20 years ago today

Twenty years ago today: June 1

June 2 | Updated on July 12, 2021

Spending cut keeps down fiscal deficit

Contrary to earlier indications, the Centre's finances have not gone all that awry during 2000-01 and the deviation in fiscal deficit has been kept within manageable levels due to a massive expenditure compression. The final deficit figure for 2000-01 has overshot the revised estimates by just Rs 2,397 crore, notwithstanding a hefty Rs 9,210-crore shortfall in tax revenues. As a result, the fiscal deficit has been contained at 5.2 per cent of GDP, representing a 0.1 percentage point slippage over the revised estimate of 5.1 per cent.

Drawback rates rationalised

In a major rationalisation of duty drawback rates, the Finance Ministry has reduced the rates in respect of 726 entries in view of the abolition of surcharge on customs and countervailing duty in some cases in this year's Budget. New and specific entries with different drawback rates and caps have been introduced for garments and readymade garments which hitherto had a single rate with a broad drawback cap. The new rates will come into effect from June 7.

SPIC may sell stake in joint venture to Caltex

Southern Petrochemical Industries Corporation (SPIC) may sell its 49 per cent stake in Caltex SPIC India Ltd to its joint venture partner, Caltex of the US. "Negotiations are on, and things are yet to be finalised," the SPIC Chairman, Mr A.C. Muthiah, told Business Line . He replied affirmatively when asked if a decision would be taken soon. SPIC got into the LPG business in 1995-96, following the Government of India allowed the entry of the private sector into marketing of LPG (and kerosene). Caltex SPIC India Ltd was formed in 1998, when SPIC decided to spin off its LPG division into a joint venture.

Published on July 12, 2021

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