Gary Shilling’s monthly Insight newsletter always contains a huge amount of informative macro insights (well named I guess). This month’s was no exception. In the letter he provided 9 bullet …
“Proceedings have been initiated for FY10-11 to crystallise the default amount, levy interest on delayed payment and take further statutory action,” minister of state for finance SS Palanimanickam informed Parliament
New Delhi: The government today said it is taking action against debt-ridden Kingfisher Airlines for not depositing Rs153 crore, which the company deducted as TDS (Tax Deducted at Source) from its employees, with the exchequer, reports PTI.
“Proceedings have been initiated for FY10-11 to crystallise the default amount, levy interest on delayed payment and take further statutory action,” minister of state for finance SS Palanimanickam said in a written reply in the Rajya Sabha.
The liabilities with regard to TDS default, as quantified from preliminary examination, was Rs53.82 crore for 2010-11 and Rs100 crore for the current fiscal, he said.
The minister further said, “Out of the (total liability), Rs21.04 crore has been collected by the Income Tax (I-T) Department. The airline has filed a commitment letter and has undertaken to pay the balance TDS liabilities by the end of the current financial year”.
Mr Palanimanickam said the Vijay Mallya-promoted airline has not defaulted on payment of dues towards provident fund of the employees.
“No dues of Employees’ Provident Fund Organisation (EPFO) and Employees State Insurance Corporation are pending against Kingfisher Airlines as on 30 October 2011,” he said.
The airline has been facing financial problems on account of huge debts and is struggling to stay afloat.
Recently, it has cancelled several flights and suspended operations of its budget carrier Kingfisher Red.
“The slower-than-expected growth this year could be attributed to global slowdown, which has resulted in slowing down of growth rate in many countries, including India, as well as to tight monetary policy to control inflation,” minister of state for finance Namo Narain Meena informed Parliament
New Delhi: Attributing the slowdown to the Reserve Bank of India’s (RBI) tight monetary policy and global problems, the government today informed Parliament that economic growth in 2011-12 will moderate to 7.5%, from 8.5% in the previous fiscal, reports PTI.
“The slower-than-expected growth this year could be attributed to global slowdown, which has resulted in slowing down of growth rate in many countries, including India, as well as to tight monetary policy to control inflation,” minister of state for finance Namo Narain Meena said in a written reply in the Rajya Sabha.
Although the Economic Survey in February had expected a growth rate of 9% for the current fiscal, the Mid-Year Analysis 2011-12 tabled in Parliament recently lowered the growth projection to 7.5%, he said.
“While the economy is expected to slow down in the current year from the levels achieved in 2010-11, India is still among the global frontrunners in terms of growth of gross domestic product (GDP),” Mr Meena said.
The government has been pursuing prudent macro-economic policies on an ongoing basis to obviate the impact of global financial crisis, he said, adding that the efforts were also being made to strengthen financial markets and increase social spending to protect poor.
The specific measures taken by the government recently to promote growth include “creation of Infrastructure Debt Fund, focusing on public private partnerships, announcement of New Manufacturing Policy, announcement of Draft Telecom Policy, introduction of Land Acquisition Bill in Parliament, and a number of legislative measures to develop banking sector in India”, he added.
Mr Meena said the Indian economy grew at an average annual rate of more than 9% between 2005-06 and 2007-08. The growth rate fell to 6.8% in 2008-09 on account of global financial crisis, but recovered the momentum to 8% in 2009-10.
“Even during 2011-12, which has been a relatively difficult year with the growth rate slowing down to 7.3% in the first half (April-September), India is still among the global front runners,” Mr Meena said.