New Delhi: India’s fiscal deficit for the first 8 months from April to November of the current financial year is estimated at Rs 8.47 lakh crore which works out to 52.5 per cent of the estimate for the financial year, according to official data released on Tuesday. This reflects a strong macroeconomic financial position as the fiscal deficit is well under control with the government sticking to the consolidation path.
Net tax receipts for the first eight months of the current financial year were at Rs 14.43 lakh crore, or 56 per cent of the annual target, up from Rs 14.36 lakh crore for the same period last year, the data showed.
Total government expenditure for the eight months was Rs 27.41lakh crore which constitutes 57 per cent of the annual target fixed in the Union Budget. The government spent Rs 26.52 lakh crore in the same period last year.
The government aims to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current financial year from 5.6 per cent in 2023-24. The government aims to contain the fiscal deficit at Rs 16.13 lakh crore during the current fiscal.
India’s net direct tax collections, comprising corporate tax and personal income tax, shot up by a robust 15.4 per cent to Rs 12.1 lakh crore, from April 1 to November 10 during the current financial year, according to the latest figures released by the Central Board of Direct Taxes (CBDT).
Similarly, there has been a robust growth in GST collections on the back of rising economic activity. The buoyancy in tax collections places more funds in the government’s coffers to undertake investments in large infrastructure projects to spur economic growth and take up welfare schemes for the poor. It also helps to keep the fiscal deficit in check and strengthens the macroeconomic fundamentals of the economy.
A lower fiscal deficit means the government has to borrow less which leaves more money in the banking system for big companies to borrow and invest. This, in turn, leads to a higher economic growth rate and the creation of more jobs. Besides, a low fiscal deficit keeps the inflation rate in check which strengthens the fundamentals of the economy and ensures growth with stability.
Medan, Indonesia – Winston, a medical doctor who lives and works in the capital of North Sumatra Province, is a self-proclaimed Apple fan.
Currently the proud owner of an iPhone 15, Winson had been looking forward to upgrading to the latest model, the iPhone 16, released in September.
Winston, however, has reluctantly given up on the idea since the Indonesian government banned sales of the iPhone 16 and the Google Pixel in late October, citing the tech giants’ failure to comply with the country’s Tingkat Komponen Dalam Negeri, or TKDN, policy, which requires phones to source at least 40 percent of their parts locally.
“Indonesian regulations about iPhones hit me once, and once was enough,” Winston, who like many Indonesians goes by one name, told Al Jazeera.
While Winston could buy an iPhone overseas to bring back home – a relatively common practice that is legal as long as the phone is not resold – he has been burned by Indonesian regulations before.
“I bought the iPhone 11 in Singapore back in 2019 because it was much cheaper than in Indonesia, about $250 cheaper in fact. A round-trip ticket to Singapore at that time was only $120. You could fly to Singapore and back to Indonesia on the same day, so it was more cost-effective,” he said.
Winston used the phone without problems for about a year, until the Indonesian government in 2022 issued a regulation mandating that all phones be registered.
Despite registering his phone as required, the device suddenly lost signal one day and would not reconnect to the network, even with a different SIM card, he said.
“I went to a licensed Apple products reseller in Medan because I thought there was a problem with the phone, but they just said, ‘There is nothing we can do or suggest,’” he said.
Saddled with an unusable iPhone, Winston, who has had no problems with his current iPhone 15, which he bought through a licensed reseller, sold the device at a loss at a secondhand store during a subsequent visit to Singapore.
The New Pixel 9, 9 Pro and 9 Pro XL phones at Google’s Bay View campus in Mountain View, California on August 13, 2024 [Josh Edelson/AFP]
Indonesia, the fourth-most populous country with some 280 million people, is one of the world’s largest smartphone markets.
The archipelago was home to some 190 million smartphone users in 2022, according to market research firm Newzoo.
According to data from the Ministry of Industry, the country imported about 22,000 Google Pixel phones and 9,000 iPhone 16s in 2024, before authorities announced the bans.
Smartphone shipments to Indonesia were dominated by devices made by China’s Xiaomi, Oppo and Vivo, and South Korea’s Samsung.
