Saturday, May 23, 2015

Arun Jaitley Promises Better Tax Regime for Companies and to accomplish the task Jaitley in Kuchh Bhi Karega Mode to sustain Bull Run irrelevant of the fact whether RBI might not help! In renewed reforms thrust, Centre removes FDI tag on NRI investments,FDI RAJ is NRI Hindutva Raj! Never mind,India Jiyega or Marega!We have got the Hindu Rashtra! Palash Biswas

Arun Jaitley Promises Better Tax Regime for Companies and to accomplish the task Jaitley in Kuchh Bhi Karega Mode to sustain Bull Run irrelevant of the fact whether RBI might not help!

In renewed reforms thrust, Centre removes FDI tag on NRI investments,FDI RAJ is NRI Hindutva Raj!

Never mind,India Jiyega or Marega!We have got the Hindu Rashtra!

Palash Biswas

In renewed reforms thrust, Centre removes FDI tag on NRI investments,FDI RAJ is NRI Hindutva Raj!

Exuding confidence Finance Minister Arun Jaitley KAMAL NARANG

Arun Jaitley Promises Better Tax Regime for Companies and to accomplish the task Jaitley in Kuchh Bhi Karega Mode to sustain Bull Run irrelevant of the fact whether RBI might not help!

The government on Friday said that the Reserve Bank of India should start cutting interest rates to support growth as inflation is well under control. "It is (time the RBI starts cutting interest rates)," finance minister Arun Jaitley said at a press conference.Days ahead of the monetary policy review, Finance Minister Arun Jaitley today said it's time for RBI to cut rate in view of moderation in inflation and subdued industrial growth.

Meanwhile, The Hindu Business Line reports:

Close to completing one year in office, the Union Cabinet on Thursday took some big ticket decisions to prop up the economy and send a message to the farming community.

It decided to overhaul FDI norms for non-resident Indians (NRIs) to treat these on a par with domestic funding, as well as invest ₹10,500 crore to boost urea production to reduce the country's import dependence.

These decisions come at a time when concerns are being voiced over "slow reforms". The Opposition, too, has stepped up its attack on the government for doing little for the farming community, which has been hit by the vagaries of the weather and low returns.

In a major decision, the Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, relaxed foreign direct investment norms for NRIs, treating non-repatriable investments made by them on a par with domestic funding. NRI investments will now not be treated as FDI and will be exempted from sectoral restrictions, limits and approvals.

The move seeks to encourage greater foreign exchange remittances by the overseas community as well as attract investment in key sectors such as insurance, defence and railways.

The Cabinet also decided to broaden the definition of NRIs to include Overseas Citizens of India (OCIs) cardholders and Persons of Indian Origin (PIOs) cardholders. "The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the FDI policy with the stated policy of the government to provide PIOs and OCIs parity with NRIs in respect of economic, financial and educational fields," an official release said.

The measure is expected to result in increased investments across sectors and greater flow of foreign exchange remittances leading to economic growth. At present, civil aviation is the only sector that allows NRIs to invest up to 100 per cent in scheduled air transport service against an FDI cap of 74 per cent.

Earlier,Finance Minister Arun Jaitley struck a conciliatory tone towards investors on Friday, promising to tax corporate profits at competitive rates and saying the government would do all in its power to implement a new national sales tax on time.

Foreign portfolio investors have complained about surprise tax claims and, during a news conference to mark Prime Minister Narendra Modi's first year in power, Jaitley said a judicial resolution was in the works.

Narendra Modi's Bharatiya Janata Party had accused the previous Congress-led government of "tax terrorism". But having pledged to overhaul the tax regime, Mr Modi's pro-business government was caught flat-footed in a row with foreign portfolio investors over demands they pay minimum alternate tax, for which they had not previously been liable.

Addressing those concerns, Mr Jaitley said taxes should be applied fairly and promised to bring down the rate at which companies pay tax on profits, reiterating a budget pledge to cut the tax rate to 25 per cent from 30 per cent over four years

Hence,Jaitley in Kuchh Bhi Karega Mode to sustain Bull Run but RBI might not help!The FM seems to believing in the false growth saga rooted in SENSEX dices and foreign ratings.

Thus,despite,RBI governor speaking out aloud against the undue pressure on Banks,FM dictates rate cut again and again without addressing the basic problems of the economy.

FM and his RSS government are much more intersted to serve the interest of foreign capital for which he would Kuchh Bhi karega and never mind, whetehr India jiyega or Marega.

Finance Minister Arun Jaitley said on Friday the government was in consultations with the Reserve Bank of India on setting up an independent public debt management agency (PDMA).

