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
6.1 +0.1
Consumer Sentiments Index
Base September-December 2015
100.6 0.0
Consumer Expectations Index
Base September-December 2015
99.7 0.0
Current Economic Conditions Index
Base September-December 2015
98.2 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 17 Dec 17 Mar 18 Jun 18
New projects 1.25 1.51 3.42 2.32
Completed projects 1.25 1.16 1.56 0.91
Stalled projects 0.69 0.88 3.44 0.30
Revived projects 0.34 0.24 0.26 0.22
Implementation stalled projects 0.78 0.71 1.92 0.04
Updated on: 14 Aug 2018 4:20PM
Quarterly Financials of Listed Companies
(% change) Sep 17 Dec 17 Mar 18 Jun 18
All listed Companies
 Income 7.9 12.0 9.7 16.9
 Expenses 9.0 13.0 16.2 20.2
 Net profit -18.0 -14.3 -80.3 5.5
 PAT margin (%) 5.5 4.8 1.2 6.1
 Count of Cos. 4,508 4,503 4,325 2,657
Non-financial Companies
 Income 8.2 13.3 11.1 19.2
 Expenses 8.2 12.4 11.7 21.6
 Net profit -6.0 13.2 1.6 31.4
 PAT margin (%) 6.2 6.4 6.6 7.7
 Net fixed assets 9.2 11.8
 Current assets 2.9 7.2
 Current liabilities 11.0 10.4
 Borrowings 3.4 1.9
 Reserves & surplus 7.9 7.2
 Count of Cos. 3,464 3,471 3,347 2,098
Numbers are net of P&E
Updated on: 14 Aug 2018 4:21PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 6.0 9.9
 Expenses 5.7 1.9 6.0 13.3
 Net profit 0.1 -9.7 25.8 -37.5
 PAT margin (%) 3.0 2.8 3.5 4.2
 Assets 9.5 10.2 7.5 13.2
 Net worth 8.5 11.3 7.7 12.8
 RONW (%) 5.8 4.9 5.8 5.7
 Count of Cos. 26,178 24,474 22,051 749
Non-financial Companies
 Income 4.9 1.0 5.8 8.5
 Expenses 5.1 0.4 6.1 8.0
 Net profit -9.4 19.9 20.7 6.6
 PAT margin (%) 2.0 2.4 3.0 9.3
 Net fixed assets 13.3 17.9 6.7 27.6
 Net worth 7.0 12.0 6.6 9.7
 RONW (%) 4.6 5.1 5.9 13.2
 Debt / Equity (times) 1.1 1.1 1.0 0.4
 Interest cover (times) 1.9 1.9 2.1 6.2
 Net working capital cycle (days) 66 65 62 8
 Count of Cos. 21,351 20,488 18,371 585
Numbers are net of P&E
Updated on: 12 Aug 2018 11:30AM