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Army planners are increasingly worried about this drain on funds that could otherwise go towards equipment modernisation For the first time ever, the defence budget for 2020-21 allocates more money towards pensions for retired Army soldiers than for salaries for soldiers still in the standing Army. Scrutiny of the defence budget reveals that Rs 111,294 crore has been allocated for Army salaries, including civilian employees. The Rs 113,278-crore allocated for Army pensions surpasses that. There are slightly under 1.3 million soldiers serving in the Army, including officers. Meanwhile, 2.06 million individuals, including Army widows, are drawing pensions, according to the defence ministry, in answer to a parliamentary question in November 2016. The pension budget has steadily risen since the grant of One Rank, One Pension (OROP) in 2015-16. That year, it was Rs 60,000 crore for the entire military. For 2020-21, it will stand at Rs 1.33 trillion. Army planners are increasingly worried

From rationalising GST rates for 5-star hotels to FDI in coal mining, here are the top 10 business headlines on Wednesday GST Council may rationalise rates for five-star hotels in Friday meeting The Goods and Services Tax (GST) Council is likely rationalise rates for five-star hotels in its meeting on Friday, holding out hopes for a boost to the tourism industry. The fitment panel, comprising Central and state officials, recommended a rate cut for outdoor catering and rate rationalisation for match sticks in its final agenda circulated to the council members. Rail coach making gets a hand from robots; MCF beats expectations In 2018-19, when Modern Coach Factory (MCF) at Raebareli manufactured about 1,500 rail coaches against a capacity of a mere 1,000, it surprised many. Apart from its human workforce, 44 robots are also being credited for this stupendous success. Robots are now being used increasingly in the integrated-shell assembly line and robotic bogie-fabrication line. Bain,

The Steering Committee on fintech-related issues has also suggested cash flow-based financing for micro, small and medium enterprises A panel on issues related to financial technology (fintech), in its report submitted to Finance Minister Nirmala Sitharaman on Monday, has recommended a new legal framework for consumer protection.  The framework encompasses fintech and digital services, a National Digital Land Records Mission, a unified database (stacks) for small industries and the agriculture sector, removing discriminatory regulatory barriers in digital payments infrastructure, and allowing non-banking financial companies (NBFCs) into agriculture credit. The Steering Committee on fintech-related issues has also suggested cash flow-based financing for micro, small and medium enterprises (MSMEs); using drones and remote sensing to assess risk in agriculture credit and insurance; increasing the use of artificial intelligence among state-owned banks; and regulatory and legislative

According to Securities and Exchange Board of India annual report, eligibility norms for FPIs were relaxed and data privacy concerns of FPIs were addressed As macroeconomic headwinds weighed on investor sentiments through the year, foreign portfolio investors pulled out Rs 38,930 crore in 2018-19, according to market regulator Sebi's annual report.  "In order to further develop the Indian securities market as an avenue for fundraising, eligibility norms for FPIs (Foreign Portfolio Investors) were relaxed and data privacy concerns of FPIs were addressed," the 2018-19 annual report said.  Among other steps, the watchdog had withdrawn the minimum residual maturity restriction of three years for investment in government securities and state development loans. Besides, sub-categories under the category of corporate bonds were discontinued resulting in a single limit for FPI investment in all types of corporate bonds, as per the report.  The limit for FPI investment in de

The RBI board meeting on Monday to finalise its annual accounts, is also likely to take up the Bimal Jalan committee's recommendations on Economic Capital Framework (ECF) along with the dividend payment to the government, sources said.  The committee had submitted its report to the RBI Governor on Friday. The report, which recommends transfer of surplus reserves to the government in a staggered manner over three-five years based on a predetermined formula, may be put on the Reserve Bank of India (RBI) website later for public access.  The RBI follows a July-June financial year and the dividend is usually distributed in August after annual accounts are finalised. For FY20, the government has pegged a Rs 9,000 crore dividend from the RBI. Sources had earlier told IANS that the RBI may start transferring the first tranche of the surplus this calendar, based on the Jalan panel report.  With economy facing a slowdown in key sectors, the government is looking at RBI dividends and sur

President Donald Trump said on Tuesday his administration was considering potential tax cuts on wages as well as profits from asset sales, and sought to play down market anxieties that the world's top economy could be heading for a recession.  Speaking to reporters during a White House visit by Romanian President Klaus Iohannis, Trump said "we're looking at various tax reductions," adding that a "payroll tax is something that we think about."  Recession fears were stoked last week when bond investors briefly demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth.  Trump dismissed fears of a slowdown, extolling low unemployment and a rising stock market over his tenure.  "I think the word "recession" is a word that's inappropriate...We're very far from a recession," he said.  The Washington Post reported a temporary payroll tax cut wa

With an aim to safeguard mutual fund investors from high-risk assets, regulator Sebi wants fund houses to shift all their investments to listed or to-be-listed equity and debt securities in a phased manner and reduce their exposure to unrated debt instruments from 25 per cent to only 5 per cent.  Exposure to risky debt securities has emerged as a major risk for the capital market investors, including those coming through the mutual fund space, and the regulator has been making efforts to enhance its regulatory safety net against such risks.  Taking forward certain decisions approved by Sebi's board earlier in June, the regulator has now finalised the draft amendments to the prudential norms for mutual fund schemes for investment in debt and money market instruments.  Besides, some further amendments have been proposed for approval of Sebi's board at its next meeting later this month, officials said.  A key fresh proposal is to reduce the existing overall limit for investment