MUMBAI/NEW DELHI: India’s incoming government will be greeted with a $25 billion cheque from the central bank, giving it the option to either boost spending or narrow the fiscal deficit quicker, both of which will be cheered by investors.
On Wednesday, the Reserve Bank of India (RBI) announced a record 2.11 trillion rupees dividend transfer to the government, more than double New Delhi’s and street estimates, leading to a decline in bond yields and a rise in equity markets.
The surplus fund can help the new government, which will take charge after the current elections, bring down its fiscal deficit by 0.3 percent of gross domestic product (GDP) or increase spending on infrastructure or “populist” stimulus, Citi Research’s Samiran Chakraborty said.
“The bond markets would likely hope that the government follows the deficit reduction route, while the equity markets would likely prefer the government taking the expenditure increase one,” said Chakraborty.
During the election campaigns, the opposition Congress promised annual cash handouts of 100,000 rupees ($1,202.07) to poor women and unemployed youth. The party’s star campaigner Rahul Gandhi also promised debt waiver for farmers.
But Prime Minister Narendra Modi of the Bharatiya Janata Party (BJP) has avoided promising any new major welfare measures.
“Despite higher revenue from the RBI dividend, we doubt the government would opt for more populist expenditure in its budget, if the government is BJP-led,” said Shreya Sodhani, an economist at Barclays.
“The current government has not shown a disposition toward populist spending even in an election year.”
The BJP-led government resisted the temptation of spending trillions of rupees on schemes for the poor in its last budget before the election while raising spending on infrastructure to 11.11 trillion rupees, more than three time the sum spent in 2019.
QUICKER FISCAL CONSOLIDATION
The new government will likely present the final budget in July, leaving the administration with only eight months to spend funds allocated to them.
Government spending has been slow so far in the year, with the start of elections from April. Tax collections, meanwhile, have been strong due to buoyancy in the economy.
India collected a record 2.10 trillion rupees in goods and services taxes in April, the first month of the financial year, ensuring the government is on track to meet its planned fiscal goal of 5.1 percent of GDP this year.
This could mean the government will lean toward using the bumper dividend for fiscal consolidation.
There is scope for a slight reduction in the targeted fiscal deficit for the current year, said Ashima Goyal, a professor and an external member of the country’s monetary policy committee, who expects the government to comfortably achieve the targeted fiscal deficit of 4.5 percent by 2025/26.
India’s fiscal deficit ballooned to 9.2 percent during the pandemic but the government has steadily brought this down.
But bringing down the deficit by 130 basis points from 5.8 percent in 2023/24 was seen as challenging and dependent on one-off revenue from either privatization or auction of telecom spectrum.
($1 = 83.1900 Indian rupees)
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India’s new government will be spoilt for choice with $25 billion extra in kitty
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India’s new government will be spoilt for choice with $25 billion extra in kitty
- Indian central bank has announced record 2.11 trillion rupees dividend transfer to government, more than double New Delhi’s and street estimates
- Surplus fund can help the new government bring down fiscal deficit by 0.3 percent of GDP or increase spending on infrastructure or “populist” stimulus
Italian deputy PM Salvini acquitted of migrant kidnapping charges
- Protecting borders is not a crime, League party chief says
- PM Meloni vows to continue fight against illegal immigration
PALERMO, Italy: A court on Friday acquitted Italian Deputy Prime Minister Matteo Salvini of charges of kidnapping over 100 migrants aboard a boat he had blocked at sea for nearly three weeks in 2019, as part of a policy to curb irregular arrivals.
After a three-year trial, judges rejected a prosecutor’s request to hand a six-year jail term to Salvini, the leader of the far-right League party, who is serving as transport minister in Giorgia Meloni’s government.
“I’m happy. After three years, common sense won, the League won, Italy won,” Salvini told reporters, saying that protecting national borders “is not a crime, but a right.”
The verdict came against a backdrop of tensions between the government and the judiciary over migration, after a court questioned the legality of a flagship plan to send asylum seekers to Albania, in cases now pending with the European Court of Justice
Salvini had tried to prevent the Spanish charity Open Arms from bringing 147 asylum seekers to Italy in the summer of 2019, when he was interior minister, as part of his policy of closing Italy’s ports to migrant boats.
The not-guilty verdict was greeted with applause from League politicians who gathered in the court room to support their leader. Prime Minister Meloni said it showed the allegations were “unfounded and surreal.”
“Let us continue together, with tenacity and determination, to fight illegal immigration, human trafficking and to defend national sovereignty,” Meloni wrote on social media platform X.
