The meeting, to be held via video-conferencing, will also take stock of interest rate transmission to borrowers by banks and progress on moratorium on loan repayments, sources said. The deployment of excessive funds by banks under the reverse repo route may also come up for discussion on Monday.
The government on Friday increased its market borrowing estimate by staggering Rs 4.2 lakh crore to Rs 12 lakh crore for the current fiscal to deal with the expected shortfall in revenue due to the impact of COVID-19 crisis on the economy. Here is ET Now consulting editor Mythili Bhusnurmath's view on it.Covid-19 impact: Govt raises market borrowing limit to Rs 12 lakh cr for FY21
Finance Minister Nirmala Sitharaman on Tuesday said the industry needs to "shun hesitation" and make investments to drive the country's economic growth. At a post Budget interaction at a CII event here, the minister said the government was there to facilitate the industry.Industry needs to shun hesitation, invest to drive growth: FM Nirmala Sitharaman
The fiscal deficit had reached 6.6% of GDP in FY10 under the United Progressive Alliance regime following a large fiscal stimulus to lift the economy after 2008 global financial crisis.
In a letter to Finance Minister Nirmala Sitharaman, the Confederation of ATM Industry (CATMi) mentioned that it has been recognised by the government as a crucial player to further the financial inclusion. The COVID-19 situation has caused a sharp decline in the ATM transactions and has posed severe business challenges to the ATM industry, the CATMi stated.
"We are showing the direction. We are telling you where the money is going to be spent so that you can plan your investments and your investments and your expansion well in alignment with what government does... you will facilitate the government and we will equally facilitate the private sector," the FM said while addressing Ficci here.
"There are a lot of speculations regarding the fiscal deficit.Earlier, there was a situation in the previous regime where fiscal deficit numbers were fudged.
The borrowers represented the micro, small and medium sized enterprises (MSMEs), retail, agriculture and corporate sectors, which was indicative of an economic revival, said finance minister Nirmala Sitharaman’s office in a tweet on Thursday.
Even though there might be an overall increase in the total allocation for the Ministry of MSME in this year's Budget, a closer look reveals that the outlay to many MSME-centric schemes has been cut.
Budget 2020: Finance Minister Nirmala Sitharaman presented the longest-ever Union Budget 2020 speech in parliament as the government unveiled a budget vowing to boost people's income and purchasing power. In a major relief for the salaried class, the government proposed to cut income tax rates and change slabs to lower tax incidence for those earning up to Rs 15 lakh a year.Budget 2020: Watch Finance Minister Nirmala Sitharaman's full speech
The government is not likely to have public events on the occasion of the first anniversary given the current situation due to the outbreak of COVID-19 pandemic and consequent lockdown, according to sources.
The Lok Sabha on Saturday witnessed anxious moments when finance minister Nirmala Sitharaman fell uneasy in the final lap of a record 165-minute budget speech, probably due to fall in sugar level or strain caused by standing for almost three hours while reading her speech.
Yesterday's budget had no big fiscal stimulus, several protectionist duties, and few steps to revive economy.
"If such payments are made, the business of the traders will fall like anything and in absence of any inflow of money, such payments will be disastrous for the retail trade of the country and in turn will badly affect the economy," CAIT Secretary General Praveen Khandelwal said in the letter to Goyal.
The govt wants to retain a picture of fiscal discipline but the data shows that it does not really matter.
Government officials said while preparing the stimulus, with measures meant for MSMEs and poor finalised on Saturday, the Narendra Modi administration was conscious of the fact that the UPA’s packages, announced by then finance minister Pranab Mukherjee in 2008 had resulted in massive inflationary impact and a huge pile of bad debt, which took years to clean up.
"Under 'Make in India' initiative, well laid-out customs duty rates were pre-announced for items like mobile phones, electric vehicles and their components. This has ensured gradual increase in domestic value addition capacity in India," Sitharaman said while presenting Budget 2020-21.
Quoting from Tamil poet Avviyaar's cryptic word couplets in Athichudi, FM Nirmala Sitharaman, leaned on her Tamil moorings to convey the importance of agriculture, role of the farmer and the need for healthy farming.
Finance minister Nirmala Sitharaman revised the fiscal deficit for FY20 to 3.8 per cent and pegged the target for FY21 to 3.5 per cent. Sitharaman used the escape clause provided under the FRBM Act to allow the relaxation of target. The clause allows the govt to relax the fiscal deficit target for up to 50 basis points or 0.5 percent.
