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ECONOMY

Will fastest growing espite Indian economy election year is estimated to cost likely to subject to a low base effect.

economy tag be a poll D surpassing China’s GDP the government this fiscal over the In fact, 1.81 lakh crore IGST refunds
emerging as the fast-
10,000 to 35,000 crore more for
are pending with the centre as they
est growing economy
gross budgetary allotment. Ayush-
of the world and even
are unable to disburse the amount
to the constituent states. This has
man Bharat is estimated to cost
plank in 2019? rate of 6.7, when rest of the econo- spin. On the other hand, the esti- led to a loss to the government
6000 crore will add to fiscal tail-
coffers of various states. The eWay
mies are facing an uphill drive, the
system is said to have led states to
mated 80,000 crore through dis-
targeted fiscal deficit of 3.3 per cent
for 2018-2019 is likely to fizzle out.
voice concern which once again is
investment of CPSEs is set to be a
Shortfall in GST collections, MSP spoilsport as usual and an estimated leading to ‘inspector raj’ and leading
hike overspend, hardening of crude 80,000 crore through spectrum to confusion at the district level of
With Indian economy attaining a GDP rate of 8.2% and emerging as the fastest growing oil prices in the international com- auction is also in quandary. It may transportation.
economy of the world, the Modi government may use it as a poll plank for 2019 elections, modity markets and Ayushman be recalled that PSUs stake sale of The spectrum auction collec-
Bharat spending are expected to
25 per cent as advocated by SEBI for tion has always played truant.
writes SANJAY THAPA JEET jack up public expendi- public shareholding-estimated to The exorbitant prices of spectrum
ture this fiscal, even rev- garner up 47,000 crore has already particularly in the low frequency
enue is expected to take got an extension for two years and range of 800 Mhz continue as the
a hit. thus doesn’t bring much cheer. reserve price has spoiled the apple-
Dwindling collections cart both for government as well
through the Community the telecom sector. TRAI has been
and Public Sector Union advocating spectrum prices based
(CPSU) disinvestment on the prices of 2016. It seems that
drive as well as spec - Dwindling TRAI didn’t learn from its past mis-
trum auctions, as usual, collections via takes. The exorbitant prices of spec-
is expected to come as a trum have led to it being unsold. As
damp squib and is set to the disinvestment much as 38 per cent of spectrum
upset the government’s drive as well as since 2010 has remained unsold
applecart. Telecoms bal- but it rose to 68 per cent in 2012
ance sheets are already spectrum auctions and 59 per cent in 2016. In a similar
in tizzy as Jio’s low tariffs may come as damp way, TRAIs move towards launch-
war are already reel - ing the 5G services in the country
ing under burgeoning squib and are set in the coming years is facing flak.
CAPEX due to payment to upset the govt’s TRAI is preparing for the 5G auc-
of high license fees of the tions in the coming years but as per
DoT. Not to be forgotten applecart industry pundits, it is likely to end
the volatality in USD ver- in a fiasco-TRAI commitee on 5G
sus the Rupee is further is trying to fix a tariff of 492 crore
expected to be the last A 5-month hike in June at 7 per per Mhz in as the reserve price for
nail in terms of higher cent in factory production is too 3300 Mhz - 3700 Mhz band. At such
cost of imports. To add an eyewash. Despite this, the fact a high cut off price, the first coun-
to this, the impending remains that the factory output has try to launch 5G in the world, South
global trade wars due been suffering given the high cost of Korea, has failed.
to US President Donald funds in the market. This means that Given these exigencies the fact
Trump imposition of the indirect tax collection in terms remains that the election year is a
higher tariffs on imports of GST will be lower in the next time when the government tends
from China as well as two-three months. to spend extra in terms of luring the
sanctions against Iran is GST collections have in fact vote-bank. This normally may add
anticipated to add a fur- dwindled given the confusion and to the expenditure on many popu-
ther twist. a constant amendment of the list of list giveaways without thought to
With a major fan - the tax brackets and goods. In fact, the effect on the government
fare, the government the latest figure of July wherein the exchequer throwing the fiscal
has raised the MSP by GST collections touched 96,483 prudence to the winds in the lure
1.5 times in July. The crore is too looked at with caution of votes.
MSP hike which nor - as the new tax regime was imple-
mally comes in an mented in August a year back and is LETTERS@TEHELKA.COM

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