Economy+Policy Archives - Page 5 of 8

Inflation in rural areas rises sharply

July 20, 2009August 20, 2014Editor

Consumer inflation has been on a steady rise even as wholesale price inflation has been dropping, even turning negative in certain weeks. This is not a new development but the trend is not showing signs of slowing down. The Consumer Price Index for agricultural labour increased by 11.5% in June 2009 over the previous corresponding period while CPI for rural labour too increased by 11.2%. The price index had risen by 10.2% in May 2009, reflecting a sharp increase.

Railways carry 10% more goods in June 2009

July 13, 2009August 20, 2014Editor

In June 2009, the Indian Railways carried 9.6% more cargo at 71.5mn tonnes, compared to June 2008. That is the highest so far in the current fiscal and also much higher than the growth in full year 2008-09. Railway freight volumes give an inkling of how the basic industries are performing in an economy.

KPMG India’s Budget highlights

July 12, 2009August 20, 2014Editor

KPMG India has analysed the implications of the budget in two parts. The report that talks about the Budget Highlights says in a foreword it is reassured by the government’s stand reiterating a commitment to bring in GST by April 2010. It also talks about issues like the new direct tax code, setting up of an alternative dispute resolution mechanism and empowering the Central Board of Direct Taxes to formulate safe harbour rules for transfer pricing in international transactions.

Discretion and IPOs don’t mix well

July 12, 2009August 20, 2014Editor

India’s initial public offer (IPO) market has evolved over the years, from when the issue price was set by a government body called the Controller of Capital Issues to now where investors bid in a book-built issue to determine the price.

IPOs get a new anchor

July 12, 2009August 20, 2014Editor

Securities Exchange Board of India (Sebi) has amended the public issue guidelines on a few fronts to allow anchor investors in public issues. These are the people who will stick their neck out in an issue to take a big chunk at a predetermined price.

Here are the changes:|

High level ministerial team for infrastructure

July 11, 2009August 20, 2014Editor

Infrastructure projects in India are now being executed in half the time it took some years ago. Well, that may well be the headline a few years down the line, if the government succeeds in yet another effort to speed up infrastructure projects in the country. The government has set up a big committee of ministers to oversee the process of approval and execution of infrastructure projects.

Individuals and the Budget: No major tax reliefs, no major pain

July 7, 2009August 20, 2014Editor

There was little to cheer for the individual tax payer in the 2009-10 Union Budget. The view perhaps is that the burden on him has been lowered substantially in the past few years. Hence, there is no reason to do a lot this year.

Highlights of the Union Budget 2009-10: Part Two

July 6, 2009August 20, 2014Editor

India’s tax-gdp ratio has improved from 9.2% in 2003-04 to 11.5% in 2008-09. The government wishes to simplify the tax structure. A new direct tax code will be released for public comments within 45 days and the new code will be finalised during the winter session of parliament. A Goods and Services Tax to be introduced from April 2010, but will comprise of a Central GST and a State GST.

Direct Taxes

Individual

Highlights of the Union Budget 2009-10: Part One

July 6, 2009August 20, 2014Editor

These are some of the highlights from the speech given by the Finance Minister Pranab Mukherjee, presenting the Budget in parliament. Part One deals with the state of the economy and key policy announcements while the second part will deal with tax proposals.

India’s Union Budget 2009-10: First Impressions

July 6, 2009August 20, 2014Editor

Overall Impact
The Union Budget 2009-10, as Pranab Mukherjee mentioned, is one of continuity. No major new schemes. No major tax changes. No change in the thinking of the government with respect to the fiscal deficit. No major reforms announced in the Budget, either. The initial impression one gets is that the government is hoping that the external environment will improve, domestic demand will pick up and lift the economy out the trough.