“I have not closed the option to come up with another stimulus package,” Sitharaman said in a virtual interaction at an ORF event.
The Reserve Bank of India has projected the Indian economy to contract 9.5 per cent in the current fiscal, while the International Monetary Fund (IMF) and World Bank estimates the contraction at 10.3 per cent and 9.6 percent, respectively.
India needs a largish dose of stimulus to come out of the economic slump and create the jobs that young entrants to the workforce seek by the million, not the consolation is something is better than nothing.
Finance Minister Nirmala Sitharaman also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.
Finance Minister Nirmala Sitharaman on Monday announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy. She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown. At a news conference, she said the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year.
Addressing a press conference here, Finance Minister Nirmala Sitharaman said: "MSP is there, it was there and it shall continue to be there."
Over ₹1.32 lakh crore of loans have been disbursed to more than 2.7 million non-individuals and individuals under the ₹3 lakh crore Emergency Credit Line Guarantee Scheme by public and private sector banks and non-banking financial companies.
Finance Minister Nirmala Sitharaman says the government is looking at various ways to provide support to the economy.
Finance Minister says the government is looking at various ways to provide support to the economy, including a fiscal stimulus, won’t wait for Covid situation to improve before taking more measures.
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on September 11 said that Atmanirbhar Bharat at a time of COVID-19 is a voice which PM gives to every Indian that the people have the capability within this country in terms of both skills and sources to build a very strong India. She said that Atmanirbhar Bharat will let India gain prominence in having a say in global dynamics, like in ancient times.Atmanirbhar Bharat will strengthen India globally: Nirmala Sitharaman
Sitharaman was speaking after launching PSB Alliance-Doorstep Banking Services. The minister further said banks have to introspect on their core business and also focus on welfare.
The FM held a virtual meeting with secretaries of coal and petroleum & natural gas, along with the chairman and managing directors (CMDs) of 14 CPSEs belonging to these ministries, an official statement said.
Collective global action key for an effective response to pandemic: Finance Minister Nirmala Sitharaman
As a responsible member of the global fraternity, India stands ready to share its experience and play a leading role in the South Asian region as part of its ‘Neighbourhood First’ policy, Sitharaman said at the virtual meeting.
In letters sent out to chief ministers, the Union finance minister has elaborated that the special window being provided to states and that Centre will undertake the borrowing and pass on to states via back to back loans. Further, principal and interest was being paid out of the compensation cess fund, such that states are not burdened.
Nirmala Sitharaman mentioned that recovery and rehabilitation efforts in these countries must not be allowed to be undermined in any manner, a Finance Ministry statement said.
Multiple locations, Oct 19 (ANI): Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, on October 19 said that the government is open to another stimulus package to deal with the blow of COVID-19. “We have not closed the option for another stimulus package,” She said at the launch of a book by Chairperson of 15th Finance Commission NK Singh, which she attended via video conferencing. GOI not opposed to another stimulus package: FM Sitharaman
According to a report by ET, Finance minister Nirmala Sitharaman announced measures to stimulate consumer spending and capital expenditure that would generate demand of Rs 1 lakh crore, including the private sector, and in turn help growth of gross domestic product (GDP). The scheme offers tax exempt payment of leave travel concession/allowance (LTC/LTA) to employees without the need for them to travel if the amount is spent as per specified conditions below. This benefit is available till March 31, 2021.
Central government employees that have not been able to avail leave travel concession (LTC) – air or rail fare as per scale and tax exempt leave encashment of 10 days plus dearness allowance – due to travel restrictions the Covid 19 pandemic, will be allowed to spend the money with riders.
Providing LTC benefits, festival advance to employees mere announcements, fraud with people: Congress
They said the minister has given the government employees their own salary and money and has now directed them to spend according to her wishes.
The government in May had increased its market borrowing programme for the current financial year by more than 50 per cent to Rs 12 lakh crore to meet the increased spending due to the COVID-19 pandemic.
Sitharaman said that the LTC funds could be used to spend on goods and items in 12 per cent GST category i.e. the government would give cash to employees in lieu of LTC ticket fare component for buying items attracting 12 per cent or more GST.
Finance Minister Nirmala Sitharaman said the employees could buy items that attract 12 per cent or more goods and services tax (GST). These purchases will have to be made in digital mode from GST-registered outlets.
