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<ul><li>Corporate entities will not be able to reduce their tax burden by claiming input tax credit on corporate social responsibility activities.</li><li>This could also lead to confusion amongst corporate entities since AARs of different states have given contrary rulings in this regard.</li><li>Earlier, Uttar Pradesh AAR had allowed <keyword id="12201693" type="General" weightage="20" keywordseo="ITC-on-CSR" source="Orion">ITC on CSR</keyword> activities, while Kerala AAR took the contrary position.</li></ul>Input tax credit allows registered entities under <keyword id="6354679" type="General" weightage="20" keywordseo="GST" source="Orion">GST</keyword> to claim credit on the goods and services tax (GST) that they have paid while purchasing goods or services, which can be offset from the GST that they have to pay after making sales. However, input tax credit (ITC) can’t be claimed on expenses made towards corporate social responsibility (<keyword id="6354502" type="General" weightage="20" keywordseo="CSR" source="Orion">CSR</keyword>) activities, according to a new order from the Authority for Advance Rulings (AAR) ruling in Gujarat. There are two other rulings from the same authority and one of those allows the input tax credit on CSR. According to the provisions of Companies Act, 2013, companies with a net worth of ₹500 crore or more, or turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more, will have to mandatorily spend on CSR activities. The spend should be a minimum of 2% of the average net profit of the past three years. <cmsannotation type="cmsannotation" annotationid="The root of the problem" comment="subhead" text="The root of the problem">The root of the problem</cmsannotation> The primary issue here is whether CSR activities can be construed as “in course or furtherance of business”, that is, whether they are fundamental for a company to continue its business activities. However, the GST provisions do not define what exactly that would entail. For this purpose, the applicant in this case, Adama India Pvt. Ltd., relied on the provisions of Companies Act, 2013, to state that CSR activities are mandatory as per law, and not undertaking them would cause harm to the business. This, the applicant says, entitles it to take ITC on CSR activities. However, the Gujarat AAR referred to the Companies (CSR Policy) Rules, 2014, to state that CSR activities are not covered in activities “in the course or furtherance of business”. It also cited the provisions of Companies (CSR Policy) Amendment Rules, 2021, which provide a definition of CSR that excludes it from normal business activities. Essentially, the GAAR ruled that since CSR is specifically excluded from the scope of normal business activities, the applicant cannot take ITC on CSR activities. According to Ayush Mehrotra, one of the partners at Khaitan &amp; Co., this is likely to further increase litigation in GST. “The GST framework is wide enough to inter alia include activities without pecuniary benefits and those which are incidental or ancillary to main business. As such, the present ruling will only cause further litigation on GST which was otherwise expected to be a simpler and straightforward framework,” he told Business Insider. <cmsannotation type="cmsannotation" annotationid="Contrary AAR rulings put corporates in a bind" comment="subhead" text="Contrary AAR rulings put corporates in a bind">Contrary AAR rulings put corporates in a bind</cmsannotation> Gujarat AAR’s ruling is in contrast to that of the Uttar Pradesh AAR, which allowed the applicant to take the credit of Goods and Services Tax (GST) paid by the company while purchasing goods to be used for CSR activities. However, it is in line with the Kerala AAR, which passed a similar ruling in the matter of Polycab Wires donating flood relief items. “It is also noteworthy to highlight that since this ruling is in contradiction to prior rulings issued by competent authorities in other states, the urgent need for a national authority is once again being felt to ensure certainty of legal position,” Khaitan added further. The exclusion of ITC on CSR activities will mean that corporate entities will not be able to reduce their tax burden by claiming <keyword id="12201691" type="General" weightage="20" keywordseo="GST-input" source="Orion">GST input</keyword> credit. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/swiggy-tightens-focus-on-grocery-delivery-as-zomato-steps-out/articleshow/86582683.cms">Swiggy tightens focus on grocery delivery, as Zomato steps out</a> <a href="https://www.businessinsider.in/policy/legal/news/sc-landmark-ruling-in-the-samsung-heavy-industries-case-could-have-a-positive-effect-on-ease-of-doing-business-in-india/articleshow/77148341.cms">Supreme Court’s landmark ruling in the Samsung Heavy Industries case could have a positive effect on ease of doing business in India</a> <a href="https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a>

Can you claim input tax credit on CSR expense ⁠— three authorities have two different rulings

As per a <a href="http://www.businessinsider.in/searchresult.cms?query=KPMG+&amp;sortorder=effectivedate">KPMG </a>study, India's top tier companies' allocation of Rs 7,300 crore in fiscal 2016 to corporate social responsibility (<keyword id="6354502" type="ORGANIZATION" weightage="100" keywordseo="CSR">CSR</keyword>) initiatives exceeded regulatory requirements. 
 
As per the rules, a company whose net worth is Rs 500 crore or more or a turnover in excess of Rs 1,000 crore or net profits of Rs 5 crore or more are required to mandatorily spend 2% of their profits on CSR programmes. 
 
According to the study, actual spends on CSR activities by <a href="http://www.businessinsider.in/searchresult.cms?query=Nifty&amp;sortorder=effectivedate">Nifty</a> 100 companies were more than Rs 6,500 crore for financial year 2016 versus a little over Rs 5,000 crore a year ago. 
 
