Interim Budget Target Of Fiscal Deficit In FY24-25 Likely To Stay Unchanged

Union Finance Minister Nirmala Sitharaman could stick to the fiscal deficit target of 5.1 per cent of GDP for 2024-25 (FY25), same as the Interim Budget, when she presents the full Budget in the middle of next month, the Business Standard reported. 

This is amid the considerations of the coalition government that assumed power at the Centre this month, and a likely thrust on higher capital expenditure. There are also expectations of special financial packages for coalition partners like the Telugu Desam Party and Janata Dal (United) of the ruling NDA for Andhra Pradesh and Bihar, respectively.

What will come to the finance minister’s aid is the record RBI dividend payout of Rs 2.11 lakh crore, providing government additional cushioning to fuel growth. Read more

Income Tax Concessions Likely In Budget Under New Tax Regime To Boost Consumption

The Indian government is considering lowering income tax rates for some slabs of individuals to boost consumption, moneycontrol reported. 

The Reuters report quoting two government sources said the plan could be announced in the full budget in July. The category of individuals that may see some tax relief are those earning over Rs 15 lakh annually and likely under the new tax regime.

A post-poll survey had showed that voters were worried about inflation, unemployment, and decreasing incomes. While the Indian economy grew at a world-beating 8.2 percent in 2023-24, consumption has grown at half that pace. A cut in personal income tax could boost consumption in the economy and increase savings for the middle class. More here 

Renewable Energy Capacity Of 30-35 GW To Be Added In This Fiscal Year

India is likely to add 30-35 GW of renewable energy capacity in the ongoing financial year, higher than last fiscal's addition of 18.4 GW, the Economic Times reported quoting senior government officials.

Renewable energy sources contributed 71 per cent to the 26 GW of power generation capacity that India added in FY24, according to the Council on Energy, Environment and Water. India's target of reaching 500 GW renewable energy capacity by 2030 requires an addition of around 44 GW annually, per a latest report from Moody's Ratings. To meet the target, India requires $190-215 billion of investment over seven years, it said. More here

India, EU Fail To Break Deadlock Over Steel Imports At The WTO

India and the European Union have failed to reach an agreement at the WTO on the concessions the bloc can offer to New Delhi to mitigate the adverse impact of duties it levies on some steel imports, the Economic Times reported.

The two sides conducted consultations on June 7 on the EU's recent announcement of its decision to extend the existing safeguard measures on some steel product imports beyond the current termination date of June 30 for another two years.

India, China and Russia, along with five others have criticised the EU's decision to extend the levy on certain steel products, arguing that the measure was inconsistent with the global trade body's rules. More here 

Advance Tax Collections Grows Almost 30% Over Last Year

The government's advance tax collection in this financial year till June 15 surged 27.6 per cent year-on-year to Rs 1.48 lakh crore, signalling a robust economy and strong corporate performance, the Economic Times reported. 

The amount included Rs 1.14 lakh crore as corporate tax and Rs 34,362 crore as personal income tax, the report said. The advance tax collection between April 1 and June 15 last year was Rs 1.16 lakh crore, comprising Rs 92,172 crore as corporate tax and Rs 23,513 crore as personal income tax. The numbers reflect the advance tax collection till 11 pm on June 15. More here

LNG Imports Fall 7.2% Despite Surge In Power Sector Consumption

LNG imports fell 7.2 per cent year-on-year in May as domestic demand stagnated and local production expanded, the Economic Times reported.

India imported 2,650 million metric standard cubic metres (MMSCM) of LNG in May, lower than 2,854 MMSCM a year earlier, according to oil ministry data. The country consumed 5,708 MMSCM of natural gas in May, 0.3 per cent higher than in the same month a year earlier.

The data showed that a sizzling summer, which has boosted electricity demand across the country, had no significant impact on gas demand. The fall in demand can only be ascribed to other sectors cutting down on gas use. More here