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The mortal remains of former Finance Minister Arun Jaitley on Sunday reached the Bharatiya Janata Party (BJP) headquarters from his residence in Kailash Colony here for people to pay their tributes. The BJP stalwart's mortal remains reached the party headquarters in a military vehicle decked with flowers at around 10.58 a.m. Several BJP leaders and family members accompanied the convoy carrying Jaitley's mortal remains. Senior party leaders, including Home Minister Amit Shah and Defence Minister Rajnath Singh, paid tribute to Jaitley by offering flowers to his body packed in a red colour casket. Jaitley's mortal remains were kept at the Central Hall of the BJP headquarters where it will be kept till around 2 p.m., and then it will be moved to Nigam Bodh Ghat for the last rites, party sources told IANS. Jaitley passed away at All India Institute of Medical Sciences (AIIMS) on Saturday due to a prolonged illness. He was 66. India’s former Finance Minister Arun Jaitley passed away after sustained illness at the age of 66 after an impressive political career spanning decades when he never won an election but was always relevant and maintained his deep influence in Indian politics. Jaitley, along with the former Foreign Minister, the late Sushma Swaraj -- <a href="https://www.businessinsider.in/sushma-swaraj-indias-former-foreign-minister-passes-away-at-the-age-of-67/articleshow/70561044.cms" data-type="tilCustomLink" target="_blank">who passed away earlier this month</a>-- were instrumental in keeping the Bharatiya Janata Party relevant, as an opposition party, in the ten years preceding 2014 when Narendra Modi swept to power as India's Prime Minister. With inputs from IANS SEE ALSO: <a href="https://www.businessinsider.in/news/arun-jaitley-a-detailed-profile-and-history-of-indias-former-finance-minister-who-had-many-friends-and-few-enemies/articleshow/70815608.cms" data-type="tilCustomLink" target="_blank">Arun Jaitley, every big man's friend, passes away at the age of 66-- leaving behind lessons in the 'art of the possible'</a>

The last rites of India's former Finance Minister Arun Jaitley will be performed today

From emphasis on agricultural productivity to huge allocation for MNREGA to fiscal discipline, experts said Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has presented a well-balanced and a reformist budget. 
 
Experts lauded reducing rural distress and maximising returns for farmers. 
 
Richard van der Merwe, CEO of Bayer CropScience Ltd, said the outlay towards development of roads and national highways will help in the movement of perishable goods and driving accessibility and price parity across the country for end consumers. 
 
“The Finance Minister’s proposal to focus on agriculture and farmers' welfare and allocation of over Rs. 5000 crore towards crop insurance scheme, direct benefit transfers for fertilizers, enhanced irrigation acreage and agri credit targets to the tune of Rs. 9 lakh crore is a very welcome move,” he said. 
 
Also, Jaitley said India stood ground in difficult times and amid weak global environment. 
 The government is firm on its course towards fiscal consolidation without compromising on its development agenda and 3.5% <keyword id="6365485" type="UNKNOWN" weightage="20" keywordseo="fiscal-deficit">fiscal deficit</keyword> is targeted for FY 2017. 
 
“With aim of 3.5% fiscal deficit the approach toward fiscal consolidation is a right approach. Focus on rural economy will benefit companies like us which has more than 90% of its clients’ base staying in rural areas. Allocation of 3800 crore to MGNREGA is also a positive. It will boost the rural economy in difficult times for agriculture. Overall a very mature and reformist budget,” said Sadaf Sayeed, Chief Executive Officer, Muthoot Microfin Ltd. 
 Jaitley, in his <keyword id="117156" type="UNKNOWN" weightage="20" keywordseo="Budget-speech">budget speech</keyword>, also rolled out several reforms, one of which was PM Jan Aushadhi Yojana, assuring quality medicines at affordable prices. 
 
Pradeep Dadha, Founder &amp; CEO, Netmeds.com, said, “The budget announced opening of 3,000 stores in 2016-17 under Prime Minister's Jan Aushadhi Yojana is a very welcome and innovative move by the government. 
 
