minimum alternate tax (MAT) at 20 per cent of the book profit, compared to 18 per cent at present.

    The first draft had proposed to impose MAT on assets, which drew strong criticism from the industry. The MAT on book profit has been maintained in the revised draft as well.

    The first draft had also proposed to tax long-term savings like provident funds at the time of withdrawal. However, the revised draft exempted them, after the first draft drew flak.

    "Concerns were expressed for shifting from EEE (exempt, exempt, exempt) to EET (exempt, exempt, tax)," the Finance Minister said.

    This would also address the issue of taxing surplus funds of charitable institutions, he added.

    When enacted, the DTC will replace the archaic Income Tax Act and simplify the direct tax regime in the country.

    Finance Ministry officials exuded confidence that the Bill will come into force by the deadline of April 1, 2011.

    The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.

    "DTC will help in streamlining various tax exemptions, deductions and thereby bring in moderate tax rates. DTC would address most of the issues raised by corporate India, like, not imposing tax on gross assets, clarifying EEE, introducing graded deduction for capital gains among others," Ernst & Young Tax Market Leader Sudhir Kapadia said.
    Tax Exemption Limit to go up to Rs 2 Lakhs

    Friday, August 20, 2010

    Higher Rate of Interest under Senior Citizens Saving Scheme

    Friday, August 20, 2010 18:51 IST
    The Senior Citizens Savings Scheme, 2004 (SCSS), was designed to meet the need of a regular flow of income for the senior citizens and retired persons with security of investment, liquidity of funds and operation convenience. Keeping in view of the above, higher rate of interest at 9 percent per annum is offered to all senior citizens under this scheme. Persons who are 60 years of age and above can make a deposit under the scheme. Those retired persons who are 55 years of age and above but below 65 years are also eligible to invest their retirement benefits subject to maximum deposit limit of Rs.15 lakh under the scheme.

    Facility of loan or overdraft against the deposit would necessitate pledging of the deposit under this scheme. As a consequence, the subscriber of a pledged account will not be able to withdraw the interest amount periodically defeating the very purpose of the scheme.

    This information was provided by the Minister of State for Finance, Shri Namo Narain Meena in reply to an Unstarred Question in Lok Sabha today. **** DSM/SKK
    Higher Rate of Interest under Senior Citizens Saving Scheme

    Saturday, May 29, 2010

    Governance: Finance Minister to dedicate IT CPC to the Nation

    The Union Finance Minister, Shri Pranab Mukherjee will dedicate the Centralized Processing Centre (CPC) of the Income Tax department at Bengaluru to the nation today on 29th May 2010.

    The Income Tax department has set up the Centralized Processing Centre (CPC) at Bengaluru for bulk processing of income tax returns. The CPC will process all electronic tax returns of the entire country, and physical returns of Karnataka and Goa regions. It is equipped with a dedicated call centre, where taxpayers can enquire about the status of their returns and refunds, and also has a remote record storage unit, which would reduce congestion in the IT offices.

    The CPC is a flagship e-governance project of the Government of India. It promises to significantly improve delivery of citizen-centric services in line with best international practices. DSM/BY
    FM to Dedicate I-T Department’s CPC at Bengaluru to Nation

    Wednesday, July 15, 2009

    IESM: Chairman's Desk

    Date: Tuesday, 14 July, 2009, 10:23 PM
    Dear Colleagues,
    The Statement made in the Parliament by the Defence Minister on 13 July does little to clear the fog. In fact it further adds to the confusion prevailing on the issue of pension benefits. It is clear that although they all have been using the term ‘one rank one pension’, that is not what they apparently intend to sanction.
    The ESM are advised to wait for government orders to be issued in black and white. Circulating individual interpretations in the form of speculative tables might not do us any good. In fact it might even shock and stun the gullible when the reality does not match with the hyped hopes that get built up.
    Best regards,
    Lt Gen (Emeritus) Raj Kadyan, PVSM, AVSM, VSM
    Chairman IESM

    Monday, July 6, 2009

    Government accepts recommendation of one-rank-one pension for ex-servicemen

    July 6th, 2009 - 4:35 pm ICT by ANI
    New Delhi, July 6 (ANI): Finance Minister Pranab Mukherjee on Monday said that the Government has decided to substantially improve the pension of pre 01.01.2006 defence pensioners below officer rank and bring pre 10.10.1997 pensioners on par with post 10.10.1997 pensioners.

    Presenting the Budget proposals for the year 2009-10 in Lok Sabha, Mukherjee said that it was based on the recommendation of the Committee headed by the Cabinet Secretary on One Rank One Pension (OROP).

    The Minister further said that these decisions will be implemented from July 1, 2009 and will cost the exchequer more than Rs. 2100 crore annually.

    “These measures will benefit more than 12 lakh Jawans and JCOs. Certain pension benefits being extended to war wounded and other disabled pensioners are also being liberalized,” he added.

    Under the one-rank one-pension scheme, a retired defence personnel of a particular rank would be entitled to same amount of pension irrespective of the year of retirement. (ANI)
    Government accepts recommendation of one-rank-one pension for ex-servicemen

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