Financial Year Archives - Lokmarg

Yogi Presents Rs 6.90L Cr Budget For 2023-24

By LokMarg 22nd February 2023

Uttar Pradesh government on Wednesday presented its annual Budget for financial year 2023-24.

State Finance minister Suresh Khanna, in his speech, pegged the total Budget size at Rs 6.90 lakh crore. In 2022-23, the state’s Budget estimate was at Rs 6.15 lakh crore.
Uttar Pradesh is the largest state in the country with a population estimated at 24 crore. The state is also the country’s largest consumer and labour market, with its contribution to the country’s GDP estimated at more than eight per cent.

For the financial year 2023-24, the nominal rate of increase in Gross State Domestic Product (GSDP) is estimated at 19 percent, said Khanna, adding that the state’s growth rate is encouraging in an era of likely global recession.

Among major budgetary allocations, the state allocated Rs 25,350 crore for Jal Jeevan Mission, hoping that all households will be covered with tap drinking water. Last year’s allocation was Rs Rs 19,500 crore.

“By the year 2023-2024, a target has been set to provide pure and pure drinking water under Jal Jeevan Mission by providing functional household tap connections to all 2.26 crore households in the state,” the Finance minister said.

Further, for Kanpur Metro, the first 9m- odd section of which is already operational, a further Rs 585 crore budgetary allocation has been made for the year 2023-24.

Prime Minister Narendra Modi in December 2021 inaugurated the completed section of Kanpur Metro Rail Project.

This 9-km long section of the Kanpur Metro links IIT Kanpur to Moti Jheel. The entire length of the Metro Rail Project in is 32 Km, with 2 corridors of which 13 kms will be underground.

For the Agra Metro project, Rs 465 crore has also been made available in the Budget.

Invoking the recent Global Investors Summit, which was attended by over 25,000 investors from across the globe, minister Khanna said, “I am happy to inform you that more than 19,000 Memoranda of Understanding (MoUs) worth about Rs 33.50 lakh crore were signed during the summit.”

The investors’ summit which came to a close on February 12 was the flagship investment summit of the Yogi Adityanath-led government. The mega event was aimed at bringing together policymakers, industry leaders, academia, think tanks, and leaders from across the world to collectively explore business opportunities and forge partnerships.

In the run-up to the summit, the state government held roadshows and meetings with investors in various countries and states to promote the state as a go-to destination for businesses and investments. (ANI)

FDI Inflows To Cross $100 BN In 2022-23

By LokMarg 24th September 2022

The inflow of FDI (foreign direct investment) to India is expected to surge to a record $100 billion in the current financial year, helped by the Make-in-India initiative and steps taken by the government to improve the country’s ranking in ease of doing business.

According to data released by the Ministry of Commerce and Industry on Saturday, FDI to India almost doubled to $83.6 billion in 2021-22 from $ 45.15 billion in 2014-2015.
To attract foreign investments, the Government of India has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route. FDI inflows in India stood at US $ 45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for eight years, the Ministry of Commerce and Industry said in a statement.

The year 2021-22 recorded the highest ever FDI at $83.6 billion. This FDI has come from 101 countries and invested across 31 UTs and States and 57 sectors in the country.

On the back of economic reforms and Ease of Doing Business in recent years, India is on track to attract $100 billion FDI in the current financial year, the ministry said.

Launched in 2014, ‘Make in India’ initiative has played a crucial role in transforming the country into a leading global manufacturing and investment destination. The initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’. Make in India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well, the ministry said.

The Production Linked Incentive (PLI) scheme, across 14 key manufacturing sectors, was launched in 2020–21 as a big boost to the Make-in-India initiative. The PLI scheme incentivizes domestic production in strategic growth sectors where India has a comparative advantage.

This includes strengthening domestic manufacturing, forming resilient supply chains, making Indian industries more competitive, and boosting export potential. The PLI Scheme is expected to generate significant gains for production and employment, with benefits extending to the MSME ecosystem.

Recognizing the importance of semiconductors in the world economy, the Government of India has launched a USD 10 billion incentive scheme to build a semiconductor, display, and design ecosystem in India.

To strengthen the Make in India initiative, several other measures have been taken by the Government of India. The reform measures include amendments to laws, and liberalization of guidelines and regulations, in order to reduce unnecessary compliance burdens, bring down costs and enhance the ease of doing business in India. Burdensome compliance with rules and regulations has been reduced through simplification, rationalization, decriminalization, and digitization, making it easier to do business in India.

Additionally, labor reforms have brought flexibility in hiring and retrenchment. Quality control orders have been introduced to ensure quality in local manufacturing. Steps to promote manufacturing and investments also include reductions in corporate taxes, public procurement orders, and a phased manufacturing program.

To promote the local industry by providing their preference in public procurement of goods, works, and services, the Public Procurement (Preference to Make in India) Order 2017 was also issued pursuant to Rule 153 (iii) of the General Financial Rules 2017, as an enabling provision. The policy aims at encouraging domestic manufacturers’ participation in public procurement activities over entities merely importing to trade or assembling items.

The policy is applicable to all ministries or departments or attached or subordinate offices or autonomous bodies controlled by the government of India and includes government companies as defined in the Companies Act, the Ministry of Commerce & Industry said. (ANI)

Net Direct Tax Collections Up 23% In 2022-23: CBDT

By LokMarg 18th September 2022

Net direct tax collections so far this financial year are at ₹700,669 crore, an increase of 23 per cent as compared to ₹568,147 crore till the same period of the corresponding financial year, a Central Board of Direct Taxes statement said on Sunday.

The total includes corporation tax of Rs 368,484 crore and personal income tax (including securities transaction tax) worth Rs 330,490 crore.

Direct tax collections continue to grow at a robust pace, a clear indicator of the revival of economic activity post-pandemic, as also the result of the stable policies focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.

The gross collection of direct taxes (before adjusting for refunds) so far stands at Rs 836,225 crore, as compared to Rs 642,287 crore in the corresponding period of the preceding financial year, registering a growth of 30 per cent.

The gross collection includes corporation tax at Rs 436,020 crore and personal income tax (PIT) including securities transaction tax(STT) at Rs 398,440 crore.

“The cumulative advance tax collections for the first and second quarter of the FY 2022-23 stand at Rs 295,308 crore as on 17.09.2022, against advance tax collections of Rs 252,077 crore for the corresponding period of the immediately preceding Financial Year i.e FY 2021-22, showing a growth of 17 per cent. The advance tax collection of Rs 295,308 crore comprises corporation tax (CIT) at Rs 229,132 crore and personal income tax (PIT) at Rs 66,176 crore,” the CBDT statement said.

Notably, the speed of processing of income tax returns too rose this fiscal.

Almost 93 per cent of the duly verified ITRs filed this year have been processed till Saturday, it said.

“This has resulted in the faster issue of refunds with almost a 468 per cent increase in the number of refunds issued in the current financial year,” it added.

Subsequently, refunds amounting to Rs 135,556 crore have been issued so far against refunds of Rs 74,140 crore being issued during the corresponding period in the preceding financial year 2021-22, showing a growth of around 83 per cent. (ANI)