Abdul Soleh, a lawyer in Medan, said the prohibitively expensive price of the iPhone 16 for many Indonesians might explain why there had not been more vocal opposition to the ban.
“It is a real shame, because iPhones are very popular and have a high user satisfaction rate in Indonesia,” Soleh told Al Jazeera.
“It would be better if the iPhone 16 could be sold in Indonesia because there are quite a lot of enthusiasts here.”
Khairul Mahalli, the head of the Chamber of Commerce in North Sumatra, said that while Indonesia’s TKDN policy is aimed at supporting local industry, it could have unintended consequences.
“As a member of the World Trade Organization (WTO) with a trade industry that works between countries, it is fine to protect our industries, but we also need to have checks and balances in place,” Mahalli told Al Jazeera.
“One of the issues for the future could be that, if Indonesia blocks the sales of certain products, other countries could do the same and no longer accept the sales of Indonesian products on the international market.”
Mahalli said it was the job of the government to find ways to minimise harm to local industries that are less drastic than outright bans on foreign products.
“We don’t need to completely ban foreign sales, as Indonesia’s market is large enough to accommodate foreign products due to its large population of over 270 million people,” he said.
“We need to look at whether local production can keep up with consumer demand.”
Rio Priambodo, the head of the legal and complaints department at the non-profit Indonesia Consumers Organization, said consumers should think twice about purchasing the latest iPhone model, especially through illegal resellers in the country.
“The Consumers Organization recommends that consumers don’t just try to buy the iPhone 16 by any means possible if it has been banned by the government,” Priambodo told Al Jazeera.
“If purchases are made illegally, this will eliminate the dimension of consumer protection that all customers should have.”
In a bid to break the impasse, Apple has pledged to dramatically ramp up its investment in the country in exchange for lifting the ban.
In November, the California-based tech giant offered to invest $100m in the country over two years, a 10-fold increase from an earlier pledge to pour $10m into the construction of an accessories and components factory in Bandung, West Java.
Apple CEO Tim Cook, centre, walks with Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita, right, and Minister of Communication and Information Technology Budi Arie Setiadi, left, after a meeting with President Joko Widodo in Jakarta, Indonesia on April 17, 2024 [Achmad Ibrahim/AP]
Despite the offer, the Ministry of Industry appeared unmoved.
“From the government’s perspective, of course, we want this investment to be larger,” spokesperson Febri Hendri Antoni Arif said at the time.
On November 25, Jakarta formally rejected the offer, with Industry Minister Agus Gumiwang Kartasasmita saying it did not meet Indonesia’s “principles of fairness”.
He said that Apple had invested more significant amounts in neighbouring countries such as Thailand and Vietnam, including $15bn for manufacturing facilities in the latter.
“Based on the technocratic assessment, the investment amount has not met the figure that we consider fair,” he said.
“We want Apple to return to do business here, but we need a fair resolution.”
In the meantime, Apple fans such as Winston face the prospect of making do without the latest models for the foreseeable future.
“I understand that the ban is for political reasons because Apple does not want to invest in Indonesia, and I stand with my government. But I will never buy an iPhone abroad again,” he said.
Carter will be buried alongside his wife in his hometown of Plains, Georgia
A number of ceremonies and services will be held to mourn the passing of US President Jimmy Carter, who has died aged 100.
The former president will be honoured at a state funeral on 9 January in Washington before he is buried in his hometown of Plains, Georgia, alongside his wife, Rosalynn, who died last year at age 96.
Carter passed away on Sunday, two years after entering into hospice care.
Here’s what to know about the funeral plans.
What is a state funeral?
A state funeral is a national remembrance event marking the life of Americans who have made a huge contribution to public life.
Most presidents receive the honour if their family agrees.
It usually lasts seven to 10 days and includes ceremonies in the hometown of the deceased, as well as in Washington.
The last president to receive a state funeral was George HW Bush in 2018.
Two years later, former Supreme Court Justice Ruth Bader Ginsburg became the first woman to lie in state at the US Capitol.
When astronaut Neil Armstrong died in 2012, there were calls for a state funeral, but his family instead chose a private ceremony in Ohio.
Getty Images
The service for George HW Bush was held in Washington National Cathedral
Where is the Jimmy Carter funeral?
