Gold Slips Below Rs 32,000 on low Demand

The prices of gold is experiencing downward train in a country like India that is obsessed with the precious metal.
Gold prices fell by 20 rupees to 31,980 rupees per 10 grams at the bullion market today on easing demand from local jewellers along with subdued global cues, extending its fall for the third straight day.
However, silver recovered by 100 rupees to 40,300 rupees per kg on scattered enquiries from industrial units. Traders said, besides the fall in demand from local jewellers and retailers at the domestic spot market, a weak trend overseas on a firmer dollar, while investors focused on the US jobs data due later in the day for fresh catalysts, kept pressure on gold prices.
Gold prices fell 0.12 percent to 1,310 US dollar an ounce, and silver by 0.15 percent to 16.37 US dollar an ounce in Singapore.

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PNB fraud: CBI arrests PNB's ex-Deputy Manager Gokulnath Shetty

The CBI today made the first arrest in the alleged 11,400 crore rupee Punjab National Bank fraud case in which businessman Nirav Modi and his partner Mehul Choksi are accused. The CBI has arrested three people - former Deputy Manager of the bank, Gokulnath Shetty, Single Window Operator of the bank, Manoj Kharat, and the authorised signatory of Nirav Modi group of firms, Hemant Bhat. The three will be produced before a CBI special court in Mumbai.

Meanwhile, massive searches by the Enforcement Directorate that began on Thursday continued on Friday against Nirav Modi, a jewellery designer and main accused in the PNB scam.

Friday saw raids being conducted in Delhi, Mumbai, Surat and Jaipur. Raids by CBI also continued at various places connected with Mehul Choksi. The investigating agency raided 20 locations belonging to Gitanjali group of companies spread across 6 cities in 5 states.

In the raids diamond, gold and jewellery worth 5649 crore rupees have been seized. CBI also registered a case against Mehul Choksi based on the complaint by PNB.

FIR has been filed against 3 companies of Choksi group, Gitanjali Gems, Gili India and Nakshatra Brand Limited. Apart from crackdown by ED, External Affairs Ministry has also tightened its noose around Nirav Modi. It suspended the validity of passports of Nirav Modi and Mehul Choksi for four weeks.

Amidst reports of Nirav Modi slipping out of the country, Interpol has also been alerted. Agencies have issued diffusion notice through Interpol.

As investigations into the fraud continue, PNB has suspended 8 more employees which has taken the number of suspended PNB officials to 18.

Government and the BJP have categorically said strict action is being taken in the case and those guilty will not be spared. BJP has alleged that in 2013 during UPA government's tenure, the finance secretary had received a complaint pertaining to the case but owing to some pressure, no action took place.

BJP also said Congress President Rahul Gandhi visited Nirav Modi's jewellery exhibition in 2013.

The scam involving Nirav Modi and Mehul Chowksi came to light when the PNB said it had discovered fraudulent transactions dating back to 2011. The fraud pertains to issuance of letters of undertaking to three companies associated with Nirav Modi.

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India Announces World's Largest Health Programme

Finance Minister Arun Jaitley presented the Union Budget 2018-19 in the Parliament on Thursday, where he had a challenge to not just realise the 'New India' dream by spurring growth, but also meet expectations of millions of people and different sections of society and businesses of the country.
World's largest government-funded health programme - 'National Health Protection Scheme' was announced. It will cover 10 crore poor and vulnerable families by providing upto Rs 5 lakh per family per year. The government will launch 'Revitalising of Infrastructure and Systems in Education' by 2022 with a total investment of Rs 1 lakh crore in next 4 years.
This budget is significant as it was Modi government's fifth and final full budget. It is also the first one after GST implementation. Clearly, the focus is on low-cost farming. He said besides 'ease of doing business', the government is also focusing on 'ease of living' now. “
Higher Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost.Hardwork of farmers resulted in a record production of more than 275 million tonnes of food grain and about 300 million tonnes of horticultural produce,” FM  said.
The Finance Minister expressed hope that economy will grow at 7.2 percent to 7.5 percent in the second half of 2017-18. He exuded confidence that India is on track to grow at 8 percent.
He proposed to raise institutional credit for agriculture to Rs 11 lakh crore for 2018-19. National Livelihood Mission allocated Rs. 5,750 cr in 2018-19.
Bamboo is green gold and restructured National Bamboo Mission will be launched with an allocation of Rs 1,290 crore to promote bamboo sector in a holistic manner, Jaitley said.
Air Pollution in Delhi NCR is a cause for concern, special scheme will be implemented to support Govts of Haryana, Punjab, UP and Delhi NCT to address it and subsidize machinery for management of crop residue, FM said.
By 2022, every block with more than 50% ST population and at least 20,000 tribal people will have 'Ekalavya' school at par with Navodaya Vidyalas.
Government plans to construct 2 crore more toilets under Swachh Bharat Mission, he informed.
Jaitley said the government has successfully implemented series of structural reforms as a result of which India is one of the fastest growing economies in the world. He said FDI has gone up and Indian economy is now a 2.5 trillion economy.

