News Analysis India

Tag: Union budget

  • BJP MPs felicitate Modi, Sitharaman for ‘pro-poor’ Budget

    Express News Service

    NEW DELHI:   Congratulating itself on the Union Budget, the BJP in its parliamentary party meeting on Tuesday felicitated PM Narendra Modi and Finance Minister Nirmala Sitharaman. The PM described the Budget 23-24 as “pro-poor” and “inclusive” while Sitharaman said the proposals took care of the middle class while keeping the focus on the country’s poor.

    Specially designed garlands were presented to the two amid thunderous applause. Party chief JP Nadda credited the PM with conceptualizing the “pro-poor budget.” Parliamentary Affairs Minister Pralhad Joshi showered praise on Sitharaman for bringing out a “well-balanced and all-inclusive budget.”

    “It is an all-inclusive Budget that touches every section of our society, especially the poor and the deprived sections”, the PM said. The PM, however, kept up the political pitch. He advised his party MPs to reach out to their respective constituencies and discuss what the Budget has for them. The PM told the MPs that whenever the Budget is presented, there are a few people who speak negatively. “This year’s Budget has been hailed as pro-people even by those who are opposed to the BJP ideology,” he said.

    He dismissed the Opposition charges that the Budget proposals were prompted by crucial polls in nine states this year and then the Lok Sabha polls early next year. “It is not a poll-driven budget but a budget focused on the betterment of the poor. It is an all-inclusive budget.” The PM told the party MPs that if they wanted to get re-elected, they should always be in dialogue with the people, especially those belonging to the poor and middle class in their constituencies.

    He said if the party MPs interact with the people directly, there will be no anti-incumbency. “I think all of us should go to our constituencies and stay connected with the people,” he said. Sharing details of the meeting with the media later, Joshi said that the PM also directed the MPs to organize “MP sports competitions” (Saansad Khel Spardha) in their respective constituencies.

    NEW DELHI:   Congratulating itself on the Union Budget, the BJP in its parliamentary party meeting on Tuesday felicitated PM Narendra Modi and Finance Minister Nirmala Sitharaman. The PM described the Budget 23-24 as “pro-poor” and “inclusive” while Sitharaman said the proposals took care of the middle class while keeping the focus on the country’s poor.

    Specially designed garlands were presented to the two amid thunderous applause. Party chief JP Nadda credited the PM with conceptualizing the “pro-poor budget.” Parliamentary Affairs Minister Pralhad Joshi showered praise on Sitharaman for bringing out a “well-balanced and all-inclusive budget.”

    “It is an all-inclusive Budget that touches every section of our society, especially the poor and the deprived sections”, the PM said. The PM, however, kept up the political pitch. He advised his party MPs to reach out to their respective constituencies and discuss what the Budget has for them. The PM told the MPs that whenever the Budget is presented, there are a few people who speak negatively. “This year’s Budget has been hailed as pro-people even by those who are opposed to the BJP ideology,” he said.

    He dismissed the Opposition charges that the Budget proposals were prompted by crucial polls in nine states this year and then the Lok Sabha polls early next year. “It is not a poll-driven budget but a budget focused on the betterment of the poor. It is an all-inclusive budget.” The PM told the party MPs that if they wanted to get re-elected, they should always be in dialogue with the people, especially those belonging to the poor and middle class in their constituencies.

    He said if the party MPs interact with the people directly, there will be no anti-incumbency. “I think all of us should go to our constituencies and stay connected with the people,” he said. Sharing details of the meeting with the media later, Joshi said that the PM also directed the MPs to organize “MP sports competitions” (Saansad Khel Spardha) in their respective constituencies.

  • PM terms Union Budget ‘historic’, says it gives priority to deprived

    By PTI

    NEW DELHI: Terming the Union budget “historic”, Prime Minister Narendra Modi on Wednesday said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the resolve of a developed India and dreams of the aspirational society, including the poor and the middle class.

    Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade.

