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Budget deficit totals £8.4 bn in Feb

Ruth Gregory, chief UK economist at the consultancy Capital Economics, said the “disappointing” borrowing figures suggested the OBR forecast “already looks too optimistic”…reports Asian Lite News

Jeremy Hunt has been handed disappointing news from the public finances after government borrowing was higher than expected in February, leaving the national debt at the highest levels since the 1960s.

The Office for National Statistics said public sector net borrowing was £8.4bn in February, £3.4bn less than in the same month a year ago. However, it was higher than any economist expected in a Reuters poll that predicted a deficit of £6bn.

Jessica Barnaby, a senior statistician at the ONS, said: “This was the fourth consecutive month in which borrowing was lower than in the same month a year ago, with growth in tax receipts exceeding growth in spending. Relative to the size of our economy, debt remains at levels last seen in the early 1960s.”

With one month of the 2023-24 financial year remaining, the ONS said the budget deficit for the year so far stood at £106.8bn, down 4.1% compared with first 11 months of the same period a year earlier.

However, February’s unexpectedly high level of borrowing could put in danger forecasts made by the Office for Budget Responsibility alongside this month’s budget for a £114.1bn deficit for 2023-24 as a whole.

Ruth Gregory, chief UK economist at the consultancy Capital Economics, said the “disappointing” borrowing figures suggested the OBR forecast “already looks too optimistic”.

“But this may not prevent the government from squeezing in another pre-election tax-cutting fiscal event later this year,” she added.

“But a fiscal tightening will probably still be required beyond 2024. So anything the chancellor gives away will probably be taken away once the election is over.”

The latest figures showed growth in central government receipts, with a £6.3bn increase in revenue from income tax, corporation tax and VAT compared with the same month a year earlier.

Even after a 2p cut in national insurance announced by Hunt in last year’s autumn statement, which came into effect from January, the figures for February showed a rise in income from social security contributions of about £400m from the same month a year earlier.

However, the growth in tax income was outweighed by the impact of inflation on government spending.

Laura Trott, the chief secretary to the Treasury, said the economy was “turning a corner” with falling inflation and rising wages.

“It was right that this government provided billions pounds to support individuals and businesses during Covid, and pay half of people’s energy bills after Putin’s invasion of Ukraine. But we can’t leave future generations to pick up the tab,” she added.

ALSO READ-Israel approves $19 bn budget increase due to war

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Israel approves $19 bn budget increase due to war

The budget update anchors a projected deficit of about 6.6 per cent of GDP for 2024, and includes adjustments in the amount of about 20 billion Shekels (USD 5.6 billion) in 2024 and 2025…reports Asian Lite News

On Wednesday, the Knesset approved an update to the state budget for 2024 that includes the expenses that arose due to the “Iron Swords” war against the terrorist group Hamas in Gaza. The updated state budget is about 584 billion Shekels (USD 162 billion) and reflects an increase of about 70 billion Shekels (USD 19.4 billion) in spending.

The budget includes a significant addition to defense spending, both for the reimbursement of the fighting expenses and for the strengthening of the army, the protection of settlements near Gaza and security components for the settlements, extensive support for the mental health system, the budgeting of the Takuma administration for the reconstruction of the surrounding area, the evacuation of settlements and support in the acceleration of the high-tech industry and the real estate industry.

The budget update anchors a projected deficit of about 6.6 per cent of GDP for 2024, and includes adjustments in the amount of about 20 billion Shekels (USD 5.6 billion) in 2024 and 2025.

The government also approved several measures to increase state revenues: taxing bank profits as well as reducing the recovery day for salaried employees as part of an agreement with the Histadrut – Israel’s national labor federation.

Director General of the Ministry of Finance, Shlomi Heisler: “The updated budget for 2024 will enable the implementation of the war efforts, strengthening the resilience of the Israeli economy and will allow the reservists and reserve networks to be rewarded for their contribution to the security of the state.”

ALSO READ-Israel Can’t Erase Hamas: Hezbollah

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Starmer says budget is ‘bereft of ideas’

Sir Keir called the move, which is expected to raise £2.7bn a year, a “short-term, cynical political gimmick” – adding there was not a “more obvious example of a government that is totally bereft of ideas”…reports Asian Lite News

Keir Starmer has attacked the budget as “the last desperate act of a party that has failed” as he branded Jeremy Hunt and Rishi Sunak “the Chuckle Brothers of decline”.

The Labour leader criticised the chancellor for presiding over a recession and the highest tax burden in 70 years and accused Mr Hunt of using the budget to “give with one hand and take even more with the other”.