FM Nirmala Sitharaman asks banks to prepare cadre of officials well versed in local languages to better serve customers
Sitharaman asserted that there is no point in banks claiming that they have pan-India presence when in some pockets, where Hindi does not work, their executives still need to learn native language to serve the customers.
According to a statement issued by USISPF, the finance minister held a virtual discussion with the US-India Strategic Partnership Forum’s Board of Directors on the sidelines of its 3rd Annual Leadership Summit.
The economy has been in tatters ever since the pandemic set in, leading to all-encompassing lockdowns. As of now, jobless rates are hovering around double digits. GDP has just witnessed it worst trough in decades, with equally dire — if not worse — numbers forecasted for the rest of the year. Yet, the stock markets seem to be on an entrenched bull run.
While the legal opinion made it clear that the Centre did not have to bear the compensation burden, states pointed to the assurance given by former FM Arun Jaitley and provisions in the Constitution to make their claim and were pressing that the Centre should borrow from the market.
The government had on four occasions extended the date of putting in the preliminary expression of interest for buying out the majority stake in Bharat Petroleum Corp Ltd (BPCL). The current deadline is November 16.
Junior minister for finance Anurag Singh Thakur has been in the thick of action, working closely with his boss Nirmala Sitharaman, on steps to revive the economy.
Finance Minister Nirmala Sitharaman rejected the charge, asserting that state cooperative laws are not being touched and that the proposed law seeks to bring these banks with same regulations that are applicable on other banks. It is applicable to those cooperative banks which deal with "bank, banker and banking," she said.
“Increase in import tariffs to provide some protection to local industry will now come with a sunset date,” the official said. “The idea is to ensure that the local industry makes sincere attempts to become competitive instead of just relying on protection from higher import tariffs.”
The government will soon come out with a new public sector enterprises policy that will define strategic sectors which will not have more than four PSUs, Finance Minister Nirmala Sitharaman said on Saturday.
“The focus is on restructuring. Finance ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken,” she said.
"Till date, REC and PFC (Power Finance Corporation) have sanctioned Rs 1.08 lakh crore and released nearly Rs 30,000 crore to discoms under the scheme," REC said in a statement.
Finance Minister Nirmala Sitharaman on Thursday asked bankers to roll out loan resolution schemes by September 15 and COVID-19 related distress must not impact their assessment of borrowers' creditworthiness. She said lenders must immediately put in place board-approved policies for resolution, identifying eligible borrowers and reach out to them.Roll out loans resolution framework by September 15: FM Nirmala Sitharaman to banks on debt recast
The RBI last month permitted one-time restructuring of both corporate and retail loans without getting classified as a non-performing asset (NPA).
After the Union government agreed to borrow Rs 1.10 lakh crore on behalf of states to meet the GST shortfall, Congress leader P Chidambaram said Friday that the Centre has taken the "correct first step" and it should now work to re-establish trust with them.
"Right now, nationally and globally everybody is fighting the coronavirus. We will have to collaborate and integrate our effort to fight this pandemic. It is the priority right now," Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa told reporters.
ET's Consulting Editor Swaminathan Aiyar says the government is being 'extremely conservative' on the fiscal issues over debt-to-GDP concerns, as he talks FM Nirmala Sitharaman's latest stimulus. Watch now.Swaminathan Aiyar says FM Sitharaman's fiscal measures are too little and in the wrong direction
Private companies will be entitled to a share in the terminal charges and terminal access charges for all inward and outward traffic dealt at the goods-shed for a period of five years from the date of completion of work, the policy document, a copy of which has been reviewed by ET, said.
“Notwithstanding the fiscal prudence of the measures, the small scale of the stimulus highlights limited budgetary firepower to support the economy during a very sharp contraction, a credit negative,” it said in a note on Thursday.
The government is keen to ensure that private-sector employees are also nudged to take advantage of the scheme that seeks to prop up consumer demand. The government expects this incentive to the private sector will generate additional consumer demand of Rs 28,000 crore.
Sitharaman’s package this time is smaller than the May package. But that is not because of a fresh sense of responsibility or caution. She knows that she is getting close to the next budget. So, she will not have to wait too long to fling around more money.
Instead, it has played it safe by accepting RBI’s decisions to address the stress caused by the pandemic, in the hope that it will find favour with the Supreme Court. RBI’s recent Covid-19 resolution framework (RF) allows for one-time loan restructuring for borrowers whose accounts are standard, and not in default for more than 30 days and continue to be so until the date of invocation of the resolution process.