Before judges withdrew to consider their verdict, prosecutor Marzia Sabella told the court that Salvini had exceeded his powers in refusing to let the ship dock and there were no national security considerations justifying him in preventing the disembarkation.
Defense lawyer Giulia Bongiorno, who is also a League senator, said the boats had no automatic right to dock in Italy and the migrants could have been taken elsewhere if the charity had been genuinely concerned for their welfare.
The Open Arms’ ship had picked up mainly African migrants off Libya over a two-week period and then asked to dock in an Italian port. It turned down a request to sail to its home country Spain, saying those on board were too exhausted and needed immediate care.
Magistrates eventually seized the boat and ordered the migrants be brought ashore.
The case drew international attention.
Salvini received backing from far-right allies across Europe this week, including Hungarian Prime Minister Viktor Orban, and also from US billionaire Elon Musk, who is advising US President-elect Donald Trump.
Well over 1 million migrants have reached Italy by boat from North Africa over the past 12 years, seeking a better life in Europe. The migration has boosted support for far-right parties, which have put curbing mass migration from Africa and the Middle East at the top of the political agenda.
After a three-year trial, judges rejected a prosecutor’s request to hand a six-year jail term to Salvini, the leader of the far-right League party, who is serving as transport minister in Giorgia Meloni’s government.
“I’m happy. After three years, common sense won, the League won, Italy won,” Salvini told reporters, saying that protecting national borders “is not a crime, but a right.”
The verdict came against a backdrop of tensions between the government and the judiciary over migration, after a court questioned the legality of a flagship plan to send asylum seekers to Albania, in cases now pending with the European Court of Justice
Salvini had tried to prevent the Spanish charity Open Arms from bringing 147 asylum seekers to Italy in the summer of 2019, when he was interior minister, as part of his policy of closing Italy’s ports to migrant boats.
The not-guilty verdict was greeted with applause from League politicians who gathered in the court room to support their leader. Prime Minister Meloni said it showed the allegations were “unfounded and surreal.”
“Let us continue together, with tenacity and determination, to fight illegal immigration, human trafficking and to defend national sovereignty,” Meloni wrote on social media platform X.
Before judges withdrew to consider their verdict, prosecutor Marzia Sabella told the court that Salvini had exceeded his powers in refusing to let the ship dock and there were no national security considerations justifying him in preventing the disembarkation.
Defense lawyer Giulia Bongiorno, who is also a League senator, said the boats had no automatic right to dock in Italy and the migrants could have been taken elsewhere if the charity had been genuinely concerned for their welfare.
The Open Arms’ ship had picked up mainly African migrants off Libya over a two-week period and then asked to dock in an Italian port. It turned down a request to sail to its home country Spain, saying those on board were too exhausted and needed immediate care.
Magistrates eventually seized the boat and ordered the migrants be brought ashore.
The case drew international attention.
Salvini received backing from far-right allies across Europe this week, including Hungarian Prime Minister Viktor Orban, and also from US billionaire Elon Musk, who is advising US President-elect Donald Trump.
Well over 1 million migrants have reached Italy by boat from North Africa over the past 12 years, seeking a better life in Europe. The migration has boosted support for far-right parties, which have put curbing mass migration from Africa and the Middle East at the top of the political agenda.
Guatemala authorities raid ultra-orthodox Jewish sect’s compound after report of abuse
- The sect is known to have members in Canada, the United States, Mexico, Guatemala and Israel
GUATEMALA CITY: Guatemalan authorities searched the compound of an extremist ultra-orthodox Jewish sect Friday, taking at least 160 minors and 40 women into protective custody after reports of abuse.
Interior Minister Francisco Jiménez said the National Civil Police and members of military participated in the raid on the Lev Tahor group’s community about 55 miles (90 kilometers) southeast of the capital.
“The protection of boys and girls is an absolute priority,” Jiménez said.
Guatemala’s Attorney General’s Office said in a statement on the social platform X that suspected bones of one child were found. The office said a complaint was made in November of possible crimes including forced pregnancies, mistreatment of minors and rape.
The sect has run into legal problems in various countries.
In 2022, Mexican authorities arrested a leader of the sect near the Guatemalan border and removed a number of women and children from their compound.
In 2021, two leaders of the group were convicted of kidnapping and child sexual exploitation crimes in New York. They allegedly kidnapped two children from their mother to return a 14-year-old girl to an illegal sexual relationship with an adult male.
The sect is known to have members in Canada, the United States, Mexico, Guatemala and Israel.