Reportedly, 48 companies spent a combined Rs 4,252 crore in <a href="http://www.businessinsider.in/searchresult.cms?query=FY15&amp;sortorder=effectivedate">FY15</a>. This is 1.6% of the standalone net profit earned by <keyword id="6354813" type="COMPANY" weightage="20" keywordseo="nifty">Nifty</keyword> companies for the year. Two companies are yet to publish their annual reports. 
 
"As per the Act's requirements and public disclosures of N100 companies' profits, they are required to spend Rs 7,233 crore against which companies committed Rs 7,355 crore (higher by Rs 122 crore) and have spent Rs 6,518 crore (90%),” the study noted. 
 
The main areas that were covered ere that of health, sanitation and education while rural development attracted increasing spends in 2016, as per the study. 
 
Allocations towards the Prime Minister's National Relief Fund, development of sports and protection of national heritage, art and culture remained low. 
 
The study also highlighted that while spends have gone up, the number of projects funded by Indian corporates came down 33% from 1249 projects in financial year 2015 to 838 projects in financial year 2016. 
 
"One can see a level of maturity emerging in the way in which companies are channelizing spends. 
 The focus seems to be on concentrating on bigger projects and not spreading themselves too thin,” Sathosh Jayaram, Head of Climate Change, Sustainability and CSR at <keyword id="50041" type="CITY" weightage="20" keywordseo="KPMG">KPMG</keyword> told ET. 
 According to Rekha Sethi, independent director with <keyword id="44642" type="CITY" weightage="20" keywordseo="Sun-Pharma">Sun Pharma</keyword> and <keyword id="50493" type="COMPANY" weightage="20" keywordseo="CESC">CESC</keyword>, the spends on CSR were a reflection of better compliance towards regulations. Companies have been focusing on spending especially in the area of sanitation and hygiene by allocating funds towards building toilets and indicating that companies are investing in areas that are priorities for the government, she said.

India Inc spent more on CSR in 2016, exceeds the threshold

While we sit here wondering whether any efforts by the successive governments and the <a href="http://www.businessinsider.in/searchresult.cms?query=RBI+">RBI </a>will bolster our dwindling economy, significant work is silently on in the bylanes of our rural corridors for the last 15 years. Not much is known about <a href="http://www.businessinsider.in/searchresult.cms?query=world+bank">World Bank</a>’s several ongoing rural projects, despite the fact that they are likely to become the key contributor to the growth of <keyword id="6356076" type="UNKNOWN" weightage="100" keywordseo="indian-economy">Indian economy</keyword> soon. 
 “We may be able to contribute at least 5-10 per cent to India’s <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> in the next five to ten years,” the lead rural development specialist for South Asia at <keyword id="6354424" type="ORGANIZATION" weightage="100" keywordseo="World-Bank">World Bank</keyword>, Mr Parmesh Shah told Business Insider during a candid chat. 
 
A lot has gone behind the world’s largest development bank’s aim to change the rural face of India ever since it stepped into the country back in 2000. The Bank is working with not only the actual producers and consumers, but banks, innovators, social entrepreneurs, NGOs and corporate to create an ecosystem in rural areas such that people not only become self sustainable, but budding entrepreneurs who can generate employment for others. That means, people won’t have to move out to cities to get jobs, they will have opportunities where they live – in India’s villages. 
 World Bank started off working with 3 states in the beginning with the aim of organizing small and marginal farmers who were largely scattered and unorganized, building capacity and helping them prepare forward looking plans to improve their livelihood. Today, apart from having its standalone projects where its inclusive model has created an enabling environment for the poor and shown great results, World Bank is <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> Centre’s National livelihood mission that caters to 13 high poverty states, where the same successful models of rural capacity building and growth are being replicated. 
 
Parmesh Shah explains to us the rural development models: “<a href="http://www.businessinsider.in/searchresult.cms?query=CSR+model">CSR model</a>s usually fail because merely dumping money into rural areas as charity doesn’t help; investment has to be done in a sequence.. First, we help them to build higher quality social capital - save money, revolve that money via an activity that helps them generate cash and then do something with that money. Once they show track record of being able to do something productive with their own money, then World Bank steps in. We put in risk funds, but largely play the role of facilitators in building an ecosystem for them by getting social entrepreneurs, NGOs, banks, corporate, government to look at them as partners.” 
 
In Bihar, the World Bank’s project helped poor to get rid of their high cost debts which were an impediment in the way of the rural poor investing money in productive activities, as the earned money would often go into clearing the loans and interests. 
 
“We had already worked in Andhra Pradesh and realized that it had much more enabling conditions than Bihar. However, several social entrepreneurs were innovating despite constraints of the society, but on a low scale. We picked 15 out of them and scaled them up,” he said, adding that until government started a project JEEVIKA with World Bank, the poor were largely being served inefficiently. 
 
“We organized them, helped them save money and become clients for the banking system rather than mere applicants. World Bank gave them the managerial and technical capabilities, access to technology and risk funds to get started. Soon, banks started lending them money, government released funds too that they did not have access to earlier due to safety net. Social entrepreneurs came to work with them. Now they had pool of resources at their disposal,” explains Parmesh. 
 