    In his first reaction to the Budget for the 2023-24 fiscal, Modi said in order to empower the middle class, the government has taken many significant decisions in the past years that have ensured ease of living.

    The prime minister underlined the potential of the middle class in realising the dreams of 2047.

    Modi also highlighted the reduction in tax rates as well as the simplification, transparency and speeding up of processes.

    “Our government that always stood with the middle class has given huge tax relief to them,” Modi said.

    The prime minister said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the aspirations and resolve of a developed India.

    He said this budget gives priority to the deprived and strives to fulfil the dreams of the aspirational society — the poor, villages and the middle class.

    The prime minister congratulated Sitharaman and her team for a “historic” budget.

    Modi called the traditional artisans such as carpenters, iron smiths, goldsmiths, potters, sculptors and many others as the creators of the nation.

    ALSO READ | Budget is ‘Anti-people’, ‘Amrit Kaal for PM Modi, not for people’: Oppn 

    “For the first time, the country has come up with many schemes as a tribute to the hard work and creation of these people. Arrangements have been made for training, credit and market support to them. PM Vishwakarma Kaushal Samman, that is, PM ViKaS will bring a big change in the lives of crores of ‘Vishwakarmas’,” Modi said.

    He said for the women living in the cities to villages, employed to homemakers, the government has taken significant steps such as Jal Jeevan Mission, Ujjwala Yojna and PM Awas Yojana etc., that will further empower the welfare of women.

    He emphasized that miracles can be performed if women’s self-help groups, which is a sector with extreme potential, are further strengthened.

    Underlining that a new dimension has been added to women’s self-help groups in the new budget with the introduction of a special savings scheme, the prime minister said it will strengthen women especially the homemaker from common families.

    This budget, the prime minister said, will make cooperatives a fulcrum of the development of the rural economy. The government, he said, has come up with the world’s largest food storage scheme in the cooperative sector.

    An ambitious scheme to form new primary co-operatives has also been announced in the budget, Modi said. This will expand the area of milk and fish production along with farming, and farmers, animal husbandry and fishermen will get better prices for their produce, he said.

    Emphasizing the need to replicate the success of digital payments in the agriculture sector, the prime minister said this budget comes with a big plan for digital agriculture infrastructure.

    Noting that the world is celebrating the International Year of Millets, Modi said there are many types of millets in India with multiple names. The prime minister said special recognition of millet is necessary when it is reaching households all over the world.

    “This superfood has been given a new identity of ‘Shree-Anna’, Modi said, as he underlined that small farmers and tribal farmers of the country will get economic support.

    ALSO READ | Budget 2023: What’s costlier, what’s cheaper

    This budget, Modi said, will give an unprecedented expansion to green growth, green economy, green infrastructure, and green jobs, for a sustainable future.

    “In the budget, we have laid a lot of emphasis on technology and the new economy. Aspirational India of today wants modern infrastructure in every field like road, rail, metro, port, and waterways. Compared to 2014, investment in infrastructure has increased by more than 400 per cent,” Modi said.

    The prime minister said the unprecedented investment of Rs 10 lakh crores in infrastructure will give new energy and speed to India’s development.

    He asserted that these investments will create new employment opportunities for the youth, thereby providing new income opportunities to a large section of the population.

    In his remarks, the prime minister also touched upon the ease of doing business which is taken forward through the campaign of credit support and reforms for industries. “An additional loan guarantee of Rs 2 lakh crore has been arranged for MSMEs,” he said, noting that increasing the limit of presumptive tax will help MSMEs to grow.

    He also said a new arrangement has been made for timely payments by big companies to MSMEs.

    “I once again congratulate Nirmala ji and her entire team for this all-encompassing budget that would give speed to building a developed India,” Modi said.

    “In 2047, we will make a prosperous India, a capable India, a prosperous India in every way. Let us take this journey forward,” he added.

    NEW DELHI: Terming the Union budget “historic”, Prime Minister Narendra Modi on Wednesday said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the resolve of a developed India and dreams of the aspirational society, including the poor and the middle class.

    Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade.