The chancellor announced a 2p cut to national insurance and abolished the current tax system for non-doms, which has been a Labour policy for some time.

Sir Keir called the move, which is expected to raise £2.7bn a year, a “short-term, cynical political gimmick” – adding there was not a “more obvious example of a government that is totally bereft of ideas”.

The Labour leader said Hunt was a chancellor who “breezes into this chamber in a recession and tells the working people of this country that everything’s on track”. “Crisis? What crisis? Or as the captain of the Titanic and the former prime minister herself might have said, iceberg? What iceberg?” he joked.

“Smiling as the ship goes down, the Chuckle Brothers of decline, dreaming of Santa Monica or maybe just a quiet life in Surrey not having to self-fund his election,” he added. Sir Keir said Britain deserved better than a “Rishi recession” and claimed the Tories had “maxed out the nation’s credit card”.

And calling for the government to confirm a May general election, he added: “It’s time to break the habit of 14 years – stop the dithering.” Hunt unveiled his budget – expected to be the last before the general election later this year – after speculation in the media pointed towards a possible cut in income tax to woo voters.

But the chancellor resisted calls from Tory MPs for income tax to be reduced and instead stuck to bringing down national insurance further from 10% to 8%.

Hunt said that, combined with the reduction in national insurance in the autumn statement last year, the average worker would be £900 better off. However, both Labour and the Liberal Democrats have argued that frozen income tax thresholds effectively cancel out the benefit of the national insurance cut.

The Office for Budget Responsibility, the independent public finances forecaster, has also said living standards will remain below 2019 levels until 2025-26.

In his statement responding to the budget, Sir Keir said his party would support the cuts to national insurance because it had “campaigned to lower the tax burden on working people for the whole parliament”.

ALSO READ-Starmer calls for Gaza ceasefire

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UK posts record budget surplus in Jan

Public debt was estimated at around 96.5% of annual gross domestic product, up 1.8 percentage points from January 2023 and holding at levels last seen in the early 1960s, the ONS highlighted…reports Asian Lite News

The U.K. logged a record £16.7 billion ($21.1 billion) net budget surplus in January, according to official figures released on Wednesday.

The Office for National Statistics noted that the country’s public finances usually run a surplus in January, unlike during other months, as receipts from self-assessed annual income tax payments come in.

Combined self-assessed income and capital gains tax receipts totaled £33 billion in January, the ONS said, down £1.8 billion from the same period of last year. Total government tax receipts came in at a record £90.8 billion, up £2.9 billion compared to January 2023.

Government borrowing during the financial year spanning to the end of January 2024 was £96.6 billion, £3.1 billion lower than over the same 10-month period a year ago and £9.2 billion lower than the £105.8 billion previously forecast by the independent Office for Budget Responsibility.

Public debt was estimated at around 96.5% of annual gross domestic product, up 1.8 percentage points from January 2023 and holding at levels last seen in the early 1960s, the ONS highlighted.

“We provided hundreds of billions to pay wages, support business and protect lives during Covid, and to pay half of people’s energy bills after Putin’s invasion of Ukraine,” the government’s chief secretary to the Treasury, Laura Trott, said in a statement.

“But we can’t leave future generations to pick up the tab, which is why we have taken tough decisions to help reduce borrowing versus what the OBR expected in March.” The figures on Wednesday mark the final set of public finances data before Finance Minister Jeremy Hunt delivers his Spring Budget, which outlines the government’s fiscal policy for the year, on March 6.

With a general election due before the end of January 2025 and the main opposition Labour Party leading by more than 20 points in the polls, there has been much speculation about whether Hunt will try to find the headroom for tax cuts next month.

“With recent U.K. by-election results suggesting that the Labour party continues to have the advantage as we head towards the general election, Hunt will be under pressure to offer tax cuts,” said Lindsay James, investment strategist at Quilter Investors.

“However, with his hands largely tied by the state of the nation’s finances, investors must be realistic about the prospects for the extent of this, or prepare for more savage cuts to the U.K.’s already under-strain public services.”

Despite the record January surplus, weaker-than-expected self-assessment receipts meant the figure was actually slightly below that forecast by the OBR in November.

However, Hunt will take solace in the downside revision to borrowing figures over the first 10 months of the financial year, according to Martin Mikloš, research economist at the Institute for Fiscal Studies.

“While lower borrowing over the last ten months is welcome news, as the OBR prepares a new set of forecasts for the upcoming March Budget much more important will be the judgement they make on the outlook for growth and inflation,” Mikloš said.