Finance Minister Nirmala Sitharaman announced on Saturday that as part of efforts to boost startups, tax burden on employees due to tax on employee stock options would be deferred by five years or till they leave the company or when they sell it. Referring to startups in her Budget speech, the Finance Minister said that several measures were planned to increase the base for the knowledge-driven enterprises. "To boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest," she said.FM Nirmala Sitharaman announces ease in tax burden of startup employees
The plan, which has been in the works for months, is likely to be part of the stimulus package.
The move would help in promoting sale of quality goods in the country and cut import of sub-standard goods.
Presenting the Budget for 2020-21, Sitharaman said the government is proposing a 16-point action plan to boost agriculture and farmers' welfare.
Union Finance Minister Nirmala Sitharaman on Saturday morning reached the Ministry of Finance in the North Block, ahead of the presentation of the Union Budget 2020-2021 in Parliament. Dressed in a yellow silk saree, Sitharaman continued with the tradition she set last year carrying the bahi-khata, which she used ditching the briefcase. She was seen holding a red bahi khata.Budget 2020: Nirmala Sitharaman arrives at finance ministry with 'Bahi Khata'
Will she be able to drive the stress and blues away? Saturday will tell…
Growth in the current fiscal year would come in at 5 per cent, as per Economic Survey.
The cash-strapped government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record increase in excise duty on petrol and diesel, that will help make up for revenue it lost in a slowing economy and shutting down of businesses due to coronavirus lockdown.
The question before FM Sitharaman is how she manages to mobilise resources when the tax collections have taken a hit.
For the manufacturing sector - domestic demand, expensive credit, cash-strapped MSMEs, high cost of setting-up and automation are the big areas of concern. Industry veterans suggest that the only way to revive demand is for the government to keep to its spending targets and streamline policies and processes.
India’s budget gap for the year ended March 31 has touched 4.4% of gross domestic product, says sources.
The task force has also called for a revamp of financing models for infrastructure and backed a return of development financial institutions, such as IDBI and IFCI, albeit with a sectoral focus. It has argued that banks and NBFCs are unable to meet the massive funding requirement and face several challenges, which is turning the clock back by close to two decades.
In a letter written to the Union finance minister Nirmala Sitharaman, the All India Organisation of Chemists and Druggists (AIOCD) demanded insurance coverage for its 8.5 lakh chemists and druggists operating in the country.
Sitharaman asks India Inc to bid enthusiastically for PSUs where govt is looking to cut stake
Prime Minister Narendra Modi has held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and top officials of the government to finalise the second economic package targeted at sectors most affected by the lockdown to check Covid-19 spread. The meetings involving Shah, Sitharaman and other officials of the key economic ministries are taking place for the last few days and the idea is to get inputs on the impact of the current lockdown on different segments of the economy and identify immediate measures that may be required as a relief and revival strategy, sources privy to the developments said.Covid-19 pandemic: Next economic package soon, PM Modi chairs series of meetings with key ministers
The prime minister held discussions with Shah and Sitharaman and is expected to have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME).
To help the poor tide over the COVID-19 crisis, the government had on March 26 said ex-gratia payment of Rs 500 would be credited to women Jan Dhan account holders for the next three months, starting from April.
Para banks have requested that this window be established through MUDRA, Small Industries Development Bank of India, National Bank for Agriculture and Rural Development and National Housing Bank. They are also requesting a special purpose vehicle that would be allowed to leverage about 4 times to provide a funding of ₹50,000 crore to small and medium-sized NBFCs.
Prime Minister Narendra Modi on May 01 held a detailed meeting on the power sector in the view of coronavius lockdown. The Prime Minister also took stock of the impact of COVID-19 pandemic on the sector. The PM discussed various long-term reforms for enhancing sustainability, resilience, and efficiency of the sector. Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Civil Aviation Minister Hardeep Singh Puri were present in the meeting. Chief of Defense (CDS) Bipin Rawat was also present in the meeting.PM Modi holds detailed meeting on power sector amid Coronavirus lockdown
Ahead of the scheduled end of the extended nationwide lockdown, Prime Minister Narendra Modi on Friday met key ministers including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman apparently to discuss an exit strategy.
In a first statement on the Yes Bank issue, Finance Minister Nirmala Sitharaman today said that depositors money in the troubled bank is safe and the Reserve Bank of India will find the resolution plan soon.Yes Bank crisis: 'Your money is safe', FM Nirmala Sitharaman assures depositors
RBI has also assured the Yes Bank customer that a swift revival plan will be implemented within 30 days.
