Budget 2018-19

  PM calls fintech a ‘revolution that helps to achieve financial empowerment of every single citizen of the country’. Indians have shown “immense trust” in financial technology and it is the sector’s responsibility to respect them, said Prime Minister Modi on Friday as his government prepares to table before Parliament a Bill that will regulate digital currencies. “The history of currency shows tremendous evolution. As humans evolved, so did the form of our transactions,” said Modi about financial technology (fintech). He called fintech a “revolution that helps to achieve financial empowerment of every single citizen of the country”. Finance Minister Nirmala Sitharaman said on November 30 the government will introduce a bill on cryptocurrencies in the Parliament after Cabinet’s approval. The Cryptocurrency and Regulation of Official  Digital Currency Bill , 2021, seeks to “prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the ...

  Includes credit guarantee schemes, steps to revive tourism, strengthen health infra Union Finance Minister Nirmala Sitharaman on Monday announced the much-awaited fiscal package to revive the economy ravaged by the second pandemic wave, keeping the fiscal outgo limited for the current year. The Rs 6.28-trillion package included a new credit guarantee scheme for health, tourism and micro borrowers, besides expanding the Emergency Credit Line Guarantee Scheme (ECLGS) by half to Rs 4.5 trillion and extending the  Aatmanirbhar Bharat Rozgar Yojana . “Measures announced by the FM will enhance public health facilities, especially in under-served areas, boost private investment in medical infrastructure and augment critical human resources. Special focus is on strengthening healthcare facilities for our children,” Prime Minister  Narendra Modi  tweeted. The new announcements include extending credit guarantees of Rs 2.6 trillion and schemes worth Rs 2.4 trillion, spread o...

  Sitharaman last week said the government would not go for lockdowns in a big way and only resort to local containment Finance Minister Nirmala Sitharaman on Monday said she has taken inputs from various industry chambers on concerns of India Inc with regard to the management of COVID pandemic and the centre would continue to work with state governments to save lives and livelihood. She sought feedback from businesses to deal with the impact of the second COVID-19 wave on the country”s economy. It is to be noted that the economy contracted by a whopping 23.9 per cent in the first quarter (April-June) of the previous financial year due to the outbreak of the  COVID-19  pandemic. “Spoke on telephone with each of the following business/Chamber leaders. Took their inputs on industry/Association related matters. Informed them that GoI at various levels from @PMOIndia is responding to #Covid management. Working together with states for lives and livelihoods,” she said in a twe...

  In 2017-18, West Bengal accounted for 15 per cent of the total contributions made to the NSSF; its share increased from 12.4 per cent in 2007-08 A day after the finance ministry announced a reduction in rates on small savings schemes as part of its periodic review, Finance Minister Nirmala Sitharaman   was quick to announce a rollback of the move on Thursday morning, calling it an “oversight” In a tweet, the FM said: “Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn.” If the ministry had gone ahead with its plan to lower the rates on small schemes up to 1.1 per cent, it would have been a second cut in two years and brought savings rate on many schemes, such as the  Public Provident Fund   (PPF), to historic lows. In the April-June quarter of last year, too, the government had cut rates on small...

Bill provides that no insurer shall invest policyholders’ funds outside India, says government A Bill raising the foreign investment limit in insurance to 74 per cent ensures that control, ownership and money collected from policyholders stays in the country, Finance Minister  Nirmala Sitharaman  told Parliament on Thursday. Every insurance product, pricing, investment and marketing is regulated in the country, she said in reply to a debate in the Rajya Sabha, which passed the Bill. The decision to increase the foreign direct investment (FDI) limit from 49 per cent was taken after the sector regulator IRDAI held detailed consultations with stakeholders. “The regulator also flagged this point that if FDI has to be raised, it has to be raised with adequate safeguards…very clearly looking at both aspects of control and ownership, and also the (policyholders’) money does not go out of the country,” Sitharaman said. The Bill provides that no insurer shall, directly or indirectly, i...

