B U S I N E S S | Monday, November 23, 1998 |
|
weather n
spotlight today's calendar |
Budget targets to go
haywire: mid-term review |
Himachal to have health
resorts, herbal gardens Car
sales drop due to PAN condition |
PSEB order for BHEL ICICI
bond shelved |
||||||
Budget targets to go haywire: mid-term review NEW DELHI, Nov 22 (UNI) With the downward rigidity of expenditures, likely revenue shortfall and lower than budgeted growth in the economy, the targets set for key fiscal indicators in the 1998-99 Budget are likely to go awry, says a mid-term review of the Indian economy. Painting a gloomy picture, the review, conducted by the India International Centre, also cast doubts on the countrys trade deficit scenario as well as the overall performance of the agriculture sector and the success of the PSU disinvestment programme. Further, the gross fiscal deficit is expected to be higher than the targeted 5.6 per cent of the GDP. It predicted that the actual expenditures of the Central Government would exceed the budgeted amount on account spillover of pension payments to the government employees and increased subsidies. Extensive floods and some crop damage following rains may also bring unanticipated expenditure burden on the treasury. Tax collections Though the review pointed out that direct tax collections during the first half of the current fiscal have overshot the targets, it cast serious apprehensions on whether the buoyancy would continue through the rest of the year. Further, the budgetary targets for indirect tax collections also do not stand a chance of being met. Since the budget estimates of Customs and excise collections are based on a 10 per cent industrial growth. Disinvestment The review also pointed that on account of unfavourable conditions in the domestic and international markets, the governments disinvestment target of Rs 5,000 crore appears to be unrealistic. The review called for greater fiscal stringency and tighter reign over money supply in the current year. Unless government borrowing is contained, it would become impossible to contain monetary growth within the targeted limits. However, for a number of reasons, the prospects do not seem too promising. Trade deficit The trade deficit is likely to widen. Assuming there will be a 2 per cent growth of exports and 6 per cent in imports during this fiscal, the balance of trade deficit is going to touch $ 8,566 million, representing a 26 per cent increase over the previous years $ 6,799 million. However, assuming a 2 per cent growth in exports and 6 per cent in imports on RBIs data, the trade deficit may turn out to be around $ 18.6 billion compared to $ 16.3 billion in the previous fiscal. Agriculture On the agricultural sector, the review, edited by Rakesh Mohan and Pradeep Srivastava of National Council of Applied Economic Research (NCAER), pointed out that despite a good monsoon this year on an average, overall performance of the sector will remain below normal because some regions have experienced significant deviations from normal rainfall. As a result, agricultural output in these regions is likely to suffer with a strong regional impact on prices of commodities grown in those regions, an impact that is exacerbated by the extremely poor state of infrastructure for storage, marketing and distribution of agricultural produce. The performance of the economy during the first half of this financial year was characterised by weak industrial performance, continuing fiscal fragility accommodated by higher than usual money growth, infrastructure problems, plunging exports, widening trade deficit, slowdown in the reforms process and the usual albeit mysterious growth in the services sector. That way, the economy,
during the first half of this fiscal, carried the legacy
of the last year. With another year of a coalition
government, it seems that we could well be in a world
where nothing fundamental has changed. |
Himachal to have health resorts, herbal gardens SHIMLA, Nov 22 (PTI) The Himachal Pradesh Government is formulating a comprehensive plan to exploit the immense tourism potential of the state. The plan envisages setting up of natural health resorts, herbal gardens, centre for indigenous system of cure, nature parks, wildlife sanctuaries and national parks, officials said. Herbal gardens were coming up at Niri in Hamirpur, Pancharu in Shimla and Badseri in Kinnaur while national parks were being developed in the Kulu valley and the Pin valley. Besides, encouraging the construction of green hotels, the projects intends to protect rare species of birds, plants and animals to lure travellers and natural lovers. Adventure, religious and leisure tourism and employment generation are other items on the agenda. The policy was being formulated keeping in view the fragile ecology and environment pollution. Efforts are also being made to open three new museums in the tribal areas and protect old temples, monasteries, palaces and rare wood carvings. A ski-lift is being constructed at Solang near Manali at a cost of Rs 7 crore and a proposal to start heli-skiing had also been cleared. Lakes like Suraj Tal,
Chander Tal, Mani Mahesh and Parashar having great scope
for pilgrimage are being beautified, while man-made
sarovars like Gobind Sagar (Bhakra Dam), Maharana Pratap
Sarovar (Pong Dam) and 12-km long Chamera Dam were being
developed as water sports centres. Adventure sports like
rafting, water surfing, canoeing, kayaking, sailing,
water skiing and angling were being developed to attract
tourists. |
Car sales drop due to PAN condition NEW DELHI, Nov 22 (UNI) The government notification requiring car buyers to quote permanent account numbers (PAN) for every purchase has sounded the death-knell for the automobile industry with sales dropping by more than 10 per cent over the last fortnight in the open and second-hand markets. Sales of both new and pre-owned cars have been significantly affected due to this stipulation and dealers feel if this is not reversed soon, it might just prove to be fatal for the industry, which is currently passing through a severe recession. In fact, the second-hand car sales have been most affected with retails dropping by over 10 per cent in 15 days. As it is, the second-hand car prices have come crashing down and, despite that, we were facing problems in offloading the vehicles. Now with the requirement to quote with every transaction, buyers have just stopped coming to our shops, a city-based second-hand car dealer told UNI here. Moreover, the
announcement, the dealers say, have come during the final
two months of the year, which are worst for the
automobile industry. Traditionally, during these
two months, sales are down nearly by 3 to 5 per cent. But
this year, we feel, the drop is going to be much
higher, another grey market operator said. |
| Nation
| Punjab | Haryana | Himachal Pradesh | Jammu & Kashmir | | Chandigarh | Editorial | Sport | | Mailbag | Spotlight | World | 50 years of Independence | Weather | | Search | Subscribe | Archive | Suggestion | Home | E-mail | |