top of page

By:

Amey Chitale

28 October 2024 at 5:29:02 am

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration,...

Growth Without Fireworks

The Budget leans on tourism, technology, trade calibration and fiscal discipline to anchor growth amid global uncertainty Mumbai: The new budget positions tourism as a key driver of jobs, forex earnings, and local growth. Incentives will back indigenous seaplane manufacturing through a Seaplane VGF Scheme, while a new National Institute of Hospitality will strengthen academia-industry-government linkages. A pilot programme will upskill 10,000 guides at 20 iconic sites with IIM collaboration, and a National Destination Digital Knowledge Grid will document cultural and heritage sites. Heritage tourism will be enhanced with experiential upgrades at 15 archaeological sites, and new projects will expand the Buddhist circuit in the northeast. Seven High-Speed Rail corridors will serve as sustainable ‘growth connectors,’ boosting mobility and linking emerging hubs. Software services, IT-enabled services, KPO, and contract R&D are consolidated under ‘Information Technology Services’ with a uniform safe harbour margin of 15.5 percent. The safe harbour threshold rises from Rs. 300 crore to Rs. 2,000 crore, easing compliance for mid-sized firms. To spur investment in critical infrastructure, a tax holiday until 2047 is offered to foreign companies delivering global cloud services via Indian data centres, provided domestic customers are served through Indian resellers. This landmark measure positions modern data centres as central pillars of India’s digital economy and future growth. Key Reforms Income tax rates remain steady but introduces key compliance reforms. TCS on foreign travel and education is reduced to 2 percent, and TDS rules for manpower services have been simplified. Taxpayers can now file Form 15G/15H directly through depositories, easing coordination. Penalty provisions are de-criminalised, with many shifted to late fees. While broader capital gains rationalisation was anticipated, relief comes through treating buyback proceeds as capital gains, lowering the tax burden for recipients. Trade-friendly customs duty reforms find place instead changes rather than sweeping reforms. The duty-free import limit for seafood export inputs rises from 1 percent to 3 percent of turnover, with similar relief extended to shoe uppers. Exporters of leather, textiles, and footwear gain flexibility as the export period is extended to one year. To encourage domestic value addition in consumer electronics, specified parts for microwave oven manufacturing are now exempted. The recommendations of 16th Finance Commission have been accepted by the centre which recommended 41 percent devolution. Budget 2026 reaffirms the government’s commitment to fiscal consolidation while safeguarding social priorities. The debt-to-GDP ratio is projected to decline from 56.1 percent in 2025–26 to 55.6 percent in 2026–27, freeing resources for priority spending by lowering interest outgo. The fiscal deficit target has been met at 4.4 percent of GDP in 2025–26 and is estimated to further ease to 4.3 percent in 2026–27, in line with the path toward a 50±1 percent debt-to-GDP ratio by 2030–31. Revised estimates for 2025–26 place non-debt receipts at Rs. 34 trillion and expenditure at Rs. 49.6 trillion, including Rs. 11 trillion in capital outlay. For 2026–27, receipts are projected at Rs. 36.5 trillion and expenditure at Rs. 53.5 trillion, with net tax receipts of Rs. 28.7 trillion. The government is banking on higher RBI dividends and higher disinvestment receipts. Fiscal deficit financing will hinge on Rs. 11.7 trillion in net market borrowings, supplemented by small savings and other sources, with gross borrowings at Rs. 17 trillion. Successful execution will decide if the budget’s ambitions become reality. This year’s strategy favours actions over numbers, consolidating and reinforcing the ecosystem instead of chasing headline reforms. Amid geopolitical tensions and market volatility, it prioritises stability and durable growth over quick wins - less a Sehwag-style first-ball six, more a Rahul Dravid innings: deliberate, resilient, and built for the long haul.

BMC auctioning three land parcels to raise funds, says Aaditya

Updated: Oct 22, 2024

Aaditya

Mumbai: Shiv Sena (UBT) leader Aaditya Thackeray on Thursday alleged Mumbai’s civic body had decided to auction three land parcels to raise funds and make up for the “loot” of the metropolis by the Eknath Shinde government.


The Brihanmumbai Municipal Corporation, which is being run by an administrator now, has decided to auction the Chhatrapati Shivaji Maharaj Mandi (Market), the Brihanmumbai Electric Supply and Transport (BEST) Malabar Hill Receiving Station and the Worli Asphalt Plant, Thackeray pointed out.


“The sale of Mumbai is being done by the Eknath Shinde regime to benefit its favourite builders and contractors,” he alleged.


A criminal investigation will be conducted into the matter after the Maha Vikas Aghadi government comes to power, Thackeray added.


“So on one end, they looted the BMC and Mumbai and gave the money to their favourite contractors. Now, by auctioning these iconic and important land parcels, the BMC will be left without both funds and plots,” the Shiv Sena (UBT) leader and former state minister claimed.


When Shiv Sena started controlling the BMC in 1997, its finances were in deficit but by 2022 his party turned around the fiscal health of the civic body, Thackeray said.


Alleging that the Shinde government wants to drive Kolis and fisherfolk out of Mumbai, he said, “We will oppose this. It has to remain and be made into a fish market, and (should be) in the ownership of the BMC.”


Aaditya puppet for urban naxals: Shelar

Bharatiya Janata Party ( BJP ) Mumbai chief Ashish Shelar has called Uddhav Thackeray’s son and Shiv Sena (UBT) leader Aaditya Thackeray as a puppet for urban naxals after former’s comments on the Dharavi Redevelopment project and has also challenged him for a debate.

Ashish Shelar said that the project is a necessity and a priority project, adding that Uddhav Thackeray-led Shiv Sena and Congressleader Varsha Gaikwad are peddling lies.

Aaditya Thackeray seems to have become the spokesperson of urban Naxals. Without studying the subject (Dharavi) in detail, Aaditya Thackeray is speaking like an ignorant. I have seen that these people have been trying to set a narrative regarding Dharavi and the re-development work,” Ashish Shelar said.

He challenged Aaditya Thackeray and Varsha Gaikwad in a debate on the Dharavi Redevelopment Project.

“Uddhav ji and the people of his party – Aaditya Thackeray and Varsha Gaikwad have started this false narrative regarding Dharavi. I openly challenge Aaditya for a debate. I want to ask him that 70 per cent of the homes in the Dharavi Redevelopment Project will go to Marathi people, Muslims and Dalits. It is their rightful home, so why are they putting roadblocks by creating a false narrative?”

Comments

bottom of page