Page 7 - Budget And Economy

Jobs, farm productivity, infra funds figure at PM's meeting with economists

Job creation, improving farm productivity, and mobilising public funds for infrastructure development were some of the issues that figured during the interaction between Prime Minister Narendra Modi and economists ahead of the 2025-26 Union Budget. The Prime Minister on Tuesday met eminent economists and sectoral experts at NITI Aayog to hear their views and suggestions for the upcoming Budget. Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2025-26 in the Lok Sabha on February 1, 2025. According to an official statement, the Prime Minister emphasised that Viksit Bharat can be achieved through a fundamental change in mindset, which is focused towards making India developed by 2047. The participants shared their views on several issues, including navigating challenges posed by global economic uncertainties and geopolitical tensions, strategies to enhance employment particularly among the youth, and create sustainable job opportunities across ...

Kerala seeks Rs 24,000 cr special package to tide over liquidity crunch

Emphasising the need for more central funding, Kerala on Friday demanded a special package of Rs 24,000 crore to tide over the state's liquidity stress as well as Rs 2,000 crore for relief works at Wayanad, which was devastated by landslides earlier this year. In a pre-Budget meeting here, Kerala Finance Minister K N Balagopal also sought continuation of the GST (goods and services tax) compensation scheme to states until systemic issues are fully corrected and the original promise of GST revenue is attained. Union Finance Minister Nirmala Sitharaman, finance ministers from other states and senior officials, among others, were present in the meeting. "We reiterate our demand for a special package of Rs 24,000 crore to tide over the current liquidity stress by scheduling it over a period of two years from 2025-26," Balagopal said. Citing that substantial resources are required for relief works in Wayanad, he urged the government to provide a special package of Rs 2,000 crore in the

States ask FM for more funds under loan scheme, higher borrowing cap

Finance ministers of states demanded an increase in allocation of 50-year interest free loan, while fiscally stressed states like Punjab and Kerala pitched for a special package and borrowing flexibility, sources said. In a pre-budget meeting with Union Finance Minister Nirmala Sitharaman, states have also urged for higher borrowing limits to support fiscal activities, besides additional funds for Jal Jeevan Mission to arrange for tanks and storage to enhance water supplies. Sources said in the meeting, Maharashtra wanted funds for Mukhyamantri Majhi Ladki Bahin Yojana and demanded that a Centrally Sponsored Scheme (CSS) be launched with the Centre and state sharing 50 per cent of the cost each. The Budget for 2025-26 is slated to be presented in Parliament on February 1, 2025. Finance ministers of all states attended Friday's meeting with Sitharaman here. Several states demanded increase in allocations for the 50 years interest-free loan scheme, sources said, adding they also ...

Donald Trump attempts to kill bipartisan budget deal with Musk's help

President-elect Donald Trump delivered a likely death blow to bipartisan congressional budget negotiations on Wednesday, rejecting the measure as full of giveaways to Democrats as billionaire ally Elon Musk whipped up outrage toward the bill and cheered on Republican lawmakers who announced their opposition. Trump's joint statement with Vice President-elect JD Vance, which stopped the bill in its tracks, punctuated a daylong torrent of social media posts by Musk attacking the budget legislation as full of excessive spending. "Kill the Bill!" Musk wrote on his social media platform X as he dangled primary challenges against anyone who voted for the budget deal, a threat Trump later echoed in a post of his own. The episode showcased the growing political influence of Musk, whom Trump has selected alongside entrepreneur Vivek Ramaswamy to spearhead the Department of Government Efficiency, a nongovernmental task force formed to find ways to fire federal workers, cut programmes and slash

SL secures tax relief deal with IMF, imports to resume in 2025: Dissanayake

President Anura Kumara Dissanayake on Wednesday announced that Sri Lanka has achieved flexibility with the IMF on its rigid state revenue tax regime, something that was part of his election promise. Also, import of private cars -- banned from 2020 -- would be allowed from February 2025, Dissanayake, who is also the Minister of Finance, told the parliament. Speaking about the agreements reached with the International Monetary Fund (IMF) during its third review of the USD 2.9 billion Extended Fund Facility (EFF), the president said his government has been able to raise the tax threshold. We have been able to raise the tax threshold of pay as you earn (PAYE tax) so that those who have bigger incomes pay more while those who earn pay less, Dissanayake said, adding there would be other VAT exemptions and withholding tax on interest incomes for the retired. An income of Rs 1,50,000 per month will be tax free, Dissanayake said referring to the current free amount upto only Rs 1,00,000. F

