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Fact-checking the budget: some false claims, some shortcomings, esp the ‘dole’ to farmers

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Piyush Goyal

[vc_row][vc_column][vc_column_text]Seen as an ‘election budget’ by all, including the upbeat members of government and the ruling BJP, the Budget 2019 with provisions that goes well beyond the ‘interim’ period of the three-month remaining term of this dispensation was found wanting by analysts with regard to some facts and promises.

As for the much flaunted sops for the poor and farmers, a look at the provisions made revealed them to be misleading and meaningless. The ‘smart’ move with regard to farmers is that the payment for Rs.6,000 annual income will start retrospectively from December 2018, and the first instalment of Rs.2,000 will be deposited in farmers’ account this March: just in time for 2019 Lok Sabha election.

The allocation for MGNREGA, about which the initial claim of an increase was followed by silence, is Rs. 60,000 crore.

This is 1.8% lower than the Rs 61,084 crore (revised estimate) allocated for 2018-19.

In February 2018, the Union budget had earmarked Rs 55,000 crore to the demand-driven rural employment scheme. In January 2019, the government had to allocate an additional Rs 6,084 crore to the programme to meet its financial demands, thus taking up the total amount to be spent in the financial year 2018-19 to Rs 61,084 crore.

For the last few years, though the demand for MGNREGA has been steadily increasing, the government has not been able to address it fully, leading to pending liabilities.

Prior to the presentation of the 2018 full budget, NREGA Sangharsh Morcha, a country-wide coalition of organisations and individuals, had submitted a memorandum to the Union finance ministry stating that there should be an annual allocation in the range of Rs 80,000 crore to be able to minimally function as per its legal provisions.

A shortfall would aggravate problems of implementation and pending liabilities, leaving the poor short-changed.

PM Kisan Samman Nidhi

Narendra Modi government’s income support scheme for small farmers – those cultivating up to two hectares of land – is Rs.6,000 a year, or Rs 500 per month. Considering a household size of five, this is 1/8th the rural poverty line of Rs 816 per person per month.

The allocation of Rs.20,000 crore in the interim budget (out of the total Rs.75,000 crore) falls short of meeting even this target. According to 2015-16 Agriculture Census, the  small  and  marginal  holdings  taken  together  (0.00-2.00  ha) constituted  86.21% of total 14.6 crore operational  holdings in  the  country, or a total of over 12.58 crore. If Rs. 2000/- is allocated for each small & marginal farm household as part of 1st instalment, then the total spending (cost) under PM Kisan Samman Nidhi would be 25,160 crore.

But the interim budget has allocated only Rs. 20,000 crore for 2018-19 (R.E.). So, even if landless farmers, SC-ST farmers, women farmers, sharecroppers and tenant farmers are kept aside, not all the small and marginal households can get covered under the income support scheme (assuming that 1 household operates one holding

Agriculture and food policy expert Devinder Sharma who has been advocating a fixed annual income for farmers was surprised at the figures allocated for the purpose. “How can they seriously think that a support of Rs 500 per month will help farmers out of the terrible agrarian crisis. And how will it help reduce the number of farmers suicides.”

The announcement is also discriminatory in nature. The measure is meant for small farmers with less than two hectares of land and does not take into account the 40% tenant farmers and agricultural workers who had been left out of the Budget altogether. The forest rights being demanded by the Adivasis and tribals has not even been acknowledged.

Ashok Gulati, chair professor for agriculture at ICRIER, writing in The Indian Express, said  that the direct income support to farmers of total Rs..75,000 crore is nowhere near the annual loss of about Rs 2,65,000 crore that farmers have been suffering in recent years because of the low prices they have received due to restrictive marketing and trade policies. “Until major marketing reforms are initiated, there is no hope of doubling farmers’ real incomes by 2022-23,” he wrote.

Moreover, the budget has nothing to create jobs. Gulati said: “It is more like using band-aid where surgery was required.”