The report further added that states have been requested to follow the centre and offer LTC (leave travel concession) stimulus measures. It further reported that states have also been asked to give festive cash advance to employees.
Addressing BJP Tamil Nadu unit party workers via a virtual rally, she said: "People's rights were completely rejected. Why did the Congress party do it?It was hankering for power, it was for the sake of office. The law was broken and an emergency was declared." The emergency era witnessed several atrocities, she alleged.
Sitharaman on Monday announced a special scheme allowing encashment of leave travel concessions/allowance (LTC/LTA) and a special festival advance scheme for government employees to boost consumption.
Government is offering you a window where you can avoid paying Rs 30,000 without going on a , provided you spend Rs 3 lakh to purchase a car, laptop, TV set, fridge, smartphones or a combination of these items which attract over 12% GST.
Finance minister Nirmala Sitharaman announced on Monday that the Centre and states ended the GST (Goods and Services Tax) Council meeting without conclusion. This comes after a long-drawn feud between state governments and the Centre that remain at loggerheads regarding GST compensation.GST Council meet ends without reaching consensus on compensating states
"As she had assured us, honorable FM Nirmala Sitharaman has announced a fresh stimulus package to boost domestic demand and thereby giving the needed push to economic activity. "The timing of the stimulus is perfect coming just ahead of the festival season when the green shoots of recovery are becoming stronger," Kumar said in a tweet.
The Council met for the third time in a row to discuss the issue, with minister of state for finance Anurag Thakur, finance ministers of states and UTs and senior officers from Union governments and states also present in the meeting.
CII Director General Chandrajit Banerjee said the finance minister's announcement on boosting demand through a two-pronged strategy will provide a huge impetus to spending, both by consumers and governments, which in turn will accelerate economic activity.
I am now increasingly of the view that the government actually needs to spend, says Saugata Bhattacharya
GOI to provide special cash vouchers to govt employees, expected demand infusion of Rs 28,000 cr: FM Sitharaman
NEW DELHI: The government on Monday announced a one-time Rs10,000 interest-free festival advance to all its officers and employees as part of plans to increase consumer spending to spur demand in the economy. At a press conference, Finance Minister Nirmala Sitharaman said the festival advance was discontinued from 6th Pay Commission for central government employees.GOI to provide special cash vouchers to govt employees, expected demand infusion of Rs 28,000 cr: FM Sitharaman
Sitharaman announced a slew of announcements to stimulate consumer spending and capital expenditure, including a special LTC (leave travel concession) cash voucher and a special festival advance scheme.
At a press conference, Finance Minister Nirmala Sitharaman said festival advance was discontinued from 6th Pay Commission for central government employees.
Finance Minister Nirmala Sitharaman on Tuesday promised more policy interventions to revive the economy and emphasized that green shoots are visible and the agriculture sector is driving growth. Indicators like, inter and intra-state movement of goods, PMI data, and are witnessing a pick-up, she said.More policy interventions to revive the economic growth says Nirmala Sitharaman
Earlier this month, Prime Minister Narendra Modi too had said the Indian economy has started seeing "green shoots" of recovery and the country remains one of the most open economies in the world.
As the GST compensation cess issue still remains unresolved with around 10 opposition-ruled states and Union Territories not agreeing with the Centre's borrowing proposals, the GST Council, consisting of all state Finance Ministers and headed by the Union Finance Minister, will meet on Monday to discuss and try to reach to a consensus on the matter.GST Council meeting today; Centre, states headed for another showdown on compensation cess
GST Council to discuss compensation cess today, opposition-ruled states may push for vote at meeting
The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising of state finance ministers, will for the third time in a row discuss the issue of funding the shortfall of Goods and Services Tax (GST) revenue of states.
Sitharaman asked PSU banks to start restructuring loans of below Rs 1,500 crore by the end of the second week of September.
The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.
The formal announcement was not made in the media briefing after the cabinet meeting due to the model code of conduct in force for RR Nagar and Sira bypolls. The South Western Railway officials confirmed the development.
Addressing the 115th AGM of PHD Chamber of Commerce and Industry, he said there was space on the monetary and fiscal side to implement further stimulus.
She said the new agricultural laws lifted restrictions on selling produce. She said that she was surprised that those who had initially supported the laws were opposing it now.
