Synopsis: Some experts are expressing concern over the government’s disinvestment proposal. There is a need for adopting a cautious approach that augments rather than deteriorates public welfare. Background: The government has set a target of 1.75 lakh crore rupees from the disinvestment of PSUs in the current financial year. Companies like Air India and BPCL… Continue reading Issues associated with Government’s Disinvestment proposal
Tag: ECO_0
Solving the issue of Retrospective Taxation
Synopsis: The two cases of retrospective taxation related to Vodafone and Cairn energy can be solved. It is possible if the government and companies collectively decide to do mutual bargains. Filing more and more cases in international tribunals might not deliver optimum results. Background: Both the companies individually filed a case in the Permanent Court… Continue reading Solving the issue of Retrospective Taxation
Govt releases new “Public Sector Enterprise Policy”
What is the news? The Government of India has released a new ‘Public Sector Enterprise Policy’. About ‘Public Sector Enterprise Policy’: The policy classifies public sector commercial enterprises into the strategic and non-strategic sector: Strategic Sector: There would be a maximum of four public sector companies in strategic sectors. State-owned firms in other segments would… Continue reading Govt releases new “Public Sector Enterprise Policy”
Issues in Taxing PF contribution
Synopsis: By taxing the income of PF contributions over 2.5 lakhs, the government wants to restrict High net-worth individuals (HNIs) who are using the social welfare scheme as a tax haven. Though it is well-intended, it has many ambiguities. Read More – Budget proposes tax on EPF interest|ForumIAS Blog Background The Union Budget 2021 has… Continue reading Issues in Taxing PF contribution
Privatisation of banking sector: Issues and analysis
Source: The Indian Express Syllabus: GS -3 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Synopsis: The government has decided to privatise two public sector banks. The move will give the private sector a key role in the banking sector. Introduction The government has announced the disinvestment policies for… Continue reading Privatisation of banking sector: Issues and analysis
Issue of Digital Services Tax between India and US – Explained
Table of contents What is Digital Services Tax (DST)? Why India introduced the Digital Service Tax? What are the accusations mentioned by the US? What India said in reply? What are the concerns associated with DST? Suggestions Recently the U.S. determined India’s Digital Services Tax (DST) as discriminatory. It concluded that the DST is causing… Continue reading Issue of Digital Services Tax between India and US – Explained
Strategic Disinvestment Policy: Issues and Challenges – Explained
Disinvestment Policy COVID-19 pandemic has hit the Indian economy very hard. At once, due to lockdowns, Indian economy was dried out of funds. Economic activities got reduced drastically. At present, the Indian economy is in urgent need of a revenue stream so that all activities can go back to normal. Government expenditure was expected to… Continue reading Strategic Disinvestment Policy: Issues and Challenges – Explained
Budget proposes tax on EPF interest
What is the News? The government has proposed to make the interest earned on EPF contributions beyond ₹2.5 lakh Taxable. Why has this proposal been made? The government has found instances where High Net Worth Individuals(HNIs) are contributing huge amounts to EPF. They are getting the benefit of tax exemption at all stages — contribution,… Continue reading Budget proposes tax on EPF interest
A normal budget for abnormal times
Synopsis: The recently released budget appears to be fairly normal. Normal is not sufficient for the abnormal times like the present. Introduction The economy contracted by 7.7% in India. The economic survey projects India’s real GDP growth to be 11% in 2021-22. However, this projection looks overestimated. India will have to surpass pre-covid-19 levels to… Continue reading A normal budget for abnormal times
Evaluation of Budget 2021
Source: The Hindu Gs2: Parliament and State Legislatures- Budgeting Synopsis: The evaluation of Budget 2021 is done on three parameters. First, on the credibility of the Budget. Second, it’s potential to deliver adequate domestic output and jobs. Third, on how the Budget raises resources. What is the Credibility of the Budget 2021? Budget 2021 scores… Continue reading Evaluation of Budget 2021