“With public services under strain, pressures to offset some of the record-breaking tax rise seen since 2019, and the need for a credible plan to get debt on a falling path the Chancellor’s forthcoming Budget will not be an easy one to navigate.”

ALSO READ-Budget Session extended by a day  

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Budget Session extended by a day  

Adhir Ranjan Chowdhury, the Leader of Congress in Lok Sabha, stated that his party is prepared to address any papers the government brings to the House…reports Asian Lite News

The ongoing budget session of the Lok Sabha has been extended until Saturday, February 10, to provide sufficient time for the completion of essential items of Government Business.

There will be no Question Hour session on the extended date.

As per a Lok Sabha Secretariat notification issued on Wednesday, extension of the current session of Lok Sabha, as announced by the Chair today (7.2.2024) and agreed to by the House, the current session of Lok Sabha has been extended up to Saturday, February 10, 2024, in order to provide sufficient time for completion of essential items of Government Business.

Accordingly, the Lok Sabha will sit on Saturday, February 10, 2024. There will be no Question Hour on that day, the notification read. The last session before Lok Sabha polls expected to be held in April-May this year was started with the address by President Droupadi Murmu to the joint sitting of two Houses on January 31. It was earlier to be concluded on February 9.

In Rajya Sabha, Chairman Jagdeep Dhankhar also extended the session for one day. The decision comes amid buzz over the Prime Minister Narendra Modi-led government presenting a ‘white paper’ on the economy during the previous Congress-led United Progressive Alliance (UPA) government.

Adhir Ranjan Chowdhury, the Leader of Congress in Lok Sabha, stated that his party is prepared to address any papers the government brings to the House.

“Narendra Modi has Congressphobia. We are ready to fight. The government can bring a ‘White Paper’, Red paper, black paper, we have no problem. However, Mehul Choksi’s papers should also be presented to the House,” Chowdhury said.

“Why are banks being looted under the BJP government? What is their connection with those who loot banks and flee abroad? You can reach the Moon but cannot find Nirav Modi and Mehul Choksi,” he added.

Welcoming the idea of bringing a ‘White Paper’ to the House, BJP Lok Sabha MP Rajiv Pratap Rudy said that the document is a much-awaited call and should be brought so that the public becomes aware of the corruption that occurred during the UPA tenure before 2014.

“The government has passed the finance bill and the interim budget. If I recall correctly, the PM mentioned in his speech that they would present a White Paper on the mess that prevailed prior to 2014. I think it is likely to be listed tomorrow. It is a much-awaited call,” Rudy said.  (ANI)

ALSO READ-Kerala Budget gives Rs 1,000 cr boost for key projects

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Kerala

Kerala Budget gives Rs 1,000 cr boost for key projects

Finance Minister K.N. Balagopal launched a scathing attack on the central government, accusing it of causing financial hardship for Kerala…reports Asian Lite News

Kerala Finance Minister K. N. Balagopal presented the Kerala Budget 2024-25 today, outlining a vision for a “New Kerala” while criticizing the central government’s “hostile approach” that he claims has pushed the state towards financial crisis.

Balagopal launched a scathing attack on the central government, accusing it of causing financial hardship for Kerala. He asserted that the state wouldn’t remain silent and urged unity to build a “Navakeralam.”

” Instead, we should strive forward with the strong sentiment of “Thakarilla Keralam, Thalarilla Keralam, Thakarkkanavilla Keralathe” (“Kerala will not be shattered, Kerala will not tire, Kerala cannot be destroyed”). The Government will provide leadership in taking forward our achievements and progress while ensuring that all Keralites stand united in building a New Keralam (Navakeralam).” K. N. Balagopal said this in the assembly.

The budget proposes a 10 rupee per litre hike in excise duty on liquor, raising concerns for consumers. Additionally, electricity duty for self-generated power will rise by 15 paise per unit.

The budget allocates 1,000 crore for projects proposed during the outreach program “Navakerala Sadass.” Tourism receives a significant boost, with 5,000 crore earmarked for development.

The much-awaited Vizhinjam port is set to be operational by May 2024. The government plans to create Special Development Zones (SDZs) in partnership with the private sector to leverage the port’s potential. An International Investors Meet and Maritime Summit are planned to attract investments.

The budget reaffirms the government’s commitment to the K-Rail project and light metro projects in Kozhikode and Thiruvananthapuram.

Public education receives a 1,032 crore allocation, highlighting the government’s commitment to the sector.