In the now-famous case, an international arbitration tribunal in The Hague recently ruled that India’s imposition of a huge tax liability of Rs 22,100 crore on Vodafone, including interest and penalties, breached the investment treaty between India and the Netherlands. It also directed India to pay $5.47 million to the company for its legal costs.
Financial Services Secretary Debashish Panda, who also participated in the launch event through video conferencing, delved on the various initiatives taken by the government to support MSMEs.
Finance Minister Nirmala Sitharaman seeks investment from UAE for Rs 111 lakh cr National Infrastructure Pipeline
"Finance Minister Smt. @nsitharaman today held a bilateral meeting via VC with H.E. Obaid Al Tayer, MoS Financial Affairs, UAE. "Both leaders expressed respect for the long standing relationship between India & UAE, and the need to take it further in mutually beneficial ways," the finance ministry said in a series of tweets.
Punjab finance minister Manpreet Badal said that Centre should not go back on its words to make the mandatory bi-monthly payments to states.
42nd GST meet: Rs 20,000 cr compensation cess to be disbursed to states, no consensus on compensating states; satellite launches exempt from GST
After an inconclusive GST meet, finance minister Nirmala Sitharaman announced that Compensation cess collected this year, amounting to Rs 20,000 crore, will get disbursed to all states tonight. The main point of contention- decision on pending GST compensation to states has been deferred. The council will meet again on October 12 to iron out the differences.42nd GST meet: Rs 20,000 cr compensation cess to be disbursed to states, no consensus on compensating states; satellite launches exempt from GST
All state-run oil companies have together spent Rs 24,626 crore in five months through August, 25% of the total capital expenditure of Rs 98,522 crore planned for the current financial year, according to the Oil Ministry data.
The Centre had proposed an increased borrowing limit in the ongoing 42nd goods and services tax (GST) Council meeting headed by finance minister Nirmala Sitharaman, assuming a 7% growth rate instead of the earlier assumption of 10% over the previous financial year.
The rift between BJP ruled and opposition led states may widen with the former set to seek faster disbursement of funds through the special borrowing window proposed by the Centre, having opted for borrowing Rs 97,000 crore.
While 21 states that are either ruled by the BJP or those that have supported it have chosen the option to borrow Rs 97,000 crore, others like Delhi, Punjab, West Bengal, Telangana, Chhattisgarh, Tamil Nadu, Rajasthan, Kerala and Puducherry have resisted both the options.
The GST Council that is set to meet today may turn thorny, with non-BJP ruled states still being in disagreement with the Centre on the compensation issue. While as many as 21 states, mostly ruled by BJP or parties which have supported it on issues, had till mid-September opted to borrow Rs 97,000 crore to meet the GST revenue shortfall in the current fiscal, opposition-led states like West Bengal, Punjab and Kerala have not yet accepted the borrowing option given by the Centre.GST council meeting today; non-BJP states to oppose Centre on compensation cess issue
Sushil Modi, also the finance minister of the state, told Union Finance Minister Nirmala Sitharaman in a letter on Saturday that financial resources were required to get back on the economic recovery track and the government should not lose time in finding alternatives.
The circular scheduled pre-budget discussions with the various ministries and departments starting from October 16 till the first week of November, under the special circumstances of the pandemic.
‘Transparent Taxation’ platform will ease compliance burden, brings in fair objective: FM Nirmala Sitharaman
Union Finance Minister, Nirmala Sitharaman at launch of platform for “Transparent Taxation–Honoring the Honest” said this new platform will ease compliance burden and brings in fair objective and adjust system. “PM's vision is to empower the taxpayer, to provide a transparent system and to honour honest taxpayers.‘Transparent Taxation’ platform will ease compliance burden, brings in fair objective: FM Nirmala Sitharaman
The budget will have to address critical issues pertaining to growth contraction and subdued revenue collection triggered by the COVID-19 pandemic. "The pre-Budget/RE (Revised Estimate) meetings will begin on the October 16, 2020," according to the Budget Circular (2021-22) of the Budget Division of the Department of Economic Affairs.
Sibal, who was among the 23 leaders who wrote to Congress chief Sonia Gandhi calling for organisational reforms, also slammed Union minister Nirmala Sitharaman for recently alluding to the letter writers and their alleged undermining of the party, saying, "The Congress still has space for people to express concerns, while the BJP has no such space".
