Business News: India's Fiscal and Corporate Milestones: Fiscal Deficit, ITC's Salary Surge, Godrej's Record Sales, Vikram Misri's New Role, RBI's Borrowing Limit Increase, and Stable Interest Rates

For April to June 2024, the country's fiscal deficit stood at Rs 50,615 crore. That is about 3 per cent of the full-year budget estimate of FY25. It includes that portion of government expenditure in excess of its revenue. According to data released by the Controller General of Accounts, net tax revenues for the April-May period stood at Rs 3.19 lakh crore against Rs 2.78 lakh crore in the same period last year, which is 12 per cent of the Budget estimate. Having retained the target at a fiscal deficit of 5.1 per cent to GDP in the interim budget, it pegs the same at 4.5 per cent to GDP by FY26.

In contrast, ITC chairperson and managing director Sanjiv Puri drew a total remuneration of Rs 25.18 crore in FY 2023-24, which was an increase of 54.38 percent over the previous year. His earnings have come from basic salary, perquisites, and a large performance bonus. He was also granted 1,34,500 stock options during the year and holds 2,79,843 shares in ITC as on March 2024.

Godrej Properties has achieved a record in pre-sales, at Rs 22,500 crore in FY24, up 84% YoY and missing guidance by 61% on the upside. Retain 'buy' rating and increase the target price to Rs 3,600 a share, an upside of 13%, say Motilal Oswal analysts. The strong bottom-line performance of the company was supported by new launches, more so in NCR and MMR. With plans for project launches worth ₹ 30,000 crore in FY25 across key markets like Bengaluru, Pune, and Hyderabad, signals have been given that the growth spree is certainly not going to be over very soon. The reasonable optimism given to investors becomes amply clear.

Deputy National Security Advisor Vikram Misri will assume the charge of Foreign Secretary on July 15. He succeeds Vinay Mohan Kwatra. A career diplomat, well-versed in the intricacies of India-China relations, Misri has had stints as India's ambassador to China and Yangon, Myanmar—arguably two of the toughest foreign postings. Obviously, he is a career diplomat with matchless diplomatic finesse who has been at the forefront during the recent negotiations in times of crisis—the Galwan crisis—and other major postings in Pakistan, U.S., Belgium, and Spain.

Vikram Misri took up duties as India's Foreign Secretary from July 15, 2024. A senior officer in the Indian Foreign Service 1989 batch, he had wide-ranging diplomatic experience: Ambassador of India to China, Spain, and Myanmar; he held other positions in the Prime Minister's Office and Ministry of External Affairs. Amb. Other key positions held by Misri in various Indian missions all over the global world speak of his deep knowledge about international relations and diplomacy.

It has increased the aggregate Ways and Means Advances limit for state governments and Union Territories to Rs 60,118 crore, effective from July 1, 2024, from the current limit of Rs 47,010 crore. WMAs are temporary advances that RBI extends to the states for smoothing out cash flow mismatches between their receipts and expenditure. Based on the recommendations of a group of state finance secretaries, this revision has taken into account trends in expenditure during the recent past.

India and the US agreed to extend the 2% equalisation levy on e-commerce supplies up to June 30, 2024. The development has been done under their commitment to the OECD/G20 Inclusive Framework's two-pillar solution addressing issues related to digital economy tax challenges. It was earlier agreed upon to be effective since April 1, 2022, until the date of the introduction of Pillar 1, or March 31, 2024, whichever is earlier, on the same terms and inherits the continuance of existing provisions subject to international tax reform proceedings.

Interest rates for all small saving schemes, like PPF, SSY, SCSS, and post office deposits etc, the government decided, would remain continuous without any cuts for the period between July-September 2024. The revised rate for PPF and savings deposits would continue to be 7.1 percent and 4 percent, respectively. NSC stood at 7.7 percent. Kisan Vikas Patra will yield 7.5 per cent maturity in 115 months, while the Monthly Income Scheme will continue with 7.4 per cent returns.