Budget 2024 Updates

July 21 (Sunday) was hottest day on earth since Ice Age: ScientistsRajasthan gets new industrial park in Union BudgetKamala Harris narrowly beats Trump in latest Presidential SurveyOver 200 killed in landslides in EthiopiaMacron to retain caretaker govt till OlympicsRepublicans at pain as Harris takes over Biden’s campaign fundsTN Chief Minister to boycott NITI Aayog Saturday meeting as TN gets nothing from BudgetBudget 2024 promotes New income tax regime; offers new tax slabs as sopBudget bonanza for MSMEs - Easier access to credit; boosting export capacityThe GST Summons: A relative can appear!Conditions for revocation of cancellation of registration - May be, maybe not!FM offers fiscal sops if land reforms are done within next 3 yrsAngel tax dumped for all classes of investorsDeduction hiked on non-govt employers' contribution to pension schemeBudget 2024: Gold, Cellphones, Cancer medicine now cheaperBenami Act: Immunity can now be withdrawn on IO reportBenami Act: 90 days time limit proposed to reply to noticeTPO gets powers to deal with domestic transactionsOne more Vivad Se Vishwas Scheme; Date to be notifiedNo deduction u/s 37 for settlement amount if paid for violation of any lawFM proposes to lessen tedium of TDS; reduces rates in many casesFM overhauls capital gains regime; to come into play from todayFM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsTourism: Temple corridors to be developed in BiharCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud cases3.4% of GDP allocated as Capital expenditure to support infra sectorCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyIncome tax - Finance bill revamps re-assessment regime againCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneIncome tax - Search & Seizure cases - Block assessment is backBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portals
 
Mr. Modi Creates Policy Paralysis that he once Detested

DECEMBER 01, 2018

By Naresh Minocha, Consulting Editor

"REDUCE politics to end policy paralysis: Narendra Modi" This headline dated 8th April 2013 is the best Governance-cum-Vikas mantra mooted by Mr. Modi. At that time, he was widely perceived as most convincing Prime Ministerial prospect who focused more on development and less on politics.

Unfortunately, Mr. Modi, as PM, has not followed this mantra, thereby leaving his glass overflowing with policy paralysis (PP). He has also not treated PP with his fabled love for speed in decision-making process. He has instead played more politics than any of his predecessors, thereby catalyzing PP.

PP is a deadly cocktail. It includes backlog of legislative and executive proposals that he inherited from UPA and earlier regimes. The cocktail also includes initiatives that Mr. Modi proposed as Chief Minister but shunned them as PM.

PP, in this column, does not include bucketful of promises that he made at the political rallies. The potion, however, includes initiatives listed by BJP in its 2014 and earlier manifestos for Lok Sabha polls.

Before citing specific instances of PP, we need to recall what Mr. Modi stated at the first ‘Think India Dialogue' organized by Network 18 in April 2013.

He observed: "All decisions are taken keeping an eye on the next election. Political parties are under pressure to avoid or delay decisions dues to elections".

He explained: "The decision making process is affected by political pressure, which damages society's trust in government. Our entire decision making process is influenced by pressure from all quarters. This is a danger. It leads to deterioration of society as then people start taking the law into their own hands to get justice".

Mr. Modi in fact made PP his hobby horse that he rode in the very long run-up to 2014 Lok Sabha elections.

"We have to accept that the nation is going through deep policy paralysis," Modi bemoaned while launching Business Line's Gujarat edition on 24th May 2013.

It is here pertinent to first define PP. We can consider PP as a two-pronged phenomenon comprising 1) inordinate delay in framing new policies and laws or updating existing ones and 2) failure to implement some policies and to plug loopholes in the flawed execution of other policies.

The present backlog of policies and laws to be rolled out is as daunting as it was when Mr. Modi rode to power on PP horse.

Consider first the legislative backlog. As many as 55 Government bills and 1802 private members bills are pending in Parliament. This does not give correct picture as the number does not include certain bills that lapsed after dissolution of 15th Lok Sabha during May 2014.

The lapsed bills, not yet re-introduced by Modi Government, include The Public Procurement Bill, The Direct Taxes Code, The Right to Information (Amendment) Bill and The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill.

Unlike the case of Lok Sabha, the Bills, introduced in Rajya Sabha, don't lapse. They keep piling up. The backlog thus has bills of the eighties & nineties vintage.

The 55 pending Government bills include the Seed Bill, 2004, which is vital for farmers - a constituency that is very close to Mr Modi's heart.

Related to this is lapsed Biotechnology Regulatory Authority of India Bill. The Government has as yet not re-introduced it in Parliament. The proposed regulator's mandate includes regulating genetically modified (GM) food. Modi Government has also not formulated policy for GM food, whose cultivation can help farmers double their income.

A closer look at PP in legislative domain gives an interesting insight. As many as 16 bills on population control are pending. All of these are private member's bills. This means population control, which is most crucial for inclusive growth, is not priority for the present Government. This fact is confirmed by Government's failure to reconstitute National Population Commission. It last met in 2010.

It is here pertinent to recall the fact that Mr. Modi, as Gujarat Chief Minister, was vocal about population control.