In May, as part of the Atmanirbhar Bharat package, finance minister Nirmala Sitharaman had announced the Rs 3 lakh crore ELGS scheme aimed at providing liquidity to micro, small and medium enterprises till October 31.
The government is sticking to Rs 12 lakh crore borrowing target for the current fiscal, Economic Affairs Secretary Tarun Bajaj said. In the first half ended September, the government has done borrowing of Rs 7.66 lakh crore and remaining Rs 4.34 lakh crore will be mobilised during the second half of the current fiscal, he said.
The latest amendments coming to effect from Monday also allowed a certain class of public companies to list overseas directly, increasing the range of foreign funds Indian companies can access.
The corporate affairs ministry has extended the Companies Fresh Start Scheme and the LLP Settlement Scheme, besides allowing companies to conduct EGMs (extraordinary general meetings) and board meetings through video conference or other audio-visual means till end of this year.
Importing raw materials that were not available in the country and needed for our industries was not wrong, she said, addressing the BJP's Tamil Nadu unit workers via a virtual link.
India was setting an example for the world in use of technology in delivery of better services to its taxpayers, she is learnt to have communicated to officers in a meeting on Friday, after launch of the Transparent Taxation platform the day before.
Sitharaman met with the secretaries of the ministries of defence, shipping, road transport and highways, housing and urban affairs and the department of telecommunications, along with the heads of some CPSEs under these ministries, via video conference on Friday.
A tariff policy that does not burden consumers with distribution companies' inefficiencies will be guaranteed, FM Nirmala Sitharaman said while presenting the fourth tranche of economic stimulus package.
In a tweet, the finance ministry said that the press conference will be a curtain raiser for the PM Garib Kalyan Rojgar Abhiyaan, Rs 50,000 crore worth public works scheme to provide employment opportunities to returnee migrant workers.
“The information sought is not available with us,” the central bank said in a recent response to an RTI petition by a Kolkata-based activist, who had sought details on the loans that had been written off, along with the amount that each of the 100 defaulters had owed to banks and the period when the loans to them had been sanctioned and disbursed.
The bills, which were passed by Lok Sabha on September 19, were cleared in the Upper House with a voice vote and without any discussion.
Finance Minister Nirmala Sitharaman termed the Bill as critical for financial stability in the country, and said it brings in a firm legal basis for bilateral netting for two counter parties.
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, which seeks to replace an ordinance and make few other changes in direct and indirect tax laws, was returned by a voice vote in Rajya Sabha.
The Banking Regulation (Amendment) Bill, 2020, which replaces an ordinance that was promulgated on June 26, was passed by a voice vote in Rajya Sabha. The amendment had got approval from Lok Sabha on September 16.
"The final call as to which are the sectors which are going to be called 'strategic' is not made yet, that has to be announced and I can't preempt what announcement is likely to come," she said.
In March, Parliament passed the Direct Tax Vivad Se Vishwas Act. The dispute resolution scheme is valid till December 31, 2020.
In an interview to PTI, a senior official of the Japanese two-wheeler major said the sector has been currently facing various headwinds due to economic slowdown that has hampered the growth of the sector.
'PM Garib Kalyan Rojgar Abhiyaan' not implemented in Bengal as state didn't share any data: FM Sitharaman
Finance Minister Nirmala Sitharaman on Saturday said the Garib Kalyan Rojgar Abhiyaan was not implemented in West Bengal as the state did not provide any data regarding migrant workers who returned to their native places during the COVID-19 lockdown. PM Modi had on June 20 launched the employment scheme for migrant workers. Sitharaman was answering a query by Congress leader Adhir Ranjan Chowdhury in Lok Sabha.'PM Garib Kalyan Rojgar Abhiyaan' not implemented in Bengal as state didn't share any data: FM Sitharaman
Lok Sabha passes companies law bill to decriminalise various offences, promote ease of doing business
"There are 48 sections we have amended to decriminalise them and 17 sections have been amended to improve the ease of living," finance minister Nirmala Sitharaman said during a debate on the bill.
“There was an urgent need to give relief to the taxpayers… amendments in the clauses was needed to extend compliance dates, waive or defer penalties and prevent prosecution,” Nirmala Sitharaman said winding up the discussion in Lok Sabha
In her message on the 160th Income Tax Day, the minister also lauded the department for being responsive to the needs of the taxpayers during this pandemic time by relaxing various compliance requirements and addressing their liquidity concerns.