The memorial events for Carter – a Democrat who served as president from 1977 to 1981- will be in three parts.
They will start in his hometown of Plains, Georgia, before moving to Washington and then back to the southern state.
On 4 January, a motorcade will drive through Carter’s small hometown of Plains and stop by his childhood home before proceeding to Atlanta for a public service at the Carter Presidential Center.
Carter’s remains will be at the presidential library on 5 January and 6 January.
He will be transported to the nation’s capital on 7 January, where the ceremonies will begin at the US Navy Memorial before a horse-drawn procession to the US Capitol.
For two days he will lie in state at the US Capitol Rotunda, where the public will be able to pay their respects.
His life will be commemorated at Washington National Cathedral on 9 January in a service attended by several former presidents.
Who will attend the state funeral?
Biden will be delivering the eulogy at Carter’s Washington DC funeral, after the 39th president asked him to in March 2023, according to Biden.
Former presidents and first ladies typically attend funerals of their predecessors, so First Lady Jill Biden and others like former President Barack Obama could be in attendance. Hillary and Bill Clinton are also expected to be there.
President-elect Donald Trump has said he will attend, though he did not say whether he had spoken with any Carter family members.
Trump did not go to Rosalynn Carter’s funeral last year, but his wife Melania did, along with other former first ladies.
Trump did attend the Washington service for Republican George HW Bush. There were five living presidents, including Carter, in attendance.
Getty Images
What is closed on national day of mourning?
The US federal government will be closed on 9 January for a national day of mourning, President Biden said in an executive order.
Financial markets will be closed that day too, including the New York Stock Exchange.
US flags are flying at half-mast on all federal buildings for 30 days.
The original deadline for the Vivad Se Vishwas scheme was December 31, 2024, with the scheme having come into effect on October 1, 2024
The Income Tax department has extended the due date for determining tax dues and filing the declaration under the Vivad Se Vishwas scheme for waiving interest and penalty.
The Vivad Se Vishwas scheme allows taxpayers to effectively conclude all their income tax disputes and also avoid additional penalties.(HT Photo)
The new deadline is January 31, 2025, according to a circular issued by the Central Board of Direct Taxes (CBDT). The original deadline was December 31, 2024, with the scheme having come into effect on October 1, 2024.
The Vivad Se Vishwas (VsV) scheme, introduced in the Union Budget 2024-25 by Union finance minister Nirmala Sitharaman, allows taxpayers who have disputes/appeals to waive their interest and penalty as long as they file a declaration before the stipulated deadline and pay the disputed amount along with a specified percentage.
This means that taxpayers can effectively conclude their income tax disputes and avoid additional penalties by opting for this scheme.
The new CBDT circular stated that for all declarations filed on or after February 1, 2025, the taxpayer must pay 110% of the disputed tax demand. If done on time by January 31, the percentage to be paid is 100%.
The CBDT said this deadline extension is to give taxpayers additional time to determine the amount payable as specified in column (3) of the relevant table in the scheme.
NEW DELHI: Growth in the country’s eight key infrastructure sectors rose to a four-month high in Nov, led by cement, coal and electricity sectors. Data released by the commerce and industry ministry on Tuesday showed the eight core sectors, spanning coal, crude oil, natural gas, petroleum/refinery products, fertilisers, steel, cement and electricity grew 4.3% in Nov, higher than the 3.7% in Oct but lower than the 7.9% in Nov last year. The core sector accounts for over 40% of the index of industrial production (IIP) and a robust outcome has an impact on the data, which is expected to released later this month. The cement sector grew 13% in Nov compared to 3.1% in the previous month and a contraction of 4.7% in same month last year. The electricity sector rose 3.8% higher than the 2% recorded in last month but lower than the 5% in Nov last year. Coal production remained robust and grew 7.5% in Nov almost at Oct’s level of 7.8% and higher than contraction of 0.4% in Nov last year. Two of the eight sectors contracted, with crude oil and natural gas continuing their downtrend. The crude sector contracted for the seventh consecutive month, while the natural gas sector contracted for the fifth month in a row. “The core sector growth rose to 4.3% in Nov 2024 from a revised 3.7% in October 2024, with an improvement in half of its 8 constituents, partly reflecting the fading impact of heavy rainfall in the earlier months. The sequential uptick in the core sector’s performance was especially driven by a sharp increase in the growth of cement output, on the back of a low base,” said Aditi Nayar, chief economist at ratings agency ICRA. “Looking ahead, we expect the IIP to grow by 5-7% in Nov 2024, partly benefitting from the uptick in core sector growth,” said Nayar.