    In his first reaction to the Budget for the 2023-24 fiscal, Modi said in order to empower the middle class, the government has taken many significant decisions in the past years that have ensured ease of living.

    The prime minister underlined the potential of the middle class in realising the dreams of 2047.

    Modi also highlighted the reduction in tax rates as well as the simplification, transparency and speeding up of processes.

    “Our government that always stood with the middle class has given huge tax relief to them,” Modi said.

    The prime minister said the first budget in ‘Amrit Kaal’ has established a strong base to fulfil the aspirations and resolve of a developed India.

    He said this budget gives priority to the deprived and strives to fulfil the dreams of the aspirational society — the poor, villages and the middle class.

    The prime minister congratulated Sitharaman and her team for a “historic” budget.

    Modi called the traditional artisans such as carpenters, iron smiths, goldsmiths, potters, sculptors and many others as the creators of the nation.

    ALSO READ | Budget is ‘Anti-people’, ‘Amrit Kaal for PM Modi, not for people’: Oppn 

    “For the first time, the country has come up with many schemes as a tribute to the hard work and creation of these people. Arrangements have been made for training, credit and market support to them. PM Vishwakarma Kaushal Samman, that is, PM ViKaS will bring a big change in the lives of crores of ‘Vishwakarmas’,” Modi said.

    He said for the women living in the cities to villages, employed to homemakers, the government has taken significant steps such as Jal Jeevan Mission, Ujjwala Yojna and PM Awas Yojana etc., that will further empower the welfare of women.

    He emphasized that miracles can be performed if women’s self-help groups, which is a sector with extreme potential, are further strengthened.

    Underlining that a new dimension has been added to women’s self-help groups in the new budget with the introduction of a special savings scheme, the prime minister said it will strengthen women especially the homemaker from common families.

    This budget, the prime minister said, will make cooperatives a fulcrum of the development of the rural economy. The government, he said, has come up with the world’s largest food storage scheme in the cooperative sector.

    An ambitious scheme to form new primary co-operatives has also been announced in the budget, Modi said. This will expand the area of milk and fish production along with farming, and farmers, animal husbandry and fishermen will get better prices for their produce, he said.

    Emphasizing the need to replicate the success of digital payments in the agriculture sector, the prime minister said this budget comes with a big plan for digital agriculture infrastructure.

    Noting that the world is celebrating the International Year of Millets, Modi said there are many types of millets in India with multiple names. The prime minister said special recognition of millet is necessary when it is reaching households all over the world.

    “This superfood has been given a new identity of ‘Shree-Anna’, Modi said, as he underlined that small farmers and tribal farmers of the country will get economic support.

    ALSO READ | Budget 2023: What’s costlier, what’s cheaper

    This budget, Modi said, will give an unprecedented expansion to green growth, green economy, green infrastructure, and green jobs, for a sustainable future.

    “In the budget, we have laid a lot of emphasis on technology and the new economy. Aspirational India of today wants modern infrastructure in every field like road, rail, metro, port, and waterways. Compared to 2014, investment in infrastructure has increased by more than 400 per cent,” Modi said.

    The prime minister said the unprecedented investment of Rs 10 lakh crores in infrastructure will give new energy and speed to India’s development.

    He asserted that these investments will create new employment opportunities for the youth, thereby providing new income opportunities to a large section of the population.

    In his remarks, the prime minister also touched upon the ease of doing business which is taken forward through the campaign of credit support and reforms for industries. “An additional loan guarantee of Rs 2 lakh crore has been arranged for MSMEs,” he said, noting that increasing the limit of presumptive tax will help MSMEs to grow.

    He also said a new arrangement has been made for timely payments by big companies to MSMEs.

    “I once again congratulate Nirmala ji and her entire team for this all-encompassing budget that would give speed to building a developed India,” Modi said.

    “In 2047, we will make a prosperous India, a capable India, a prosperous India in every way. Let us take this journey forward,” he added.