He reportedly dubbed population growth as "biggest national crisis" at the first meeting of Gujarat Population Commission held on 8th October 2004.

Mr. Modi prefers to keep silent on population control apparently because action on this front can reduce his popularity rating. He, on other hand, sees population bulge as means to reaping demographic dividend.

Another grave policy crisis pertains to Centre-State relations. As Chief Minister, Mr. Modi had demanded implementation of recommendations of Commission on Centre-State Relations (CCSR). It submitted its seven-volume report in April 2010. Why has he not implemented the recommendations as PM?

As CM, he pleaded that inter-state Council (ISC) should meet twice a year. As chairman of ISC by virtue of being PM, he has so far convened only one meeting.

Yet another case of PP is one that Mr. Modi raised is frequent elections-triggered setback to growth and governance.

At 54th meeting of erstwhile National Development Council (NDC) held on 19th December 2007, Mr. Modi rightly observed: "Every time an election is declared the administration becomes paralysed due to the imposition of the Model Code of Conduct. Since elections are not synchoronized, the slowdown in administration could be over extended periods, causing serious setbacks to the development of the State. Further disruption is caused due to appointment of observers at senior levels who have to spend long periods of time in other States as a part of election duty. This hampers governance".

He continued: "I suggest a separate cadre for conducting elections is created so that the regular administration can focus on development. Further, I would recommend that we conduct elections to States and Central levels, simultaneously, once in five years to mitigate the impact of frequent elections".

After becoming PM, he neither facilitated formation of separate cadre nor amendment of the Constitution to provide for simultaneous elections to Lok Sabha and State Assemblies. Simultaneous polls used to be organized till 1967.

He only enriched public discourse on this issue as has been done for decades by earlier regimes. Mr. Modi has thus become part and parcel of seamless Indian systems called policy paralysis.

The list of inactions on what he proposed as CM, if compiled, would shock even his diehard supporters. He has also preferred to remain silent on what he recommended as Chairman of two different committees constituted by NDC during UPA regime.

Consider now a few instances of PP that NDA inherited from UPA. Take the case of National Employment Policy whose draft was unveiled by the latter in August 2008.

In March 2018, Government informed Parliament: "An Inter-Ministerial Committee has been constituted to draft the National Employment Policy and consultations have been held with various stakeholders".

Similar is the story of draft National Tribal Policy that was unveiled by UPA in 2006. NDA Government has not disclosed what action it has taken on the recommendations of high level committee on tribals that submitted its report in May 2014. It has not even made the report public.

The annual reports of National Commission on Schedules Tribes for 2013-14 and subsequent years are not yet available in public domain because they have not yet been laid by the Government in Parliament.

NDA is thus preserving UPA's tradition of delayed presentation of reports submitted by different constitutional/statutory authorities on weaker segments of society.

NDA deserves credit for being one step ahead of UPA on PP front! The former has thus not implemented latter's belated decision taken in 2013 to double bank deposit insurance cover to Rs. two lakh per depositor. The coverage ceiling was enhanced to Rs. 1 lakh in May 1993 from Rs. 30,000 in July 1980.

The Government informed Parliament during August 2018 that "at present, there is no such proposal to revise the deposit insurance cover".

The Government did not accept Andhra Pradesh Chief Minister's suggestion to raise deposit insurance cover of Rs.1 lakh to Rs. 15 lakh.

Modi Government has also not implemented UPA's 2005 decision to transform National Statistical Commission into a statutory entity within one year.

Dig into any sector and pop would emerge one or more instance of PP that might be of UPA or earlier vintage.

It, however, must be said to the credit of Modi Government that it has ended disgusting PP in several areas such civil aviation policy, small firearms manufacture and regulation of drones.

Turn now BJP manifesto-specific cases of PP. The Party's manifesto for 2014 Lok Sabha polls promised a new national education policy and a national land use policy. Both of them have not yet been unveiled.

The manifesto articulated BJP's resolve to reserve 33% seats in parliamentary and state assemblies for women through a constitutional amendment. This commitment exists only in the manifesto at present. So is the case with the uniform civil code. The list of inactions or incomplete actions is long. The list would become longer if one factors in forgotten/shelved policy ideas mooted by earlier manifestos and certain other important documents such BJP 2004 vision.

To conclude, policy paralysis is ploy that can boomerang on any PM if he/she spends lion's share of time in political rallies, events and foreign jaunts.

Will Modiji walk the talk of reducing politics to end PP, thereby giving a new direction to the country?


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Selective PP Analysis

"PP as a two-pronged phenomenon comprising 1) inordinate delay in framing new policies and laws or updating existing ones and 2) failure to implement some policies and to plug loopholes in the flawed execution of other policies." - I would think that plugging of loopholes in flawed execution is a matter of execution of Policy, not a case of PP. Secondly, the writer has rather conveniently omitted absence of PP in foreign affairs, defence, and security matters. Aren't they Prime Minister's responsibility?

Posted by Gururaj B N
 

TIOL Tube Latest

Dr. Shailendra Kumar, Chairman, TIOL Knowledge Foundation, addressing the gathering



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.