Page 253 - General Knowledge
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GENERAL KNOWLEDGE                                                                               2019



                Nakul Swasthya Paatra, E-Pashudhan Haat and National Genomic Centre for indigenous
                 breeds.
            Highlights of Union Budget 2015-16
            Overview of the Economy
                Aiming at 7-8 per cent gross domestic product (GDP) growth in 3-4 years.
                Decline  in  fiscal  deficit  from  5.7  per  cent  in  2011-12  to  4.5  per  cent  in  2013-14  mainly
                 achieved by reduction in expenditure rather than by way of realisation of higher revenue.
                Road map for fiscal consolidation outlines fiscal deficit of 3.6 per cent for 2015-16 and 3 per
                 cent for 2016-17.
                Improvement in current account deficit (CAD) from 4.7 per cent in 2012-13 to year-end level
                 of 1.7 per cent mainly achieved through restriction on non-essential import and slow-down
                 in overall aggregate demand.
            Administrative Initiatives
              A stable and predictable taxation regime which will be investor friendly and spur growth.
              Resident  tax  payers  enabled  to  obtain  on  advance  ruling  in  respect  of  their  income-tax
               liability above a defined threshold.
              New Urea Policy would be formulated.
              Introduction of GST to be given thrust.
              High level committee to interact with trade and industry on regular basis to ascertain areas
               requiring clarity in tax laws is required to be set up.
              Employment exchanges to be transformed into career centres.
              A sum of Rs 100 crore (US$ 1.67 million) provided.
            Foreign Direct Investment (FDI)
                The composite cap in the insurance sector to be increased up to 49 per cent from 26 per
                 cent with full Indian management and control through the FIPB route.
                Requirement of the built up area and capital conditions for FDI to be reduced from 50,000
                 square  metres  to  20,000  square  metres  and  from  US$  10  million  to  US$  5  million
                 respectively for development of smart cities.
            Bank Capitalization
                Requirement to infuse Rs 240,000 crore as equity by 2018 in our banks to be in line with
                 BaseI-III norms.
                Capital  of  banks  to  be  raised  by  increasing  the  shareholding  of  the  people  in  a  phased
                 manner.
                ―This  will  enhance  capital  flows  in  to  the  securitisation  industry  and  will  particularly  be
                 helpful to deal with bank NPAs,‖ the speech noted.
                The  budget  has  set  aside  only  Rs10, 000  crore  for  bank  recapitalization, lower  than  the
                 Rs25, 000 crore figure for the current year.
              The  Indradhanush  scheme  says  that  state-owned  lenders  will  receive  Rs70,  000  crore by
               March 2017 as capital infusion from the government to meet their higher capital requirement
               under the Basel-III regime.
              Despite that, a gauge of state-owned bank stocks rose 4%.
              ―Overall it‘s a neutral budget. Low fiscal deficit and lack of any populist measures like the
               farm loan waiver turned out to be positive for the banking stocks.
              Lower deficit will also ensure that Reserve Bank of India has more space to cut rates.
              The  only  negative  thing  is  lower  capital  infusion  in  public  sector  banks,‖  said  Suresh
               Ganapathy, associate director, Macquarie Capital Securities India.


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