Rising prices remain a worry, but economy progressed

Rising prices remain a worry, but economy progressed

By Arvind Padmanabhan

Although high inflation remained a sore point during the first year of the United Progressive Alliance (UPA) government’s second term, some major steps were taken, such as a cut in fertiliser subsidy, to keep the reform process going.

Logging a 6.5-per cent growth when economies the world over were floundering and limiting the impact of the global slowdown on India were the high points of this government under Prime Minister Manmohan Singh, an internationally recognised economist widely applauded for economically reforming India and keeping it on a high growth path.

The unveiling of a new Direct Tax Code to rewrite the five-decade-old Income Tax Act, the increase in levies on crude and transport fuels and the hikes in fertiliser prices despite political opposition were the other notable achievements. On the flip side, though, was the total silence on reviewing the foreign investment norms on a host of sectors, the lack of movement forward in opening up the financial services industry and delays in implementing a host of infrastructure projects.

“Barring inflation and less-than-anticipated progress in roads and highways, the latest UPA government has been able to live up to India Inc's expectations," said the leading corporate lobby, the Associated Chambers of Commerce and Industry (Assocham). “The government has scored seven out of 10 points in the first-year performance since it assumed office for second term on May 22, 2009,” said the chamber, based on a survey it conducted among 500 chief executives across the country. Here is a list of hits and misses of the second term of the UPA government that was somewhat relieved by the electoral verdict of the people, which ensured it no longer needs the support of Left parties in the decision-making process.

Sensex up 40 pts on global cues

MUMBAI: Erasing early losses, the Bombay Stock Exchange benchmark Sensex today jumped over 40 points to snap two days of losses, amid positive global trends.

After touching the day's low of 16,744.13 in early trade, the 30-share index bounced to close higher by 40.20 points at 16,875.76.

Brokers said buying interest in blue-chip shares Reliance Industries, Infosys Technologies and Larsen and Toubro helped the markets erase losses and settle the day higher.

The National Stock Exchange index Nifty too closed with a moderate gain of 6.30 points at 5,066.20.

Marketmen said the recent declines were overdone, given the outlook for domestic demand.

In the 30-BSE index components, 19 stocks rose while 11 ended with losses.

The world stocks rose after Wall Street rallied overnight on optimism that plans being made to bail the Euro zone out of the crisis would work out. Chinese and Hong Kong markets closed with more than 1 per cent gain, while European shares were also trading higher by the same margin.

TOI

I-T dept planning to bring rural traders into tax net

I-T dept planning to bring rural traders into tax net

New Delhi, May 16: The Income Tax department is looking to bring rural traders and others into the tax net. The department which is attempting to expand the taxpayer base in the country will now focus their attention on a large swathe of rural businesses that have so far remained untouched. “We are planning to increase the taxpayers base. A number of taxpayers and assessees that the department would include will be from the rural areas,” CBDT Member (Revenue) Durgesh Shankar told PTI. There are a large number of people who do not pay tax.

Tax avoidance is a great worry and the department would strengthen the mechanism to include such assesses in the income tax fold, Shankar said. The I-T department has found that the income generated from numerous kinds of businesses conducted in rural areas can be brought under the tax net. The country''s official auditor, The Comptroller and Auditor General (CAG) in a recent report tabled in Parliament had also expressed concern about the declining tax base during 2008-09. “The number of assessees declined by 3 per cent compared to an increase by 7.6 per cent in 2007-08. The decline was sharper among corporate assessees, indicating, inter alia, stop-filing which would need to be reviewed by the Board (Central Board of Direct Taxes),” the CAG report had said. It is a matter of concern that the Department which is otherwise aiming at widening the tax base had not managed to retain the existing tax base.

Panel to consider demands for HC benches: Moily

Panel to consider demands for HC benches: Moily

New Delhi, May 16: Amid growing clamour for setting up High Court benches in various states, the Government has decided to form a one-man committee to look into the issue. “We have decided to form a one-man committee to look into demands for setting up High Court benches,” Law Minister M Veerappa Moily told PTI here.

A former Chief Justice of India would be entrusted with the task and the Law Ministry would move the Union Cabinet shortly for its nod to set up the committee. Sources said former CJI Justice A M Ahmadi is a frontrunner for the post. But Moily said no name has been decided so far. “It is too early to comment,” he said.