The budget also encourages private investment across various sectors. While the budget doesn’t increase welfare pensions this year, the minister promised to clear pending dues in the next financial year, blaming the central government for the delay.

“An International Investors Meet will be conducted in 2024-25 itself to attract investors who can start enterprises that will harness the potential of the Vizhinjam port. A Maritime Summit will be organized as part of this,” K. N. Balagopal said.

Private & foreign universities

Not long ago the Left in Kerala had opposed any form of privatization in the higher education sector, but on Monday, state Finance Minister K.N. Balagopal while presenting his fourth straight budget said the doors have been opened for private and foreign universities to open their campus.

As the first step for this, he said four international educational conclaves will be held outside the country.

For this, experts hailing from Kerala and those working in the higher education sector abroad will be drafted for taking forward this idea.

To fast track this idea, special packages will be introduced in the field of higher education.

Balagopal pointed out that all these changes were being made to ensure to attract foreign students to Kerala besides helping students from here presently going abroad for higher studies.

All along the CPI(M)-led Left in Kerala had staunchly opposed the entry of private sector in the education sector and when the K. Karunakaran government in the 90s planned to open up a few professional courses in the medical sector and also when the A.K.Antony-led government in 2001 opened up the professional education sector in the self-financing mode, there were huge protests.

Late Chief Minister Oommen Chandy had once remarked, “The bane of Kerala … what matters is which government is bringing in the changes, when the Left does it, everything is fine, as they opposed tractors and even computers, but later changed their stand,”. (ANI)

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Defence gets Rs 6.21 lakh crore in Interim Budget

An upward trend continues in defence Capital expenditure, promoting ‘Aatmanirbharta’ (self-reliance)…reports Asian Lite News

In the current geopolitical scenario and with the twin objective of promoting self-reliance and exports, the defence budget has touched Rs 6,21,540.85 crore in the financial year 2024-25.

This comes out to be 13.04% of the total Union Budget, which was presented by Finance Minister Nirmala Sitharaman in Parliament earlier today.

The Ministry of Defence (MoD) continues to receive the highest allocation among the ministries. The budgetary allocation to defence for FY 24-25 is higher by approx. one lakh crore (18.35%) over the allocation for the FY 2022-23 and 4.72% more than allocation of FY 23-24.

Of this, a major share of 27.67% goes to capital, 14.82% for revenue expenditure on sustenance and operational preparedness, 30.68% for pay and allowances, 22.72% for defence pensions and 4.11% for civil organisations under the MoD.

An upward trend continues in defence Capital expenditure, promoting ‘Aatmanirbharta’ (self-reliance).

Budgetary allocation for capital expenditure in Defence for FY 24-25 is Rs 1.72 lakh crore which is 20.33% higher than the actual expenditure of FY 22-23 and 9.40 % more than the Revised Allocation of FY 23-24. The allocation is in line with the Long Term Integrated Perspective Plan (LTIPP) of the three Services aimed to fill the critical capability gaps through modernisation of the Armed Forces by materialising some big ticket acquisitions in FY 2024-25. The enhanced budgetary allocation will facilitate in equipping the Armed Forces with state-of-the-art, niche technology lethal weapons, Fighter Aircraft, Ships, Platforms, Unmanned Aerial Vehicles, Drones, Specialist Vehicles etc.

Planned modernisation of existing Su-30 fleet along with additional procurement of aircraft, acquisition of advanced engines for existing MiG-29, acquisition of transport aircraft C-295 and missile systems will be funded out of the budget being allocated. Apart from this, to take the initiative of ‘Make in India’ further the LCA MK-I IOC/FOC configuration will be additionally funded to ensure state-of-the-art technology in domestic production. The Indian Navy projects such as acquisition of Deck-based fighter aircraft, Submarines, Next generation survey vessels etc. will all materialise through this allocation. The sizeable allocation under capital is centered around promoting ‘Aatmanirbharta’ in Defence. Large portion of the allocation will be utilised for procurement through domestic sources to provide domestically manufacutured next generation weapon system to the country which will have a multiplier effect on the GDP, create employment, ensure capital formation and provide a stimulus to the domestic economy.

As per the Economic Survey of India report 2023, in the ship-building sector, the investment multiplier is around 1.82, which means that an infusion of approx. Rs 1.5 lakh crore in naval ship-building projects would accrue a circulation of Rs 2.73 lakh crore in the ship building sector due to the multiplier effect.