However, the tourism industry was not that happy with the budget proposals. 
 
Sharat Dhall, President, Yatra.com said, “The much awaited budget has turned out to be very friendly for the Aam Aadmi but there could have been a bit more in it for the corporate sector. The proposal to increase the tax on ATF (Aviation Turbine Fuel) will result in increase in airfares and dampen air passenger growth which could have been a catalyst for economic growth.” 
 
Still, the pitch to revamp roads and airports across the country was lauded, which would connect people to unexplored destinations. 
 
(Image: Indiatimes)

Arun Jaitley on right trajectory, say experts

<ul><li>Railway Minister Piyush Goyal given charge of Finance</li><li>Move follows Arun Jaitley's <keyword id="7252780" type="UNKNOWN" weightage="20" keywordseo="indisposition">indisposition</keyword> due to bad health</li><li>Narendra Modi government will be presenting its last budget of its term on February 1</li></ul> Railway Minister Piyush Goyal was on Wednesday given charge of Finance Ministry in the absence of Finance Minister Arun Jaitley who is in the US for medical treatment, apparently ruling out his recuperation in time for the interim budget to be presented on February 1. Goyal will hold the portfolios of Finance and Corporate Affairs on a temporary basis till the resumption of duties by Jaitley, who has now been made a Minister without portfolio, a Rashtrapati Bhawan communique said. 66-year old Arun Jaitley has undergone surgery at a hospital in New York on Tuesday and doctors have advised two weeks of rest, a <a href="https://www.business-standard.com/article/politics/arun-jaitley-undergoes-surgery-in-new-york-advised-two-week-rest-report-119012301461_1.html" data-type="tilCustomLink" target="_blank">report</a> citing sources said. Jaitley had a kidney transplant in May last year and then too Goyal was put in charge of Finance and Corporate Affairs. "The President of India, as advised by the Prime Minister, hereby directed that during the period of indisposition of Arun Jaitley, the portfolios of Minister of Finance and Minister of Corporate Affairs held by him, be temporarily assigned to Piyush Goyal, in addition to his existing portfolios. "Further, as advised by the Prime Minister, Arun Jaitley be designated as Minister without portfolio during the period of his indisposition or till such time he is able to resume his work as Minister of Finance and Corporate Affairs," the communique said. With inputs from IANS

India gets an interim finance minister a week before Narendra Modi government's vote on account

Finance Minister Arun Jaitley also touched an emotional cord while presenting his second full budget in the parliament. 
 
During his budget speech, Jaitley explained how the NDA government overcame all odds and converted challenges into opportunities. 
 
He also expressed gratitude to the farmers and women of the country, who despite highs and lows did not lose faith in them. 
 
Here are some quotes by the FM

When Arun Jaitley turned a poet!

Finance Minister Arun Jaitley outlines 9 main areas of focus in his third budget speech 2016-17. 
 
Saying that India was on growth trajectory, Jaitley said it was important to strengthen rural India and key social sectors. 
 
These sectors are: 
 
Rural areas 
Agriculture and farmers in focus 
Social and healthcare 
Education and skilling India and job creation 
Infrastructure 
Investment, 
ease of doing business 
Tax reforms 
Fiscal discipline

FM Jaitley outlines 9 pillars to transform India

President of the Associated Chambers of Commerce of India (ASSOCHAM), Sunil Kanoria, said the Indian economy will move towards 8% trajectory once the <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST Bill</a> turns into a law. 
 
The Rajya Sabha passed the Constitutional Amendments for GST Bill, which will now go to a GST Council for writing down the recommendations. 
Kanoria said the Goods and Services Tax (GST) will boost growth in India, especially in the sectors like roads, mining and railways. 
 
