Budget focus on agriculture, rural; income tax rates, slabs unchanged

Agencies
February 1, 2018

New Delhi, Feb 1: A slew of measures for the agriculture and rural sectors, a new health insurance scheme for the poor and some relief in income tax for the salaried class and senior citizens, were announced by Finance Minister Arun Jaitley today in the last full budget before the general elections.

Presenting his fifth straight budget in the Lok Sabha, Jaitley raised the health and education cess, levied on all taxable income, to 4 percent from current 3 percent, and introduced a social welfare surcharge of 10 percent to fund social welfare schemes.

He lowered the corporate tax for small, micro and medium enterprises with a turnover of up to Rs 250 crore to 25 percent from current 30 percent while reintroducing the tax on long-term capital gains of over Rs 1 lakh made from the sale of shares.

While keeping the income tax rates and slabs unchanged, Jaitley introduced a Rs 40,000 Standard Deduction for salaried employees and pensioners in lieu of transport and medical expenses.

For senior citizens, exemption of interest income on bank deposits was raised to Rs 50,000 from the current Rs 10,000, he said, adding that tax will not be deducted at source on fixed deposits.

Also, exemption on medical expenses on critical illness has been raised to Rs 1 lakh, he said in his 110-minute speech.

Jaitley said a 10 percent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till January 31 would be grandfathered.

A 10 percent tax on distributed income by equity-oriented mutual funds has also been proposed in the budget.

With excise duty and service tax being subsumed in the Goods and Services Tax (GST), Jaitley made changes only in customs duty -- raising them in case of mobile phones and lowering for raw cashew.

Stating that the focus of the government in the coming fiscal would be agriculture and rural India, the Finance Minister announced that all Kharif crop would be paid a minimum support price (MSP) that is 50 percent more than the cost of production.

He announced that credit to agriculture would be raised to Rs 11 lakh crore in the coming fiscal from Rs 10 lakh crore.

Kisan credit card will be extended to fisheries and animal husbandry farmers while Rs 2,000 crore provided for the development of agriculture market.

In a bid to provide universal healthcare, he announced a 'National Health Protection scheme' to provide health cover of up to Rs 5 lakh to each of the 10 crore poor families per year.

But to fund these, he let go of the fiscal consolidation roadmap. As a result, the fiscal deficit for current fiscal will widen to 3.5 percent of the GDP as against 3.2 percent previously targeted, and to 3.3 percent in FY'19 as opposed to 3 percent previously targeted.

Fiscal deficit in 2016-17 was 3.5 percent of the GDP.

"We have worked sincerely without thinking about the political cost," he said.

Jaitley also announced 100 percent tax deduction for farm producer firms with Rs 100 crore turnover. The standard deduction allowed will benefit 2.5 crore people.

The target for providing free LPG connection to poor has been raised to 8 crores from 5 crores and 4 crore poor households will be provided free electricity connections.

President's emoluments have been raised to Rs 5 lakh per month and that of Vice President to Rs 4 lakh and Governors to Rs 3.5 lakh a month.

For members of parliament, he announced a new law that would allow for an automatic revision in their emoluments every five years based on inflation.

He said the focus will be on the agricultre sector, infrastructure and education sector as he promised to provide education holistically without segmentation from pre-nursery to Class-12 and move from blackboard to digital board.

The emphasis would be on generating higher income for farmers. Our government wants to help farmers produce more and realise higher prices, Jaitley said.

Stating that crop production is at record high, Jaitley said the government is committed to giving 50 percent more than cost of crop production to farmers.

He said when the NDA government took over, India was considered one of the fragile five economies of the world and the Modi-led Government have reversed it. "India is today fastest growing economy... India is today a USD 2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest," he said, projecting exports growth at 15 percent. In the second half (October-March) the growth is expected to be 7.2-7.5 percent and firmly on path to achieve 8 percent growth.