  • Smoking to be costlier as Budget proposes 16 per cent hike on cigarette duty

    By PTI

    NEW DELHI: Smoking to become an expensive habit as the custom duty on cigarettes have been increased,  Taxes on cigarettes will be hiked by 16 per cent. The announcement was made at the Union budget presentation on Wednesday by Finance Minister Nirmala Sitharaman.

    Shares of cigarette companies, including Godfrey Phillips India and ITC Ltd, plunged by up to 5 per cent on the BSE on Wednesday after Finance Minister Nirmala Sitharaman announced a hike in taxes on cigarettes in the Union Budget.

    The stock of Godfrey Phillips slumped as much as 4.92 per cent to Rs 1,828.75 on the BSE, while Golden Tobacco declined 3.81 per cent to Rs 59.4.

    Shares of ITC were trading 0.78 per cent lower at Rs 349 on the bourse.

    NTC Industries dropped 1.4 per cent and VST Industries slipped 0.35 per cent.

    NEW DELHI: Smoking to become an expensive habit as the custom duty on cigarettes have been increased,  Taxes on cigarettes will be hiked by 16 per cent. The announcement was made at the Union budget presentation on Wednesday by Finance Minister Nirmala Sitharaman.

    Shares of cigarette companies, including Godfrey Phillips India and ITC Ltd, plunged by up to 5 per cent on the BSE on Wednesday after Finance Minister Nirmala Sitharaman announced a hike in taxes on cigarettes in the Union Budget.

    The stock of Godfrey Phillips slumped as much as 4.92 per cent to Rs 1,828.75 on the BSE, while Golden Tobacco declined 3.81 per cent to Rs 59.4.

    Shares of ITC were trading 0.78 per cent lower at Rs 349 on the bourse.

    NTC Industries dropped 1.4 per cent and VST Industries slipped 0.35 per cent.

  • Learning loss a tragedy, but no mention in Union Budget: Raghuram Rajan

    Express News Service

    Former Governor of Reserve Bank of India, Raghuram Rajan has expressed concern over lack of focus on the learning loss caused due to Covid-19 among school children in the Union Budget, while a significant amount of money was allocated for production linked incentive (PLI) schemes meant for industries.

    Delivering a lecture on ‘Democracy and Indian Economic Development’ at an event organised by the Madras Institute of Development Studies on Thursday, Rajan said, “The Budget barely mentions the tragedy that is overtaking our school children, especially the poor ones. That very few extra resources are being devoted to rescue a potentially lost generation of children is a serious omission. Devoting money to physical infrastructure while neglecting human infrastructure is absolutely a serious problem.”

    He added that it revealed a serious failure to realise that human capital is as important as industrial capital. Lashing out at the Centre for neglecting the education sector in the Budget, Rajan said the government is not short of money as the Budget further increased production subsidies to industries under various PLI schemes. Rajan is of the view that India has a fixation with building physical infrastructure and becoming a manufacturing hub when its strength is human capital.

    He said that instead of spending on the PLI schemes, the Centre should invest in filling the gaps in our education system, strengthening higher education, skilling and research and development.

    “If we focus on the development of human capital, it will automatically lead to our growth,” said Rajan. He also urged that the PLI schemes be studied in a detailed manner to understand if these subsidies are actually helping industries.

    He noted that India is rebounding today with strong growth numbers despite the impact of war in Ukraine. However, he said, even with strong growth in the fiscal year 2022-23, India’s growth will still be significantly below the pre-pandemic trend line.

    “Our slow growth is not all the fault of the pandemic. Our underperformance predates the pandemic. In fact, we have been underperforming for over a decade, probably since the onset of the global financial crisis,” said Rajan, adding the under-performance is mainly due to the government’s inability to create jobs.

    Taking a dig at the Atma Nirbhar programme, Rajan said that instead of focusing on becoming a manufacturing superpower and trying to manufacture everything here, India needs to work on the service sector, which is its biggest strength.

    He said it would require huge subsidies for India to build an ecosystem from scratch for the manufacturing sector. Instead, this money could have been better invested in education and producing quality engineers and doctors who can provide services globally, thereby creating more jobs and tapping the global demand, he said. 

