Budget 2018: FM Arun Jaitley chairs pre-Budget 2018 meet with state finance ministers

The Union Budget for 2018-19 will be presented in Parliament on February 1.

 India Finance Minister Arun Jaitley Delivers Annual Budget Statement

Budget 2018 : 

Finance Minister Arun Jaitley on Thursday held pre-Budget consultations with his state counterparts during which they offered suggestions on various fiscal policy and budgetary measures.

This is part of the customary pre-Budget consultation which the Union Finance Minister holds with his state peers.

During the meeting, Jaitley said the suggestions made by the states/union territories (UTs) and the memorandum submitted by them would be duly examined and suitably considered while formulating the Budget proposals of 2018-19, taking into consideration the spirit of cooperative federalism.

The meeting was attended by the chief ministers of Himachal Pradesh and Puducherry, the deputy chief ministers of Bihar, Delhi, Gujarat, Manipur and Tamil Nadu, 14 finance ministers/ministers representing their states, among others.

The Union Budget for 2018-19 will be presented in Parliament on February 1.

Click to Read → Union Budget 2018

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Budget 2018: Govt may raise health spending by 11%, less than requested

Nadda sought a ‘bare minimum’ budget of nearly $10 billion for 2018-19, which is 33% higher than last year.

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Budget 2018 : India is poised to raise its public health spending by 11 per cent in the annual budget next month, after rejecting Health Minister JP Nadda’s demand for a much bigger increase to ramp up disease control, according to government sources and documents.

Nadda sought a “bare minimum” budget of nearly $10 billion for 2018-19, which is 33 per cent higher than last year, in a letter to the finance minister on Nov. 26, which Reuters has reviewed.

Nadda argued the funds were needed for expanding vaccination coverage, free drugs distribution, and also to ward off a growing threat of non-communicable diseases, such as cancer and diabetes, which killed 6 million people in India in 2016.

His request was not approved: the health budget is expected to rise by 11 per cent to $8.2 billion, three government officials told Reuters. They declined to be named or be identified further as the discussions were confidential.

Prime Minister Narendra Modi’s government last year set a target of raising annual health spending to 2.5 percent of India’s GDP by 2025, from 1.15 percent now – one of the lowest proportions in the world.

The health budget this year will put that pledge at risk.

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Budget 2018: Will infra industry get an allocation boost from FM Jaitley?

Industry wants the government to focus on reducing timelines from project conception to completion

India Finance Minister Arun Jaitley Delivers Annual Budget Statement
Budget 2018 : it is relied on that hobby in India’s foundation industry would yield greater impact if every unmarried related assignment are organized and conveyed on a comparable timetable.
This is regarded as key to the fulfillment mainly of modern-day halls and hubs being arranged. underneath the Sagarmala interest, ports are presently being integrated with streets, railroads, and seaside the front current zones/SEZs.
Dedicated cargo halls may be a key section, but there appears, by way of all debts, to be limited increase after the preliminary two passageways.
Commercial enterprise preferred and percent take a gander at the cutting-edge condition of the muse component, key issues confronting it, and what the commercial enterprise wishes from back Priest Arun Jaitley inside the up and coming Union Spending plan 2018-19.

What industry wants

  • Sector specific mechanism to fast-track addressing of financial stress. This should include addressing large amounts under dispute
  • NIIF could play a catalytic role in furthering the secondary market, as well as creating new opportunities for channeling private investments.
  • Single-window approach for clearances in highway projects, and digitisation of revenue records.
  • Use of technology in collecting user-charges and monitoring performance, to minimize disputes
  • Revival of PPPs through recommendations in Kelkar Committee report, as also by opening up new sectors. Use of HAM model with strong counter-party; and leveraging existing cashflows, where user-charges are predictable

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Budget 2018: Drop GST rate on biodiesel from 18% to 5%, demands industry

Levy on Biodiesel has gone from 6% in excise duty to 18% in GST.

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Budget 2018 : Endeavoring to get by despite the organization ‘s clean essentialness dream, biodiesel ventures have asked for the Products and Administration Expense (GST) rate on them be cut from the present 18 to 5 for every penny.

The ask for came days after sun arranged industry made an equivalent pitch, communicating while the suspicious request on the daylight based sheets is killing the Indian business and giving an edge to Chinese exporters.

On Tuesday, the Biodiesel Relationship of India (BDAI) stayed in contact with Union Back Clergyman Arun Jaitley and Fund Clergymen of West Bengal and Rajasthan searching for a diminishment of high GST rate.

The apex business body pointed out that while there is an epic capacity of making more cleaner fuel in India, the remarkable correct has obtained the business at the “edge of demolition”.

With the use of GST from July 1 2017, require on Biodiesel has gone from 6 for every penny in separate commitment to 18 for every penny in GST.

