Economy

Meeting FY17 fiscal deficit target of 3.5 per cent a challenge, says Citigroup

The central government’s target to bring down fiscal deficit to 3.5 per cent in 2016-17 is likely to become even more challenging, considering the rise in wage expenditure, aCitigroup report says. “Considering the rise in wage expenditure by 0.5 per cent of GDP next fiscal and a likely reduction in corporate tax rate, the central government’s target to reduce fiscal ... Read More »

Pay panel recommendations on salary hike pose risk to fiscal consolidation: Fitch

Fitch Ratings said on Friday a proposed 23.6 per cent hike in salaries and pensions for about 10 million current and former government employees could hurt the country’s finances and underscore the weakness in its sovereign credit profile. The pay hike proposed on Thursday by the government panel is smaller than past increases as the nation faces pressure to curb ... Read More »

Pay panel recommendations to cost Rs 1.02 lakh cr to govt

The hefty increase in salary and allowances of central government employees and pensioners following the implementation of the 7th Pay Commission recommendations will put a strain on exchequer to the tune of Rs 1.02 lakh crore in 2016-17, or 0.65 per cent of GDP. The Pay Commission, headed by Justice A K Mathur, on Thursday recommended an increase in pay ... Read More »

RBI Governor Raghuram Rajan says drop in public, private investments top concern

RBI chief Raghuram Rajan said Asia’s third-largest economy is being hampered by a drop in public and privateinvestments, but held out hope that strong foreign capital flows will help rectify this weakness. Weak capital investment has been a hurdle in India’s quest to realise its growth potential and with factories running 30 per cent below capacity, private companies are in ... Read More »

Rupee ends almost flat at 66.19 against dollar

The rupee ended barely steady against the American currency at 66.19 per dollar at the Interbank Foreign Exchange (Forex) Market in Mumbai on Friday in view of steady dollar in the overseas market. The Indian unit resumed higher at 66.10 per dollar as against yesterday’s close of 66.18 per dollar and moved up further to 66.0725 per dollar on selling ... Read More »

FM Arun Jaitley vows corruption-free governance, reasonable tax rates

Seeking investments to boost growth, Finance Minister Arun Jaitley today vowed a corruption-free governance, reasonable tax rates and non-discretionary allotment of natural resources to make it easier for companies to do business in India. He asked the states to compete among themselves to provide most investor-friendly environment, saying ease of doing business is not merely a slogan. For the actions ... Read More »

Turkey issues special postage stamp featuring Narendra Modi

A personalised postage stamp featuring Prime MinisterNarendra Modi was issued by Turkey in remembrance of the just concluded G20 Leaders Summit. The stamp of 2.80 Turkish lira bears a picture of Modi and the Indian national flag. It has ‘Narendra Modi – Prime Minister of Republic of India’ written at the bottom. In all, 33 stamps including of the leaders ... Read More »

Rupee recovers 12 paise to end at 66.18 against US dollar

Snapping its two-day losing streak against the American currency, the rupee recovered by 12 paise to close at 66.18 per dollar on fresh selling of greenback by banks and exporters amid recovery in the equity market. Weakness of dollar in the overseas market also boosted the rupee value against the dollar, a forex dealer said. The Indian unit opened higher ... Read More »

Use tourism to drive economy, says government

Minister for Culture and Tourism and Civil Aviation Mahesh Sharma on Wednesday said that the government was giving a big push to tourism in the country with a special focus on tapping the huge potential of the Northeast. Addressing the Mail Today Northeast Rising Conclave, the minister said, “It is high time to use the tourism potential to drive the ... Read More »

Govt announces interest equalisation scheme to boost exports

In a bid to arrest the decline in exports , the Central government has announced an interest equalisation scheme on pre and post shipment rupee export credit with effect from 1st April, 2015 for five years. The rate of interest equalisation would be 3 per cent. The scheme would be available to all exports made by small and medium scale ... Read More »