The comments come after the government last month withdrew proposals to set up the agency, with Jaitley adding then the government would consult with the central bank and unveil a new roadmap.

However,RBI Governor Raghuram Rajan last week denied the central bank was against the idea of a PDMA, and said there was no difference of opinion between the central bank and the government on the issue.

Meanwhile,media reports that India plans to reform rules governing the level of discounts upstream state oil firms including ONGC offer to retailers, a senior finance ministry official said on Friday, a move that could expedite the sale of a stake in the company.

The government hopes to sell shares in ONGC and India Oil Corp. to raise about a third of its budget target for asset sales of $11 billion - and reduce its fiscal deficit to 3.9 percent of GDP in the 2015/16 fiscal year.

Currently ONGC (Oil and Natural Gas Corp), Oil India and GAIL (India) sell crude and fuels like cooking gas at discounted rates to partly compensate retailers for losses they incur on selling fuels at government-set rates.

But the finance ministry and oil ministry are in talks to work out a mechanism for easing the subsidy burden for the upstream companies, Ratan P. Watal, expenditure secretary at the Ministry of Finance, told reporters on Friday.

Time is ripe for Reserve Bank to lower rates, says FM Arun Jaitley!His comments come just days before the Reserve Bank of India's monetary policy on June 2. While the central bank has lowered its policy rate twice so far in 2015, it maintained status quo at the recent policy meet on April 7 in the wake of unseasonal rains impacting food prices.

Contradictorily against the facts,Jaitley expressed satisfaction over key macro-economic parameters, hoping that bad loans of banks would soon come down.

We all know the reality of Inflation status but the FM,as amusing it would sound,with easing retail inflation and factory output yet to pick up, finance minister Arun Jaitley on Friday made a case for a cut in key rates.

Terming people's expectations from the NDA government as "reasonable", he stressed the government would continue with swift and decisive decision making to take the economy to double digit growth.

"My views are well-known. It is (the time)," he said, when asked if the Reserve Bank of India should lower rates.

Media reports:There is optimism in the air and the economy is set to achieve stronger growth, Finance Minister Arun Jaitley said on Friday, reiterating his government's strong commitment to implementing the Goods & Services Tax (GST) from April 1 next year.

"There was a general environment of gloom before the BJP took over a year back. This has now been replaced by an environment of optimism," he said at a press conference called to highlight the achievements of the Narendra Modi government's first year in office.

The BJP-led NDA government will complete one year on May 25 and has organised a series of press conferences, which kicked off on Friday.

'Green shoots'

Jaitley said there are two indicators that can be termed as 'green shoots.' First, bad debts (non-performing assets) of banks have declined to 5.2 per cent as of March-end 2015 from 5.64 per cent at the end of December 2014.

Second, indirect tax collections grew by 46.2 per cent in April to ₹47,747 crore, with excise duty collection logging over 112 per cent growth.

The Finance Minister said that decisiveness even in the face of obstructions has been the hallmark of this government.

"India has the potential to touch a double-digit growth rate, provided decision-making is quick," he said, adding that the government is reforming and liberalising, but there is no place for crony capitalism.

On decision-making, he said, "If it takes us from 2006 to 2015 to decide on the GST policy, we don't send the best signals globally. Therefore, when we obstruct, we must realise that it is eventually the journey to 10 per cent (gross domestic product growth rate) that we are obstructing," he said, pointing a finger at the Opposition.

Opposition faulted

Alluding to the UPA government, Jaitley claimed that the NDA government had not been dragged down by corruption charges and this, along with speedier decision-making, has improved the outlook for the economy.

He cited economic indicators such as falling current account and fiscal deficits and rising foreign exchange reserves as proof of a strengthening economy. The government estimates growth to be 8-8.5 per cent.

However, there are some concerns over GST and the Land Bill, both of which are being scrutinised by Parliamentary panels after Opposition pressure.

Jaitley sought to allay the concerns, saying getting the two Bills approved in the next session of Parliament is a priority.

The Modi government, Jaitley said, is both pro-growth and pro-development. "Our social security programmes will be one of the strongest ever in this country, but certainly the policy will be one of arms-length distance, in terms of decision-making, from individual business houses."

'It's time for a rate cut'

Ahead of the Reserve Bank of India's (RBI) monetary policy review on June 2, Finance Minister Arun Jaitley said the time is right for an interest rate cut. "My views are well-known," he said, when asked if was time for a cut. "It is."

A cut in interest rate is expected, as retail inflation was at a four-month low of 4.87 per cent in April. The RBI decides changes in the rate on the basis of the trend in retail inflation.

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