Apart from the shortcomings in these two of the major announcements, several of the claims of Interim Finance Minister Piyush Goyal were contested by FactChecker.in of The Spending and Policy Research Foundation which verifies the claims made by those in public life and has been certified by the International Fact-Checking Network, a unit of the Poynter Institute.

Pradhan Mantri Awas Yojana (PMAY)

Claim: 1.53 crore (15.3 million) houses constructed.

Fact: As of December 2018, at least 3.65 million houses were constructed under PMAY, according to government data. Of these, 1.25 million were constructed in urban areas whereas 2.4 million in rural areas.

Foreign Direct Investment

Claim: India could attract massive amount of Foreign Direct Investment (FDI) during the last five years- as much as $239 billion.

Fact: True. But the rate of growth of FDI inflows have declined from 25 percent in 2014-15 and 23 percent in 2015-16 to eight percent in 2016-17 and one percent in 2017-18.

Distribution of LED Bulbs

Claim: At least 143 crore (1.43 billion) bulbs distributed that will save Rs 50,000 crore.

Fact: Till date, 32.3 crore (323 million) LED bulbs have been distributed, as per official records.

Swachh Bharat Mission

Claim: Mindset change achieved.

Fact: In 2018, 40 percent households with a toilet, according to a SQUAT Survey, had at least one member who defecated in the open

Pradhan Mantri Kaushal Vikas Yojana

Claim: Over one crore (10 million) youth being trained to help them earn a livelihood.

Fact: Between July 2016 to 30 November 2018, under PM’s Skill Development Programme (second edition) as many as 3.6 million or 36 percent of the target had enrolled and 3.39 million (34 percent) had been trained. In the first edition, between July 2015 to and June 2016, 1.9 million were trained, as per government data.

Also Read: No Vote on Account; Modi govt presents an election Budget ‘interim’ only in name

The first edition was severely criticised for several shortcomings including low level of placements, low quality of training and inflated training numbers.

Mobile Manufacturing Units

Claim: Under Make in India initiative, mobiles and part manufacturing companies have increased from two to 268, providing huge job opportunities.

Also Read: Opposition parties calls Interim Budget a jumla, can’t be implemented

Fact: As of August 2018, there were 127 mobile manufacturing units in the country, the government told Lok Sabha citing information provided by the Indian Cellular Association.

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India News

Modi says right time to invest in Indian shipping sector; meets global CEOs

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Prime Minister Narendra Modi on Wednesday exhorted global investors to take bets on the Indian shipping sector, pointing out that this is the “right time” for such a move.

The Prime Minister also met a select chief executives of global majors, including DP World and APM, at a specially convened meeting on the sidelines of the India Maritime Week 2025 held here.

“For all of you hailing from different countries, this is the right time to work in the Indian shipping sector and also expand (your presence),” Modi said during a public address before the closed-door meeting with CEOs.

Modi listed several targets being chased by India in the maritime sector over the next few years, and underlined the importance of the global community in the same.

“You all are an important partner who will help us achieve all our aims. We welcome your ideas, innovations and investments,” Modi said.

He said that India allows 100 per cent foreign direct investment in the shipping and ports sector, and also provides incentives under the “Make In India, and Make For The World” vision.

Addressing an audience, including leaders of various companies, the Prime Minister affirmed India’s commitment to strengthening the supply chain resilience at a global level.

He also said that India is engaged in creating world-class mega ports, and cited the work undertaken on the Vadhavan Port to the north of the financial capital, which entered the top-10 firms in the world on the first day.

The government is also looking to grow the capacity at 12 major ports by four times and increase India’s share in containerised cargo at the global level.

Later, Modi held a meeting with top CEOs of shipping sector companies from across the world.

As per people in the know, he met AP Moller-Maersk Chairman Robert Maersk Uggla, DP World Group Chairman Sultan Ahmed bin Sulayem, Mediterranean Shipping Company Chief Executive Soren Toft, Adani Ports and SEZ Managing Director Karan Adani and French company CMA-CGM’s Senior Vice President Ludovic Renou.

