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India’s fiscal deficit up to February was 20% more than the revised estimates for FY18  India’s fiscal deficit up to February was 20% more than the revised estimates for FY18 because of increased expenditure and subdued revenue receipts. Experts say that nontax revenues would now be crucial if North Block were to meet its FY18 fiscal-deficit target. "The extent to which the nontax revenues can be shored up in March 2018 would crucially determine if the actual fiscal deficit for FY2018 breaches the revised estimate of Rs 5.94 lakh crore," said Aditi Nayar, principal economist, ICRA. In the revised estimates for FY18, finance minister Arun Jaitley had in the budget presented on February 1estimated a fiscal deficit of 3.5% of GDP against the initial assessment of 3.2% of GDP. Fiscal deficit for FY19 is budgeted at 3.3% of GDP. Fiscal deficit in the April-Feb period stood at Rs 7.15 lakh crore, exceeding the revised target of Rs 5.94 lakh crore for the entire 2017-18 fiscal

Boost for New Employees, Cabinet Fixes Subsidy for P&K Fertilisers To create more formal sector jobs and lift employment generation, the cabinet committee on economic affairs (CCEA) has decided to meet the full provident fund contribution employer makes for the first three years for new hires. The CCEA also fixed the nutrient based subsidy (NBS) rates for phosphatic and potassic (P&K) fertiliser’s for the year 2018-19 and continuation of NBS and city compost scheme till 2019-20 and approved removal of prohibition on export of all varieties of edible oils except mustard oil. The cabinet approved Rs 4,500 crore spend in the North-East for three years up to March, 2020, and cleared amendments to the National Medical Commission (NMC) Bill. The amendments include stringent punishment for quackery, removal of a bridge course that would have allowed non-allopathic doctors to practice modern medicine and regulation of fees for 50% seats at deemed universities. EMPLOYMENT GENE

RBI Rolls Out Regulations for Cross-Border Mergers New FEMA rules cover both inbound and outbound investments, expected to boost FDI India has rolled out the long-awaited regulations to allow cross-border mergers and amalgamation that could boost foreign direct investment into the country. The Reserve Bank of India (RBI) has framed the regulations for mergers and amalgamation between Indian and foreign companies. The Foreign Exchange Management (Cross Border Merger) Regulations, 2018, will cover both inbound and outbound investments. The ministry of corporate affairs had already notified Section 234 of the Companies Act, 2013, paving the way for merger and amalgamation of a foreign company with an Indian company and vice-versa. With the RBI framing the regulations under FEMA, the regulations can now take effect. “The notification of FEMA (Cross Border Merger) Regulations, 2018, is the last leg of legal provisions which is finally came in existence to allow both inbound and outb

  FinMin simplifies GST anti-profiteering form to make it easier for people While simplifying the form, it was kept in mind that a common man should be able to apply without the help of an accountan The Finance Ministry has simplified and reduced the number of columns in the complaint form to make it easier for consumers to report any profiteering activity by businesses post GST rollout. The number of columns in the simplified single-page form have been slashed to 16, of which 12 fields are mandatory, to make it convenient for people. The original profiteering complaint form, though a single page document, had about 44 columns seeking a number of details and half of those fields were mandatory. In the new form the applicant has to give his name and address and contact details along with proof of identity. Besides, the name and address of the supplier too are to be provided. Besides, the applicant has to state any goods or service for which the application is being filed as well

  FSSAI to align licensing norms with GST The Food Safety and Standards Authority of India (FSSAI) is working on amending the registration and licensing regulations for food businesses. It will look at reclassifying food businesses on the basis of their turnover, in a bid to align these norms with GST. FSSAI CEO Pawan Agarwal said: “We are working on bringing a comprehensive amendment to the licensing and registration regulations for food business operators. The amendments will include classification of licences for food businesses on the basis of turnover in line with GST and MSME norms.” All food business operators need to register with, or obtain licences from, the authorities at the State or Central level. But small food business operators with a turnover of ?12 lakh, also known as ‘petty food manufacturers’, are only required to register but not obtain a licence. Agarwal said the FSSAI proposes to raise the turnover limit for ‘petty food manufacturers’ to ?20 lakh in lin

RBI to revive pre-policy meetings with bankers and industry executives The April policy, being the first one of the new fiscal year, is important as it spells out overall path of the policy and outlook on aspects such as inflation and growth The RBI had revived the practice of meeting bankers and industry associations prior to formulating the monetary policy, sources said. The input received from bankers and industry executives would be a key discussion point for the six-member monetary policy committee (MPC) at its two-day meeting on April 4 and 5. Sources said such meetings would now be routine. Earlier, it was customary for the RBI to take feedback from bankers and industry associations before formulating the policy, which was decided by the RBI governor alone. After the constitution of the MPC, which coincided with Urjit Patel’s first policy as RBI governor, industry-level meetings stopped. The meetings could start early next week “The banking industry and the corporate wor

 I-T offices to remain open from March 29 to 31 for filing returns Income tax offices and Ayakar Seva Kendras (ASKs) will remain open during holidays from March 29 to 31 to facilitate filing of returns by taxpayers before the end of the current financial year. The last date for filing of belated returns for Assessment Years 2016-17 and 2017-18 and revised returns for Assessment Year 2016-17 is March 31, 2018. “To facilitate filing of income tax returns and completion of associated work, all income tax offices throughout India shall remain open from March 29-31, 2018, ” a Finance Ministry statement said. While March 29 and March 30 are government holidays on account of Mahavir Jayanti and Good Friday respectively, March 31, the last day of 2017-18 financial year, is a Saturday. Banks too will be shut from March 29 to 30. The Business Standard, New Delhi, 28th March 2018