Economy

Excise, service tax cut 2% :It's a Rs30,000 crore stimulus package...

The government on Tuesday announced a Rs 30,000-crore booster shot for the economy by cutting excise duty and service tax by 2% each and extending an earlier 4% reduction in excise beyond March 31, 2009. This is the government's third economic stimulus package in three months.

The tax cut will have no impact on passenger cars and two-wheelers. Only truck makers may cut prices. The real estate sector could benefit, as steel and cement prices are reduced. But several services which currently attract service tax at 12% will pay 10%, reducing your costs by small fleabites.

Obama confident of economic recovery

Barack ObamaWashington - President Barack Obama will offer assurances that the United States can recover and emerge stronger from its worst economic crisis in decades, according to released excerpts of his speech to be delivered Tuesday evening to Congress.

"While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: we will rebuild, we will recover, and the United States of America will emerge stronger than before," Obama will say, according to the excerpts released by the White House.

2ND ROUNDUP: US stimulus could end recession this year, Bernanke says

Ben BernankeWashington  - If massive government action to revive the US economy is successful the recession affecting the world's largest economy could begin to turn around this year, Federal Reserve Chairman Ben Bernanke said Tuesday.

Testifying before the US Senate Banking Committee, the central bank chairman said the government stimulus is essential to break the cycle of adverse feedback that helps to keep the economy down, even as he warned of ongoing negative pressures.

ROUNDUP: US stimulus could end recession this year, Bernanke says

Ben BernankeWashington  - If massive government action to revive the US economy is successful the recession affecting the world's largest economy could begin to turn around this year, Federal Reserve Chairman Ben Bernanke said Tuesday.

Testifying before the US Senate Banking Committee, the central bank chairman said the government stimulus is essential to break the cycle of adverse feedback that helps to keep the economy down.

Let non-members into euro faster, Hungarian premier says

Ferenc GyurcsanyBrussels  - The European Union should ease its rules to allow new members to swap their national currency for the euro more rapidly, Hungary's prime minister said Tuesday.

"The best protection against foreign-exchange problems is to join the eurozone ... We should see how the steps towards the euro could be made quicker," Ferenc Gyurcsany told journalists in Brussels.

In particular, countries which have met the EU's strict rules on inflation and budget discipline should be allowed to join the single currency without having to spend two years in the preparatory Exchange Rate Mechanism 2 (ERM 2), he said.

Taiwan January export orders post record decline

Taiwan January export orders post record declineTaipei  - Taiwan posted yet another record slump of 41.67 per cent in export orders in January, as deteriorating global economic conditions further eroded overseas demands, the Ministry of Economic Affairs said Tuesday.

In January, the island received orders worth just 17.68 billion US dollars, down 41.67 per cent year-on-year, following a 33-per-cent decline in December, the ministry said in a statement.

Among Taiwan's export markets, orders from China and Hong Kong - Taiwan's top export destinations - fell a record 54.71 per cent year-on-year to 3.66 billion US dollars.

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