"The green shoots of economic recovery have started to appear. India is among the fastest growing economies in the world at present. Government's increased budgetary allocation for infrastructure sector is fuelling this growth," Kanoria told ET. " 
 
READ ALSO: <a href="http://www.businessinsider.in/GST-decoded-Heres-how-common-man-corporate-are-going-to-benefit-from-GST/articleshow/53521455.cms">GST decoded: Here’s how common man, corporates are going to benefit from GST</a> 
 
However, Kanoria said India may miss the April 2017 target. “I'm not sure whether the government would be able to roll out GST by April, 2017," Kanoria said. 
 
READ ALSO: <a href="http://www.businessinsider.in/Rajya-Sabha-approves-GST-amendments-what-next-Find-out-here/articleshow/53524317.cms">Rajya Sabha approves GST amendments, what next? Find out here</a> 
 
"There are a lot of inefficiencies in the system today. With GST, the inefficiencies would be ironed out and the volume of transactions coming to the mainstream will increase much more," he told ET.

GST will boost growth in India but may miss April 2017 target: ASSOCHAM

The Centre thought that it had reached a political consensus over the crucial <a href="http://www1.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">Goods and Services Tax</a> (GST) Bill but <a href="http://www1.businessinsider.in/searchresult.cms?query=chidambaram&amp;sortorder=effectivedate">former Finance Minister P. Chidambaram</a> threw a spanner in the Indian government’s plans. 
 
After the present <a href="http://www1.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> presented the <keyword id="387846" type="UNKNOWN" weightage="20" keywordseo="GST-Bill">GST Bill</keyword> for Constitutional amendments, <keyword id="6362104" type="PERSON" weightage="20" keywordseo="Chidambaram">Chidambaram</keyword> said even though the recommendations by the opposition were included, the bill was still clumsy. 
 “In the present list of amendments, you have made some provisions of what will go into the consolidated fund of India. Second issue is multiplicity of taxes. If you give some states power to impose additional 1% tax, it would have led to multiplicity of tax rates. Third major issue is of dispute resolution. Dispute resolution between states and Centre is not a matter on which Constitution is silent. Article 131 speaks loud and clear,” said Chidambaram in the <keyword id="48510" type="ORGANIZATION" weightage="20" keywordseo="Rajya-Sabha">Rajya Sabha</keyword>. 
 
READ ALSO: <a href="http://www.businessinsider.in/GST-decoded-Heres-how-common-man-corporates-are-going-to-benefit-from-GST/articleshow/53521455.cms">GST decoded: Here’s how common man, corporates are going to benefit from GST</a> 
 
Chidambaram said the GST was also a major concern for the people of the country and was not only a matter between Union Finance Minister and state finance ministers. 
 
“GST rate should not be changed by the whim of the executive but by approval of Parliament. The heart of the GST is what the rate of tax will be. Any indirect tax falls same on rich and poor, thus it's advisable to keep it as low as possible,” said Chidambaram. 
 
Chidambaram insisted on including the 18 per cent GST rate in the amendments itself, before it went to the GST Council for including further recommendations. 
 
He said the Congress was never against the idea of GST but was not in favour of few clauses in the bill in 2014. 
 
“Just as 2011 GST bill opposed, similarly 2014 bill was opposed and not the idea of having one. Rationale of GST is to avoid multiplicity of taxes, thus the idea of inter-state tax rate had to be removed,” said Chidambaram.

Former Finance Minister Chidambaram insists on mentioning 18% GST rate in the amendment bill

Arun Jaitley, the finance minister, said a vibrant financial sector was important for the growth of Indian economy. He announced a number of measures to deepen the corporate bond market, resolution mechanism for bankruptcy of banks, etc. 
 