This year onwards, the Government of India has taken a conscious call to foster jointness among the services by consolidating the demand of the three services into similar items of expenditure such as Land, Aircraft and Aeroengines, Heavy and Medium Vehicles etc. This will bring flexibility in financial management by enabling the MoD to reappropriate the fund among the three services keeping in view the inter services priority. This mechanism will also expedite decision making and ensure better utilisation of the capital budget.

Enhanced higher allocation sustained for operational readiness under Revenue Expenditure

Allocation to the Armed Forces for revenue expenditure (Other than Salary) meant for sustenance and operational commitment for FY 24-25 continues to be high at Rs 92,088 crore, which is 48% higher than the budgetary allocation of FY 2022-23. During the mid-year review, the allocation on this head was increased by 82% over the budgetary allocation of FY 22-23 crossing the figure of Rs one lakh crore for the first time. This is aimed at providing best maintenance facilities and support system to all platforms, including aircraft and ships. It also facilitates procuring of ammunition, mobility of resources, movement of personnel, catering to day-to-day expenditure of Armed Forces in strengthening the deployment in forward areas and keeping the forces always ready to take care of any eventuality. The continued higher allocation since FY 2023-24 in this head has resolved the grievance of the forces and has improved their sustenance & operational readiness.

The total budgetary allocation on account of defence pensions is Rs 1,41,205 crore, which is 2.17% higher than the allocation made during 2023-24. It will be incurred on the monthly pension of approx. 32 lakh pensioners through SPARSH and other pension disbursing authorities.

Unprecedented Allocation to Ex-Servicemen Welfare Scheme (ECHS) ensures better healthcare facilities to Veterans

The total allocation to the Ex-Servicemen Welfare Scheme for FY 2024-25 is 28% higher than the allocation for FY 23-24 (from Rs 5,431.56 crore to Rs 6,968 crore). This is in addition to the unprecedented allocation at the revised estimate stage during the current year, where the budgetary allocation to ECHS was enhanced by 70% over BE of 2023-24 and was made to Rs 9,221.50 crore. This significantly higher allocation is to take care of Medical Treatment Related Expenditure (MTRE) incurred during the COVID period and to compensate for the increase in ECHS rates, bringing it on par with the CGHS rates. This is in line with the government’s resolve to provide the best health care facilities to ex-servicemen, war veterans, ‘Veer Naris’ and their family members.

Strengthening the need of improving Border Infrastructure for strategic requirements

In light of the continued threat perception faced at the Indo-China border, there has been a jump in the capital budget allocation to the Border Roads Organisation. The allocation for BE 2024-25 is Rs 6,500 crore, which is 30% higher than the allocation for FY 23-24 and 160% higher than the allocation for FY 2021-22. This indicates the commitment of the government to improving border infrastructure. The financial provision made during the budget this year will, apart from promoting strategic infrastructural development in the border areas, also boost socio-economic development in that region along with promoting tourism. Projects such as development of the Nyoma Air Field in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to the southernmost Panchayat of India in Andaman and Nicobar Islands, the 4.1 km strategically important Shinku La Tunnel in Himachal Pradesh, the Nechiphu Tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.

The allocation to the Indian Coast Guard (ICG) for FY 2024-25 is Rs 7.651.80 crore, which is 6.31% higher than the allocation for FY 2023-24. Of this, Rs 3,500 crore is to be incurred only on capital expenditure, adding teeth to the arsenal of the ICG to address the emerging challenges posed by water and provide humanitarian assistance to other nations. The allocation will facilitate the acquisition of fast-moving patrol vehicles and interceptors, advanced electronic surveillance systems and weapons.

The budgetary allocation to the Defence Research and Development Organisation (DRDO) has been increased to Rs 23,855 crore in FY 2024-25 from Rs 23,263.89 crore in FY 2023-24. Of this allocation, a major share of Rs 13,208 crore is allocated for capital expenditure. This will financially strengthen the DRDO in developing new technology, with a special focus on fundamental research and hand-holding the private parties through the development-cum-production partner. The Allocation to Technology Development Fund (TDF) scheme stands out at Rs 60 crore, which is especially designed for new start-ups, MSMEs and academia, attracting young, bright minds interested in innovation and developing niche technology in the field of defence in collaboration with the DRDO. The announcement regarding a Rs one lakh crore corpus for Deep Tech for long-term loans to tech-savvy youth and companies and the tax advantage to start-ups will give further impetus to innovation in the defence sector.

In a post on ‘X’, Defence Minister Rajnath Singh congratulated Finance Minister Nirmala Sitharaman for presenting a positive and encouraging ‘Interim Budget’, which outlines the vision for a confident, strong and self-reliant ‘Viksit Bharat’.