US State Dept imposes visa restrictions on multiple people in South Sudan
WASHINGTON: The US Department of State said on Friday that it is imposing visa restrictions on multiple individuals responsible for the ongoing conflict in South Sudan.
“We note the continued failure of South Sudan’s leaders to use their nation’s resources to the benefit of its people, their failure to end public corruption and elite capture of the country’s resources, their failure to protect the people of South Sudan from abuses and violations of their human rights, including civil and political rights, and their failure to maintain peace,” the State Department said.
Senate approves 235th judge of Biden’s term, beating Trump’s tally
WASHINGTON: President Joe Biden secured the 235th judicial confirmation of his presidency Friday, an accomplishment that exceeds his predecessor’s total by one after Democrats put extra emphasis on the federal courts following Donald Trump’s far-reaching first term, when he filled three seats on the Supreme Court.
Senate Majority Leader Chuck Schumer, D-N.Y., teed up votes on two California district judges, and they were likely to be the last judicial confirmations this year before Congress adjourns and makes way for a new, Republican-led Senate.
The confirmation of Serena Raquel Murillo to be a district judge for the Central District of California broke Trump’s mark. Come next year, Republicans will look to boost Trump’s already considerable influence on the makeup of the federal judiciary in his second term.
Biden and Senate Democrats placed particular focus on adding women, minorities and public defenders to the judicial rank. About two-thirds of Biden’s appointees are women and a solid majority of appointees are people of color. The most notable appointee was Supreme Court Justice Ketanji Brown Jackson, the first African American woman to serve on the nation’s highest court.
“Prior to our effort, the number of women on the federal bench was really diminished. It was overwhelmingly white males,” said Sen. Dick Durbin, the Democratic chairman of the Senate Judiciary Committee. “We consciously moved forward to bring more women to the bench, and believe me, we had a great talent pool to work with. So I think it’ll enhance the image of the court and its work product to bring these new judges on.”
Biden also placed an emphasis on bringing more civil rights lawyers, public defenders and labor rights lawyers to expand the professional backgrounds of the federal judiciary. More than 45 appointees are public defenders and more than two dozen served as civil rights lawyers.
While Biden did get more district judges confirmed than Trump, he had fewer higher-tier circuit court appointments than Trump — 45 compared to 54 for Trump. And he got one Supreme Court appointment compared with three for Trump. Republicans, much to Democrats’ frustration, filled Justice Ruth Bader Ginsburg’s seat on the court the week before the 2020 presidential election. Ginsburg had passed away in September.
Democrats also faced the challenge of confirming nominees during two years of a 50-50 Senate. Rarely a week went by in the current Congress when Schumer did not tee up votes on judicial confirmations as liberal groups urged Democrats to show the same kind of urgency on judges that Republicans exhibited under Trump.
Some Senate Republicans were harshly critical of Biden’s choices. Sen. Ted Cruz, R-Texas, said talk of diversity did not extend to the views of the nominees.
“One of the consequences of the age of Trump is that it drove Democrats insane and it drove them to the extreme left, so they put people on the bench who were selected because they were extreme partisans,” Cruz said.
Liberal-leaning advocacy groups said they are delighted with the number of judges Democrats secured, but even more so with the quality of the nominees. They said diversity in personal and professional backgrounds improves judicial decision-making, helps build public trust and inspires people from all walks of life to pursue legal careers.
“For our federal judiciary to actually deliver equal justice for all, it really has to be for all, and that is one reason why we certainly applaud this administration for prioritizing both professional but also demographic diversity,” said Lena Zwarensteyn, senior director of the fair courts program at The Leadership Conference on Civil and Human Rights.
Sen. Charles Grassley, R-Iowa, and the next chairman of the Senate Judiciary Committee, said Democrats showed newfound resolve on judicial confirmations.
“They learned a lesson from the first Trump administration,” Grassley said. “Paying attention to the number of judges you get and the type of judges you put on the court is worth it.”
Part of the urgency from Democrats came as they watched the nation’s highest court overturn abortion protections, eliminate affirmative action in higher education and weaken the federal government’s ability to protect the environment, public health and workplace safety through regulations. The cases showed that the balance of power in Washington extends to the judicial branch.
Trump will inherit nearly three dozen judicial vacancies, but that number is expected to rise because of Republican-appointed judges who held off on retirement in hopes that a Republican would return to office and pick their replacements.
Sen. Richard Blumenthal, D-Connecticut, acknowledged that the sense of accomplishment for Democrats is muted somewhat knowing that Trump will have another term to continue shaping the federal judiciary.