  • Cuts in social welfare schemes, no steps to address inflation or job creation: Shashi Tharoor slams Budget

    By PTI

    NEW DELHI: Attacking the Centre over Budget 2022-23, Congress leader Shashi Tharoor on Monday said there were significant cuts in allocation of social welfare schemes, no measures to address rising inflation and nil targeted effort for job creation.

    Initiating the discussion on the Budget in Lok Sabha, Tharoor said COVID-19 pandemic has placed citizens in unimaginable distress who suffered a lot of pain due to loss of lives between March and May last year.

    In this context, he said, the presentation of the budget cannot merely be seen as a purely routine economic exercise or state forward accounting, adding that the budget is an instrument through which the government presents a political vision to manage the economy, heal the country and set it on the path to recovery.

    “The budget has given a significant slashing in MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme, more tokenism in credit support for MSME sector, no changes in personal income tax regime and no relief in terms of addressing rising inflation as well as nil targeted efforts for job creation,” he said.

    The Budget has proposed creation of “inadequate” 60 lakh jobs in five years, which is “a far cry from the 2 crore jobs the government had promised in the equally illusory “acche din” (good days), Tharoor said.

    He added that there are reductions in budgets for social welfare schemes and significant cuts in schemes for crop insurance, MSP (minimum support price) and fertliser, which has left many farmer groups to term this Budget as a “revenge budget”.

    The Congress leader also claimed a huge dip in the incomes of lakhs of people in the last five years.

    While the wealth of richest 100 Indians soared by Rs 57 lakh crore, 4.7 crore Indians slipped into extreme poverty, he said, adding that the government has not recognised the problems which they have caused and the widespread anguish they have inflicted on “aam aadmi” (common man).

    People, he said, were expecting that the government will acknowledge the problem that the nation is facing, “acknowledge the fact that the nation is facing unprecedented levels of unemployment which has left countless citizens, specially our youth and dynamic working group population, with little prospects of brighter tomorrow”.

  • Gati for Indian Economy’s Growth through Gati Shakti

    Online MI

    Union budget is much awaited policy announcement in our country every year. Not only policy makers and economist but even common man also takes a lot of interest in the budget. This is because apart from its impact on the major economic activities like production, distribution consumption, saving, investment etc., it has an impact on the family budget also. Various stakeholders have different expectations from the budget. Based on the budget proposal each one evaluates the budget in their own way.

    Evaluation of the budget is done on the basis of following parameters:

    Growth measures
    Stability measures
    Reform measures
    Fiscal management
    The budget of 2022-23 is to be looked at in the light of the prevailing pandemic conditions as well as assembly election in five states.There was speculation that the current budget will be election oriented, but the Finance Minister has proved it wrong. The current budget is growth oriented with a medium to long term strategy for economic development of India. Instead of giving direct benefit to the people, the budget has measures to give benefits through development. The proposals in the current budget are on major thrust areas like PM Gati Shakti, Inclusive Development, Productivity Enhancement and Financing Investments.

    Some of the important announcements in the budget are clearly for achieving fast economic growth. Emphasis on infrastructure development by allocating funds to the extent of nearly 4% of GDP is definitely a measure for growth. Infrastructure is indispensable for economic growth has been proved in many countries of the world. China is the best example of making available world-class infrastructure and thereby leading to growth.

    Another important announcement for growth is the proposed capital expenditure to the extent of INR 7.50 lakh crores. This capital expenditure by the Government will lead to increase in aggregate demand and will give boost to private sector investment also. Measures of linking the rural and urban areas through transport and communication facility is a step in the direction of growth. Two major growth engine of India, agriculture and MSME sector related announcements are also measures for growth. Though the farm sector is not contributing substantially to our GDP, the percentage of total population depending on this sector is large and hence, measures to put the income in the hands of farmers by crop procurements and giving MSP will lead to increase in the demand by rural population. Such rise in demand for goods and services will be an incentive for industries to make fresh investments and it will contribute towards arise in the industrial output and GDP growth. Along with measures to increase income of the farmers, use of technology for like digitization of records relating to crop output and land records is a step in the direction of increasing productivity and growth.