The first funding that World Bank provided to Bihar was $63 million, while the Bihar government put in $7 million. However, before the project completion, the government wanted to scale up further geographically and sought $100 million more. Currently, World Bank is working with more than 3.8 million people in Bihar alone, and aims at connecting with 12.5 million people in the next four years. 
 
Parmesh says, while a lot of effort is on in Bihar and it may start showing result when funding to the tune of $1 billion is achieved in the next 2 to 3 years, Andhra Pradesh has already reached the threshold stage with $16 billion investment by World Bank till now. It is an attractive spot for corporates now as they see it as an aggregated market full of opportunities. 
 
“Andhra has invested in that ecosystem for very long now and has reached the threshold point with $1.5 billion credit flowing and $1 billion savings. Unless you reach threshold limit, it does not become a market opportunity. Large players will look at an aggregate market as opposed to small markets,” he says. 
 
The Bank now aims at creating retail, <a href="http://www.businessinsider.in/searchresult.cms?query=SME+">SME </a>and producer model such that farmers in the state are linked to global value chains, SME culture can help in generate jobs, and producers are linked to markets and state. 
 
“All of this will contribute to a jump in our GDP, propelling growth of Indian economy. Some states like Andhra Pradesh, Kartanaka and Tamil Nadu may show quicker results, while others like Bihar and Jharkhand can take time, but eventually all of them will,” he says, adding that government change, governance of the place, social systems, the perception of the region in the world are several factors that contribute to how fast a particular region develops.

Exclusive: World Bank's rural projects likely to contribute 5-10 per cent to India's GDP in the next 5-10 years

<ul><li>The <keyword id="150653" type="ORGANIZATION" weightage="20" keywordseo="Indian-Revenue-Service">Indian Revenue Service</keyword> Association (IRSA) has suggested imposing a <keyword id="46812" type="COMPANY" weightage="20" keywordseo="Wealth-Tax">wealth tax</keyword> on India's super rich, which will include anyone with net wealth greater than ₹5 crore.</li><li>They have also suggested imposing a one-time coronavirus relief cess of 4%.</li><li>According to their report, "super rich have a higher obligation towards ensuring the larger public good".</li></ul>The Indian Revenue Service Association (IRSA) has suggested the imposition of wealth tax on the super rich, with net wealth at least Rs 5 crore and a one-time COVID relief cess of 4 per cent. Titled Fiscal Options &amp; Response To COVID-19 Epidemic (FORCE), the report of recommendations on revenue mobilization amid the coronavirus crisis said that in times like these, the so-called "super rich have a higher obligation towards ensuring the larger public good". The tax officers' body said they can be taxed through two alternative means, for a limited, fixed period -- 3-6 months. It noted that the super rich enjoy a higher capacity to pay with significantly higher levels of disposable incomes compared with the rest. Also, they have a higher stake in ensuring the economy springs back into action, and their current levels of wealth itself is a product of the social contract between the state and its citizens. It suggested raising the highest slab rate to 40 per cent for total income levels above a minimum threshold of Rs 1 crore or re-introduction of the wealth tax for those with net wealth of Rs 5 crores or more. "Most high-income earners still have the luxury of working from home, and the wealthy can fall back upon their wealth to cope with the temporary shock. In view of several European economists, taxing the wealthy would be the most 'progressive fiscal tool', as wealth is far more concentrated than income and consumption," it said. Suggesting the imposition a one-time COVID relief cess, the IRSA said as opposed to surcharges, cess are more broad-based since they relieved on every taxpayer and are likely to mobilize more revenue as well. The current rate of cess is 4 per cent, including 2 per cent health cess and 2 per cent education cess. "Thus, an additional one-time cess of 4 per cent on account of COVID Relief (could be called COVID Relief Cess) could help finance capital investment in COVID Relief work," it said. As per IRSA, the extra revenue mobilised through the additional cess could be between Rs 15,000-18,000 crore. It, however, said that to mitigate the extra hardship on the middle class, the cess may be made applicable only in cases where the taxable income is greater than Rs 10 lakh. The report also suggested increasing the surcharge applicable to the higher income foreign companies having a branch office or permanent establishment in India. It said the surcharge has not been revised for some time now, and with companies operating in India and deriving profits through their PEs, it is time that a flourishing market like India with its huge prospects flexes its customer-base muscle. The tax incentives for CSR should be extended at the time of national disaster, it said. Those companies who are undertaking the COVID relief activities under CSR should be allowed to claim as expenditure incurred for the purpose of business deduction section 37 for FY 2020-21 only. This incentive helps in mobilizing CSR funds for the disaster management, the report said. See also: <a href="https://www.businessinsider.in/india/news/dhfls-kapil-and-dheeraj-wadhawan-taken-into-custody-by-cbi-for-role-in-yes-bank-scam-case/articleshow/75388823.cms">DHFL's Kapil and Dheeraj Wadhawan taken into custody by CBI for role in Yes Bank scam case</a> <a href="https://www.businessinsider.in/india/news/pm-modi-says-indias-fight-against-coronavirus-is-people-driven/articleshow/75387305.cms">PM Modi says India's fight against Coronavirus is 'people-driven'</a> <a href="https://www.businessinsider.in/india/news/lockdown-may-be-extended-in-covid-19-hit-urban-areas-of-maha/articleshow/75386981.cms">Coronavirus lockdown may extend beyond May 3 in urban areas of Maharashtra</a> <a href="https://www.businessinsider.in/entertainment/news/doordarshan-has-plans-to-bring-back-shri-krishna-after-20-years/articleshow/75387419.cms"></a>