The budget gives a glimpse of India’s rapid economic transformation, inspired by Prime Minister Narendra Modi’s vision of making India a developed nation by 2047, he said.

The Defence Minister added that there is a big push for infrastructure, construction, manufacturing, housing and technology development in this budget.

“During COVID-19, when the world was faltering, India emerged as the beacon of hope. This budget is perfectly aligned with the PM’s ‘Panchamrit Goals’ and it also paves the way for the next five years of unprecedented growth,” he said.

On the increase in capital expenditure outlay, Rajnath Singh described it as a massive push that will provide a big boost to making India a five trillion dollar economy by 2027. (ANI)

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Crucial Budget Session Begins

The budget session of Parliament is the last session before Lok Sabha polls expected to be held in April-May this year…reports Asian Lite News

The budget session of Parliament, the last session before Lok Sabha polls expected to be held in April-May this year, commenced on Wednesday with President Droupadi Murmu addressing a joint sitting of Lok Sabha and Rajya Sabha in the new Parliament building.

Finance Minister Nirmala Sitharaman will present the interim budget on February 1.

The government convened an all-party meeting ahead of the session and struck a conciliatory note with the opposition, stating that it had urged the presiding officers of Lok Sabha and Rajya Sabha to revoke the suspension of MPs, who had been suspended during the winter session of Parliament.

Parliamentary Affairs Minister Pralhad Joshi told reporters after the all-party meeting that it was held in a conducive atmosphere.

“All (suspensions) will be revoked. I have spoken with the (Lok Sabha) Speaker and (Rajya Sabha) Chairman, I have also requested them on behalf of the government…This is the jurisdiction of the Speaker and the Chairman. So, we have requested both of them to speak with the concerned privileged committees, revoke the suspension and give them the opportunity to come to the House. Both of them agreed,” Joshi said.

Asked if the suspended MPs will come to the House from tomorrow, Joshi said “yes”.

An unprecedented 146 opposition MPs were suspended from Lok Sabha and Rajya Sabha during the winter session of Parliament for “violating rules”.

Joshi said that 45 leaders from 30 parties, including the ruling BJP, attended the meeting. “The meeting was held in a conducive atmosphere. This is a short session and the last one of the 17th Lok Sabha. We have requested the MPs to not come with placards,” Joshi said.

Congress leader Pramod Tiwari said that inflation and unemployment are two important issues that the party would raise in the budget session.

“Inflation and unemployment are two important issues which we will raise in the upcoming session. Investigative agencies are being misused. The latest example of the way ED is working is that of Jharkhand’s CM Hemant Soren. Apart from this, atrocities continue in Manipur. I specifically want to say that the debt burden on the country is increasing,” he said.

“I have raised issues regarding economic situation, federal structure, violent attacks on Rahul Gandhi’s Yatra in Assam, doubling the income of farmers, ED-CBI raids, caste census among others,” he added.

Asked about Congress chief Mallikarjun Kharge’s remarks that there will be “no more polls if PM Modi wins,” Tiwari alleged that the government doesn’t believe in democracy.

“What if they change the election process? The public should use its rights and root out the Modi government,” he said.

Congress MP K Suresh accused the BJP government of using central agencies as weapons against the opposition. “They want to destabilise the opposition as they are scared of opposition unity.”

TMC MP Sudip Bandyopadhyay alleged that the government is not willing to answer questions.

“We also raised the issue of suspension of 150 MPs but the attitude of the government is not to reply to any question.”

The budget session will conclude on February 9.

The Committee of Privilege of Rajya Sabha held 11 suspended members guilty of breach of Privilege and contempt of the council but Chairman Jagdeep Dhankhar invoked his authority and revoked the suspension of all 11 members.

The decision was taken to enable the members to attend the historic Special address by the President in the New Parliament Building, sources said.

The committee of Privileges of Rajya Sabha held 11 members – Jebi Mather Hisham, L Hanumanthaiah, Neeraj Dangi, Rajmani Patel, Kumar Ketkar, GC Chandrashekhar, Binoy Viswam, Sandosh Kumar, M Mohamed Abdulla, John Brittas, and AA Rahim – guilty of breach of privilege and contempt of the Council.

It had further recommended that the period of suspension already suffered by the members be treated as sufficient punishment for the transgression.

Taking note of the situation that the suspended Members would not be able to attend the Special Address of the President to both the Houses of Parliament assembled together, the Committee presented the report to the Chairman Rajya Sabha.

The Chairman invoked the authority vested in him to revoke their suspension enabling the members to attend the Special address by the President.