Here are the key announcements he made to strengthen the financial sector 
 
Rs 25, 000 crore for recapitalisation of Public Sector Banks 
Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill 
RBI Act 1934 will be amended to give statuary backing of monetary policy framework 
Financial Data Management Centre for integrated data collection and analysis 
Banking Board Bureau will be operationalised 
Department of Disinvestment to be renamed at Department of Investment and Public Asset Management 
Amount sanctioned under the PM Mudra Yojana has reached Rs 1 lakh crore to cover 2.5 crore borrowers by Feb 26

Here’s Jaitley’s plan for a vibrant financial sector

Like last year, this time also <keyword id="6391015" type="UNKNOWN" weightage="20" keywordseo="Finance-Minister-Arun-Jaitley">Finance Minister Arun Jaitley</keyword> may cut down corporate tax rate by nearly one per cent. In this Budget 2016-17, Jaitley may end certain exemptions availed by the industry. 
 
In Budget 2015, Jaitley had announced phased reduction in corporate taxes over four years to 25 per cent from present 30 per cent. 
 
"To begin with, one per cent cut in the corporate tax rate, gradual phasing out of accelerated tax depreciation and a sunset clause for the tax deductions, coupled with reduction in MAT, will set the tone for this year's Budget," KPMG (India) Partner Tax Vikas Vasal said. 
 
Economic Laws Practice Partner Rohit Jain said since the government is pushing domestic manufacturing, in the next Budget it would be a challenge to do away with exemptions. 
 
"The reduction could be one per cent or so in the next Budget. The minister might put an end date to certain exemptions and pave the way for gradual withdrawal," Jain added. 
 
Currently, there are various tax concessions under the Income-Tax Act, 1961. The prominent ones are accelerated depreciation on various assets; weighted deduction for capital expenditure incurred on various projects; weighted deduction for expenditure incurred on manufacture or production of specified articles; expenditure incurred on scientific research; various skill development projects etc. 
 
"In an event of a phase out approach, a reduction of 1-1.25 per cent in the corporate tax rate could be expected," Deloitte Haskins &amp; Sells LLP Partner CA Gupta said. 
 
The Finance Minister had earlier said:"We lose out on both counts, i.e. we are considered as having a high corporate tax regime but we do not get that tax due to excessive exemptions. A regime of exemptions has led to pressure groups, litigation and loss of revenue. 
 
"It also gives room for avoidable discretion. I, therefore, propose to reduce the rate of corporate tax from 30 per cent to 25 per cent over the next four years."

Arun Jaitley may end tax exemptions, corporate tax in his Budget 2016

Finance Minister Arun Jaitley proposed a higher allocation in education sector with a special focus on employment and skilling Indians. 
 
Yet again Jaitley emphasised on higher education and announced setting up of a higher education Financing Agency with a fund of Rs 1,000 crore. 
 
He also spoke about entrepreneurship and set an objective to skill one crore in next three years under the PM Kaushal Vikas Yojana. 
 
This is being done to increase the formal sector employment. 
 
He also spoke about Digital India and spoke about digital depistory for school leaving certificates.

