A costly waiver

    Rs 30,500 crore

    What is it? The amount Maharashtra government was set to waive off in farm loans, according to its chief minister last week.

    Why is it important? The government has now said it would waive off all farm loans, in response to farmers’ unrest.  The final amount is yet to be confirmed, but the amount the government was willing to waive off represents over 98% of the state’s planned capital expenditure of Rs 31,006 crore. The promise of the waiver of all outstanding loan payments saw farmers end their strike of over a week.

    Tell me more: The strike had seen destruction of farm and dairy produce, leading to a rise in prices in the state.

     

    17.79 million-tonne

    What is it? India’s fuel consumption in May, 2017.

    Why is it important? The country’s fuel demand rose 5.4%, the most in the last six months. It had suffered a setback in January-March, when demand fell following demonetisation. The pickup began last month.

    Tell me more: Diesel, which comprises 40% of the sales, rose 8% to 7.5 million-tonne, while petrol 15% to 2.4 million-tonne, in May, 2017 over last year.

     

    4

    What is it? The number of days of listing time for initial public offerings (IPOs), the markets regulator, Securities and Exchange Board of India (Sebi) is considering.

    Why is it important? It would be less than the present norm of six days taken to list a company on the stock exchanges from the end of bidding in an IPO. The reduction aims to cut the time for which investors’ money is locked in, a move Sebi had been mulling for a few years.

    Tell me more: In 2015, the applications supported by blocked amount (Asba), a mandatory service for retail investors, was introduced cutting down listing times. It made banks debit the investment only after the stock allotment. By January, 2016, the time gap came down to six days from the earlier 12 days.

     

    66

    What is it? The number of items for which GST (Goods and Services Tax) Council has reduced tax rates.

    Why is it important? The council was facing demands to reduce tax rates for 133 goods and services, and it’s an indicator of intense pressure it is facing as the government prepares to roll out GST from 1st July. The council also relaxed rules for more number of small and medium businesses – by increasing the the upper limit for the ‘composition scheme’ to Rs 75 lakh. Composition scheme exempts small businesses with a certain turnover from GST, and lets some of them pay GST at a concessional rate.

    Tell me more: The items with reduced rates include some cinema tickets, insulin, instant food mixes and printers. GST council will meet again to clear the remaining issues – including e-way bills and lotteries – on June 18th.

     

    $2.68 million

    What is it? The amount an anonymous bidder will donate to a San Francisco charity to have lunch with billionaire Warren Buffett.

    Why is it important? The bid amount is down from $3.46 million in 2016, also from an anonymous donor. Auctioned on ebay, Power Lunch with Warren Buffett has been garnering over a million dollars every year in the last ten years. The annual auctions began in 2000.

    Tell me more: Glide, the charity, helps the homeless, homeless women and drug users  in San Francisco. Buffett has raised over 25 million for Glide in the 18 auctions so far.

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