  Demand includes highest ever net cash outgo of Rs 4.12 trillion in the second supplementary demands for grants Finance Minister Nirmala Sitharaman on Thursday sought Parliament’s approval for additional cash outgo of Rs 4.12 trillion, one of the highest ever in the second supplementary demand for grants in a financial year. The cash request is part of the total gross additional spending, pegged at Rs 6.28 trillion, after accounting for Rs 2.15 trillion of savings or reallocation from ministries with under-utilised funds.However, the provision for this gross additional spending was already being made in the revised estimates of the Union Budget announced on February 1. Of the total cash outgo, Rs 64,598 crore is towards enhanced expenditure fertiliser subsidy under  AtmaNirbhar Bharat Abhiyan 3.0  and Rs 20,466 crore for capital outlay for defence services have been sought. Sources said that the reason for higher cash demand is on account of stimulus packages announced a...

  A new voluntary vehicle scrapping policy, to phase out old and unfit vehicles, is to be announced, to encourage fuel-efficient, environment-friendly vehicles New impetus for the manufacturing sector Production-linked incentive schemes to create manufacturing global champions have been announced for 13 sectors. Rs 1.97 trillion over a five-year period starting FY22 has been allocated for these sectors, to enable manufacturers to develop scale and become an integral part of global supply chains. A voluntary vehicle scrapping policy soon A new voluntary vehicle scrapping policy, to phase out old and unfit vehicles, is to be announced, to encourage fuel-efficient, environment-friendly vehicles. Vehicles will undergo fitness tests in automated fitness centres after 20 years in the case of personal vehicles, and after 15 years in the case of commercial vehicles. New development finance institution to be created A new development finance institution (DFI) is to be created to provide lon...

  A combination of stepped-up social spending – including on long-neglected healthcare – and a state-led infrastructure push will make the recovery both durable and inclusive Union Budget 2021:  India’s federal budget Monday will be a much tougher balancing act than New Delhi’s regular annual fiscal trapeze. For one thing, the pandemic has upset business-as-usual calculations of how much to spend, on what, and how to finance it. For another, an impatience to make up for lost time has to be weighed against a shrinking of policy space in emerging markets: A reprise of the 2013 global taper tantrum could compound the country’s considerable domestic challenges. On the first question — how much to spend — Finance Minister Nirmala Sitharaman must simply do a lot more. Even with some loosening of the purse strings in the final months of the fiscal year that will end in March, Moody’s Investors Service affiliate ICRA Ltd. expects annual government expenditure to have been broadly unch...

  India’s Finance Minister Nirmala Sitharaman has described her upcoming  Union budget  as unlike anything seen in the last 100 years India’s Finance Minister Nirmala Sitharaman has described her upcoming budget as unlike anything seen in the last 100 years. When she presents it on Feb. 1, Sitharaman will not only aim to repair battered government finances and ensure demand recovers in an economy facing its worst contraction since 1952, she must also revive declining revenue and restore millions of jobs lost during the pandemic. That will be crucial to boosting consumer sentiment in a country where local demand contributes nearly 60% of gross domestic product. “The virus has led to a demand shock and the budget might need to focus on that,” said Bank of America economist Indranil Sen Gupta, pointing to in-house surveys that showed 19% of respondents were laid off during the pandemic. Demand has to be created either through cutting taxes on fuels or providing income suppor...

  Vivad Se Vishwas scheme allows the waiver of interest, penalty, and prosecution for settling tax disputes due up to January 31, 2020 With three weeks to go before the Vivad Se Vishwas direct tax dispute resolution scheme window closes, Finance Secretary Ajay Bhushan Pandey and the Central Board of Direct Taxes (CBDT) Chairman P C Mody pulled up tax officers for the dismal declarations, in a meeting held last week. It was argued that the declarations were ‘not even 10 per cent’ of the potential level, while the final payments made after the declarations remained ‘dismal.’ Besides, officers were urged to reach out to central public sector enterprises (CPSEs) to settle disputes under the scheme. “Tax officers were told that those displaying subpar performance would be held accountable since the scheme was being monitored by Prime Minister  Narendra Modi  and Finance Minister Nirmala Sitharaman. They were asked to hold webinars and keep the lines of communication open with ...