    Source: Envato Elements

    MSMEs are playing an important role in Indian economy in terms of industrial output, employment and exports. Proposal to continue the credit guarantee scheme for MSME sector and extension of tax concession for startups and new manufacturing units is also a growth-oriented measure.

    If the nation has to move in the direction of growth, transport is a critical infrastructure. In the current budget, PM Gati Shakti measures are going to contribute for transport availability for goods and people. Under the Gati Shakti measures, national highway construction of 25,000 kms, 400 new trains in next three years, development of ports, airports, mass transport measures will lead to reduction in logistics problems faced by industries and will help in logistics cost reduction and increasing productivity of industry. Gati Shakti will lead to connectivity between different parts of the country and help in balance regional development.

    Development of financial sector of a country also contributes towards the economic growth. In the current budget, some of the major policy announcements will strengthen the financial sector and financial inclusion. Decision of post offices to be brought under core banking system will help the country to reach out to the masses in remote areas and enhance financial inclusion. Starting digital banks for financial inclusion will make the system more transparent, accountable and rapid. Our banking system is facing severe problem of non-performing assets (NPA). To manage this problem, Insolvency and Bankruptcy law was introduced in 2016. Initially it appeared that it will be a game changer in NPA management but few limitations in the law were discovered. An announcement is made in this budget to make appropriate changes to that law. This is a very good step for NPA management and making the financial conditions of the banks strong.

    Measure to raise the revenue to meet proposed rising expenditure, instead of making major changes in the direct tax, Finance Minister resorted to new avenue by imposing tax on the income from digital assets. This step is not only a new source of revenue but also check the trading, speculating activities in digital assets.

    Source: Envato Elements

    On fiscal management front, the performance of the Government is good for 2021-22 by keeping the fiscal deficit within limit of slightly higher than budgeted. For 2021-22 the budgeted fiscal deficit was 6.8% of GDP and the revised estimate is 6.9% of GDP. Fiscal deficit is estimated at 6.4% of GDP for 2022-23, however the concern is quality of fiscal deficit. In 2022-23 if one looks at the revenue deficit to fiscal deficit ratio, it is 59.60%. What it means is that, of the total borrowings which the Government will raise, nearly 60 % of the funds will be utilized to meet revenue expenditure. This ratio needs to be controlled. The budgeted borrowing by the Government in 2022-23 is around INR 15 lakh crores. In the light of fear of rising inflation at global level, borrowing to this extent will certainly lead to inflation. Rising commodity prices of oil, gas and coal, less private investment due to lower consumer demand and pandemic uncertainly are the few other challenges before the Government.

    Source: Envato Elements

    In spite of these challenges, the Finance Minister deserves applause for presenting a budget with a highly balanced approach with the vision and focus of putting India on high growth path. Economic growth and its equitable distribution is the only solution to ensure welfare and wellbeing of the people. As Adam Smit said “No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable”. The measures proposed in the current budget are for the masses to improve their economic conditions.

    – Dr. Pankaj Trivedi

    The author is a Professor and Area Chairperson – Finance & Law department at K J Somaiya Institute of Management, Dean – Faculty of Commerce and Business Studies at Somaiya Vidyavihar University

    Disclaimer: This content is distributed by K J Somaiya Institute of Management. No TNIE Group journalist is involved in the creation of this content.  

  • Taking cue from Budget, MP government to carry out organic farming along Narmada river

    By PTI

    BHOPAL: Taking a cue from the Union budget proposal of staring chemical-free farming along the Ganga, the Madhya Pradesh government has decided to carry out organic farming along the Narmada river, which is considered as the lifeline of the state, an official said on Thursday.

    The decision was taken at a meeting of ministers and top bureaucrats chaired by Chief Minister Shivraj Singh Chouhan on Wednesday, he said.