Arunachal Pradesh launches 'Mission Himveer' to boost local economy

The ceremony was attended by Deputy Chief Minister Chowna Mein, the Chief Secretary, officers from agri and allied departments and senior ITBP officials. Agriculture Minister Gabriel D Wangsu

Health, education spending by states trails economy's nominal growth rates

State governments have consistently underspent on health and education, trailing the economy's nominal growth. Despite rising demands, priorities remain unchanged, as data reveals concerning trends

Challenges and opportunities loom in equal measure ahead of FY26 Budget

While the formal meetings of Finance Minister Nirmala Sitharaman with various stakeholders seeking their wishlist for Budget 2026 is expected to begin next month, the budget-making exercise is gaining

Asia markets start momentous month on cautious side, awaits US payrolls

Oil extended its rally, with Brent prices up almost 2 per cent to $74.13 a barrel, on reports that Iran was preparing a retaliatory strike on Israel from Iraqi territory in the coming days

Strong demand for premium products persists despite inflation pressures

Amid shifting retail dynamics driven by India's quick commerce boom, premium products are moving off shelves faster across all channels

Positives outweigh negatives in economy: RBI Governor Shaktikanta Das

Says action against NBFCs in the best interest of customers

Centre doubles Mudra loan ceiling to Rs 20 lakh under new category

Finance Minister Nirmala Sitharaman had made an announcement regarding this in her July 2024 Budget speech

Rachel Reeves aims for economic reset in UK's Budget ahead of IMF meetings

Britain's finance ministry said Reeves would support proposals in Washington to expand development financing for poorer countries to meet the United Nations' sustainable development goals and encourag

UK borrowing surpasses forecasts again as Reeves prepares for budget

Alex Kerr, an economist with Capital Economics, said the figures highlighted the limited scope Reeves had to increase day-to-day spending without raising taxes

FinMin seeks expenditure proposals for 1st supplementary demands for grant

The first batch of Supplementary Demands for Grants for 2020-21 is proposed to be placed before Parliament in the ensuing monsoon session, the Finance Ministry said in an office memorandum

Combined capex of state govts to undershoot FY25 budget estimates: ICRA

According to ICRA, the total revenues of the sample states are expected to rise by 10 per cent in FY25 compared to the previous year, well below the 18 per cent growth projected in the FY25 BE

China's finance ministry to detail fiscal policy for economy boost on Sat

China plans to issue special bonds worth about 2 trillion yuan ($283.43 billion) to support household consumption and help local governments tackle their debt problems

Malaysia hopes EU legislators will be accommodative on sustainable policies

n the engagements we have made with EU, we are ready to comply. We just need a little bit more time for our small holders... the government will assist them to comply

Policymaking is nothing if not about trade-offs: CEA V Anantha Nageswaran

During his speech on policymaking at the launch of the Isaac Centre for Public Policy (ICPP) by Ashoka University in Bengaluru, Nageswaran emphasised the role of researchers

Argentina's Prez presents 2025 budget, vows austerity to kill deficit

Libertarian President Javier Milei of Argentina presented the 2025 budget to Congress late Sunday, outlining policy priorities that reflected his key pledge to kill the country's chronic fiscal deficit and signaled a new phase of confrontation with lawmakers. In an unprecedented move, Milei personally pitched the budget to Congress instead of his economy minister, lambasting Argentina's history of macroeconomic mismanagement and promising to veto anything that compromised his tough slog of tight fiscal policy. The president's budget proposal followed a week of political clashes in the legislature where Milei controls less than 15% of the seats over spending increases that the administration warns would derail its IMF-backed zero deficit budget. Opposition parties have sought to pass laws to raise salaries and pensions with inflation to help hard-hit Argentines cope with brutal austerity. The cornerstone of this budget is the first truth of macroeconomics, a truth that for many yea