“This has made Biodiesel costlier than Rapid Diesel (HSD) and biodiesel customers won’t get any Information Acknowledgment for use of it. Both these set up together, the convincing cost of Biodiesel has ended up being unviable to the end customers. At last the entire Biodiesel industry will stop, regardless of this Green Fuel having such condition and social focal points,” BDAI said in the letters.

Made clearly from palatable oil in earn back the original investment with sum, of which India is a minute most critical customer, the bio-diesel helps in lessening the releases by 30 to 100 for every penny, dependent upon its blend in the common diesel.

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Budget 2018: As jobs remain big headache, govt looks at tax tweaks for fix

One way the government could give job creation a boost is by tweaking taxation laws to provide companies an incentive for hiring.

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Budget 2018 : Job creation is one of Modi government’s most prominent troubles, with the Resistance using what it calls the organization’s poor execution in such way as a stick to beat the PM’s money related methodologies with. With Spending design 2018 not as much as a month away, and with business age purportedly being a key point this year, one way the organization could give work creation a lift is by tweaking charge appraisal laws to give associations a rousing power to contracting.

India starting at now gives tax breaks to help work creation by associations. Regardless, as showed by a Seasons of India report, certain lacunae in the rules have kept numerous associations, particularly from the organizations part, from accepting the prizes of such driving forces.

In context of this, according to the national step by step, the organization could change Segment 80JJAA – which sets out conditions under which an association can profit of conclusions in respect of work of new agents – of the Salary Assessment (I-T) Act or present some new game plan.

Under the Section, 30 for each penny of the extra worker cost is accessible to the concerned organization as a reasoning for a long time, including the time of enlisting the new employee(s). Just organizations having a turnover of Rs 10 million or more are qualified to guarantee benefits for any new business made by them. The fallen angel, in any case, is in the subtle elements. Among the Segment’s different conditions under which another specialist isn’t viewed as an extra representative, two specifically appear to have contrarily affected occupation creation, as indicated by the national every day.

Right off the bat, if a man is utilized for under 240 days in the primary year of his work with the concerned organization, at that point he or she isn’t viewed as an extra or new worker. Just the material part appreciates a lower edge of 150 days in such manner. Besides, a worker whose aggregate payments are more than Rs 25,000 every month is likewise not considered an extra representative – the compensation of such a representative is avoided when processing extra representative cost, against which the advantage is accessible.

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Budget 2018: Why India merged Railway, Union Budget in 2017

NITI Aayog report stated that as the size of the Railway Budget has shrunken when compared to the overall general budget, presenting the Railway Budget separately is not required.

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Budget 2018 : On 21 September 2016, Government of India embraced the merger of the Railroad Spending design with the Union spending design of India, and on along these lines came to stop — a 92-year-old routine concerning disconnect rail and broad spending designs. the determination of merger transformed into conveyed with impelling the date of the Union Spending design inside the Parliament under the method of budgetary changes taken up by the assembly.

past, NITI Aayog (countrywide association for evolving India), which constituted a leading group of trustees headed by means of budgetary expert and NITI Aayog segment Bibek Debroy, made a whitepaper and endorsed that the English span rehearse should be wiped out.

The rules have been sent to the Railroad administration, and after that past rail line serve Suresh Prabhu, in a letter, asked for Arun Jaitley to merge the Railroad Spending design with the general spending anticipate the protracted pull excitement of both the rail lines and the kingdom’s money related framework. in the wake of bringing the issue up in the Rajya Sabha, Fund Priest Arun Jaitley constituted a leading body of trustees to characterize the future strategy.

The demonstration of an excellent Railroad Spending design was started by utilizing the English in 1924 underneath the proposition of a 10-part Acworth Board headed by English business endeavor investigator William Mitchell Acworth in 1920-21. At that factor the country’s GDP (Gross residential item) generally depended upon railroad’s income, certainty be exhorted, by then the Rail way Spending arrangement end up plainly eighty four for every penny of the general spending design.

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Budget 2018: Modi govt targets disinvestment receipts of Rs 900 billion

The ONGC-HPCL deal is likely to fetch the government Rs 300 billion, the report said quoting sources.

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Budget 2018 : Eyeing Rs 1 trillion budget target through disinvestment for next fiscal, the Modi government may end FY18 with Rs 900 billion selloff, almost twice the record figure of Rs 460 billion achieved last year, on the back of its stake sale in Hindustan Petroleum Corporation (HPCL) to Oil and Natural Gas Corporation (ONGC), according to The Time of India report.

The deal is likely to fetch the government Rs 300 billion, the report said quoting sources.

The sale of the government’s stake in HPCL to ONGC is stuck on valuation. According to persons close to the development, the effort was to close the deal before the end of this month but the government was looking at getting a higher value for its 51.1 per cent stake in HPCL.

Based on the current market capitalisation, a 51 per cent in HPCL is valued at Rs 323 billion, about Rs 23 billion higher than in last July when the Union Cabinet had cleared the sell-off. However, reports suggest that after evaluating the marketing network, physical assets and brand value of HPCL, the valuation could be around Rs 450 billion.