    “A special campaign should be launched to develop natural farming on a 5-km stretch on both sides of Narmada river,” the chief minister said in the meeting.

    Chouhan also urged ministers who farm to switch to organic farming on their land, the official said.

    The state government’s decision has come a day after Union Finance Minister Nirmala Sitharaman in her budget speech said that chemical-free farming will be promoted throughout the country, starting with fields within a 5-km wide corridor along the Ganga.

    Narmada, the fifth longest river in the country, originates from Amarkantak in Anuppur district of Madhya Pradesh and traverses 1,077 km of the state.

  • Diesel to cost Rs 2 more from Oct 1, North East to see petrol price go up

    By PTI

    NEW DELHI: Diesel in most parts of the country may cost Rs 2 per litre more from October 1 while petrol in a few places such as North East may see a price hike after Finance Minister Nirmala Sitharaman levied additional excise duty on fuel sold without blending it with ethanol or biodiesel.

    Presently, 10 per cent ethanol, extracted from sugarcane or surplus foodgrain, is blended or mixed in petrol (meaning 10 per cent of ethanol mixed with 90 per cent of petrol) with a view to cutting oil import dependence and provide farmers with an additional source of income.

    Ethanol-blended petrol is supplied in 75-80 per cent of the country as availability of ethanol and logistics hamper supply in remaining areas.

    On the other hand, there is only an experimental blending of biodiesel, extracted from non-edible oilseeds, in diesel – the most used fuel in the country.

    “Blending of fuel is a priority of this Government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2 per litre from the 1st day of October 2022,” Sitharaman said in her Budget speech in the Lok Sabha.

    While the additional duty will push oil companies to procure more ethanol for mixing in petrol and arrange for logistics for transporting to deficient areas, it is unlikely that the country will be able to build infrastructure to manufacture biodiesel to the scale needed for blending in diesel in next 8 months, industry officials said.

    At a post-Budget press conference, Revenue Secretary Tarun Bajaj said the blended fuel has been discussed with the petroleum ministry.

    “We have also collected data on what is not being blended and this is something to push the petroleum companies to ensure that they do the blending. Our desire is not to collect the tax because it would be very minimal. The desire is the blending happens and to an extent, it benefits the country,” he said.

    The budget proposal would mean that areas that do not have a supply of blended fuel will see higher rates than the areas where the blended fuel is sold.

    Presently, parts of North East and Jammu & Kashmir and some far-flung areas in the South as well as in Rajasthan do not have a supply of ethanol-blended petrol.

    Industry officials said it was possible to raise the supply of ethanol-blended petrol in Rajasthan and unserviced parts of the South but the supply to North East will be constrained Diesel on the other hand is largely sold without any blending in the country.

    ALSO READ: Karnataka to have ethanol policy: Minister Munenakoppa

    “In order to promote the blending of Motor Spirit (commonly known as Petrol) with ethanol/methanol and blending of High-Speed Diesel with biodiesel, an additional basic excise duty of Rs 2 per litre on petrol and diesel, intended to be sold to retail consumers without blending, would be levied with effect from the 1st day of October 2022,” the memorandum explaining the provisions of the Finance Bill said.

    Last year, the government brought forward the target to achieve 20 per cent ethanol-blending with petrol to 2025, five years ahead of its previous target, to help reduce its dependence on costly oil imports.

    10 per cent ethanol blending is to be achieved in 2022. India is the world’s third-biggest oil importer, relying on foreign suppliers to meet more than 85 per cent of its oil demand.

    Officials said currently the average ethanol blending is 8.5 per cent. A 10 per cent blend would require 4 billion litres of ethanol by 2021-2022 sugar year (November 2021 to October 2022).

    To achieve 20 per cent blending by 2025, and to meet the requirement of the chemical and other sectors, about 12 billion litres of alcohol/ethanol would be required. The sugar industry will divert 6 million tonne of surplus sugar to produce 7 billion litres of the ethanol needed while the other 5 billion litres of ethanol will be produced from excess grain.