“I’m not ready to uncork the champagne just because we’ve done some really good work over the last four years,” Blumenthal said. “We need to be prepared to work, hope for the best and try to defeat nominees who are simply unqualified. We have our work cut out for us. The prospects ahead are sobering.”
Grassley promised that he’ll work to best Biden’s number.
“Let me assure you, by January 20th of 2029, Trump will be bragging about getting 240 judges,” Grassley said.
Senate Majority Leader Chuck Schumer, D-N.Y., teed up votes on two California district judges, and they were likely to be the last judicial confirmations this year before Congress adjourns and makes way for a new, Republican-led Senate.
The confirmation of Serena Raquel Murillo to be a district judge for the Central District of California broke Trump’s mark. Come next year, Republicans will look to boost Trump’s already considerable influence on the makeup of the federal judiciary in his second term.
Biden and Senate Democrats placed particular focus on adding women, minorities and public defenders to the judicial rank. About two-thirds of Biden’s appointees are women and a solid majority of appointees are people of color. The most notable appointee was Supreme Court Justice Ketanji Brown Jackson, the first African American woman to serve on the nation’s highest court.
“Prior to our effort, the number of women on the federal bench was really diminished. It was overwhelmingly white males,” said Sen. Dick Durbin, the Democratic chairman of the Senate Judiciary Committee. “We consciously moved forward to bring more women to the bench, and believe me, we had a great talent pool to work with. So I think it’ll enhance the image of the court and its work product to bring these new judges on.”
Biden also placed an emphasis on bringing more civil rights lawyers, public defenders and labor rights lawyers to expand the professional backgrounds of the federal judiciary. More than 45 appointees are public defenders and more than two dozen served as civil rights lawyers.
While Biden did get more district judges confirmed than Trump, he had fewer higher-tier circuit court appointments than Trump — 45 compared to 54 for Trump. And he got one Supreme Court appointment compared with three for Trump. Republicans, much to Democrats’ frustration, filled Justice Ruth Bader Ginsburg’s seat on the court the week before the 2020 presidential election. Ginsburg had passed away in September.
Democrats also faced the challenge of confirming nominees during two years of a 50-50 Senate. Rarely a week went by in the current Congress when Schumer did not tee up votes on judicial confirmations as liberal groups urged Democrats to show the same kind of urgency on judges that Republicans exhibited under Trump.
Some Senate Republicans were harshly critical of Biden’s choices. Sen. Ted Cruz, R-Texas, said talk of diversity did not extend to the views of the nominees.
“One of the consequences of the age of Trump is that it drove Democrats insane and it drove them to the extreme left, so they put people on the bench who were selected because they were extreme partisans,” Cruz said.
Liberal-leaning advocacy groups said they are delighted with the number of judges Democrats secured, but even more so with the quality of the nominees. They said diversity in personal and professional backgrounds improves judicial decision-making, helps build public trust and inspires people from all walks of life to pursue legal careers.
“For our federal judiciary to actually deliver equal justice for all, it really has to be for all, and that is one reason why we certainly applaud this administration for prioritizing both professional but also demographic diversity,” said Lena Zwarensteyn, senior director of the fair courts program at The Leadership Conference on Civil and Human Rights.
Sen. Charles Grassley, R-Iowa, and the next chairman of the Senate Judiciary Committee, said Democrats showed newfound resolve on judicial confirmations.
“They learned a lesson from the first Trump administration,” Grassley said. “Paying attention to the number of judges you get and the type of judges you put on the court is worth it.”
Part of the urgency from Democrats came as they watched the nation’s highest court overturn abortion protections, eliminate affirmative action in higher education and weaken the federal government’s ability to protect the environment, public health and workplace safety through regulations. The cases showed that the balance of power in Washington extends to the judicial branch.
Trump will inherit nearly three dozen judicial vacancies, but that number is expected to rise because of Republican-appointed judges who held off on retirement in hopes that a Republican would return to office and pick their replacements.
Sen. Richard Blumenthal, D-Connecticut, acknowledged that the sense of accomplishment for Democrats is muted somewhat knowing that Trump will have another term to continue shaping the federal judiciary.
“I’m not ready to uncork the champagne just because we’ve done some really good work over the last four years,” Blumenthal said. “We need to be prepared to work, hope for the best and try to defeat nominees who are simply unqualified. We have our work cut out for us. The prospects ahead are sobering.”
Grassley promised that he’ll work to best Biden’s number.
“Let me assure you, by January 20th of 2029, Trump will be bragging about getting 240 judges,” Grassley said.
