First, there is low risk to inflation from the fiscal policy. The Union Budget 2020-21 might have deviated from the fiscal consolidation path, but did not opt for a splurge to prop up growth. Large part of the fiscal space created by invoking the escape clause allowed by the Fiscal Responsibility and Budget Management (FRBM) Act will go to fund capex on infrastructure while revenue expenditure will continue to flow to select social and rural sector schemes. Both these will support, but not flare up consumption, and hence, inflation. … [Read more...] about RBI policy review | The next rate cut is only a matter of timing
California homeowners insurance rates
On the other hand, individuals and HUF with business income are required to make an election while filing their tax return for AY 2021-2022. Such election is permanent and may only be withdrawn once. Once an individual/ HUF withdraws from the lower tax regime in favour of deductions and exemptions they cannot revert to the lower tax regime thereafter. … [Read more...] about Budget 2020|Personal tax rate cuts – to elect or not to elect?
It may be noted that during the current exceptional phase, the existence of high food inflation or administered prices of a few services will not give rise to “generalised inflationary pressures” due to fragile growth and job market conditions that have reduced the bargaining power of trade unions even in the organised sector. … [Read more...] about Monetary and fiscal policies need to go hand in hand
The MPC has placed its CPI inflation projection for Q4 2019-20 at 6.5 percent, substantially higher than its December 2019 forecast of 5.1-4.7 percent for H2 2019-20, with risks broadly balanced. Moreover, it has considerably revised its CPI inflation forecast for H1 2020-21 to 5.4-5 percent from its December 2019 forecast of 4-3.8 percent, with risks broadly balanced. This is expected to be followed by a base effect-led fall in retail inflation to 3.2 percent in Q3 FY21. … [Read more...] about RBI Policy | Stance to stay accommodative as long as output gap is negative
Many double-income couples increase their home affordability using 40-45 per cent of their combined income. That is, if both husband and wife make Rs 1 lakh each a month, then the upper cap on the EMI would be 40 per cent of Rs 2 lakh, i.e., Rs 80,000. And this automatically increases the home loan amount accordingly. … [Read more...] about Home loan: How much can you afford?