Around the Globe

Around the Globe

Universal Basic Income: A Conversation With and Within the Mahatma

If the Economic Survey gives any indication of the direction of the next year’s budget could be, it is the concept of Universal Basic Income (UBI) stipulating certain income for the poor.
The Survey invoked Mahatma Gandhi's vision of “wiping every tear from every eye” and said: “UBI is a powerful idea whose time, even if not ripe for implementation, is ripe for serious discussion.”

Iran slashes import duty on rice

Iran has cut import duty on rice to 26 per cent from 40 per cent, which is likely to boost Indian basmati rice exports. The duty on brown rice (unprocessed) has been sharply cut to 5 per cent. Earlier, the duty rate was same for the two categories.
“This is a good development. We hope they resume the import permits at the earliest so that shipments can go,” said a government official, who was a part of a delegation that visited Iran to promote Indian basmati rice. Indian exporters will start contracting once permits are issued by Iran, said the official who returned on Tuesday.

FM may propose tax on large cash withdrawal

Finance minister Arun Jaitley may propose a banking cash transaction tax (BCTT) on withdrawal of large amount of cash from banks, acting on the recommendation of the high-powered panel headed by Andhra Pradesh chief minister N Chandrababu Naidu.

Operation Clean Money:18 lakh depositors come under scanner

The tax department will shoot off notices to 18 lakh people whose bank deposits don’t match with their income as part of its ‘Operation Clean Money’ project launched on the eve of Union budget to flush out black money.
With the window for declaring unaccounted money still open under the Pradhan Mantri Garib Kalyan Yojana (PMGKY-2016), the move is set to coax more cash-hoarders to come clean. Besides, it will help the tax department widen its tax net and bolster revenue collection.

Trump in visa shop to truncate Indian IT industry earning

US president Donald Trump appears hell bent on having his way, never mind the industry or his opponents. After passing executive orders restricting entry of refugees from select nations, the Trump administration has moved ahead with its next pet theme – protectionism.

Cautious optimism writ large all over

Presenting an overview of the health of an economy recovering from the shock of note-ban, the Economic Survey 2017 has pegged the GDP growth at 6.75 to 7.5 per cent in 2017-18.
The wider variation suggests impending risks arising from external factors like US protectionism and rising oil prices.
The Survey noted that GST roll out would boost investment and growth in the coming fiscal with long term benefits from demonetisation.

Inflation to be below 5% in FY17, trend to continue: Survey

Retail inflation is likely to be well below RBI's target of 5 per cent in the current fiscal as demonetisation would discourage any price headwind, the Economic Survey for 2016-17 said today.

The new inflation targeting approach by the Monetary Policy Committee (MPC) and gains from macro-economic stability will help India consolidate gains on price control, meaning prices will be less susceptible of individual whims and caprice of governments, the Survey said.

Note ban shaves off GDP growth rate by up to 0.5 pc in FY17

Demonetisation will shave off the economic growth for the current fiscal by 0.25 per cent to 0.50 per cent though it will have long-term benefits for the economy by reducing interest rates and eliminating corruption, besides bringing in more activities in the formal sector.

The cash squeeze, following junking of high value notes of Rs 500/1000 on November 8, 2016, the Economic Survey for 2016-17 said, "will have significant implications for GDP, reducing 2016-17 growth by 0.25 to 0.50 percentage points compared to the baseline of 7 per cent".

Rail Budget to focus on safety, infra development

A safety fund of Rs 20,000 crore for railways reeling under a series of deadly derailments, development of new lines, station redevelopment and setting up of Rail Development Authority and High Speed Rail Authority will be in focus as Finance Minister Arun Jaitley presents the first Rail Budget subsumed in the General Budget tomorrow.