US House approves bill to avert midnight shutdown, sends to Senate
- House approves government funding bill on bipartisan basis
- Bill now goes to Democratic-majority Senate
WASHINGTON: The Republican-controlled US House of Representatives passed legislation on Friday that would avert a midnight government shutdown, defying President-elect Donald Trump’s demand to also greenlight trillions of dollars in new debt.
The House voted 366-34 to approve the bill, the day after rejecting Trump’s debt ceiling demand.
The Democratic-controlled Senate will also need to pass the bill to advance it to President Joe Biden, who the White House said would sign it into law to ensure the US government will be funded beyond midnight (0500 GMT Saturday), when current funding expires.
The legislation would extend government funding until March 14, provide $100 billion for disaster-hit states and $10 billion for farmers. However, it would not raise the debt ceiling — a difficult task that Trump has pushed Congress to do before he takes office on Jan. 20.
A government shutdown would disrupt everything from law enforcement to national parks and suspend paychecks for millions of federal workers. A travel industry trade group warned that a shutdown could cost airlines, hotels and other companies $1 billion per week and lead to widespread disruptions during the busy Christmas season. Authorities warned that travelers could face long lines at airports.
The package resembled a bipartisan plan that was abandoned earlier this week after an online fusillade from Trump and his billionaire adviser Elon Musk, who said it contained too many unrelated provisions. Most of those elements were struck from the bill — including a provision limiting investments in China that Democrats said would conflict with Musk’s interests there.
“He clearly does not want to answer questions about how much he plans to expand his businesses in China and how many American technologies he plans to sell,” Democratic Representative Rosa DeLauro said on the House floor.
Musk, the world’s richest person, has been tasked by Trump to head a budget-cutting task force but holds no official position in Washington.
The bill also left out Trump’s demand to the nation’s debt ceiling, which was resoundingly rejected by the House — including 38 Republicans — on Thursday.
The federal government spent roughly $6.2 trillion last year and has more than $36 trillion in debt, and Congress will need to act to authorize further borrowing by the middle of next year.
Representative Steve Scalize, the No. 2 House Republican, said lawmakers had been in touch with Trump but did not say whether he supported the new plan.
Sources said the White House has alerted government agencies to prepare for an imminent shutdown. The federal government last shut down for 35 days during Trump’s first White House term over a dispute about border security.
Previous fights over the debt ceiling have spooked financial markets, as a US government default would send credit shocks around the world. The limit has been suspended under an agreement that technically expires on Jan. 1, though lawmakers likely would not have had to tackle the issue before the spring.
The House voted 366-34 to approve the bill, the day after rejecting Trump’s debt ceiling demand.
The Democratic-controlled Senate will also need to pass the bill to advance it to President Joe Biden, who the White House said would sign it into law to ensure the US government will be funded beyond midnight (0500 GMT Saturday), when current funding expires.
The legislation would extend government funding until March 14, provide $100 billion for disaster-hit states and $10 billion for farmers. However, it would not raise the debt ceiling — a difficult task that Trump has pushed Congress to do before he takes office on Jan. 20.
A government shutdown would disrupt everything from law enforcement to national parks and suspend paychecks for millions of federal workers. A travel industry trade group warned that a shutdown could cost airlines, hotels and other companies $1 billion per week and lead to widespread disruptions during the busy Christmas season. Authorities warned that travelers could face long lines at airports.
The package resembled a bipartisan plan that was abandoned earlier this week after an online fusillade from Trump and his billionaire adviser Elon Musk, who said it contained too many unrelated provisions. Most of those elements were struck from the bill — including a provision limiting investments in China that Democrats said would conflict with Musk’s interests there.
“He clearly does not want to answer questions about how much he plans to expand his businesses in China and how many American technologies he plans to sell,” Democratic Representative Rosa DeLauro said on the House floor.
Musk, the world’s richest person, has been tasked by Trump to head a budget-cutting task force but holds no official position in Washington.
The bill also left out Trump’s demand to the nation’s debt ceiling, which was resoundingly rejected by the House — including 38 Republicans — on Thursday.
The federal government spent roughly $6.2 trillion last year and has more than $36 trillion in debt, and Congress will need to act to authorize further borrowing by the middle of next year.
Representative Steve Scalize, the No. 2 House Republican, said lawmakers had been in touch with Trump but did not say whether he supported the new plan.
Sources said the White House has alerted government agencies to prepare for an imminent shutdown. The federal government last shut down for 35 days during Trump’s first White House term over a dispute about border security.
Previous fights over the debt ceiling have spooked financial markets, as a US government default would send credit shocks around the world. The limit has been suspended under an agreement that technically expires on Jan. 1, though lawmakers likely would not have had to tackle the issue before the spring.
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