Union Minister for Finance, Nirmala Sitharaman, held pre-budget consultations with stakeholder groups from various fields including start-ups, fintech and digital on December 16.Watch: Nirmala Sitharaman holds pre-budget consultations
The FM said the government has expedited payments to those who have rendered services especially the MSMEs.
Finance Minister Nirmala Sitharaman attended the customary halwa ceremony at the Ministry of Finance in Delhi on Monday. The halwa ceremony marks the beginning of the process of printing Union Budget documents. The event assumes significance as once the sweet dish is served, a large number of officials and support staff directly associated with the Budget-making and printing process are required to stay in the North Block till the presentation of the Budget in the Lok Sabha.Watch: FM Nirmala Sitharaman attends customary halwa ceremony
Infra development will especially be critical for the success of the Make in India programme as manufacturing competitiveness critically depends on infrastructure, the final report of the task force submitted to Finance Minister Nirmala Sitharaman said.
Delivering the Nani Palkhivala Centenary Celebrations Lecture, organised by the Palkhivala Foundation , on "Road Map to $5 Trillion Economy", the Finance Minister said her earnest attempt is to decriminalise matters concerning the Companies Act or other related laws, and also cited Tata Group Head N. Chandrasekharan's speech in Mumbai on Monday where he had said government should trust its own citizens.
To minimize the difficulties of the poor in nationwide lockdown, the government is giving cash to them through Direct Benefit Transfer (DBT). Around 31 crore beneficiaries have already received the assistance in their bank accounts.
The task force in its final report has suggested setting up for three committees for monitoring, implementation and funding of infrastructure projects. To boost fund flow, the NIP task force, chaired by economic affairs secretary Atanu Chakraborty, also suggested deepening the corporate bond market including municipal bonds.
Finance Minister Nirmala Sitharaman on Tuesday rebutted Congress leaders Rahul Gandhi and Randeep Singh Surjewala's allegations regarding "wilful defaulters, bad loans and write-offs", and stated that they have "attempted to mislead people in a brazen manner". "Rahul Gandhi, MP (LS), and Randeep Singh Surjewala, spokesperson of Congress, have attempted to mislead people in a brazen manner. Typical to Congress, they resort to sensationalising facts by taking them out of context," Sitharaman tweeted.FM refutes Rahul Gandhi's allegations on 'wilful defaulters and bad loans', tweets 'facts taken out of context'
As the cash-flow for MSMEs dries up, and in the absence of any fiscal support, many will be forced to cut jobs to curb costs.
Nearly 100 small MFIs has sought conversion of their outstanding bank loans into equities as their fund dried up.
Small micro lenders sought fund from the Centre to meet their operational expenses and requested it to advise their lenders --banks and development finance institutions--to convert their outstanding loans into equity or long term advances with reduced interest rates.
State finance ministers, during a video conference on Monday, also discussed issues arising out of the lockdown, including the urgent requirement of some form of aid for micro, small and medium enterprises, which have been affected the most, besides relief for the services sectors.
Finance Minister Nirmala Sitharaman asked civil accounts officers to focus on bringing in more efficient and adaptive technologies to further smoothen the working of the Public Financial Management System (PFMS). Speaking at a function to mark the 44th Civil Accounts Day, she said there is so much more to be accomplished and officers need to be responsive to the changes.
The prebudget meeting on Friday was necessitated after the government waived off MDR for merchants on digital payments made through RuPay debit cards and Unified Payments Interface (UPI) devices from January 2020.
A personal income tax rate cut for Sitharaman would be difficult at this juncture.
FM Sitharaman announced distribution of 5 kg of wheat or rice and one kg of preferred pulses free-of-cost every month over the next three months to 80 crore poor across the country to deal with the economic impact of the lockdown amid coronavirus outbreak.
The government is set to announce a second set of measures in the coming days to counter the impact of the lockdown, which is seen to be essential to prevent loss of lives.
Over March 6-7, a distinguished audience of Indian and global business leaders, policymakers and academia will hear from Finance Minister Nirmala Sitharaman, External Affairs Minister S Jaishankar and Commerce & Railways Minister Piyush Goyal.
