The FM in Budget Speech 2021 said the policy for the same will be announced separately. The fitness of personal vehicles will be checked after 20 years and those of commercial vehicles after 15 years, to get off roads old polluting ones.
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.
She said the grant does not cover the actual cost of vaccine and distribution expenses, which will be made separately as and when the vaccine is available.
FM said Rs 65,000 crore is being provided to ensure adequate availability of fertilisers to farmers and to enable timely accessibility of fertilisers in the upcoming crop season.
FDI limit in defence production through automatic route has been increased to 74% from 49%, while private sector participation has been allowed in space exploration as part of structural reforms that were announced for a variety of sectors including mineral mining, civil aviation and atomic energy.
In her Budget last year, finance minister Nirmala Sitharaman took a pragmatic approach by announcing no changes in personal income tax rates but levying an additional surcharge on the super rich.
Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman announces special reforms to enhance ease of doing business, new PSE policy
In the last and final session of announcements for labour, land and liquidity support by centre, Finance Minister Nirmala Sitharaman announced reforms in Corporate Laws Act to benefit MSME sector and new Public Sector Enterprise policy as part of the Atmanirbhar Bharat Abhiyan project unveiled by Prime Minister Narendra Modi on Monday, May 11, 2020. Watch!Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman announces special reforms to enhance ease of doing business, new PSE policy
Nirmala Sitharaman announcement highlights: First part of the Rs 20 lakh crore economic stimulus unveiled
The first instalment of the mega package today focussed on the revival of the MSME sector.
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 FM announced a slew of measures to ease the burden on the poor who will be hit hard by the lockdown.
Higher defence FDI, commercial coal mining, aviation reforms in FM Sitharaman's fourth tranche of announcements: Watch highlights
Unveiling the fourth tranche of government's mega stimulus, Finance Minister Nirmala Sitharaman on Saturday laid emphasis on wide-ranging structural reforms across eight critical sectors - coal, minerals, defence production, airspace management, power distribution companies, social infrastructure projects, space sectors and atomic energy. Watch highlights of FM Sitharaman's presser here. (Text: ET Online)Higher defence FDI, commercial coal mining, aviation reforms in FM Sitharaman's fourth tranche of announcements: Watch highlights
Nearly 50 coal blocks will be offered immediately on revenue-sharing basis.
FM Nirmala Sitharaman speech highlights: Second tranche has relief for migrant workers, small farmers & poor
The first set of measures focussed on relief to MSMEs, NBFCs, power discoms among others.
Finance Minister Nirmala Sitharaman Saturday introduced RoDTEP - Remission Of Duties for Export Products - to replace the existing Merchandise Export From India (MEIS). Revenue foregone as a result of RoDTEP implementation would be Rs 50,000 crore, she said. Sitharaman also announced interest equalisation for MSMEs to 5 per cent from 3 per cent. She said for small procedural defaults, small tax payers would not be prosecuted. The minister added that all communications with assesses will be through technology or complete faceless dealings. Listen-in. (Text: IANS)Nirmala Sitharaman announces new measures to boost India exports: Watch highlights
Finance Minister announced amalgamation of ten public sector banks into four big banks.
Finance minister Nirmala Sitharaman has announced a slew of measures to deal with the economic distress caused due to the coronavirus pandemic and the subsequent lockdown announced to deal with the situation.The finance minister had already announced some measures on Tuesday that included extension of tax deadlines, easing minimum balance norms for savings account, and increasing threshold of insolvency filing to Rs one crore from Rs one lakh. Watch: Nirmala Sitharam announces cash transfer schemes for Covid19 relief package
Nirmala Sitharaman announced a slew of waivers and relaxations in compliance and deadlines.
Finance Minister Nirmala Sitharaman today announced four mega-mergers, comprising of 10 PSB banks.
PSU bank stocks jump after Finance Minister Nirmala Sitharaman announces Rs 70,000 crore recapitalisation fund
The Nifty PSU Bank index was trading 1.34 per cent up at 3,341.6 around 12:25 pm, with all components in the green.
Sitharaman said six PSU banks have already been brought out of the PCA framework.