The super rich in India may face wealth tax and one-time COVID-19 relief cess of 4%

New Delhi, Mar 6 () Finance Minister Nirmala Sitharaman on Friday said she was confident that Parliament would pass pass the amendments to the companies law with focus on decriminalisation of various provisions. Earlier this weak, the cabinet approved 72 changes to the companies law as the government aims further improvement in the companies law. "I am sure Parliament in its wisdom will pass it...," the minister said at the inaugural session of colloquium on 'Judicial Sensitisation on Insolvency Law and Associated Best Practices' organised by National Company Law Appellate Tribunal (NCLAT). Sitharaman, who is also the Corporate Affairs Minister, further said it is the commitment of the government that wealth creators - small, medium, big or large - will be treated with respect. "...there shall be trust of the government in these entrepreneurs," she added. The amendments in the Companies Act, 2013, also aims at reduction in penalties for certain offences as well as in timeline for rights issues, relaxation in corporate social responsibility (CSR) compliance requirements and creation of separate benches at the NCLAT. Sitharaman further said India made a big difference to itself by passing the Insolvency and Bankruptcy Code (IBC) three years ago. "In passing this legislation, one thing was kept in mind and also made sure was that associated, related institutions were simultaneously quickly placed on ground. "...So if you really want to talk about India crossing that threshold of being nimble at bringing in legislations and related institutions also, IBC is a classic example," the minister said. A bill to further to amend the Insolvency and Bankruptcy Code, 2016, is listed in the Lok Sabha for passage and consideration. NKD ANSANS

Confident that Parliament will pass changes in companies law: FM

There has been an increasing participation from the private sector in the flagship Swachh Bharat campaign of the Indian government, because of which the government has decided to open a marketplace where it would put up all the cleanliness projects that need help. 
 
Also read: <a href="http://www.businessinsider.in/Modis-Swachh-Bharat-Abhiyan-gets-one-more-partner/articleshow/54561345.cms">Modi’s Swachh Bharat Abhiyan gets one more partner</a> 
 The <keyword id="162100" type="ORGANIZATION" weightage="20" keywordseo="Ministry-of-Urban-Development">Ministry of Urban Development</keyword> is roping in industry groupings including <a href="http://www.businessinsider.in/searchresult.cms?query=Confederation+of+Indian+Industry&amp;sortorder=effectivedate">Confederation of Indian Industry</a>, <keyword id="6355001" type="CITY" weightage="20" keywordseo="FICCI">FICCI</keyword> and <keyword id="6355988" type="CITY" weightage="20" keywordseo="Assocham">Assocham</keyword>, so that they can connect it with companies that are looking forward to spend their <a href="http://www.businessinsider.in/How-is-CSR-Law-driving-the-Corporates-towards-Shared-Value-Approach/articleshow/53942423.cms">Corporate Social Responsibility</a> (CSR) budget. 
 
Companies will be able to choose projects that suit them by connecting with the urban local bodies. This will provide companies with projects and the government with money, resulting in a win-win situation for both. 
 
Also read: <a href="http://www.businessinsider.in/This-is-what-Asias-cleanest-village-in-Meghalaya-looks-like/articleshow/52571013.cms">This is what Asia’s Cleanest Village in Meghalaya looks like</a> 
 
In 2014-15, 52 public sector units and 409 private organisations collectively spent Rs 6,338 crore on CSR activities in India, and completed 1,790 projects. Out of this, Swachh Bharat Kosh got Rs 15.5 crore, or 0.25%. 
 
Also read: <a href="http://www.businessinsider.in/india-inc-spent-more-on-csr-in-2016-exceeds-the-threshold/articleshow/57142735.cms">India Inc spent more on CSR in 2016, exceeds the threshold</a> 
 
"Companies prefer to fund projects and get them executed through a third party rather than connect with the urban local body," a senior urban development ministry official told ET. 
 
Also read: <a href="http://www.businessinsider.in/sdmc-to-make-restrooms-in-south-delhi-hotels-and-restaurants-open-to-all/articleshow/57646024.cms">SDMC to make restrooms in South Delhi hotels and restaurants open to all</a> 
 
"It is usually the impression the private sector has that urban local body means delayed decision-making. The companies are often not aware of the exact project plans of ULBs under the mission and are not aligned with the immediate demands. The marketplace is aimed at changing this." 
 
There would be several projects listed on the marketplace, including construction of household, public and community toilets, waste management infrastructure and information, education and communication initiatives. 
 
