Prime Minister Narendra Modi has pledged 2 trillion rupees to boost jobs and education and increase spending on new Allies, while also planning to narrow this year's fiscal deficit and raise capital gains taxes.
In her budget speech Tuesday, Finance Minister Nirmala Sitharaman said India would focus on jobs, skills training, small businesses and the middle class in the fiscal year ending March 2025, and announced a series of employment-related business incentives to help spur employment.
Bloomberg reported that this is the first budget under the new coalition government since Modi's party lost its majority in the general election. Despite India's rapid economic growth, high unemployment and the cost of living are major concerns for voters.
Mr Modi has sought to shore up his support among voters and balance the demands of coalition partners without widening the budget deficit. Curbing the deficit and government debt is key to improving India's credit rating, which is currently at the lowest investment grade level.
Sitharaman said the government would narrow the deficit to 4.9 per cent in the current fiscal year, down from 5.1 per cent she had forecast in February. She also promised to rein in the deficit over time.
Raise taxes on capital gains
India will raise capital gains tax on equity investments and increase levies on equity derivatives trading in an effort to curb speculative enthusiasm for the country's stock market.
According to the budget submitted to parliament Tuesday, the government plans to impose a 20 percent tax on financial assets held for less than 12 months, up from the previous 15 percent, and increase the long-term capital gains tax on all financial and non-financial assets to 12.5 percent from 10 percent.
Effective October 1, the securities transaction tax rate on the sale of stock options was increased to 0.1% of the royalty and the securities transaction tax rate on futures was increased to 0.02% of the transaction price.
On September 14th, local time, US President Trump told reporters on his way back to Washington that he expected the Federal Reserve to announce a "significant interest rate cut" at its meeting this week, stating that "the current situation is very suitable for a rate cut."
On September 14th, local time, US President Trump told repo…
On September 12th, the 80th session of the United Nations G…
Recently, Reuters reported that Circa Biotech in Ain, Unite…
The UK and the US announced that they will sign a groundbre…
On September 14, the United States and the United Kingdom o…
On September 14th, the fourth round of high-level economic …