This stimulus comprises production-linked incentives approved by the Cabinet on Wednesday for as many as 10 sectors Economy News:  Ahead of Diwali, Union Finance Minister Nirmala Sitharaman on Thursday rolled out 12 measures as the Atmanirbhar Bharat 3.0 stimulus package to boost the economy. She announced a package worth Rs 1.2 trillion. If Wednesday’s production -linked incentive package is added, the stimulus comes to Rs 2.65 trillion. Some measures include a credit guarantee support scheme for medium and small businesses across 26 stressed sectors with a specific call-out for the health care sector; employment generation in both formal and informal segments; tax relief for real estate developers and home buyers; ease of doing business by relaxing criteria of locking up capital in infrastructure contracts; and fertiliser subsidy to farmers. This stimulus comprises production-linked incentives approved by the Cabinet on Wednesday for as many as 10 sectors, which will be operation...

  About two thirds of states opt for RBI-window of Rs 1.10 trillion, rest still want the Centre to borrow instead The Goods and Services Tax (GST) Council meeting on compensation for the states remained inconclusive on Monday, with 20-21 states opting for the Reserve Bank of India (RBI) window of Rs 1.10 trillion (earlier it was Rs 97,000 crore) and around 10 states insisting the Centre borrow and disburse the money. The next meeting is now scheduled for October 12. “The question was 20-21 states deciding to opt for the first option (the RBI window) and others wanting the Centre to borrow. Lots of discussion happened on that … Bihar Deputy Chief Minister Sushil Modi suggested that 3-4-5 days be given to the states to discuss the issue. I gave eight days and the next meeting will happen on October 12,” Union Finance Minister Nirmala Sitharaman said after the meeting. She said no state, irrespective of its choice, would be denied compensation. In her answer to a question, she said sh...

  FM Sitharaman said the government has turned the crisis into an opportunity as directed by the prime minister and has brought in several systemic reforms Finance Minister Nirmala Sitharaman has said that the economic recovery in the second quarter has been “patchy” so far and it is difficult to say with any degree of certainty whether the upswing would hold going forward. Dismissing criticism that the government is unwilling to provide fiscal support to revive demand and consumer spending, Sitharaman said the government has an open mind on the issue and a decision on when to spend and how much to spend will be taken at the appropriate time. In an interview to Business Standard, the minister said the intensity of the problem is unique and the government has been engaging with all stakeholders. However, at this point, no firm assessment has been made on the additional fiscal support. Sitharaman said the government has turned the crisis into an opportunity as directed by the prime m...

Four helicopters of the Indian Air Force and their 10 commandos are involved in the rescue operation in Kurangani forest fire A massive forest fire, which started on Saturday in Tamil Nadu's Theni, has claimed nine lives so far and seriously injured another eleven of the 36 trekkers that had gone mountain trekking in Kurangani hills in Bodi foothills. Speaking of stepped up rescue operations, Defence Minister Nirmala Sitharaman on Monday said an advanced light helicopter had been sent to save those trapped in the forest fire. Twenty-seven people have been rescued so far by the fire and forest departments, along with Indian Air Force’s (IAF's) aid — 11 of them is admitted to hospitals in Madurai and Erode after suffering serious burns. The defence ministry swung into full force by fielding 16 commandos of the Garud Commando Force and four choppers from the Indian Air Force to fasten the rescue operation of those stuck in Kurangani forest fire in Theni district....

Sitharaman also asserted that Islamabad was expanding its 'arc of terror' to areas south of the Pir Panjal Range in the Jammu region Pakistan will pay for its "misadventure" and India reserved the right to respond at a "time of its choosing", Defence Minister Nirmala Sitharaman said on Monday, while blaming Islamabad for the terrorist attack at the Indian Army's Sunjuwan military camp in Jammu. After a visit to the Army camp, Sitharaman also asserted that Islamabad was expanding its "arc of terror" to areas south of the Pir Panjal Range in the Jammu region. The defence minister added that Rs 14.87 billion (Rs 1,487 crore) has been allocated to enhance security at military installations. A group of Pakistan-based Jaish-e-Mohammad (JeM) terrorists had struck the Sunjuwan military camp in the wee hours on Saturday, killing six people, including five soldiers. Three terrorists were also gunned down. However, despite her...