(Image source: NEDFI)

Swachh Bharat campaign goes digital! Private companies can now choose their cleanliness projects online

<ul><li>The fifth tranche of stimulus measures to revive India's economy revealed today.</li><li>This is part of the ₹20 lakh crore, about $270 billion, package promised by Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>.</li><li>Get the latest news and updates on the unravelling COVID-19 crisis on <a data-type="tilCustomLink" target="_blank">Business Insider</a>.</li></ul>The fifth tranche of stimulus measures to revive India's economy revealed today. This is part of the ₹20 lakh crore, about $270 billion, package promised by Prime Minister Narendra Modi. In the first four tranches, the government has already announced expenditure of about ₹18 lakh crore ($240 billion), about 9.3% of India's gross domestic product (GDP), which will widen fiscal deficit by about half a percentage point, according to Nomura. RBI and Finance Ministry have <a href="https://www.businessinsider.in/policy/economy/news/breaking-down-modi-20-lakh-crore-stimulus-rbi-and-finance-ministry-steps-land-and-labour-laws/articleshow/75709001.cms" data-type="tilCustomLink" target="_blank">already spent nearly half</a> of Narendra Modi's ₹20 lakh crore stimulus even before the steps were announced. The Modi administration has used the COVID-19 crisis to push through many long-term reforms like the liberalisation of the <keyword id="6356966" type="UNKNOWN" weightage="20" keywordseo="coal">coal</keyword> and mining sector, higher foreign direct investment (<keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword>) limit in defence, opening up more airspace to reduce flying time for airlines, and thereby reducing fuel demand, to name few. ALSO READ: <a href="https://www.businessinsider.in/science/space/news/lt-and-godrej-join-like-boeing-and-lockheed-martin-ula-after-biggest-space-reform/articleshow/75778037.cms" data-type="tilCustomLink" target="_blank">"Now, L&amp;T and Godrej can join hands like Boeing and Lockheed Martin’s ULA," says Gateway House scholar cheering India’s 'biggest space reform'</a> Aside from these, there has been short-term cash injection for a wide range of sectors from micro, small and medium (<keyword id="6358354" type="UNKNOWN" weightage="20" keywordseo="MSME">MSME</keyword>) businesses, non-banking financial companies, farming and allied activities including fisheries and animal husbandry, and migrant workers among others. These are the top highlights from Sitharaman's speech on May 17: Today's announcements related to Mahatma Gandhi Rural Employment Guarantee programme (MNREGA), healthcare, decriminalisation in certain aspects under the Companies Act, improving ease of doing business, central <keyword id="182472" type="CITY" weightage="20" keywordseo="Public-sector-enterprises">public sector enterprises</keyword>, and resource allocation between centre and state governments. Mahatma Gandhi Rural Employment Guarantee Act (MNREGA) The government adds ₹40,000 crore to the budgeted allocation to provide employment for migrant workers who have gone back to their villages from the cities. Health infrastructure: Investment in health and wellness centres in rural and urban areas will be ramped up. All districts will have an infectious diseases block. There will be an integrated public health labs in all districts, at the block level labs. A public health unit will also be set up to manage pandemics. National Digital Health Blueprint will also be implemented. On May 16, the Finance Minister said that the government will provide ₹8,100 crore viability gap funding ⁠— increased up to 30% from 20% earlier ⁠— for private investment in social infrastructure like hospitals. Digital education: Prime Minister's e-Vidya (e-education) programme for digital/online education wil be launched immediately. Another programme DIKSHA, for school education to provide digital content and QR-coded text books in states and Union Territories. ‘One class, one channel’ programme will be used to educate children of the same class. One TV channel per class from 1 to 12 has been earmarked. There will be special e-content for visually and hearing impaired. Top 100 universities will be permitted to automatically start online courses by May 30, 2020. Bankruptcy law: "Any indebted situation that comes up because of coronavirus will not be considered as default and no fresh insolvency proceedings will be initiated for the next one year," Finance Minister said. A special insolvency framework will be notified under Section 240 A of the Insolvency and Bankruptcy Act. The threshold for initiating insolvency proceedings for micro, small, and medium enterprises will be raised by 10-fold to to ₹1 crore. These measures will be enforced via ordinance and then later taken to Parliament for approval. Companies Act: Decriminalisation of Companies Act violations involving minor and technical defaults like shortcomings in CSR reporting, inadequacy in board report, fixing defaults, delay in holding AGM. 40 new sections have been added — it was 18 earlier — to the 'internal adjudication' mechanism to reduce the harrasment of companies, and the pressure of cases on courts. Companies can now list their securities directly in permissible foreign jurisdictions. Private companies which list their non-convertible debentures on stock exchanges will not be regarded as listed companies. Public sector enterprises: There will be 2 categories: Government of India will notify 'strategic sectors' where at least one public sector enterprises will be present while private players will be allowed to. There will be another set of strategic sectors, where there won't be more than four public sector enterprises; private sector will also come in. If there are sectors where there are too many government companies, they will be brought together in such a way ⁠— including via mergers and privatisation ⁠— that there won't be more than four. A detailed policy will soon be issued. Allocation of resources of state governments: RBI has increased Ways and Means Advance limits of States by 60%. Currently, the net borrowing ceiling of states for 2020-21 is ₹6.41 lakh crore — 3% of gross state domestic GSDP. The government has increased the net borrowing from 3% to 5%. This will make ₹4.28 lakh crore available as extra resources to the states. Part of the borrowing will be linked to specific reforms, from 3% to 3.5%, will be unconditionally extended. We will release the 1% in 4 tranches of 0.25% with each tranche linked to clearly specified, measurable and feasible reform actions. The next 0.5% will be given as soon as milestones are achieved in atleast three of four reform areas. The article will be updated as she speaks. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/economy/news/power-utilities-in-union-territories-will-be-privatised/articleshow/75774658.cms">Modi government privatises power utilities in Union Territories ⁠— wants states to follow suit</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/indigo-spicejet-adani-gmr-gvk-share-price-may-gain-after-civil-aviation-reforms/articleshow/75775888.cms">Indigo and Spicejet get shorter routes, cheaper fuel bills while Adani, GMR, and GVK get more airport projects to bid for</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/hindalco-jspl-coal-india-companies-that-will-benefit-from-nirmala-sitharamans-reforms/articleshow/75775443.cms">Hindalco, JSPL, Adani, Coal India, and many more stocks that can benefit from India’s sweeping reforms in coal and mineral sector</a>