Finance Minister Nirmala Sitharaman reacted over the mystery of the disappearing Rs 2000 note, that banks are recalibrating ATMs to replace high-value Rs 2,000 notes. Finance Minister Nirmala Sitharaman said, “As far as I know, no such instruction has been given to banks.” On the other hand, Finance Minister Nirmala Sitharaman directed banks to clear their pending loan cases of Ministry of Micro, Small and Medium Enterprises (MSMEs) by March 15. “Banks have given us information on how many (MSMEs) they have restructured, reached out to, their loans and everything else. Few MSMEs that are lying pending before them, we have requested them to clear out all by March 15”, said Finance Minister Sitharaman while addressing the press conference in New Delhi on February 26. Nirmala Sitharaman dismisses reports of ATMs being recalibrated to replace Rs 2,000 notes
The BJP has been holding a series of meetings with various stakeholders, including business leaders, farmer bodies and trade unions, as part of its per-Budget dialogue. These meetings are being coordinated by party spokesman on economic issues, Gopal Krishna Agarwal.
The lockdown was like the chakravyuh that you can enter, but never exit. So, cut the Gordian knot.
"I only can invite and assure that the Government of India is committed for further reforms in various sectors whether it is banking, mining or insurance and so on," Finance Minister Nirmala Sitharaman said. She invited Swedish firms to invest in infrastructure development projects. India plans to invest about Rs 1 lakh crore in infrastructure sector in the next five years.
Gadkari said he has devised a scheme to set up the fund, and the proposal may be placed before the Cabinet for approval once the finance ministry gives its go-ahead.
The bank was being monitored since 2017 and developments relating to it were being monitored on a day-to-day basis, she said at a press conference. Since 2017, the central bank noticed governance issues and weak regulatory compliance at Yes Bank, besides wrong asset classification and risky credit decisions, she said.
Section 7, 9 and 10 of the IBC would be suspended for six months and the suspension time can be extended up to one year. An enabling provision with respect to extending the time would be part of the ordinance, they added. Suspension of these provisions could be extended up to one year based on the economic situation going forward.
As part of the Rs 1.70 lakh crore relief package, the government announced free foodgrains and cash doles to women and poor senior citizens and farmers to mitigate the hardships during the lockdown. The swift implementation of the package is being continuously monitored by central and state governments, the Finance Ministry said in a statement.
"Have seen pictures of what is happening in JNU. Condemn the violence unequivocally. This is completely against the tradition and culture of the university," Jaishankar tweeted.
According to official data, the total deposits into the accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) increased to Rs 1.28 lakh crore during the week ended April 8, 2020 as compared to Rs 1.20 lakh crore at the end of April 1, 2020. This is probably the biggest weekly increase in deposits of Jan Dhan accounts witnessed in the recent past.
In the meeting, Manish Sisodia also demanded funds for all the three municipal corporations in Delhi, the same way as Centre gives money to civic bodies in other states.
The price on the futures contract for WTI crude that is due to expire Tuesday fell minus $37.63 a barrel.
The meeting comes on the back of the fear if the telecom department takes any coercive action, the sector would face a huge blow and it may lead to a private sector duopoly. The govt has called on the cabinet secretary to chalk out steps to try and ensure no telco shuts down, given the fact that a Vodafone Idea collapse will have wide implications across sectors.
Nirmala Sitharaman faced flak for not doing enough to revive a slowing economy in her maiden July 5 Budget.
The labour ministry has already asked the EPFO for data on job losses and salary cuts
Finance Minister Nirmala Sitharaman on Tuesday unveiled Rs 102 lakh crore of infrastructure projects that will be implemented in the next five years as part of the government's spending push in the infrastructure sector. Addressing a press conference, she said Prime Minister Narendra Modi had in his Independence Day speech spoken of investing Rs 100 lakh crore in infrastructure. Nirmala Sitharaman gives India Rs 102 lakh cr infra push
Sitharaman today met industry and trade associations to assess the impact of the virus on businesses. The finance minister said that a meeting of the concerned secretaries will be held tomorrow. The finance minister assured the industry that she will speak to the PMO on steps to provide any relief.
Garment exporters will continue to get rebate on central and state taxes on their outward shipments as the government has decided to extend the RoSCTL scheme beyond March 2020 to enhance competitiveness of the labour-intensive textiles sector.
Senior Congress leader P Chidambaram on Sunday urged the government to transfer cash and distribute free foodgrains to the poor, saying only a heartless government will not do anything.
"It is being reported that a 20% cut in Central Government Pensions is being planned.This news is FALSE. There will be no cut in pension disbursements," the finance ministry said in a tweet. "It is clarified that salaries and pensions will not be affected by Government Cash Management instructions," the ministry further added.
The Cabinet has cleared the proposal before it made its way into the budget text, the Minister told reporters in response to a volley of questions on the subject. Out of the Rs 18,600 crore project cost, the Centre and Karnataka will share 20% each, while 60% of the project financing will come from multilateral lending institutions, she said.
