Why OBC status is not the solution for Jat unemployment

Haryana will take a while, probably few years and couple of thousand crore rupees, to get over the impact of nearly two weeks of agitation by the Jats to press for their demand for quota in government jobs.

But will the inclusion in the OBC category fulfil all their aspirations? Unlikely, if you consider the pace of growth of government jobs in the country. 

Budget 2016: Insurance industry seeks hike in tax exemption limit

Government should raise tax exemption limit for health insurance and introduce fiscal measures to help increase its penetration, say industry officials.

The suggestions forms part of insurance sector wish-list for the Budget 2016-17 to be presented in Parliament on February 29.

"There is an impending need for further tax exemption as health insurance is still not adopted as a necessity for one's self and family.

"Further exemption will encourage people to get a health insurance policy with extended covers which is a necessity in today's time given the current medical inflation in the country", Future Generali India Union Budget 2016 Insurance MD & CEO K G Krishnamoorthy Rao told PTI.

In the Union Budget 2015-16, government had increased the limit for income tax exemption for health insurance.

Rao said it helped the company see fair increase in number of people opting for policies with up to Rs 10 lakh cover.

Read Full Article Over Here : Business Standard News

Budget 2016: Budget May Offer TDS Relief To Taxpayers

The government is considering rationalising tax deducted at source, according to recommendations made by the R V Easwar Committee.

Officials said the changes in tax deducted at source (TDS) rates and thresholds would not have a significant revenue impact. Revision of the tiny annual limits, which were long overdue, would, however, benefit small depositors and pensioners, they added. "For the Budget 2016, we will be looking at recommendations that do not have large revenue implications. For the rest, we will have to do the math on the tax revenue foregone," said a government official.

The panel has suggested reducing the short-term capital gains tax on annual earning of less than Rs 5 lakh from trading of shares and not treating it as business income. This will have a significant revenue implication when the government is trying to lower the fiscal deficit to 3.5 per cent of the gross domestic product (GDP) in Budget 2016-17 from the projected 3.9 per cent in 2015-16.

Union Budget 2016: Govt To Drastically Lower FY17 Disinvestment Target

The government is likely to drastically scale down the disinvestment target for Union Budget 2016-17 from the one set for the current fiscal as markets are expected to stay subdued, industry chamber Assocham said today.

The government had budgeted to collect Rs 69,500 crore through PSU disinvestment in current fiscal. But volatile market conditions have forced it to delay stake sale plans.

Read our full coverage on Budget 2016

With only two months left for the fiscal to end, government has so far been able to mop up just Rs 12,700 crore through stake sale in four PSU.

The markets are expected to stay in subdued mood even in the next fiscal and the government is likely to drastically scale down targets for realisation of resources from PSU stake sale in the Budget for 2016-17, Assocham said.

"Hopefully, the Finance Ministry will desist from setting an un-realistic disinvestment yet again for Union Budget 2016-17," it said its Budget expectations.

Budget 2016: Capital Spending By States Could Slow In FY16

Growth in capital spending by states might slow in 2015-16 as compared to 2014-15, according to a study by ICRA of nine state Budget News.

For 2015-16, capital spending was budgeted to grow at a slower 15 per cent as compared to roughly 26 per cent in 2014-15 (revised estimates). Given the large variance between revised estimates and audited state accounts, the gap might be lower.

Read our full coverage on Budget 2016

The fiscal space for boosting capital spending in India Budget News 2016-17 at the state level might be further constrained in the coming year because of two reasons: The expected pay revisions of state employees in line with the Seventh Pay Commission's award and states taking over the accumulated debt of power distribution companies (discoms) under the central government's UDAY scheme, which would lower the funds available for capital expenditure.

Rajan To Wait For Budget Roadmap Before Next Rate Cut: HSBC

Even though the fall in oil prices has created some space to ease rates, HSBC today said it expects RBI Governor Raghuram Rajan to maintain status quo in the forthcoming policy review and wait for the fiscal roadmap presented in the Budget 2016.

"We do not think RBI will cut rates on February 2," it said in a note.

The foreign brokerage said even though oil has "opened some space", the exact quantum of the benefit will only be determined once the markets stabilise, and also by the stance of the Central government, which has till now let pass only half of the benefit by raising duties on oil products.

"The Budget 2016-17 on February 29 should show how this extra space will be shared between monetary and fiscal policies," the report noted.

The RBI will also be closely watching the Budget fine print, it said, adding its effect on inflation and financial stability will be closely watched.

Budget 2016: One-time receipts have kept revenue growth steady for years

The government has in the past 10 years managed to keep the momentum of revenue growth steady, thanks to one-time gifts each year, shows a piece of data that Finance Minister Arun Jaitley is unlikely to find from his Budget 2016 officers.

These gifts have hidden the rise in public debt as a percentage of the government’s core revenue. Over the past 10 years, each year, there has been average annual growth of more than 40 per cent in debt measured against tax and what one can call long-term non-tax revenue.

Since there is little scope for fresh gifts in Budget News 2016-17, the minister can face a very difficult fiscal maths this time.

The tendency to use one-off receipts or gifts to cover up low rise in taxes has been a long-standing one with the central government. But it seems to have run its course. So, in 2016-17, unless Jaitley can create something afresh, those gifts will not arrive. At the same time, he faces a much larger demand for higher expenditure.