No fiscal space for sops in Budget 2019. Government considers replacing fee subsidy with direct transfers, planning a national crowd-funding platform. Former partners and rivals race to fill the gap left by Jet Airways. SpiceJet receives several offers for stake in the airline. Crude oil prices hold steady following heavy losses last week. Paytm in talks to acquire Coverfox for around $120m. UPI clocks 733.54 million transactions in May 2019, down from 781.79 million in April. Blackstone to buy US warehouse assets from Singapore’s GLP in a record $18.7bn deal.
Moving on to the top Business news today:
No fiscal space for sops in Budget 2019. Government considers replacing fee subsidy with direct transfers, planning a national crowd-funding platform.
No Space: Following a series of meetings, the Ministry of Finance has established that it does not expect tax or non-tax revenue to reach anywhere close to the targets set in the interim Budget.
Subsequently, it has concluded that there is no fiscal space for any sops in the forthcoming Budget 2019 to be announced on July 5.
Bad News: This is likely to pose a challenge to the re-elected Modi government which would perhaps have liked to reward some of its constituencies, particularly the salaried class in the first Budget of its second term.
The Proposal: Following recommendations by a group of experts constituted by the Ministry of Human Resource Development, formed to give shape to a five-year project - Education Quality Upgradation and Inclusion Programme (EQUIP) - to revamp higher education, the Union government is looking to replace fee subsidy across top educational institutes, like IITs, with direct transfers to students and is planning a national crowd-funding platform to assist students and institutions.
Each One, Teach One: A key proposal being considered is a nationwide movement - Each One, Teach One - urging each family to support at least one student. The donation movement will be operated on a national digital platform that will connect donors with students and institutions. The target is to raise over INR25,000cr and support over 10 lakh students.