Sitharaman, in a meeting with top executives of public and private sector lenders attended for the first time by the CBI director, Rishi Kumar Shukla, assured the bankers that a distinction would be made between genuine commercial failures and culpability. She further added that there had been concerns and worries among bankers about investigative agencies.
Finance Minister Nirmala Sitharaman said that to ease the worries of MSMEs that are in danger of becoming NPA accounts, it has now been decided that the NPA classification norms will exclude the 3-month moratorium window that banks are allowed to give on loan repayments.
“We support a time-bound suspension of debt service payments for the poorest countries that request forbearance,” the G20 said in a statement on Thursday after an online meeting of finance ministers and central bank governors aday earlier.
In a letter to Sitharaman dated March 16, the state minister said not enabling this provision severely jeopardizes the states’ efforts to raise funds for their Covid-19 operations. Misra said the West Bengal State Emergency Relief Fund, set up under the overall umbrella of the CM’s Relief Fund and dedicated to combat Covid-19, had received encouraging response from people and businesses
New Delhi, Apr 16 () The finance ministry on Thursday clarified that financial assistance to people hit by the Covid-19 crisis will be provided only through the Direct Benefit Transfer (DBT) mechanism and no other means.
A law requiring 120 days' stay in India to claim Non-Resident Indian (NRI) status needs to be changed, an association representing NRIs has demanded, citing economic disruptions due to the coronavirus pandemic.
Monetary policy measures taken by the government, the Reserve Bank of India and other regulators have helped de-freeze the market and catalyse credit flows, the minister said, while addressing finance ministers and central bank governors of the G20 on the global economic outlook amid evolving COVID-19 pandemic crisis.
The All India Indian Revenue Service Association said in a letter to CBDT chairman dated April 14 said that till the time the written guidelines are issued from the top most levels, field offices should remain closed, following state issued guidelines.
NBA president Rajat Sharma, in a letter to Sitharaman, said in order to ensure social distancing and for ensuring the safety of the editorial personnel, the news broadcasters have had to take various steps which have resulted in the operating costs going up exponentially during the COVID-19 pandemic.
"The government has instituted comprehensive reforms in PSBs to improve, governance, underwriting, monitoring and recovery, and has leveraged technology in all aspects of banking, resulting in reduction in their NPAs," Sitharaman said in written reply to a question in the Lok Sabha.
Finance Minister Nirmala Sitharaman on Friday condemned Chief Minister of West Bengal, Mamata Banerjee’s referendum remark on CAA and called it ‘irresponsible’ statement. While speaking to ANI, she said, “We never wanted a 3rd party or international fora's interference in our affairs.Nirmala Sitharaman condemns Mamata’s UN referendum remark on CAA
Finance Minister Nirmala Sitharaman on Friday said that NRC process will not start without consulting the stakeholders. She said, “Citizenship Act is an Act through which citizenship is given to people who fled persecution. For 70 yrs they've been waiting, it's an Act which will give them citizenship so they can live a life of dignity. NRC process wouldn’t start without consulting stakeholders: Nirmala Sitharaman
She was responding to concerns about will happen to long-term investments that tax payers make for availing of exemptions.
Employers will be able to deduct taxes on salaries paid to employees from the beginning of a financial year, basis the individual’s choice of opting for the old or the new taxation regime though a declaration, the Board said in a circular.
Indian financial markets will be closed on Tuesday on account of Ambedkar Jayanti.
: More than 30 crore poor people have received Rs 28,256 crore financial assistance under Pradhan Mantri Garib Kalyan Yojana. As part of Rs 1.70 lakh crore relief package, the government announced free foodgrains and cash doles to women and poor senior citizens and farmers to mitigate hardship faced due to the lockdown.
"I don’t think the challenges to the economy and the government’s responses to them are going to be diluted," FM Nirmala Sitharaman said, speaking to an audience via video channels at Times Network's India Economic Conclave 2019. "We can assure every step is being taken in order to ensure that india and the economy goes forwards and benefits all."
In a letter addressed to Finance Minister Nirmala Sitharaman, the Confederation of all India Traders (CAIT), has suggested the formation of fast track courts at district level to deal with the cases of bounced cheques on immediate basis and bring amendments in Section 138 of The Negotiable Instrument Act, 1881.
There is widespread speculation that rate increases will be announced at the GST Council meeting on Dec 18.
Amid the brunt of the Covid-19 impact and the lockdown, government revenues are likely to take a substantial hit in March. On the other hand, expenditures for the month should rise due to various costs arising from the virus containment efforts and enforcing the lockdown.
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