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Highlights of the Budget 2017-18

 

Public Finances

·         Fiscal deficit pegged at 3.2 percent of GDP

·         Revenue Deficit target at 1.9% of GDP

·         Total expenditure for 2017-18 at Rs 21,47,000 crore,

·         The net tax revenue grew by 17% in 2015-16

·         Total resource transfer to States and UTs with legislature at Rs 4.11 lakh crore up from Rs 3.6 lakh crore in BE 16-17

·         Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture 

Taxation

·         We are largely a tax non-compliant society & the burden of tax-evaders falls on honest taxpayers Only 1.72 lakh people show income above Rs 50 lakh: FM

·         1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh

·         Existing rate of taxation of those with income between 2.5 lakh to 5 lakh to be reduced from 10% to 5%:

·         All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board:

·         Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore

·         Time period of revising tax return to be reduced to 12 months

·         A single one-page form for filing IT returns for taxable income up to 5 lakh rupees

·         Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now

·         No transaction over Rs 3 lakh will be allowed in cash

·         Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector:

 

Infrastructure

·         Total allocation for infrastructure stands at a record level Rs 3,96,135 crore in 2017-18

·         Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr 

·         Rs 2000 Cr announced for coastal road connectivity - essentially to enhance connectivity to ports & coastal villages

·         Rs27,000 crore on to be spend on Pradhan Mantri Gram Sadak Yojana; 

 

Railways

·         Railways to focus on 4 major areas 1. Passenger safety 2. Capital and development work 3. Cleanliness 4. Financial and accounting reforms

·         Railways plan size for 2017-18 pegged at Rs. 1,31,000 crore

·         Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17

·         For rail passenger safety, a fund of 1 lakh crores will be allocated over the next 5 years 

·         500 stations will be made differently abled friendly with lifts and escalator

·         Government proposes Coach Mitra facility to redress grievances related to rail coaches

·         Indian Railways plans to feed about 7000 stations with solar power in the next few years

·         Service charge on e-tickets booked through IRCTC will be withdrawn

·         Railway tariffs to be fixed on the basis of cost, social obligation and competition; 

·         State run companies like IRCON and IRCTC to be listed in markets

 

 

Defence

·         Defence allocation of Rs 2.74 lakh crore

 

 

Agriculture

·         Total allocation for rural, agricultural & allied sectors for 2017-18 a record 1,87,223 cr, up by 24%:

·         Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore 

·         Rs 9,000 cr higher allocation for payment of sugarcane arrears 

·         Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore 

·         Modern law on contract farming will be drafted and circulated to states 

·         Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop 

·         Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year 

 

Housing

·         To construct one crore houses by 2019 for homeless.

·         PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr 

 

Trade & Commerce

·         Trade Infrastructure Export Scheme to be launched in 2017-18 

·         Basic customs duty on LNG to be reduced from 5% to 2.5%

 

 

Ease of doing business

·         Foreign Investment Promotion Board (FIPB) will be abolished. 90% of FDI coming through automatic route.

 

Digital India

·         AadharPay, a merchant version of Aadhaar-enabled payment system to be launched shortly for those without debit cards, mobile phones

·         Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18 

·         By end of FY 2017-18 high speed broadband connectivity on optic fibres will be available in more than 1,50,000 gram panchayats

·         Digi Gaon initiative will be launched to provide tele-medicine, education & skills through digital technology:

 

Skill Development & Empowerment

·         600 districts to get Pradhan Mantri Kaushal Kendra (PMKK) for skilling youth for opportunities

·         “SANKALP” for Livelihood Promotion Programme to be Launched at a cost of Rs. 4000 Crores 

·         Mahila Shakti Kendras to be set up at village level, in 14 lakh ICDS centres, with an allocation of Rs. 500 crore

·         Pradhan Mantri Mudra Yojana lending target has been doubled at Rs 2.44 lakh crore for 2017-18

 

Political funding

·         Max. amount of cash donation a political party can receive to be 2000 rupees from any one source

·         Political parties will be entitled to receive donation by cheque or in digital mode, from their donors

·         Amendment to RBI Act proposed to enable electoral bonds

 

Tourism

·         5 special tourism zones,anchored on SPV, to be set up;Incredible India 2.0 campaign to be launched across the world

 

HRD

·         National Testing Agency to be established to conduct all entrance exams for higher education:

·         Innovation Fund for secondary education to be created

·         Two new AIIMS to be set up Jharkhand and Gujarat 

·         “SWAYAM” Platform will be launched to leverage Information Technology. this will enable students to virtually attend the courses taught by the best faculty; access high quality reading resources, participate in discussion forums; take tests and earn academic grades. Access to SWAYAM would be widened by linkage with DTH channels, dedicated to education.