Stating that air pollution in Delhi NCR is a cause for concern, he said the Centre will implement special scheme to support state Governments of Haryana, Punjab, UP and Delhi NCT to address it and subsidise machinery for management of crop residue. The Budget announced allocation of Rs 600 crore towards nutritional support of tuberculosis patients and setting up of 24 new medical colleges and hospitals by upgrading district level ones. The Government is slowly but steadily progressing towards universal health coverage and total budget for health, education and social security has been increased to Rs 1.38 lakh crore for 2018-19 from Rs 1.22 lakh crore in current fiscal. Stating that Rs 4.6 lakh crore has been sanctioned under MUDRA Scheme, he said government will soon announce scheme to address the issue of Non-Performing Assets in MSME sector.

Mass formalisation of MSME sector is happening after demonetisation and GST and the target for loan disbursement under Mudra scheme has been set at Rs 3 lakh crore for next fiscal. Employees PF Act will be amended to reduce contribution of women to 8 percent from 12 percent for first three years, with no change in employer's contribution, Jaitley said. The Government will contribute 12 percent of wages of new employees in EPF for all sectors for the next 3 years, he said. He said Rs 50 lakh crore is needed for infrastructure building and Government will allocate Rs 7,140 crore for textiles sector in next year National Highways exceeding 9,000-km will be completed in 2018-19 and allocation of over Rs 1.48 lakh crore has been planned for railways.

Regional air connectivity scheme shall connect 56 unserved airports and 31 unserved helipads and Government will expand capacity of airports by five times to cate to one billion trips a year.

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News Network
November 21,2024

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After the US prosecutors charged Gautam Adani with bribery and fraud, Congress reiterated its call for a Joint Parliamentary Committee (JPC) probe into the transactions of the Adani group, and hit out at Prime Minister Narendra Modi, alleging an "internal nexus" between him and "his favourite businessman."

Senior Congress leader Jairam Ramesh said the indictment of Gautam Adani and others by the US Securities and Exchange Commission validates his party’s call for a Joint Parliamentary Committee investigation.

The Congress has been pushing for the probe since January 2023, raising concerns over alleged irregularities involving Adani and his business dealings, said Ramesh.

Ramesh referred to the party’s “Hum Adani ke Hain” series, where 100 questions were raised about the alleged scams and the links between Prime Minister Narendra Modi and Gautam Adani.
He noted that the questions remain unanswered, reiterating the need for accountability in the matter.

The US prosecutors have charged Adani with deceiving investors by concealing information about his firm's solar energy project in India, which allegedly involved bribery.

Adani has been charged with securities fraud and conspiracy, according to an indictment unsealed on Wednesday. The case focusses on an agreement between Adani Green Energy Ltd. and another organisation to supply 12 gigawatts of solar power to the Indian government.

'BETRAYAL OF INDIAN INVESTORS'

Congress leader Pawan Khera described the allegations against Gautam Adani and his conglomerate as a “betrayal of Indian investors.”

Taking to X, Khera outlined the US charges, including claims that Adani’s group bribed Indian government officials between 2020 and 2024 to secure contracts. Citing media reports, he also pointed out that Gautam Adani personally met a government official to advance the scheme.

Khera referred to a March 2024 incident where the Adani Group allegedly misled the Bombay Stock Exchange and the National Stock Exchange, calling it a “grave violation of investor trust.”

He further highlighted a March 2023 FBI raid on the premises of Sagar Adani, Gautam Adani’s nephew, where electronic devices were seized as part of the investigation.

'SEBI NOT ABLE TO PROVE ANY CHARGES AGAINST ADANI'

Shiv Sena (UBT) leader Priyanka Chaturvedi criticised central probe agencies following US charges against Gautam Adani and others in an alleged bribery case linked to solar energy contracts.

Chaturvedi raised concerns about corporate governance and regulatory oversight in the country. “They talk about corporate governance, responsibility, and accountability. The industrialists should be asked to follow the rules and regulations, but even the agencies were defending him. The SEBI has not yet been able to prove charges against him,” she said, pointing to what she viewed as failures in ensuring accountability.

'BROUGHT DISREPUTE TO INDIA'

On US charges against Gautam Adani, AAP leader Sanjay Singh called for a probe against the industrialist. He said that the probe should be conducted by an investigation agency under the Supreme Court.

"Adani Group has brought disrepute to India. This is a very serious matter. The PM of India should come forward and answer this. All the pending matters against Adani should be probed by an investigation agency under Supreme Court monitoring, and all the corruption done by him, within and outside the country, should come out before the country and action should be taken against him," he said.