Opposition on back foot

With the return of the Janata Dal(U) to the National Democratic Alliance, and the differences evident between the Trinamool Congress and the Congress, the Opposition will be on the back foot. Several senior Congress leaders, including former party chief Rahul Gandhi and general secretaries K.C. Venugopal and Jairam Ramesh, who are participating in the party’s Bharat Jodo Nyay Yatra, are unlikely to be present.

This will be the first Lok Sabha without a Deputy Speaker, a post mandated under Article 93 of the Constitution. At the all­party meeting chaired by Defence Minister Rajnath Singh, Opposition members raised a host of issues, and demanded a debate on unemployment, high inflation, agrarian crisis, and violence­hit Manipur.

ALSO READ-High hopes for agriculture, healthcare in Union Budget

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Interim Budget to Signify BJP’s Intent

The interim budget will be the sixth budget to be presented by Finance Minister Nirmala Sitaraman, writes Venkatachari Jagannathan

The common thread that runs through the budgets presented by the NDA government under Prime Minister Narendra Modi during the last 10 years has been a balancing act between growth and social welfare, said a top economist at Anand Rathi Shares and Stock Brokers. “Over the past five years the focus area of the budget has been making India self- sufficient (Atmanirbhar) and reducing dependence on other countries in respect of key critical areas.

For this manufacturing has been given significant focus,” Sujan Hajra, Chief Economist and Executive Director told IANS in an interview. According to him, in the past 10 years of Modi rule, the Union budgets have focused on the effective implementation of the social welfare schemes — farmers, poor sections of the society, women and child welfare schemes received major upgrades throughout the budgets.

“On the other hand investment in infra and ease of doing business and effective implantation of technology for desired outcomes remained the key focus. Catering to the needs of a large section of society while playing to the gallery and at the same time focusing on growth and development with visionary ideas have been the hallmark of Modi budgets,” Hajra added. Queried about the upcoming 10th budget of the Modi-led BJP government, he said though this is going to be an interim budget and the full budget of FY25 will be presented only after a new government takes over post the general elections, it will be of significance as it reiterates the intent of the BJP if it returns to power. “The interim budget will be the sixth budget to be presented by Finance Minister Nirmala Sitaraman starting 2019 when the Modi government returned to power for a second time. During her tenure as Finance Minister India withstood many challenges and witnessed continued reforms amid the Covid-19 pandemic,” Hajra said.

The budget is expected to continue its weight on capex. As India appears to be in the most advantageous position to take advantage of China+1 opportunity that the corporates are intending, India is expected to improve the infrastructure status in the country and thus attract investments, Hajra said. “Since income-tax and the revenue collection growth remain strong owing to the robust economic performance and also higher collections of goods and services tax (GST), the government may find space to increase the tax slab levels,” he remarked. According to him, the new tax regime is viewed as disincentivising savings as those investments available in the old tax regime do not apply to those who opted for the new tax regime. In order to incentivise savings and also making the new tax regime attractive certain savings and payments can be allowed towards deductions. Looking at the past five years, the Union budgets focused on making India self-sufficient and reducing dependence on other countries in respect of key critical areas. For this manufacturing has been given significant focus, Hajra said.

The corporate tax cut to 22 per cent for existing companies and 15 per cent for manufacturing firms in 2019 has been a significant step. Post that, most of the measures have been implemented towards ease of doing business. Moreover post pandemic production linked incentive (PLI) schemes had been rolled out for different sectors to give a boost to manufacturing. India has emerged as the second largest manufacturer of mobile phone devices and a potential semiconductor hub. Continuing, Hajra said one of the key focus areas of the past budgets had been the focus on easing foreign direct investment (FDI) norms. FDI under the automatic route has been allowed for most of the sectors. Except in critical areas,, FDI has been allowed anywhere from 74% to 100% in various sectors. India is expecting $100 billion FDI in the coming years despite the recent slowdown. “Self-reliance in defence equipment manufacturing received a major boost. In India which still depends on foreign technology and equipment for warfare, indigenous manufacturing received attention with defence corridors given prominence. Defence production crossed Rs.1 lakh crore for the first time and exports were Rs.16,000 crore covering 85 countries,” Hajra said. The successful implementation of the Jan Dhan Yojana and Aadhar linking enabled the information technology (IT) revolution in the way of doing business and transactions. This sector received top priority in all budget schemes becoming the enabler in the implementation of various schemes including the direct benefit transfer.

