Budget 2018: This is why Maharashtra's drought woes are likely to continue

BUDGET 2018 - In many ways, the Lendi irrigation project close to the Andhra Pradesh-Maharashtra border continues to be a prime example of the excruciating delays that have plagued irrigation projects in India.

Conceived in 1987, this major irrigation project was to be completed in 1992. The project involved building a dam at the Lendi river to store over 6 trillion cubic metres of water before it joined the Manjira river, a tributary of the Godavari, the largest river of peninsular India. The project being executed by the Godavari Marathwada Irrigation Development Corporation Ltd was originally envisaged to be built at the cost of half a billion rupees. But in 2016, authorities further pushed the completion date to 2020 with a revised cost of Rs 14 billion. If the project is completed after 28 years of delay, it will join 16 other such irrigation projects in Maharashtra that have been hanging fire for over two decades. Many of these projects are in the severe drought-hit regions of Vidarbha and Marathwada in the state.
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Budget 2018 must address these key issues to boost investment in infra

As India's Finance Minister is days away from presenting Budget 2018, there are two key issues that he must address to boost investment and growth in the country. They are: Non-tax revenues from land bank monetisation of public institutions, and full tax-exempt status for income from debt instruments issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India.

The budget must pay attention to non-tax sources of revenues especially with a view to partially monetising the land banks of large public institutions such as the Indian Railways and the Airport Authority of India (AAI).

Land bank monetisation solves two core problems for India -- lack of available land for infrastructure and lack of financing for infrastructure. It also leads to productive use of an asset of great value that is lying idle. Land utilised for infrastructure will be land that will be used for productive purposes and therefore will create jobs, a much-needed requirement for a young and growing population.

While talk of land bank monetisation has been around for over a decade, little has been done by way of a fully structured policy and its consequent implementation. What the budget needs to outline is a strategy around land bank monetisation much beyond simply stating numbers.

Triple Talaq row: Shoe hurled at Owaisi during Mumbai rally, case filed

A man on Tuesday night hurled a shoe at AIMIM chief Asaduddin Owaisi while he was addressing a rally at Nagpada in south Mumbai, police said.
The MP was not hurt in the incident and the accused has been identified but was yet to be taken under arrest, they said.
Owaisi was voicing his opposition on the triple talaq issue at the rally around 9.45 pm when the incident took place, a senior police officer said.
"I am willing to lay down my life for my democratic rights. These are all frustrated people, who cannot see that the government decision on triple talaq has not been accepted by the masses in general and Muslims in particular," Owaisi told PTI.
"These people (referring to the person who threw the shoe at him) are the ones who follow the ideology of the killers of Mahatma Gandhi, Govind Pansare and Narendra Dabholkar," he said.
Owaisi claimed that such incidents were happening at the behest of people, who follow "hate ideologies" and that they are getting emboldened with each passing day.
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New Snapchat update to let users share public 'Stories' outside the app

Image messaging and multimedia mobile application Snapchat on Wednesday announced that the platform will now let its user base to share some public 'Stories' via links.

"Stories eligible for sharing right now include those Official Stories and Our Stories found in the Discover tab, as well as Search Stories," TechCrunch reported.

However, according to the company, the type of 'Stories' that one can share will expand over time.

The aim is to allow users to share content from within the app to let people, who don't use the platform, know what it can do.

This feature will be going live to users running the redesigned Snapchat app, which also includes test markets like Australia and Canada.

It will become available for iOS and Android over the next few weeks.

Budget 2018: All eyes on Arun Jaitley's announcements for the rural sector

As Finance Minister Arun Jaitley gets down to deliver his fifth annual Budget 2018-19 financial year, all eyes will be on his announcements for the rural sector which is going through a downturn in the last few years. Two consecutive droughts along with a sharp fall in incomes have turned agriculture unprofitable resulting in massive agitations in several parts of the country.

According to some estimates, in the 2017 Kharif season alone, an estimated Rs 360 billion has been denied to farmers for not being able to sell their produce at the state-mandated Minimum Support Price (MSP). The fall in farm incomes not only threatens to dent the ruling BJP electorally but could also raise a big question mark on the government’s promise to double incomes by 2022.

In this perspective, Business Standard looks at budgetary allocation for agriculture and allied sectors in the past few years under the UPA and first years of the NDA along with agriculture growth during these years. 

Budget 2018: Managers want Arun Jaitley to align tax cycle to calendar year

A Deloitte survey of pre-Budget expectations of managers on personal income tax shows that most give a thumbs-up to aligning the tax year with the calendar year. Jurisdiction-free e-assessment of tax returns, a gradual reduction in personal tax rates in line with changes to the corporation tax structure and enhanced tax breaks for education of kids are among other key Budget 2018 demands from Finance Minister Arun Jaitley.

Indian managers are keen to align the tax year (April-March) with the calendar year (January-December), despite chances of initial hardships. In a survey of around 700-odd managers, a majority of respondents (84 per cent) want the Indian tax year to be changed from the financial year to the calendar year. A little over half (52 per cent) are in favour of bringing agricultural income under the tax ambit. Interestingly, one-third of the respondents (33 per cent) did not agree to tax on agriculture income.

Close to two-thirds (64 per cent) of the respondents gave an equivocal thumbs-up to the concept of jurisdiction-free e-assessment. E-assessments are seen as part of the tax department's endeavour to expedite and simplify assessment proceedings, reduce the taxpayer's inconvenience and stamp out corruption. However, 20 per cent of the respondents believe that this move would not be beneficial. The remaining 16 per cent are not sure if this move would be of any help.

Budget 2018: Fear of outright populism overdone, say analysts

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The current market rally a month before the Budget 2018 proposals are announced on February 1 is the best in over a decade, with the S&P BSE Sensex and the Nifty50 indices gaining over six per cent so far in calendar year 2018 and crossing the 36,000- and 11,000-levels, respectively, for the first time ever on Tuesday.

Though most analysts do not expect the proposals to be hugely populist, brokerages would keep a close watch on how the government manages the fiscal situation a year before the country goes to polls scheduled in May 2019, and changes, if any, to the existing norms of long-term capital gains tax (LTCG) on equities.

While analysts peg the fiscal deficit for FY19 to be around 3.2 per cent, any change to the LTCG tax structure on equities could be a sentiment damper, analysts say. Increased allocation for infrastructure such as affordable housing, roads, railways, and ports is also possible.

Here is a quick compilation of what leading brokerages and research houses expect:

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