Corporate tax cut would not bring growth: Abhijit

Agencies
October 22, 2019

New Delhi, Oct 22: Nobel laureate Abhijit Banerjee on Monday said the government's stringent commitment to low inflation has resulted in farm distress by adversely impacting support price for agricultural produce.

Striking a note of caution, he said Prime Minister Narendra Modi has more faith in corporates than he did.

"I think Mr. Modi has more faith in the corporate sector than I do. The recent tax cuts show that someone in the administration believes that you have to give the corporate sector lots of money to get growth. I do not believe that," Banerjee, who has been awarded this year's Nobel Prize for Economics along with two others, said here.

Banerjee added that the corporate tax cut would not bring growth but probably moderation in direct tax could push the growth northward.

The government last month slashed the corporate tax rate to 22 per cent for domestic companies to push the sagging economy.

"The commitment to low inflation dove it to clamp down on support price...agricultural income went down relative to the rest of the country. This was agricultural distress. Farmers are unhappy," he said.

As a result, he said the government was forced to put money for PM-KISAN.

On the stress in the banking sector, he said part of the problem is that decision-making is absolutely frozen.

The economy hit a six-year low of 5 per cent for the first quarter of the current financial year.

The tax rate was brought down further lower at 15 per cent for new manufacturing companies.

Speaking on the government's drive to divest its stake in public sector enterprises, the economist said that selling government stake in PSUs was not a long-term solution to bridge the fiscal deficit target.

"In short term, selling PSU is a good idea but it is not a long term solution," he said.

The government aims to raise Rs 1.05 lakh through disinvestment in the current fiscal.

He also said disinvestment is not a long-term solution for bridging fiscal deficit.

Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of (plus, minus) 2 per cent, while supporting growth.

The headline inflation, as measured by the Consumer Price Index (Combined), rose to a 14-month high of 3.99 per cent in September from 3.28 per cent the previous month.

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News Network
May 4,2024

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Canadian Police said they have arrested three Indians they suspect were part of the alleged hit squad that had killed Hardeep Singh Nijjar, a Sikh separatist leader involved with the Khalistan movement, which calls for an independent Sikh state.

Nijjar's killing had become the epicentre of a diplomatic row between India and Canada last year after Prime Minister Justin Trudeau alleged the role of "Indian agents" in the murder. India had rejected the charge as "absurd" and "motivated".

The three arrested Indians - Karan Brar, 22, Kamalpreet Singh, 22, Karanpreet Singh, 28 - were living as non-permanent residents in Alberta for three to five years, said Superintendent Mandeep Mooker, who leads the Integrated Homicide Investigation Team. The police have also released their photos.

They have been charged with first-degree murder and conspiracy to commit murder, showed court documents.

Police said that none of the suspects were known to them earlier and they were investigating their possible ties to the Indian government.

The murder remains "very much under active investigation," Royal Canadian Mounted Police (RCMP) Assistant Commissioner David Teboul told a press conference on Friday.

"There are separate and distinct investigations ongoing into these matters, certainly not limited to the involvement of the people arrested today, and these efforts include investigating connections to the government of India," CTV News quoted him as saying.

Nijjar, a Canadian citizen who was wanted in India on various terror charges, was shot dead outside a gurdwara in Surrey on June 18, 2023. Trudeau's charge against India sparked a massive row later that year with both countries expelling diplomats of the other country.

A fresh row erupted earlier this week after separatist slogans on 'Khalistan' were raised at an event addressed by Trudeau, prompting New Delhi to summon their Deputy High Commissioner and lodge a strong protest.

On the sidelines of the event, Trudeau told reporters that Nijjar's killing had created a "problem" that he could not have ignored.

India rejected his comment and said it once again showed Canada provides political space given to separatism, extremism, and violence. "This not only impacts India-Canada relations but also encourages a climate of violence and criminality in Canada to the detriment of its own citizens," foreign ministry spokesperson Randhir Jaiswal said.

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News Network
May 7,2024

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The International Criminal Police Organization (Interpol) on Monday responded to Karnataka’s Special Investigation Team (SIT) regarding a blue corner notice issued against JDS MP Prajwal Revanna.

In its response, Interpol said that all 196 member countries were alerted to identify and report if Prajwal Revanna is spotted at any port in their jurisdiction.

The Karnataka government issued a Blue Corner Notice on Sunday against Prajwal Revanna, who is facing allegations of sexual abuse by his staff members.

A Blue Corner Notice is issued by the international police cooperation body to collect additional information from its member countries about a person’s identity, location or activities about a crime.

The notice was issued after the 33-year-old Hassan MP reportedly flew to Germany soon after the Karnataka State Commission for Women chairperson Nagalakshmi Chowdhary wrote to the CM to order a probe into the sexual allegations against Prajwal.

Last week, the anticipatory bail application of Prajwal Revanna was also denied by Justice Santosh Gajanana Bhat’s bench of People’s Representative Court in Bengaluru.

Earlier, his MLA father and son of former Prime Minster HD Deve Gowda, HD Revanna was remanded to Karnataka SIT custody in a kidnapping-related sex scandal case.

His arrest came after the kidnapped victim was rescued from Revanna’s close assistant Rajasekhar’s farmhouse in Kalenahalli, Hunsur Taluk after the SIT conducted the rescue operation to find her, the police said.

The abduction case was filed by the son of a woman who worked at the Revannas’ house for nearly five years. He alleged that his mother was kidnapped from her home on April 29 by Satish Babanna a relative of Revanna.

The Karnataka Sex Scandal case pertains to explicit video clips allegedly involving the 33-year-old Prajwal, grandson of JD(S) patriarch and former Prime Minister H D Deve Gowda, which went viral on social media.

Those videos began to make rounds in Hassan in recent days, following which the state government constituted a Special Investigation Team (SIT) to probe the sexual abuse allegations against the MP.

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News Network
May 10,2024

Mangaluru: A teenage boy from a remote village in Dakshina Kannada district, who was undergoing treatment for stomach pain for past few days, breathed his last after hospitalization. 

The deceased has been identified as Nithin Kumar, 19, who had completed PUC and was attending computer classes. 

According to police, on May 4, when he informed his family that he had been suffering from a stomach-ache for the past 4-5 days, his family members took him to a clinic in Kaniyoor.

The doctors who examined him advised him to undergo scanning. He was informed about a kidney stone and later, they returned home. That same night, he suffered from stomach-ache again and was rushed to a private hospital in Puttur.

On May 7, as per doctors’ advice, he was discharged around 12:45pm. However, when he came home around 2:30pm, he again suffered from stomach-ache and was taken to another private hospital in Puttur, where doctors conducted a surgery.

On Wednesday, as per doctors’ advice, he was asked to be shifted to Mangaluru for better treatment.

He visited a private hospital in Derakatte, where doctors suggested that he be shifted to government Wenlock Hospital.

The doctors who examined him at the Wenlock Hospital declared him dead. A case has been registered at the Bellare police station, and an investigation is on.

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