Top political leaders in Panama have held a ceremony to mark the 25th anniversary of the return of the Panama Canal after decades of United States control.
But the celebration took place under a pall, as US President-elect Donald Trump continued calls for his country to reassert dominance over the pivotal waterway, which connects the Pacific Ocean to the Caribbean Sea.
Panamanian President Jose Raul Mulino, a right-leaning leader like Trump, was among the speakers at Tuesday’s main ceremony in the capital Panama City.
He reassured spectators that the Panama Canal would remain in his country’s possession, dismissing Trump’s remarks without mentioning the US leader by name.
“There are no hands involved in the canal other than Panama’s,” Mulino said. “Rest assured, it will be in our hands forever.”
But Trump has increasingly pushed for US governance over the canal as part of his broader expansionist rhetoric.
President Jose Raul Mulino attends a ceremony to celebrate the 25th anniversary of the US ceding control of the Panama Canal in 1999 [Aris Martinez/Reuters]
Earlier this month, Trump teased that Canada should become the 51st US state, and he repeated his desire to buy Greenland, an idea he floated during his first term in office.
But as Trump prepares for a second term on January 20, he has alarmed some observers with threats to potentially wrest the Panama Canal back from Panama’s control.
On December 21, in a post on his online platform Truth Social, Trump accused Panamanian officials of exacting “exorbitant prices” for passage in the canal.
The canal allows cargo ships to pass from the Pacific to the Atlantic Ocean without having to navigate all the way around South America, a perilous route that stretches thousands of kilometres.
But the canal has seen increased traffic in recent decades. It has also suffered a severe drought that stymied travel through its system of locks: water chambers that lift boats up and down when the surrounding land is not level.
In his posts, however, Trump indicated that Panama was violating a 1977 agreement that established conditions for the canal to shift from the US to Panamanian hands.
“This complete ‘rip-off’ of our Country will immediately stop,” Trump wrote in the first of two lengthy posts. In the second, he continued with a warning.
“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question,” he wrote.
“To the Officials of Panama, please be guided accordingly.”
Institutional security officers stand during a ceremony to celebrate the 25th anniversary of the return of the Panama Canal on December 31 [Aris Martinez/Reuters]
A history of control
Building the canal through the isthmus of Panama had long been an ambition of Western colonial powers.
In the late 1800s, for instance, the US made overtures to construct the canal in Panama — part of Colombia at the time — but the South American country refused the deal.
When Panama later declared independence, the US quickly supported its secession. The US was the first country to recognise Panama as its own state.
In return for US support, Panama granted the North American country the right to build the canal and oversee the land surrounding it. That area became known as the Panama Canal Zone.
But critics saw the agreement as a violation of Panama’s sovereignty. Ultimately, in 1977, then-US President Jimmy Carter signed two treaties to engineer the return of the canal and its surrounding lands.
That transfer took effect on December 31, 1999, exactly 25 years ago.
Carter died on Sunday, just shy of the anniversary. Mulino paid tribute to the late US president on Tuesday by holding a moment of silence.
In his speech, Mulino described feeling a “mix of happiness for this 25th anniversary” and “sadness” over Carter’s death.
A man on December 31 holds up a newspaper published decades earlier on January 1, 2000, announcing the transfer of the canal to the government of Panama [Aris Martinez/Reuters]
Remembering ‘martyrs’
Tuesday’s celebrations also acknowledged the protesters who died advocating for the canal’s return to Panamanian control.
Among the honoured were the more than 20 participants killed in a student protest on January 9, 1964.
That day, known in Panama as the Martyrs Day, saw students try to raise a Panamanian flag alongside a US one at a high school in the canal zone. Violence erupted, resulting in the deaths of the protesters as well as four US soldiers.
In recent days, Trump has accused Panama of violating the terms of the canal’s return, by allegedly allowing Chinese soldiers to operate the shipping route.