Jaitley yet again sets higher allocation for higher education, skill India

<ul><li>Rupee is expected to stay weak as <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">oil</keyword> prices rise. </li><li>Markets fear the Indian government will breach <keyword id="6365485" type="DEFINITION" weightage="20" keywordseo="Fiscal-Deficit">fiscal deficit</keyword> target. </li><li>Higher fiscal deficit hurts government’s ability to spend for economic growth and increases borrowing cost. </li></ul> The rupee closed at 70.49 at the end of last week, capping a 4% decline since the start of the year.This is largely due to the fact that oil prices ticked up and markets have priced in a series of handouts to farmers by the government as an election ploy. Last year proved to be a mixed bag for the Indian currency. After declining by 14% in the year to October, the rupee rebounded strongly in the last few months of 2018 owing to the decline in oil prices, and closed at 69.71. The value of the rupee has significant implications on India’s fiscal deficit and vice versa. When the rupee declines, the fiscal deficit, which measures the difference between government expenditure and revenue, widens because oil becomes more expensive to import. On the other hand, if India’s fiscal deficit widens, it causes foreign investors to lose confidence in the economy and hence they pull money out of the country, which further weakens the currency. With oil prices expected to grow sluggishly in the initial period of year, the rupee is expected to stay weak. However, the unveiling of the Union <keyword id="6358021" type="ORGANIZATION" weightage="20" keywordseo="budget">Budget</keyword> on 1 February by Finance Minister Arun <keyword id="6390789" type="PERSON" weightage="20" keywordseo="jaitley">Jaitley</keyword> could provide markets and currency speculators with some much-needed clarity as to where the rupee will go in 2019. The Budget, which will be an interim budget since it is an election year, will likely include a conclusive statement on whether the central government will breach or meet its fiscal deficit target for the year - which is 3.3% of <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword>. The target has looked increasingly unrealistic in recent months, due in part to lower indirect tax collections, a slow disinvestment process and concessions to farmers. While the government has tried to curtail its capital expenditure, this might not be enough. “It will be quite difficult for the government to achieve its target as the fiscal deficit is currently in the region of 3.9% of GDP” says Gaurav Sharma, a senior manager at Religare Securities. Sharma explained that if this came to pass, it “would seriously hurt the rupee”. However, if the government breaches its deficit target, it will exacerbate investor worries, as a high deficit threatens India’s ability to spend for economic growth and increase it’s borrowing cost. There is room for surprise, though. Even if the fiscal deficit is wider, but less than experts’ predictions, it could provide support for the currency. On the other hand, with elections due in May 2019, the government expected to play into the desires of key voter blocs, and as such, could include further promises of loan waivers and additional financial largesse. The central government, for its part, has said that it will meet its fiscal deficit target. Towards the end of December, Jaitley said <a href="https://economictimes.indiatimes.com/news/economy/policy/government-to-meet-fiscal-deficit-target-of-3-3-arun-jaitley/articleshow/67207903.cms">that the 3.3% mark was in sight,</a> and subsequently clarified that the government <a href="https://indianexpress.com/article/india/not-seeking-rbi-surplus-to-finance-fiscal-deficit-arun-jaitley-5517571/">would not require a surplus </a>from the central bank’s coffers to meet its goal. As things stands, until the interim budget is unveiled, it seems that all bets are off. SEE ALSO: <a href="https://www.businessinsider.in/the-indian-rupee-just-clocked-its-highest-one-day-gain-since-2013-as-global-oil-prices-plummeted-to-a-yearly-low/articleshow/67158268.cms">The Indian rupee just clocked its highest one-day gain since 2013 as global oil prices plummeted to a yearly low</a> <a href="https://www.businessinsider.in/oil-prices-are-falling-and-thats-great-news-for-the-indian-rupee/articleshow/66768210.cms">Oil prices are falling and that’s great news for the Indian Rupee</a> <a href="https://www.businessinsider.in/indian-government-may-not-meet-its-fiscal-deficit-target-because-of-lower-tax-collections-india-ratings/articleshow/66824092.cms">Indian government may not meet its fiscal deficit target because of lower tax collections: India Ratings</a>

Here’s why the rupee will remain weak at least until Arun Jaitley’s budget speech