As regards infrastructure development, the launch of the National Infrastructure Pipeline and the Prime Minister Gati Shakti Yojana involving investments of over Rs.150 lakh crores have received budgetary support with the Central government being the major investment driver. While the private sector slowed down, the government stepped in keeping the momentum in the sector upbeat. Roads, railways and warehousing and logistics have been the key focus areas, Hajra pointed out. Asked about the Central government carrying out midway corrections after presentation of the budget Hajra said: “During the 2019 (July – 2019) budget a few of the proposals were viewed as unfriendly for the markets like: the proposal to raise public shareholdings to 35 per cent; proposal of 20 per cent tax on share buyback; increase in surcharge on income-tax of foreign portfolio investment (FPI).” The markets, which were rejoicing the Modi government’s return to power, fell immediately and up to the third week of August 2019 the markets were down by 10 per cent. “However, later in August, the Finance Minister announced a roll-back of an increase in surcharge on the income tax outgo of FPIs. Also currently the minimum public shareholding is 25 per cent for listed companies,” Hajra recalled.

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Cozy Christmas on a Budget

Give your old rugs a fresh look by dying them in warm, festive colours like red or green. It’s a budget-friendly way to add a pop of Christmas vibe to your floors and make your space feel festive…reports Lothungbeni Humtsoe

The holidays are a special time, and you can make your home feel magical without spending too much. Use your creativity and try some easy DIY ideas to make your home cozy and inviting. Our experts have some unique and budget-friendly Christmas decoration suggestions to bring joy to your home.

Old Furniture Setup Paint: According to Raghunandan Saraf, CEO of Saraf Furniture old furniture can be revived by giving it a new look with a fresh coat of paint. He said, “Pick cheerful Christmas colours like red, green, orange, or white to bring a lively vibe to your favourite pieces. Add a festive touch to smaller furniture details, such as side tables or bookshelves, with a coat of holiday-themed paint. It’s an easy way to make your space feel festive and new.”

DIY Lampshade Makeover: Decorate your lampshades by using dark-coloured fabrics or ribbons. This easy DIY trick can quickly add a bit of Christmas vibe to any room. It’s a simple way to make your space feel more festive and cheerful.

Recycle Old Rugs in Festive Colors: Give your old rugs a fresh look by dying them in warm, festive colours like red or green. It’s a budget-friendly way to add a pop of Christmas vibe to your floors and make your space feel festive.

Sofa Set Cotton Decor for a Snowy Look: You can give your sofa a snowy makeover by covering it with cotton to create a winter wonderland vibe. Add cute decorations like snowflakes or tiny ornaments for an extra festive and fun touch. It’s an easy way to make your sofa feel cozy and Christmassy.

Adorable DIY Santa on Tabletop: Make a cute Santa DIY from materials like felt and cotton to bring holiday joy. Put it on the side table next to your sofa for a festive touch. This adorable addition adds a happy vibe to your living space, making it an attractive spot that captures the eyes of guests and friends.

Furniture decor with LED Lights: Make your furniture look festive without spending much by adding sparkly garlands, paper chains, and twinkling LED lights. It’s a budget-friendly way to bring brightness and a cozy, warm feel to your space.

Tabletop Christmas Tree and Lamp Setup: “Deck your tables with miniature Christmas trees adorned with tiny ornaments. Surround them with softly glowing lamps to create a festive tableau that adds a touch of magic to your festive gatherings” suggested Tejpal Singh Shekhawat, Founder and CEO of Kalyanam Furniture.

Dining Table Setup with DIY Centerpiece: “Transform your dining area into a festive vibe with DIY chair covers, each uniquely adorned. Craft a captivating centerpiece featuring fragrant pinecones, fairy lights, and seasonal greenery. This personal touch elevates aesthetics and creates a warm, inviting space for shared moments of festive get-togethers around the dining table,” adds Tejpal.

Affordable fragrance products: Enhance the ambience of your home with affordable fragrances like Christmas Cookie, Apple Cinnamon, Fir, and Lavender. Place scented candles, reed diffusers, etc in key areas to create a soothing and refreshing atmosphere. You can also experiment with scents like orange, pine, and vanilla to evoke the spirit of Christmas.

Scented Wooden Balls: Elevate your home decor by placing scented wooden balls in an appropriate location. These aromatic ornaments not only look charming but also infuse the air with delightful fragrances. You can also craft your reed diffusers using essential oils.

Adding these budget-friendly DIY Christmas decorations to your home not only makes it feel festive but also shows off your creativity. Whether it’s personal wreaths or scented ornaments, let your imagination flow to make your space warm and joyful.

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