But Panama’s officials have denied that China has any influence over the canal.
Jorge Luis Quijano, who served as the canal’s administrator from 2014 to 2019, was quoted in The Associated Press as saying that Trump has no legal basis for his claims to the canal.
“There’s no clause of any kind in the neutrality agreement that allows for the taking back of the canal,” Quijano said.
Mumbai: India’s stock market landscape is witnessing rapid growth in demat accounts, but the penetration remains significantly lower compared to global standards, according to a report by Motilal Oswal. The report highlights that demat account penetration in India stands at just 12 per cent, far behind the 62 per cent penetration in the United States.
It said “The demat account penetration in India is at 12 per cent vs. 62 per cent for the US. Discount brokers, through their digital offerings, are changing the paradigm, enabling rising awareness and adoption of equity in lower-tier towns and cities”.
The number of demat accounts in India has reached approximately 179 million recently, nearly doubling from 90 million in FY22. This surge has been driven largely by discount brokers leveraging digital platforms to increase awareness and adoption of equity investments, particularly in smaller towns and cities.
The growth in trading volumes has been exponential as per report with the average daily turnover (ADTO) across all segments–Equity Futures & Options (F&O), Cash, and Commodities–growing multifold over the past five years.
Among these, the Options segment has been the primary growth driver.However, regulatory measures introduced by SEBI to curb the options segment are expected to temporarily impact volumes before setting the stage for long-term growth.In response to the new regulatory environment, the report mentioned that the discount brokers may need to adjust their pricing models to maintain profitability.
Simultaneously, exchanges will need to focus on product innovation to counter any decline in trading volumes.The report also noted that the widening of the primary market, with more listings and increased free float, will likely drive turnover velocity higher.
This trend is expected to support volume growth for both exchanges and brokers.Additionally, brokers are focusing on expanding their product offerings, such as loans, fixed income, mutual funds, and insurance, to enhance customer lifetime value and mitigate market cyclicality.
While equity exchanges in India enjoy premium valuations due to their duopoly status in equities and near-monopoly in commodities, brokers face higher cyclicality and are valued at lower multiples.
The report noted that exchanges trade at forward multiples of 35-40x, while brokers trade at 15-18x.As the financial ecosystem evolves, the collaboration between regulatory frameworks, brokers, and exchanges will play a critical role in shaping the future of India’s capital markets.
The Central Board of Direct Taxes (CBDT) has given an extension for resident individuals to file their belated or revised Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25.
This means that all those who have to file their return by December 31, but haven’t done so, will get an additional two weeks to do it.(Representational Image/Pixabay)
The new deadline is January 15, 2025, while the original one was December 31, 2024.
This means that all those who have to file their return by today (December 31), but haven’t done so, will get an additional two weeks to do it.
“CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from 31st December, 2024 to 15 January 2025,” the income tax department announced in a post on X (formerly Twitter).
Taxpayers initially had until July 31, 2024 to file their ITRs for the financial year 2023–24 (AY 2024–25). However, they could also do it later, but till December 31, by paying a charge for the delay.
The charge is ₹1,000 if the overdue tax amount is less than ₹5 lakh, and ₹5,000 if the tax return’s value exceeds ₹5 lakh.
What is a revised ITR?
A revised ITR is done when a taxpayer makes mistakes in the return or fails to include important information.
Whom does the deadline extension benefit?
Apart from giving taxpayers in general, more time to file their returns, the deadline extension would also be very useful for residents with foreign assets or foreign income, according to Vivek Jalan, Partner at Tax Connect Advisory Services LLP.
“In the past many SMSes as well as e-mail communications has been sent by the CBDT to residents who had foreign asset or foreign income to disclose it in Indian ITRs filed by them,” he said. “Recently also SMSes as well as e-mail communications have been sent by the CBDT to residents who had a mismatch between their Annual Information Statement (AIS) and ITRs or other informations available.”
The deadline extension gives “some relaxation to these taxpayers to match first with their books and then file their belated/revised ITRs accordingly,” he added.
Auckland became the first major city to welcome 2025, while Sydney put on its largest ever fireworks display to celebrate the new year. Now people around the world are waiting for their turn.