When the Modi government announced its first budget in 2014-15, the government of the largest democracy had allocated Rs 1.91 trillion for infrastructure development. Growing at a breathtaking phase through the consecutive budgets of the National Democratic Alliance (NDA) and touching Rs 4.94 trillions in 2017-18, the infrastructure sector received a push of Rs 5.97 trillions in the budget 2018-19. For <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s government, infrastructure development of the country has been a prime focus area. While making his budget speech while presenting 2018-19 budget, <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>, the Finance Minister remarked, “Our country needs massive investments estimated to be in excess of Rs 50 lakh crores in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people." In order to the augment the resources, the government levied a road and infrastructure cess of Rs 8 per liter on the petrol and diesel imported. Jaitley said, “The government and market regulators have taken necessary measures for development of monetizing vehicles like Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (ReITs) in India. The government would initiate monetizing select CPSE (central public sector enterprises) assets using InvITs from next year." The latest economic survey reveals that such measures will be operationalized provided the country will face a $526 billion gap in the investment towards infrastructure development. Jaitley added, “Reserve Bank of India has issued guidelines to nudge corporates to access the bond market. Sebi (Securities and Exchange Board of India) will also consider mandating, beginning with large corporates, to meet about one-fourth of their financing needs from the bond market." Announcing the most innovative and integrated infrastructure planning model, the National Democratic Alliance government launched the country’s largest ever rail and road budget through budget 2018-19 that saw an allocation of Rs 1.48 trillion and Rs 1.21 trillion respectively. Way back while announcing the 2017-18 budget, Arun Jaitley said the cabinet had given a nod to the most ambitious Bharatmala (roads) scheme that will significantly strengthen the country’s roads network. To support this massive allocation requirement, the government said Rs 5.35 trillion as equity from the market. Jaitley’s talk emphasized that the nation required funds for some ambitious plans Sagarmala (ports) and Bharatmala to enhance its transport infrastructure to meet the growing needs of the largest democracy effectively. “To raise equity from the market for its mature road assets, NHAI will consider organizing its road assets into special purpose vehicles and use innovative monetizing structures like toll, operate and transfer (TOT) and Infrastructure Investment Funds (InvITs)," stressed Jaitley. Though the 2017-18 budget allocated Rs 73.31 crores for Airports Authority of India (AAI) from Rs 149.93 crores in 2017-18, AAI had to raise Rs 4,086 crores. While commenting on the line of budgets by the NDA government headed by Narendra Modi, Jaijit Bhattacharya, partner and head, economics and regulatory at consultancy firm KPMG remarked. “The budget demonstrates a very significant push on infrastructure, including rural infrastructure, as well as for immediate job creation as well as supporting long-term employability through education and skill development is very encouraging."

A look at budget allocation for infrastructure under the Modi government

There are strong hopes and indications that the upcoming budget could contain some good news for the farmers in the country. Addressing the gathering during a recent conference, the Union Minister for Agriculture and Farmers, Radha Mohan Singh said, “Union <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">Budget 2019</keyword> will be dedicated to the farmer. It will be another step forward, in contributing to the realization of the goal of doubling farmers’ income by the year 2022.” Amidst rising anticipations, we list out some possible areas that could receive some boost in a way benefiting the farmers of the country. Development measures Singh has indicated that the government might implement many programs to develop the agricultural sector and augment the economic condition of the farmers. Part of the government’s mission could work on the areas including bringing down the production cost, announcing profitable prices to farmers, preventing the wastage of farmers’ produce, and creating alternative sources of income to the farmers’ community. Agricultural credit target and interest rates Some insider views say that the Modi Government could hike the agricultural credit target to Rs 12 Lakh crore in the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> 2019. This will mark a 10% increase in the farm credit target over the earlier budget. Singh added, "The government has been increasing the credit target for the farm sector every year. This time too, the target is likely to be increased by around 10% or Rs 1 lakh crore to Rs 12 lakh crore for the 2019-20 fiscal." For those looking forward to achieve a higher farm output, credit is a critical input. Institutional credit can enable farmers depend less on non-institutional sources that might charge usurious rates of interest. The government has also plans to provide 2% subsidy on the interest on short-term farm loans up to Rs 3 lakh resulting in an effective 7% per annum interest rate. The incentive of 3% that will be given to the farmers on prompt repayment of loans within the due date will finally see the interest rates slide to just 4% over the year. Other measures Here are a few other expectations from the interim budget and the potential benefit for farmers <ul><li>There could be another round of loan waivers costing the government over Rs 2 lakh crores. </li><li>There could be measures to bring about some market reforms in the states that can help free up the agricultural markets to benefit the farmers with better earning over their produce. </li><li>In some states of the country, there is a second consecutive failure of monsoons that is threatening the agricultural economy. As El-Nino could loom large over the coming year, crop insurance can provide the farmers a much needed relief. Hence steps to lower the premiums of agricultural insurance could be part of the interim budget 2019. </li><li>There could be some provisions of direct investment support to the farmers. This can help reach out the farmers with an efficient, corrupt free and prompt assistance. </li><li>Across the nation, there is a common consensus that state support is the need of the hour to help farmers survive. There are strong hopes that the interim budget 2019 will pave way for the same. </li></ul>

