Ruling out any additional borrowing in the remaining part of the current fiscal (2012-13), Finance Minister P Chidambaram on Friday said that the government would be able to accommodate the enhanced outgo within the present limit.
‘Rs 28,500 crore of petroleum subsidies, about Rs 2,000 crore for infusion of equity in Air India and Rs 300 odd crore for some small items. So this amount we think we can accommodate within the present borrowing limit,’ he told reporters outside Parliament. ‘We do not think that at this moment, we need to borrow anything more than what is indicated,’ he added.
The government had budgeted market borrowing at Rs 5.7 lakh crore during the current fiscal to bridge the expenditure-revenue gap.
The finance minister had earlier said that the fiscal deficit may go up to 5.3 per cent of gross domestic product (GDP) against the budget estimate of 5.1 per cent for the current financial year.
In the first half (April-September) of 2012-13, the fiscal deficit rose to Rs 3.37 lakh crore, which was 65.6 per cent of the budget estimate. The government has already borrowed Rs 3.7 lakh crore in the first half ending September 30, which is 65 per cent of the total planned borrowing.
The front-loading of borrowing was done as part of the government’s strategy to make capital available to the private sector in the last six months of 2012-13.
The government has proposed to raise Rs 2 lakh crore in the second half of
the fiscal.
TAX EVASION BY INSURANCE COMPANIES BEING PROBED
Several insurance companies are being probed for suspected evasion of service tax and recoveries have been made in some cases, Finance Minister Palaniappan Chidambaram told the Lok Sabha on Friday.
During Question Hour, Chidambaram provided a list of such insurance companies, which are suspected to have evaded service tax or were found after investigations to have engaged in financial wrongdoings.
‘In cases where the investigations have been completed, show-cause notices have been issued.
Some cases have been adjudicated and demands for service tax confirmed. Appeals against some orders are pending before the Customs, Excise and Service Tax Appellate Tribunal,’ informed the finance minister.
He also confirmed that recoveries have been made in some cases. ‘At this stage, it may not be possible to quantify the exact tax liability in each case,’ added Chidambaram.
Seven insurance companies were found evading service tax in the financial year 2009-10, nine in 2010-11 and 10 in 2011-12. In the current fiscal (2012-13), eight companies have been found guilty of service tax evasion till October.
These are: Bharat Reinsurance Company, IFFCO Tokio General Insurance Services Ltd, Apollo DKV Insurance Company Ltd, DLF Premierico Life Insurance Company, Aviva Life Insurance Company India Ltd, Sri Ram Life Insurance, Sahara India Life Insurance Corporation and Reliance Life Insurance Company Ltd, the finance minister said in his written reply to the lower House of Parliament.
‘Rs 28,500 crore of petroleum subsidies, about Rs 2,000 crore for infusion of equity in Air India and Rs 300 odd crore for some small items. So this amount we think we can accommodate within the present borrowing limit,’ he told reporters outside Parliament. ‘We do not think that at this moment, we need to borrow anything more than what is indicated,’ he added.
The government had budgeted market borrowing at Rs 5.7 lakh crore during the current fiscal to bridge the expenditure-revenue gap.
The finance minister had earlier said that the fiscal deficit may go up to 5.3 per cent of gross domestic product (GDP) against the budget estimate of 5.1 per cent for the current financial year.
In the first half (April-September) of 2012-13, the fiscal deficit rose to Rs 3.37 lakh crore, which was 65.6 per cent of the budget estimate. The government has already borrowed Rs 3.7 lakh crore in the first half ending September 30, which is 65 per cent of the total planned borrowing.
The front-loading of borrowing was done as part of the government’s strategy to make capital available to the private sector in the last six months of 2012-13.
The government has proposed to raise Rs 2 lakh crore in the second half of
the fiscal.
TAX EVASION BY INSURANCE COMPANIES BEING PROBED
Several insurance companies are being probed for suspected evasion of service tax and recoveries have been made in some cases, Finance Minister Palaniappan Chidambaram told the Lok Sabha on Friday.
During Question Hour, Chidambaram provided a list of such insurance companies, which are suspected to have evaded service tax or were found after investigations to have engaged in financial wrongdoings.
‘In cases where the investigations have been completed, show-cause notices have been issued.
Some cases have been adjudicated and demands for service tax confirmed. Appeals against some orders are pending before the Customs, Excise and Service Tax Appellate Tribunal,’ informed the finance minister.
He also confirmed that recoveries have been made in some cases. ‘At this stage, it may not be possible to quantify the exact tax liability in each case,’ added Chidambaram.
Seven insurance companies were found evading service tax in the financial year 2009-10, nine in 2010-11 and 10 in 2011-12. In the current fiscal (2012-13), eight companies have been found guilty of service tax evasion till October.
These are: Bharat Reinsurance Company, IFFCO Tokio General Insurance Services Ltd, Apollo DKV Insurance Company Ltd, DLF Premierico Life Insurance Company, Aviva Life Insurance Company India Ltd, Sri Ram Life Insurance, Sahara India Life Insurance Corporation and Reliance Life Insurance Company Ltd, the finance minister said in his written reply to the lower House of Parliament.