The participation from over 85 countries in the IMW sends a strong message, Modi said, noting the presence of CEOs of major shipping giants, startups, policymakers, and innovators at the event.

The Prime Minister also thanked Port of Singapore (PSA) for the nearly Rs 8,000 crore investment in the Jawaharlal Nehru Port Authority’s fourth terminal, pointing out that this is also the largest FDI in the port sector in India.

Modi said more than 150 new initiatives have been launched under the ‘Maritime India Vision’, resulting in nearly doubling the capacity of major ports, a substantial reduction in turnaround time, and a new momentum in cruise tourism.

—PTI

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Economy news

ITR filing last date today: What taxpayers must know about penalties and delays

The deadline for ITR filing ends today, September 15. Missing it may lead to penalties, interest charges, refund delays, and loss of tax benefits.

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Income Tax Return

The deadline to file Income Tax Returns (ITR) for most taxpayers, including salaried individuals, pensioners, and small businesses not requiring audit, ends today, September 15. Those who miss the due date face penalties, interest charges, and loss of certain tax benefits.

Penalties for late filing

If the return is not filed by the deadline, taxpayers can still file a belated return until December 31. However, under Section 234F of the Income Tax Act, late filing attracts penalties.

  • For income up to Rs5 lakh: penalty is capped at Rs1,000.
  • For income above Rs5 lakh: penalty increases to Rs5,000.

Additionally, if any tax remains unpaid, Section 234A imposes an interest of 1% per month (or part thereof) until the return is filed.

Consequences of missing deadline

  • Loss of certain tax benefits: Belated filers cannot carry forward specific losses such as business or capital losses.
  • Restrictions on tax regime change: Taxpayers lose the option to switch between old and new tax regimes after the deadline.
  • Refund delays: Those eligible for refunds will face delays compared to timely filers.

Steps to file before time runs out

  • Gather documents: Form 16, Form 26AS, Annual Information Statement (AIS), bank interest certificates, and proofs of investments or deductions.
  • Use the e-filing portal: File immediately to avoid last-minute portal congestion.
  • Verify your return: Ensure the ITR is verified electronically or physically for it to be considered valid.

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Economy news

India’s GDP surges 7.8% in Q1, outpaces estimates and China

India’s GDP surged 7.8% in Q1 2025-26, the highest in five quarters, driven by strong services and agriculture sector growth, according to NSO data.

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GDP Growth

India’s economy recorded a sharp growth of 7.8% in the April-June quarter (Q1) of 2025-26, surpassing the earlier estimate of 6.5% and outpacing China’s 5.2% growth in the same period. The figure also marks a notable rise from the 6.5% growth in the corresponding quarter last year, making it the fastest expansion in the last five quarters.

Strong performance across key sectors

According to data released by the National Statistical Office (NSO), the surge was driven primarily by the services sector, which expanded 9.3% compared to 6.8% a year ago, and the agriculture sector, which rose 3.7% against 1.5% last year.

The construction sector, however, witnessed a slowdown, growing 7.6% compared to 10.1% in the same quarter of the previous fiscal.

RBI’s earlier forecast

Earlier this month, the Reserve Bank of India (RBI) had projected a more modest Q1 growth of 6.5%, with overall real GDP growth for 2025-26 expected at 6.5%. RBI Governor Sanjay Malhotra attributed the positive outlook to favorable conditions, including a good monsoon, lower inflation, and strong government capital expenditure.

He said, “The above normal southwest monsoon, lower inflation, rising capacity utilisation and congenial financial conditions continue to support domestic economic activity. The supportive monetary, regulatory and fiscal policies, including robust government capital expenditure, should also boost demand. The services sector is expected to remain buoyant, with sustained growth in construction and trade in the coming months.”

India remains fastest-growing major economy

With China reporting 5.2% growth in April-June, India has retained its position as the world’s fastest-growing major economy. The latest figures highlight resilience in the face of external pressures, including recent US tariffs on Indian imports.

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