Budget 2019: What it could bring for India’s farmers

<ul><li>India’s retail <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> hit an 18-month low. </li><li>Huge jump seen in health and education costs despite rural economy slowing down. </li><li>Economist questions the discrepancy in the latest data.</li></ul>India’s retail inflation data hit an 18-month low, according to latest official data. That combined with the slump in industrial output is likely to trigger hopes of a change in the policy of the Reserve Bank of India that would likely prop up the country’s financial markets. However, there is a devil in the detail that is more confusing than convincing. At a time when rural consumption is on a downtrend and farmer incomes are declining, there was a huge jump in health and education. Food prices fell 2.5% in December while the cost of health rose 9% and the cost of education jumped 8.4%. “That defies all logical explanations,” said Soumya Kanti Ghosh, the group chief economic advisor at State Bank of India (SBI). <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">Inflation </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">December 2018 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">Health </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">9% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">Education </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">8.40% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">Food </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;">2.50% </td></tr></tbody></table> While the rollout of the government-subsidized healthcare program may have led more people to access health services, “the jump in healthcare costs is happening mostly because of jump in medicine costs from non-institutional sources, that begs explanation,” Ghosh added. The fact that India’s rural economy is slowing down is evident from many key economic indicators recently, including two-wheeler sales, fuel consumption data as well as sales of commercial vehicles. The recent data also shows that the Indian farmer has consistently been getting less and less for his crop. Separately, the benefit of the falling costs of food and vegetables has not reached the end consumer. And with little difference to disposable income, it is less likely that the person would consume more -- much less on health and education. SEE MORE: <a href="https://www.businessinsider.in/indias-retail-inflation-rate-just-hit-its-lowest-point-since-june-2017-raising-the-prospects-of-a-rate-cut-and-more-handouts-to-farmers/articleshow/67072609.cms">India’s retail inflation rate just hit its lowest point since June 2017, raising the prospects of a rate cut and more handouts to farmers</a> <a href="https://www.businessinsider.in/the-indian-rupee-just-clocked-its-highest-one-day-gain-since-2013-as-global-oil-prices-plummeted-to-a-yearly-low/articleshow/67158268.cms">The Indian rupee just clocked its highest one-day gain since 2013 as global oil prices plummeted to a yearly low</a>

You Searched For "Arun Jaitley latest news" and got 14 results

The last rites of India's former Finance Minister Arun Jaitley will be performed today

BI India Bureau

Arun Jaitley on right trajectory, say experts

Akanksha Jain

India gets an interim finance minister a week before Narendra Modi government's vote on account

BI India Bureau

When Arun Jaitley turned a poet!

BI India Bureau

FM Jaitley outlines 9 pillars to transform India

BI India Bureau

GST will boost growth in India but may miss April 2017 target: ASSOCHAM

BI India Bureau

Former Finance Minister Chidambaram insists on mentioning 18% GST rate in the amendment bill

BI India Bureau

Here’s Jaitley’s plan for a vibrant financial sector

BI India Bureau

Arun Jaitley may end tax exemptions, corporate tax in his Budget 2016

BI India Bureau

Jaitley yet again sets higher allocation for higher education, skill India

BI India Bureau

Here’s why the rupee will remain weak at least until Arun Jaitley’s budget speech

A look at budget allocation for infrastructure under the Modi government

BI India Bureau

Budget 2019: What it could bring for India’s farmers

BI India Bureau

Is the Indian villager really spending way more on medicine than food?

Sriram Iyer

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