The Cabinet Committee on Economic Affairs had given in-principle approval for the strategic sale on July 19 last year.

The government’s non-tax revenue is hugely dependent on the deal. As on January 2, total disinvestment proceeds for 2017-18 stood at Rs 538 billion against the target of RS 725 billion set by Finance Minister Arun Jaitley. If the ONGC-HPCL deal works out, this will be first time since 2009 that the government would be surpassing the disinvestment target.

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Budget 2018: Railways to install escalators, lifts at all major stations

Railways recently revised the criteria for making urban and suburban stations eligible for installation of escalators.

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Budget 2018 : With the aim of providing higher amenities, Railways can build a budget provision of Rs thirty four billion for fitting concerning 3,000 escalators and 1,000 lifts at all major urban and suburban stations across the country.

This will facilitate swish movement of passengers, along side recent and physically-challenged people.

While 372 escalators square measure meant to hide all stations as well as Kandivali, Matunga, Bandra, Churchgate, Dadar, Elphinstone Road, Mahalakshmi and Jogeshwari in Mumbai, 2,589 escalators square measure aiming to be put in at stations on the rail network among the country.

According to a railway ministry official WHO did not would like to be named, Large-scale installation of escalators associated lifts would end in an economy of scale, with a reduction in price. At present, associate escalator costs around Rs 10 million and a carry concerning Rs four million.

Railways recently revised the factors for making urban and community stations eligible for installation of escalators from earnings-basis to footfalls.

Now all those stations that have twenty 5,000 footfalls or loads of a year unit of measurement chosen for such installations. Earlier, those stations that had annual revenue move between Rs eighty million and Rs 600 million were eligible for the facility.

The Rail Budget, unified with the foremost Budget, square measure aiming to be undraped by executive director Arun Jaitley in Parliament on Feb 1.

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Budget 2018: Will Narendra Modi govt fulfill housing expectations of millions?

To provide relief to home buyers as well as encourage investment in under-construction properties.

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Budget 2018 : The “Housing for All by means of 2022” undertaking has set the degree for a robust healing inside the residential belongings market. in the past two years, we’ve got visible an remarkable consciousness on reforms channelized via the Benami Transactions (Prohibition) modification Act 2016, demonetization, real property Regulatory Act (RERA) and the products and offerings Tax (GST) regime.

So, this time, the price range for FY2018-19 might be a whole lot extra crucial than ever. The provisions, if moved in fine directions, can have the power to keep the momentum and cement home buyers’ confidence.

Even as such a lot of difficult decisions have already been taken, it will be worthwhile to rationalize similarly the direct tax systems impacting domestic customers. I trust that there is room for improvement in some of the top profits tax (IT) provisions intended to incentive’s the house customers.

Section 54 & 54F: Under these sections, a home buyer can claim an exemption for long-term capital gains if he/she invests the sale proceeds of 1 assets to shop for another within 3 years. but, the character can lose this benefit if the assets is not finished inside three years.

This condition penalizes a domestic consumer for a purpose that is out of his manipulate. Residential tasks take anywhere from 3-7 years and given the prevailing situation, the duration of 3 years isn’t always practical. this period must be raised to 5 years.

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Budget 2018: What technology sector can expect from FM Arun Jaitley

Among the key issues facing the technology sector in India at present are changing rules and regulations concerning the newer technologies such as artificial intelligence, cloud, etc.

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Union Budget of India :

The upcoming Budget 2018 will be crucial for India’s technology sector, especially as the country has scaled many milestones in the field. Technology start-ups have Budget expectations that the finance minister would like to take into account as he prepares the Union Budget 2018-19.

Among the key issues facing the technology sector in India at present are changing rules and regulations concerning the newer technologies such as artificial intelligence, cloud, etc. These changing rules impact incumbent players the most.

Also, the impact of new regulations like the US H1B visa issue and GDPR could result in higher deployment costs for India’s technology majors, besides, of course, the increased compliance costs.

The industry has been seeking that adjustments to past years’ income emanating from APAs should be recognised as income of those years itself. Besides, equalisation levy should be treated as tax on income and be eligible for tax credit in a foreign country to the overseas online ad businesses, some industry At present, there has been a convergence in online-offline business models in the e-commerce sector, largely due to heightened competition.

Amit Sinha, chief operating officer of Paytm Mall, said: “The government has made great progress in formalising economy through the goods and services tax (GST) and Aadhaar, among its many other landmark initiatives. I hope this Budget enables our fellow Indians and small businesses to reap benefits of this formalisation of the economy. Encouraging lending based on GST data can be one such step in this direction. I also believe that developing a policy framework and allocating budget to enable small value lending without excessive documentation can further help small businesses.”

Click to Read → Union Budget of India 2018