Niti Aayog VC and EAC-PM members raise concerns over budget proposals

Concerned about hikes in tax rates

by Manasi Swamy

Niti-Aayog vice chairman Rajiv Kumar, yesterday, expressed concern about the tax hikes announced in Budget 2018-19 and said that he hoped that it was a temporary phenomenon. Surajit Bhalla and Rathin Roy, members of the economic advisory council to the prime minister (EAC-PM), also voiced concerns about budget proposals. Surajit Bhalla termed reintroduction of long-term capital gains tax as the most absurd policy initiative and claimed that the government would not be able to fetch any more than Rs.50 billion as against the budgeted Rs.200 billion. He also added that with the hikes in customs duties, the country was back on the path of protectionism. Arvind Pangariya, former vice chairman of Niti Aayog also, through an article in Economic Times, expressed fears of the protectionism wall being raised again. Rathin Roy expressed unhappiness about the relaxation in fiscal deficit target claiming that the move had impacted the country’s credibility.

References
1. https://economictimes.indiatimes.com/news/economy/policy/budget-2018-hope-higher-tariffs-are-temporary-phenomenon-says-rajiv-kumar/articleshow/62893772.cms
CMIE STATISTICS
Unemployment Rate
Per cent
5.9 -0.0
Consumer Sentiments Index
Base September-December 2015
92.6 0.0
Consumer Expectations Index
Base September-December 2015
91.9 0.0
Current Economic Conditions Index
Base September-December 2015
93.7 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Mar 17 Jun 17 Sep 17 Dec 17
New projects 4.06 2.14 1.23 1.12
Completed projects 1.96 0.86 1.05 0.93
Stalled projects 0.74 2.67 0.67 0.93
Revived projects 0.86 0.30 0.29 0.23
Implementation stalled projects 0.33 0.69 0.73 0.58
Updated on: 24 Feb 2018 8:20PM
Quarterly Financials of Listed Companies
(% change) Mar 17 Jun 17 Sep 17 Dec 17
All listed Companies
 Income 10.2 9.7 7.9 11.9
 Expenses 11.9 10.0 9.0 12.9
 Net profit 16.4 -19.8 -16.8 -12.4
 PAT margin (%) 6.0 5.3 5.7 5.0
 Count of Cos. 4,474 4,463 4,442 4,291
Non-financial Companies
 Income 11.8 10.3 7.7 12.7
 Expenses 15.6 10.6 7.5 11.7
 Net profit -2.2 -25.2 -4.2 13.2
 PAT margin (%) 6.1 5.2 6.4 6.6
 Net fixed assets 6.9 9.2
 Current assets 2.7 78.8
 Current liabilities 8.9 11.0
 Borrowings 4.9 10.5
 Reserves & surplus 6.1 5.2
 Count of Cos. 3,457 3,447 3,421 3,335
Numbers are net of P&E
Updated on: 24 Feb 2018 8:20PM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.4 1.5 6.8
 Expenses 9.9 5.5 1.7 7.1
 Net profit -2.5 0.3 -12.9 22.1
 PAT margin (%) 3.1 3.1 2.8 5.3
 Assets 12.3 9.5 10.1 8.3
 Net worth 9.7 8.5 11.7 7.4
 RONW (%) 6.1 5.9 4.9 7.9
 Count of Cos. 24,633 24,657 22,529 10,919
Non-financial Companies
 Income 9.7 4.6 0.6 6.7
 Expenses 9.4 4.8 0.0 7.6
 Net profit -3.1 -8.1 13.2 15.9
 PAT margin (%) 2.2 2.0 2.5 4.9
 Net fixed assets 11.7 13.3 17.4 7.2
 Net worth 8.3 6.9 12.4 5.4
 RONW (%) 5.0 4.7 5.1 8.5
 Debt / Equity (times) 1.1 1.1 1.0 0.8
 Interest cover (times) 2.0 1.9 1.9 2.7
 Net working capital cycle (days) 69 67 65 52
 Count of Cos. 19,858 20,066 18,861 8,566
Numbers are net of P&E
Updated on: 21 Feb 2018 10:31AM

Data added for HPI at Assessment prices and HPI at Market prices