India's Finance Minister reveals the final lot of Modi's economic stimulus programme

Paul Morigi/Getty ImagesSen. Bill Cassidy.Republican Sen. Bill Cassidy of Louisiana has been around healthcare for a long time, but he hadn't made it to a late-night show to talk about it until now.Cassidy's suggestion that any new GOP healthcare bill pass the "Jimmy Kimmel test" - named after the late-night host, who gave an <a href="http://www.businessinsider.com/jimmy-kimmel-son-video-obamacare-repeal-2017-5">impassioned speech</a> about his newborn son's open-heart surgery and US healthcare policy - led to <a href="http://www.businessinsider.com/jimmy-kimmel-test-gop-healthcare-bill-ahca-2017-5">an appearance on "Jimmy Kimmel Live!"</a> on May 8.While Cassidy is not a member of the Senate working committee devising a new healthcare bill, the appearance on Kimmel's show has helped shine a light on <a href="http://www.businessinsider.com/cassidy-collins-obamacare-replacement-bill-2017-1">a proposal</a> from Cassidy and Sen. Susan Collins.Cassidy is a medical doctor specializing in treating liver diseases, and he has helped to open a free clinic for the working poor in Louisiana.Cassidy spoke with Business Insider about the appearance, healthcare policy, and President Donald Trump's recent firing of FBI Director James Comey.This interview has been edited for length and clarity.Bob Bryan: You've been involved in healthcare reform for a long time, but you've never been on a late-night show for it. I was wondering how it came to be that you went from proposing the "Jimmy Kimmel test" to being on air with Jimmy?Bill Cassidy: I think it started on a Sunday morning show when I was asked by [CNN's] John Berman - I think it was a Sunday morning show, or maybe Saturday, I forgot which - but asked, "How would you know the adequacy of coverage?" which is clearly one of Trump's contract points with the American voter, that he wanted to lower premiums.You can lower premiums in a variety of ways, but one way to lower premiums is to just give people lousy coverage. So the thought occurred to me in that moment, just kind of spontaneously, "Well, there's Jimmy Kimmel - his son had all the coverage he needed."Now, in that circumstance, perhaps anybody's son would, because there is Children's Hospital Los Angeles nearby. But we know there are other conditions where that's not the case. So the question in the Jimmy Kimmel test - the coverage does not have to have bells and whistles - but does the coverage cover a tragedy that could occur in someone's health or to a loved one? So I coined the Jimmy Kimmel test. For whatever reason, it went viral, and that led to a conversation with the "Jimmy Kimmel" show folks.Bryan: The Jimmy Kimmel test in part focuses on preexisting conditions, and right now House Republicans that passed the American Health Care Act have talked about "layers of protection" for those people. They say <a href="http://www.businessinsider.com/republican-healthcare-bill-changes-house-vote-2017-5">the MacArthur Amendment</a> says no one can be denied. They say there are layers of coverage. Do you believe there are enough protections for preexisting conditions in the AHCA? And if there are gaps in those layers, how would you fill those in?Cassidy: Ultimately, to address the issue of preexisting conditions and conditions that suddenly occur - for example, you develop a preexisting condition when something terrible happens, imagine you get hepatitis, your liver fails, and you get a liver transplant. You went from being healthy to having a liver transplant to now having a preexisting condition.The way to most effectively do that, the only way you can control expense, is to have a larger risk pool, that person who is sick is in the midst of a lot of other people that tend to be healthy.Now within that group, you can do reinsurance of some sort that would mitigate the cost of an individual patient. But ultimately, you need a big risk pool.I use the example of ExxonMobil. They have 50,000 employees, give or take, and if one person gets sick - say, the liver transplant I just mentioned - it hardly affects premiums at all, if at all, because you're spreading that expense over so many people. Spreading over so many people is the way insurance always works.Now you can have a different layer here or a different layer there, but ultimately, if you don't have a big enough risk pool, it is going to be very expensive care highly concentrated among those that are really expensive, and that's not the way to go.YouTube/ABCCassidy came up with the "Jimmy Kimmel test" for healthcare reform.Bryan: You talk about widening the risk pool. How would you open up the risk pool? One way the Affordable Care Act tried to do it was to use the individual mandate to penalize people. You are not a supporter of the individual mandate, so how would you incentivize people to come into that risk pool?Cassidy: One thing I've talked about, and it's in the Cassidy-Collins plan ... we suggest using what we use in Medicare. When I turn 55, I'm going to be on Medicare. I can call up and tell them I don't want to be on Medicare, but otherwise, I'll be on Medicare. So they use this kind of automatic enrollment. We give states the option of automatically enrolling those who are eligible.We do it for other things like 401(k)s. Research shows that if a business automatically enrolls somebody with an opt out, they get 95% enrollment. If it's an opt in, they start out with 54% enrollment. And this is when a business is doing a match. So we just think that sort of opt-out provision from the business community works well.Bryan: More conservative voices have criticized auto-enrollment because auto-enrollment is forcing people onto insurance and government shouldn't force people to have something they don't want. What would your response be to that?Cassidy: They must not have heard me say that you can call up if you don't want to be. How is it forcing