NEW DELHI, MONDAY, DECEMBER 6, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOL. XLVII NO. 238, 18 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E Fully vaccinated man Delhi’s first case of Omicron A 37-YEAR-OLD fully vaccinated man who arrived in Delhi from Tanzania has tested positive for Omicron, making it the first case of the new variant here, reports PTI. The patient, a Ranchi resident, had stayed in Johannesburg, South Africa, for a week. Tata Motors, Honda, Renault mull price hike WITH INPUT costs continuing to rise, automakers Tata Motors, Honda and Renault are looking to raise prices from January to offset the impact, reports PTI. Maruti Suzuki, Audi and MercedesBenz have already announced price hikes. Continued on Page 2 IMPROVED REVENUES HAVE enabled states to keep a healthy pace of capital expenditureinthefirsteightmonths of the current financial year, even as the early part of this period saw the savage second Covid wave. Data gathered by FE of 16 states showed their combined capex stood at `1.5 lakh crore in April-October of FY22, up 70% on year and 13% overthe level in the comparable immediate pre-pandemic period. Of course, the growth in states’capex was also aided by a conducive base (34% decline in the corresponding period of FY21). With a view to sustaining FY22 57 27 17 13 8 0.5 -3 -19 -34 *16 states reviewed by FE the states’ capex momentum, an integral part of public spending, the Centre frontloaded the back-to-back loan component of GSTcompensation and increased the tax transfers to states in November to double the level envisaged in the Budget. Continued on Page 2 ● JAN-MAR Review telecom licensing norms: Experts REDUCTION IN SPECTRUM pricing, rationalisation of levies and restructuring of the licensing regime are the three key areas flagged by sector experts for the government to consider as part of the second round of telecom reforms. Announcing a revival package forthe telecom sector on September 15, which FY21 70 PRASANTA SAHU New Delhi, December 5 REFORMS 2.0 KIRAN RATHEE New Delhi, December 5 (April-October; growth % y-o-y) Borrowings THE LONG-ELUSIVE private investment is gathering pace andwould see a spurt once the pandemic-induced uncertainties subsideconsiderably,chief economic adviser (CEA) KrishnamurthyVSubramanian told FE in an interview. Companies have deleveraged, cut costs and recorded profitability, partly aided by a much-needed corporate tax rate cut just months before the pandemic struck. So, their ability to start fresh investments remains strong, Subramanian said. States’ finances Tax revenues SECURITY FORCES opened fire on civilians killing 14 and injuring 11 more in Nagaland's Mon district in three consecutive incidents of firing, the first of which was possibly a case of mistaken identity, police said on Sunday, reports PTI. BANIKINKAR PATTANAYAK New Delhi, December 5 Combined capex of 16 states stood at `1.5L cr in Apr-Oct, up 70% on year Total expenditure IN THE NEWS Security forces kill 14 civilians in Nagaland Says consumption demand coming back even amid supply constraints On crypto: Careful examination a must before deciding if it should be granted financial asset status On pvt consumption: It grew in FY22 despite localised curbs on spending avenues On taper tantrum: Don’t expect significant impact on India due to strong growth & stable macro gauges On low credit to industry: Covidrelated uncertainties weighing on investment decisions, firms also sitting on cash On high CIC: Precautionary savings, limited scope to spend led people to hold on to cash during Covid States maintain healthy capex pace Revenue expenditure Pvt investment to pick up: CEA REVENUE BOOST Capex REVIVAL MODE Currently, various levies account for 30% of the total revenues of the operators Industry expecting cut in 18% GST rate as telecommunication is an essential service Licence fee and universal service obligation fund levy should be reduced Trai has already floated a consultation paper to review spectrum pricing entailed providing cash flow relief to the telecom operators as well as addressing some structural issues, telecom and IT minister Ashwini Urban joblessness worse than pre-Covid level Vaishnawhad said the government will come out with a second set of reforms as well. UNEMPLOYMENT RATE in urban India was 9.4% in the January-March 2021 quarter, higher than 9.1% recorded in the year-ago quarter, which immediately preceded the period when the first Covid wave hit the country, reports Surya Sarathi Ray in New Delhi. Continued on Page 2 ■ Detailed report on Page 2 New Delhi WWW.FINANCIALEXPRESS.COM READ TO LEAD
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