BJP DFENDS

BJP IT cell chief Amit Malviya responded sharply to the Opposition’s criticism regarding allegations involving Adani Green Energy and US-based Azure Power. He pointed out that the charges in the indictment are only allegations and emphasised, “The defendants are presumed innocent unless and until proven guilty.”

Malviya argued that the crux of the case concerns agreements to supply 12 GW of power to the Solar Energy Corporation of India (SECI), contingent on SECI securing power purchase agreements with state electricity distribution companies (SDCs).

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News Network
November 11,2024

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Mangaluru: In a deeply tragic turn of events, a 28-year-old woman named Ranjitha, who had recently given birth but tragically lost her newborn, ended her life by suicide on Monday. She reportedly leapt from the fourth-floor window of Lady Goschen Hospital’s luggage room.

Ranjitha, whose strength and resilience had carried her through a difficult pregnancy, was scheduled for discharge on Monday. Her journey to Lady Goschen Hospital began on October 24, when she was transferred from Karkala. She was a high-risk patient, battling both hypertension and diabetes. At the time of her admission, she was just 27 weeks pregnant.

Due to the complexities of her health, doctors made the difficult decision to perform an emergency C-section on October 30. She delivered a baby girl, premature and weighing only 960 grams. The newborn was immediately moved to the Neonatal Intensive Care Unit, where doctors did all they could. Despite these efforts, the baby passed away on November 3.

Ranjitha’s sorrow was profound. She stayed under hospital care even after her initial recovery and was preparing to go home on November 9. She had even requested a couple more days at the hospital, seeking time perhaps to cope with her unimaginable grief.

On the day of her discharge, a discharge card ready and her family eagerly waiting to take her home, Ranjitha reportedly made her way to the luggage room in the early hours. There, standing on a cot placed for patients' family members, she climbed to a window and fell from the fourth floor. Despite the attempts of another visitor to intervene, tragedy was inevitable. She was rushed to Government Wenlock Hospital, where doctors confirmed the worst—she was no more.

Dr. Durgaparasad M R, the Medical Superintendent at Lady Goschen Hospital, shared his grief and spoke of the ongoing investigation. A post-mortem is to be conducted, and the local Tahsildar will complete the necessary inquest procedures. Ranjitha’s exact reasons for taking this step are yet to be confirmed, though the weight of her recent losses paints a sorrowful picture.

If you or anyone you know is struggling emotionally, please remember that help is available. Reach out to mental health experts who can provide support and guidance. The toll-free helpline number 9152987821 is available to assist anyone in distress.

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News Network
November 15,2024

Udupi: The Tourism Department is planning a major eco-friendly development initiative for Kamini Island, located near the Blue Flag-certified Padubidri End Point beach, aiming to attract more visitors while maintaining environmental sustainability.

Assistant Director Kumar CU emphasized that, given the island’s proximity to the Blue Flag beach, all development efforts will center around eco-friendly practices. “We are looking to enhance the Kamini River and the island’s surroundings by adding a hanging bridge, nature trails, and eco-friendly food courts offering traditional cuisine. Visitors will also be able to reach the island by pedal boats or kayaking,” he said.

The development project is estimated to cost between Rs 3 crore and Rs 4 crore. Meanwhile, the Blue Flag beach, Padubidri, continues to see a steady flow of visitors. Vijay Shetty, manager of the beach, shared that tenders for food courts and water sports have been awarded to private parties. Recently, three new coracles have been introduced, which are proving to be a hit with visitors. Additionally, three more shelters are expected to be ready by November 20.

Shetty mentioned that the beach can now accommodate between 2,500 and 3,000 visitors daily, although footfall remains lower than other district beaches due to user fees and activity restrictions. “Initially, most visitors were from Mangaluru, but now nearly 40% come from other districts, showing a shift in the visitor demographics,” Shetty noted.

To further boost tourism and promote a healthy lifestyle, a Beach Carnival is set to take place on November 23-24, featuring the National Sea Swimming Championship and a sea marathon in collaboration with the Padubidri JCI, which is celebrating its golden jubilee. Cultural events will be held at the main beach, with some sports events taking place at the Blue Flag beach. Emphasis will be placed on making all activities environmentally friendly.

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