if all I have to do is call up and say I don't want to be? How is it forcing if all I have to do is make a phone call and tell them to take me off? I think it'd be incredibly stupid on something that is most obviously not an issue.Bryan: Another concern with the AHCA, especially the MacArthur Amendment, was the possible repeal of essential health benefits. Some advocates for it say plans with lower actuarial values will bring down costs. What are your thoughts about removing some of those essential health benefits?Cassidy: I think the better alternative is what we do in the Cassidy-Collins plan, in which those who are eligible for a credit would get a credit sufficient for an annual premium. They would get a pre-funded health savings account, so money would be deposited into the HSA and they would get a high-deductible health plan on top of it.Now, if you look at current law, current law says a high-deductible health plan has to cover significant benefits, which is taken to mean, for example, hospitalization.One thing that has not been established is whether HSAs or high-deductible health plans are to cover mental illness and addiction, so that was the only essential health benefits that we included. But aside from that, we think you could end up with the same sort of coverage.I will point out that once you pre-fund health savings accounts, someone can pay for their colonoscopy, or for their Pap smear, or for their cholesterol check with the HSA. That's what it's there for. So we think we cover that, but we do it in a cost-effective way.Chip Somodevilla/Getty ImagesSen. Bill CassidyBryan: In terms of costs-sharing-reduction payments - something that the insurers have said they need to see going forward to offer plans in 2018 - are you in favor of the Trump administration continuing to offer these CSR payments? In addition, would you be in favor of a congressional appropriation to remove the uncertainty surrounding the lawsuit regarding those payments?Cassidy: Legally, I agree with the lawsuit, so I think whatever the president does he should do with Congress to make sure it passes constitutional law, that it passes constitutional muster.No. 2, remember President Trump's contract with voters, the four points he said over and over: He said we're going to care for those with preexisting conditions, we're going to eliminate mandates, and we're going to lower costs. Which I think most voters took to mean we're going to lower premiums, not a better Congressional Budget Office score.At least in the interim, Obamacare is such a mess - the only way you're going to keep premiums from totally exploding next year is to continue the CSR payments. If we decide we don't care about premiums next year because we can blame it on Obamacare, that's fine, but we're going to recognize that premiums are going to increase by 40% or more.So maybe that's what it takes to get Democrats to the table. This process has become much more difficult because they don't seem to care about people paying $20,000, $30,000, $40,000 in premiums. As a negotiating ploy, I can't say anything about it.Legally speaking, we've got to work to get a replacement, and that's what we have to keep families from being damaged.Bryan: In terms of those two elements, though, President Trump has said the most easy political path is to let Obamacare collapse, but then you also talk about his contract with the American voter. Does using skyrocketing premiums by removing CSR payments as a negotiating tactic jibe with President Trump's contract with the voters to lower their costs?Cassidy: At some point, you've got to react to the circumstances you're in. I think the president is not the czar. The Constitution says certain things, and frankly, I think constitutionally, Congress has to appropriate. So far, Democrats have not done anything to help on this issue, so if they refuse to help, then the president has to deal with a very difficult process in the House. So there is a political reality. So I cut the president slack in that regard.Bryan: The Senate is working on its own version of a healthcare bill. Is there a sense of a deadline that the Senate wants to meet? Especially considering insurers are facing deadlines to submit their plans for 2018.Cassidy: All due haste, we want to not live forever on this issue, but we want to fully consider it. I know that's not a definite, like saying by September 8, for example. But with all due haste - I mean, how long does it take to understand this issue and make a decision going forward and then have it scored by the CBO and passed? That's obviously going to take some time, but I can't tell you how long.Mark Wilson/Getty ImagesTrump with Paul Ryan and Mark Meadows, the head of the House Freedom Caucus.Bryan: You mentioned the CBO. The House moved toward with the AHCA despite not having a CBO score for the Upton and MacArthur amendments. Do you feel that every step of the process in the Senate needs a CBO score, or do you feel there are times you could go without it?Cassidy: By law, I'm told we have to have a CBO score before we vote.Bryan: Looking at the process in the Senate right now, there is the working group of 13 Republican senators. There has been some criticism of the group. Yourself and Senator Collins, who produced your own bill, were not in that working group. Do you feel like the working group as it is constructed now is a fair way to go about the process? Is it an open enough process?Cassidy: I think anytime you bypass regular order in the Senate, the committees of jurisdiction, it's a little bit problematic. On the other hand, I say that if we're going to fulfill President Trump's contract with the American voter, those four points I listed earlier, then the only way you're going to get there is something like the Cassidy-Collins plan. Now, if you decide you're not going to fulfill those and you're not going to fulfill that contract, you could get something far different.And