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GST revenue to fall Rs 50K crore short

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arun jaitley
Arun jaitley, Finance Minister (File Photo

New Delhi, Feb 1: Finance Minister Arun Jaitley projected a higher fiscal deficit of 3.5 percent of the GDP for 2017-18, as against the target of 3.2 percent, on account of GST implementation and deferment of spectrum auction.

The fiscal deficit or gap between total expenditure and revenues has been pegged at 3.3 percent for 2018-19, as against the FRBM mandate of 3 percent.

As per the revised estimates presented by Jaitley in the Union Budget 2018-19, the net borrowing for the current fiscal was raised steeply to Rs 4.79 lakh crore as against the estimate of Rs 3.5 lakh crore.

The government will borrow Rs 4.07 lakh crore from the market in 2018-19, around Rs 73,000 crore lower than the current fiscal.

Referring to public finances, Jaitley said that in 2017- 18, the central government will be “receiving GST revenues only for 11 months, instead of 12 months”.

“This will have fiscal effect,” he said.

There has also been some shortfall in non-tax revenues on account of certain developments, including deferment of spectrum auction, he added.

A part of this shortfall has been made up through higher direct tax revenues and bigger disinvestment receipts, Jaitley said.

“Revised fiscal deficit estimates for 2017-18 are Rs 5.95 lakh crore at 3.5 per cent of GDP,” he announced.

As per the budget document, total revised estimates for expenditure in 2017-18 are Rs 21.57 lakh crore (net of GST compensation transfers to the states) as against the Budget Estimates (BE) of Rs 21.47 lakh crore.

Later, at a press conference, Revenue Secretary Hasmukh Adhia said GST revenue collection will fall short by Rs 50,000 crore.

Jaitley further said in order to impart unquestionable credibility to the government’s commitment for the revised fiscal glide path, he would be accepting key recommendations of the Fiscal Reform and Budget Management Committee.

The recommendations relate to adoption of the debt rule and to bring down the central government’s debt to GDP ratio to 40 per cent.

“Government has also accepted the recommendation to use fiscal deficit target as the key operational parameter,” Jaitley said.

Meanwhile, according to the Controller General of Accounts (CGA) the fiscal deficit at end of December 2017 worked out to be 113.6 per cent of the BE for 2017-18.

In actual terms, the deficit totals to Rs 6.20 lakh crore during the April-December period.

The government has received Rs 10,78,006 crore or 67.4 per cent of the BE up to December 2017.

The total expenditure works out to be Rs 16.98 lakh crore

PTI

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Govt to levy interest on late payment to MSMEs for GeM purchase

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Nirmala Sitharaman

New Delhi, July 3 : Government departments and agencies will have to pay interest on late payment to vendors, largely MSMEs, for products procured through the Government e-Martketplace (GeM), starting October 1.

Through an office memorandum, the Department of Expenditure of the Ministry of Finance on Friday said that if the payment is not made within 10 days of the Consignee Receipt and Acceptance Certificate (CRAC) being auto generated or issued by the buyer, the concerned department will have to pay interest at the rate of one per cent per month for the delayed payment.

However, this very interest will not go to the MSMEs concerned and instead, will deposited in an account maintained by the GeM, which will be used only for the education of buyers and sellers or public procurement with the prior approval of the Department of Expenditure, said the office memorandum.

“ln order to promote greater discipline and timeliness in payment to vendors, especially #MSMEs, the government has issued an order to levy interest on late payment to vendors on the government e-marketplace. #AatmaNirbharBharat,” said a tweet by Finance Minister Nirmala Sitharaman”s office.

The order will be effective on orders made from October 1, 2020.

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Tomato prices skyrocket to Rs 70/kg in Delhi-NCR

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

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Tomato

New Delhi, July 3 : With the onset of the monsoon tomato prices soared to Rs 70 per kg in New Delhi and its surrounding areas on Friday.

Crop failure in the rainy season and the late arrival of tomatoes in the mandis (wholesale markets) have led to the price hike. However, the prices are expected to fall after the arrival of the new crop from Himachal Pradesh next week.

A month ago, the price of tomatoes in Delhi’s Azadpur mandi was between Rs 1.25 and Rs 4.75 per kg, while the wholesale price on Friday was Rs 6.44 per kg.

The model rate of tomato was Rs 3 per kg in Azadpur mandi on June 3, which has increased by 10 times to Rs 29 per kg. On July 2, the wholesale price of tomatoes rose to Rs 52 per kg in the mandi, which means there has been an increase of about 995% in the last one month. Due to the rise in wholesale prices, tomatoes were sold at Rs 80 per kg on Thursday in Delhi-NCR and Rs 50.70 per kg in Greater Noida.

Azadpur Agricultural Produce Marketing Committee (APMC) chairman Adil Ahmad Khan said prices have gone up due to late arrival of tomatoes. The quantity of tomatoes received at Azadpur mandi was 528.2 tonne on June 3 while on July 3 it was 281.6 tonne. The quantity has thus been reduced by nearly 50 per cent in a month. Only 241.9 tonne were received on July 2 due to which the wholesale price was Rs 6.52 per kg while the model rate was Rs 32 per kg, Khan added.

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

From next week, the arrival of the new crop from Himachal Pradesh will lead to a decline in the prices of tomatoes. He said at present 90 per cent of the tomatoes in Delhi arrive from Himachal Pradesh while only 10 per cent are received from Haryana and Karnataka.

The consumption of all green vegetables, tomatoes and onions has declined during the past few months because of the shutdown of hotels, restaurants, canteens and dhabas following the nationwide lockdown in the wake of the corona pandemic. This led to a marked fall in prices. The wholesale price of tomatoes had come down to less than one rupee per kg.

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JioMeet takes on Zoom, can support up to 100 participants

JioMeet offers unlimited meetings per day and each meeting can go uninterrupted up to 24 hours.

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JioMeet

New Delhi, July 2 : Amid growing calls for ”Made in India” digital tools, Reliance Jio has launched a free video-conferencing application called JioMeet, taking on US-based Zoom platform.

According to the JioMeet description on Google Play Store, the application can be used for 1:1 video calls and hosting meetings with up to 100 participants with enterprise-grade host controls.

Other highlights include easy sign up with either mobile number or email ID, meeting in HD audio and video quality.

The application can be used for creating instant meetings to chat with friends and also to schedule a meeting in advance and share meeting details with invitees.

JioMeet offers unlimited meetings per day and each meeting can go uninterrupted up to 24 hours.

The application can be used on Android, Windows, iOS, Mac, SIP/H.323 systems.

JioMeet has already been downloaded for over 10,000 times from Google Play Store.

Each meeting is password protected and the host can enable a “Waiting Room” to ensure no participant joins without permission, JioMeet said.

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