INSUBCONTINENT EXCLUSIVE:
series of measures to try to win over farmers, small business owners and less well-off, after ruling party suffered setbacks in state
elections and with a general election due in months.The measures are likely to be a drain on finances in Asia's third-biggest economy, where
Prime Minister Narendra Modi's government is trying to stick to a decade-low fiscal deficit target of 3.3 per cent of gross domestic
product.But PM Modi's ruling Bharatiya Janata Party (BJP) has promised even more perks ahead of general election, which must be held by
May."They will be for development, they will be for transformation," Ravi Shankar Prasad, minister for law, justice, and information
technology, told Parliament this week, referring to inducements for electorate."Who wins or loses, people will decide
We are confident when elections happen, country's public will again give a big majority to ruling coalition led by Narendra Modi."News
agency Reuters reported this week that Reserve Bank of India could transfer an interim dividend of Rs 30,000 crore-Rs 40,000 crore ($4.3
billion-$5.8 billion) to government by March to help meet fiscal deficit target as spending rises ahead of election.Following are steps
government has taken, in addition to proposals for farm-loan waivers worth billions of dollars after main opposition Congress defeated BJP
in Madhya Pradesh, Rajasthan and Chhattisgarh in state assembly elections late last year.Help for small businessesThe government on January
10 announced a change in Goods and Services Tax (GST) rules that would exempt an additional 20 lakh small businesses.Businesses with annual
sales of up to Rs 40 lakh ($56,700) will be exempt from GST
Currently, firms with an annual turnover of up to Rs 20 lakh are exempt
The change will come into effect in April.Help for farmersPM Modi is considering three options for a relief package to help farmers
suffering because of low crop prices at a cost of as much as Rs 3 lakh crore ($42.82 billion), according to three government sources
The possibilities are a direct payment to all landowning farmers, compensation for those who sold produce below government prices, and a
loan forgiveness programme.Job reservationParliament passed a landmark bill on Wednesday reserving 10 per cent of government jobs for people
outside high-income brackets
acres of land, would be eligible.OnionsThe government on December 28 doubled export incentives for onion farmers to 10 per cent, following a
steep drop in prices of important staple
The export incentive programme allows farmers to get credit from government, which can be used to pay various taxes.E-commerce rulesThe
government said on December 26 it would ban e-commerce companies such as Amazon.com and Walmart-owned Flipkart Group from selling products
from companies in which they have an equity interest.The rule will be applicable from February 1, and came after complaints from retailers
and traders, who say big companies are using their control over inventory from their affiliates, and through exclusive sales agreements, to
create an unfair market that allows them to sell some products at very low prices.Sales tax cutOn December 22, government slashed sales tax
rate on more than 20 items - including televisions, batteries and movie tickets - aiming to appeal to traders and middle class.