then the caveat on the lowering premium aspect is what I said as, well, the Jimmy Kimmel test: If we take the primary goal to lower premiums, is the coverage adequate if something terrible happens to someone's loved one? There's only one way to get there, to fulfill his goals and pass the Jimmy Kimmel test, and that's going to look like the Cassidy-Collins plan. That is if we're serious about that goal.Bryan: If the Senate working group comes out with a bill that fails to live up to that goal or the Jimmy Kimmel test, or does not provide enough protections for people with preexisting conditions, would you vote against it? Even if there's pressure from leadership?Cassidy: If you don't mind, I'll avoid answering hypotheticals. Not to dodge your question, but I've learned in life it's best not to do so.Bryan: You know, I had to ask the question.Cassidy: Oh, I know, but I'm a physician, and my training for however many decades has been patients would ask me questions that were almost existential, then I would have to say, "Why don't we wait and see what happens?"Paul Morigi/Getty ImagesBryan: You've talked about working with Democrats. Is there serious consideration about bringing Democrats into the process? Are you currently having discussions with Democrats in the Senate about a bipartisan solution?Cassidy: Yes, I'm serious. Yes, I've spoken to Democrats. So far, there has been no one seriously interested. They're under incredible political pressure not to cooperate, but some of the parts of Cassidy-Collins require 60 votes [to avoid a filibuster]. For example, allowing price transparency so that someone would know the price of a blood test before they get it as opposed to getting a bill for $200 six months later - we need Democrats to pass because of the 60-vote threshold on such a bill.As long as they decide to be passive, stay on the sidelines, there's nothing that can be done. I'm just amazed. You become a senator not by being passive, but by being active, and all of a sudden, we've got a whole group just deciding to sit on their palms.Bryan: You talk about political pressure - is there any sense from Democrats that there are concessions that would bring them on to actually support the bill?Cassidy: I don't know. If you look at the Cassidy-Collins bill, we return power to the states. We give power to a blue state to do a blue thing. Then we give power to a red state to do a red thing. It's federalism, a conservative principle I grant, but a conservative principle that totally works to the advantage of a blue state and, oh, by the way, to a red state that happens to be represented by a Democratic senator.So I think it's frustrating because not only do I think it's a good thing for our country and our people, but in the interest of politics. That's my take on it. I think we should put patients before party.Bryan: You're in favor of protections for preexisting conditions, the elimination of caps on lifetime limits - these were all things that were part of the Affordable Care Act. Obviously, there are issues with the ACA, but overall, do you think the ACA represented a step in the right direction for the US healthcare system? Obviously, you are not a fan, but were there any positives in that bill?Cassidy: You could've accomplished the positive things in the Affordable Care Act for a fraction of the cost, in terms of tax dollars, and in terms of disruption of institutions, and in terms of economic growth. There are businesses after businesses and municipalities after municipalities that have taken full-time workers and made them part-time workers to avoid paying mandatory benefits or penalties. There's been, by some estimates, 1% per year loss to our GDP growth.The opportunity cost of Washington, DC, taking all the power from patients and states and bringing it to Washington, DC, far outweighs the benefit. You could've have done it for far less with far less disruption. So sure, you throw 3,000 pages against the wall, some of it is good. But that said, there is a tremendous cost for our economy and out people.Bryan: What are your thoughts on the firing of FBI Director James Comey by President Trump?Cassidy: Obviously, the timing looks bad, but I'm not sure there ever is good timing. Mr. Comey had become an issue, criticized both from the right and the left. At some point when you're director - I think he's a great American, by the way, who cares deeply about our country, who's passionate about our country, who tried to do a good job in an exceptionally tough situation - but when the director himself becomes the issue, that is probably a distraction from the mission of the institution.Bryan: A number of your colleagues on either side of the aisle have said that an outside investigator should take over the FBI's investigation into possible ties between the Trump campaign and the Russian government. What are your thoughts on that?Cassidy: That's absurd. One, the bipartisan Senate Intelligence Committee is doing a great job - no one has criticized the work they've done.Secondly, Comey had just testified saying there had been no evidence of everything that people are alleging.Thirdly, the idea that Comey goes away and, if there is an investigation, the investigation goes away? Comey's first meeting of the day is about his budget. The second meeting is with his HR department. The third meeting is, you know, fill in the blank. Then he's got a chief lieutenant who's doing everything, who is the point. And then on Friday afternoon, that's when Comey gets his briefing from that chief lieutenant. That chief lieutenant is still there. That chief lieutenant will still be driving that investigation. <h3>NOW WATCH: <a href="http://www.businessinsider.com/video-shows-us-presidents-height-order-obama-trump-lincoln-bush-2017-4">This video shows all of the US presidents in order of height</a></h3> Please enable Javascript to watch this video

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