    Last year, the government had also allowed the mixing of ethanol extracted from surplus grains. Elsewhere in the Budget, a provision of Rs 4,000 crore has been made for subsidy on cooking gas.

    This may be inadequate in case international prices of crude oil continue to rise and there is resistance from consumers to further price hikes.

  • Union Budget: Mamata says zero for common man, Amit Mitra calls it a hoax, BJP hits back

    By PTI

    KOLKATA: Terming the union budget presented in Parliament on Tuesday as a “Pegasus spin budget”, West Bengal Chief Minister Mamata Banerjee said it has got nothing for the common people who are being crushed by inflation and unemployment.

    Banerjee’s principal chief advisor Amit Mitra claimed there is no direction for financial growth in the union budget and it is “either a hoax or lack of goodwill”.

    The opposition BJP supported the Union budget as “pro-people” and asked the TMC government to come out with a white paper on the amount of investment that has materialised in the state in the last ten years.

    Finance Minister Nirmala Sitharaman presenting the union budget in Parliament said the country’s economic growth is expected to be at 9.2 per cent in the current financial year on the back of a sharp rebound in the economy.

    Criticising the budget, Banerjee said the Centre was lost in “big words signifying nothing”. “BUDGET HAS ZERO FOR COMMON PEOPLE, WHO ARE GETTING CRUSHED BY UNEMPLOYMENT & INFLATION. GOVT IS LOST IN BIG WORDS SIGNIFYING NOTHING – A PEGASUS SPIN BUDGET (sic),” she tweeted.

    Mitra, who was addressing a virtual press conference, said India is the only country globally with stagflation and the union budget will hit rural employment further with the reduction in allocation for the job guarantee scheme.

    “There is no allocation for social security schemes. The biggest thing is that there is no solution for middle class employees in the budget. Around 1.20 crore middle class people lost their jobs in lockdown. What is allocated for them in the budget? What is allocated in the budget for the families of those who lost their lives due to COVID? There is nothing,” he said.

    Mitra, a former finance minister of the state, said there is no direction of financial growth in this union budget. “The income tax structure remains unchanged. There is nothing for the poor and middle class. The Centre’s budget is either a hoax or a lack of goodwill,” he said.

    Mitra said the amount allocated for 100 days work had been reduced from Rs 98,000 crore to Rs 73,000 crore in this year’s budget, which is a “terrible thing”.

    The budget does not address the problem of 30 million unemployed people or inflation of 14 per cent of wholesale prices or 6 per cent of the increase in consumer prices.

    “It does not stimulate demand by putting money in the hands of the common people – something that all other countries are doing,” he said.

    The BJP on the other hand accused Mitra and the TMC government of destroying the state’s economy. “The union budget is a pro-people budget. The TMC has opposed it for political reasons. But before opposing it, TMC should answer why Bengal has been pushed to a debt trap. It should come out with a white paper on the investment the state has received and those which has been implemented on the ground,” BJP state spokesperson Samik Bhattacharya said.

    Criticising the union budget as “anti-people’, CPI(M) central committee member Sujan Chakraborty said it is a “Sale India budget conceptualised by a party which has no contribution in either the country’s independence or nation building.” 

  • Budget is betrayal of salaried, middle classes: Congress hits out at Modi government

    By PTI

    NEW DELHI: The Congress on Tuesday accused Finance Minister Nirmala Sitharaman and Prime Minister Minister Narendra Modi of betraying the country’s salaried and middle classes by not announcing any relief measures for them in the Union Budget.

    Congress general secretary and chief spokesperson Randeep Surjewala said the salaried and the middle classes have been affected due to pay cuts and high inflation.

    “India’s salaried class and middle class were hoping for relief in times of pandemic, all round pay cuts and back breaking inflation. FM and PM have again deeply disappointed them in Direct Tax measures,” Surjewala said on Twitter.

    “This is a betrayal of India’s Salaried Class and Middle Class. #Budget2022,” he said in his initial remarks on the Union Budget.

    The comments came soon after the finance minister presented the union budget for 2022-23 in Parliament.