Budget 2018-19

  The path of the economy continues to depend significantly on the course of the virus International News:  The US Federal Reserve has kept its benchmark interest rate unchanged at the record-low level of near zero, as the country grapples with slowing economic recovery amid surging Covid-19 cases. “The path of the economy continues to depend significantly on the course of the virus,” Fed Chairman Jerome Powell said at a virtual press conference on Wednesday. “A resurgence in recent months of Covid-19 cases, hospitalizations and deaths is causing great hardship for millions of Americans and weighing on economic activity and job creation.” The Fed chief noted that following a sharp rebound in economic activity last summer, the pace of the recovery has “moderated” in recent months, with the weakness concentrated in the sectors most adversely affected by the resurgence of the virus and greater social distancing, reports Xinhua news agency. “The economy is a long way from our empl...

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...

  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...