 

Welfare

·         For senior citizens, Aadhaar based health cards will be issued 

·         Allocation for welfare of women and children increased from Rs 1,56,528 crores in BE 2016-17 to Rs 1,84,632 crores in 2017-18 

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Maharashtra Day Without Fervour

The usual fervour which accompanies Maharashtra Day on May 1 was absent this time. The state has been mired in problems ranging from lawlessness to drought and there is no remedy in sight. The ruling politicians have put up a brave face being a developed state but that does not take away the limelight away from the serious problems the public is facing here.

Just a couple of days before the celebrations for the 52^nd foundation day for the state began, the local media reported about the demand or wish by villagers in Jat division of the Sangli district. The villagers had collectively demanded that they wanted to go in the Karnataka state because the farmers in the neighbouring state are getting much better treatment. Their argument is that even though farmers in Maharashtra are suffering from drought, they are not given adequate waivers. In the contrast, the farmers in Karnataka are getting loans with zero interest and power without charge.

This news item was an eye opener for those who prided on the strides made by the state in social welfare, justice, economic equality and industrialisation. All the claims made by government stood dwarfed in the light of this development.

Not only the villagers of Jat, many parts of the state resent the downgrade of Maharashtra in recent years. Just August last year, Vairagadh village in Buldhana district made a similar demand through the gram sabha. They had even written a letter to Narendra Modi, chief minister of Gujarat for inclusion of their village in that state.

The state has taken a beating on each and every front. It stands at top in the list of debt ridden states and is followed by Uttar Pradesh with a total debt burden of Rs 1.36 lakh crore. The state is paying Rs 20,000 crore towards interest on loans alone.

The state also is ranked first in the number of farmer suicides with more than three thousand farmers taking their lives each year. According to Economic Survey 2011-12, the economic growth of the state has falled to 8.5 % from 11.3 % last year.

These hard realities have confined the Maharashtra Day to rituals. This has been second time in a row that the state is missing the usual celebratory mood. Hope it is improved next year.

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Railway Budget Off The Track

It Adopts Populist Measure
Mamata Banerjee has doled out many sops in her first railway budget. But I am afraid whether much of those sops can actually be put to use. I myself is angered with the concession given to journalists.

Banerjee today announced a new method of concessions to be given to accredited press correspondents. Under this method, the accredited journalists will receive photo identification cum credit card instead of coupons, which was in vogue till now. Now, I have travelled almost each corner of Maharashtra where the trains reach and never have I used these coupons. First of all, I am not an accredited journalist. Fellows like me can not adjust with the rigorous documentation required for getting accredition. Even in the new scheme, the credit card cum photo identification will be provided based on the certification by the Press Information Bureau and other competent State and local authorities. These authorities are not very forthcoming when it comes to awarding accredition. I know so many journalists in the regional press who, even after working for more than a decade, can not get the accredition.

In addition, concession of 30% will be increased to 50% for accredited press correspondents and permission will be given for once a year to travel with spouse at 50% concession.

Banerjee also announced a new scheme ‘Izzat’ (meaning honour) in the Railway Budget for 2009-10. This is much in the line of her predecessor Lalu Prasad Yadav who used to announce more and more sops for 'poors'. The point is not about depriving them. But let us be clear. Would you like to increase the volume of personnel traffic without heeding conveniences to be provided. Have these ministers really cared how the people are forced to suffer in the overcrowded bogies of long distance trains, sometimes in the ration of 1:4!

The new scheme will provide a uniformly priced monthly season ticket of Rs. 25 for travel up to 100 kms for members of the unorganized sector with monthly income not exceeding Rs. 1500/-. Does minister means that poor families should travel regularly 100 kms to find their wages?

Meanwhile, Pune Railway Station has been included in the list of 50 railway stations to be developed as world class stations. This is an old plan and nothing new in it. In fact, the work on modernisation of the station has taken a back seat for last one year.

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