UREA PRICES INCREASES 27.4%, 20% HIKE IN FOOD SUBSIDY BILL
Article Abstract:
The Union Budget for 1998-99 has estimated a subsidy bill at Rs19,883 crore compared to Rs18,366 crore in 1997-98 budget. Urea prices have been increased by Rs1 per kilogram (kg), which will be a saving of nearly Rs2,000 crore for the government on indigenous urea. But the underprovision of Rs1,800 crore for concessions may stop importers from contracting further di ammonium phosphate (DAP) for the coming rabi. With a 27.4 percent price hike proposed, the price of one bag of urea will go up by Rs50 and one tonne by Rs1,000 to Rs4,660. This is expected to reduce subsidy burden by around Rs1,600 crore from the revised subsidy of Rs7,600 crore. The food subsidy bill in the budget has been fixed at Rs9,000 crore which is a rise of 20 percent over the revised estimate of Rs7,500 crore in 1997-98 budget. This has been done by factoring in the increase in the minimum support price of wheat by Rs35 per quintal to Rs510 per quintal in 1998- 99, procurement of wheat and rice, import of 1.5 million tonne of wheat at Rs968 crore and offtake. (gsh)
Comment:
India: Union Budget for 1998-99 estimates a subsidy bill at Rs19,883 crore compared to Rs18,366 crore in 1997-98 budget
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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26% TARGET CENTRAL STAKE IN PUBLIC UNITS
Article Abstract:
The Union Budget for 1998-99 has targeted a maximum government holding of 26 percent in non-strategic public sector units and disinvestment of Rs5000 crore. The government has decided to divest some of its stake in Indian Oil Corporation (IOC), Gas Authority of India Ltd (GAIL), Videsh Sanchar Nigam Ltd (VSNL) and Concor. In 1997-98, around 18.9 million shares were offloaded by VSNL in the form of 37.8 million GDRs at Rs1000 per share. A second tranche of 10 percent divestment is on the cards, with an expected earnings of Rs1500 crore. Government's stake in IOC may come down to 77.9 percent from the present 91.3 percent with partial disinvestment and dilution of equity. (gsh)
Comment:
India: Budget for 1998-99 targets maximum govt holding of 26% in non-strategic public sector units & Rs5000 crore disinvestment
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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GOVT TOUCHES WMA LIMIT FOR H1
Article Abstract:
The government of India has almost reached the limit of Rs11,000 crore for the first half of 1998-99 of ways and means advances (WMA) at Rs10,594 crore. The limit for the second half of 1998-99 has been fixed at Rs7,000 crore. A fresh floatation of securities has to be made if withdrawals under WMA exceeds 75 percent of the limit but as the government will find it difficult to mobilise funds from the market, it may have to resort to private placement with the Reserve Bank of India. (khr)
Comment:
India: Govt has almost reached limit of Rs11,000 crore for first half of 1998-99 of ways and means advances at Rs10,594 crore
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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