On Monday, finance minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy, to phase out old and unfit vehicles. “This will help in encouraging fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and oil import bill,” Sitharaman said.
Asian Development Bank (ADB) is likely to make an initial investment of Rs 1,000 crore into the GIFT City fintech hub to equip fintech firms with skill development tools, new technology and resource mobilisation.
So far, the Centre has dipped into PM-CARES fund to place orders for vaccines developed by Bharat Biotech and Serum Institute of India. Apart from this, the finance ministry had sanctioned a package of ₹480 crore for states to meet operational expenses to roll out the vaccine.
It is expected that tea estate population would be provided a more comprehensive coverage on welfare schemes related to housing, education, sanitation, medical facilities, said Indian Tea Association.
“Higher expenditure will support the near-term recovery and increased infrastructure spending could boost sustainable medium-term growth rates,” Fitch said.
After deliberations, it was decided to give the call for a two-day -- March 15 and March 16 -- strike against the government's moves, AIBOC general secretary Soumya Datta said.
Its total income during October-December 2020 increased to Rs 3,172 crore, against Rs 2,512 crore in the year-ago period.
"In FY21, the sanctions to the RIDF stood at Rs 30,200 crore as against the corpus of Rs 30,000 crore. The disbursement for the current financial year as on January 31, 2021 stands at Rs 16,500 crore," Nabard chairman G R Chintala said in a statement.
ICRA believes that the duty reduction on steel products would make their imports more competitive and, in turn, exert near-term pricing pressures on domestic steelmakers.
PK Swain, joint secretary, agriculture ministry said farmers will get farm-related specialised services such as quality check, sorting, grading packaging services, insurance, trade finance and warehousing.
The Pradhan Mantri Ujjwala Yojana got a boost in the budget for 2021-22, with finance minister Nirmala Sitharaman announcing addition of 10 million beneficiaries during the year to the government’s flagship scheme under which cooking gas connections are given free of cost to women of below poverty line (BPL) families.
Warehousing Development and Regulatory Authority will be strengthened to set up a commodity market ecosystem arrangement including vaulting, assaying and logistics in addition to warehousing, she added.
Tamil Nadu has 234 assembly and 39 lok sabha seats; while Kerala has 140 assembly and 20 lok sabha seats. The BJP has been able to make inroads only in Karnataka, and has not had much success in other places. In the 2016 assembly polls, the BJP had secured a measly 2.86% vote in Tamil Nadu and 10.6% in Kerala.
“ARC will be set up to manage bad debts. Bad banks will now be a reality. It will go a long way in resolving stressed assets in India,” said Siddhart Srivastava of Khaitan & Co.
The benchmark bond yield surged as much as 17 basis points pulling prices down with investors seeking central bank intervention to arrest the market crash.
The support is expected to give fresh momentum to the project, some phases of which have been pending for approval for the last two years. The allocations have been made for Phase IIA and IIB projects covering a length of 58 km. While the Phase IIA passes along Bengaluru’s tech corridors of Outer Ring Road from Silk Board to KR Puram, Phase IIB line connects KR Puram and Airport.
As per the budget statement, basic customs duty rates have been cut on a range of items to offset the impact of the cess on consumers.
This move would potentially boost the government’s divestment programme, as the government is looking to launch IPOs of largest life insurer LIC and a PSU general insurer in FY22.
Sitharaman also announced a distribution reforms scheme for the next five years. “The viability of distribution companies is a serious concern. A revamped, reform-based, results-linked, power distribution sector scheme will be launched with an outlay of Rs 3,05,982 crore over five years."
The Nifty Pharma index was trading 0.74 per cent down at 12079.7 around 11:17AM.
The Centre has slashed allocation for education by about 6%, even as it announced development of 15,000 ‘Adarsh Vidyalayas’ (model schools), a new central university in Leh, a 'glue grant' for better synergy among institutions and a single higher education regulator in the budget for 2021-22 presented on Monday.
Finance Minister Nirmala Sitharaman announced setting up an asset reconstruction company (ARC) and an asset management company (AMC) – potentially on the lines of bad banks in the West - to house toxic assets now denting bank books.
Presenting the Union Budget for 2021-22, FM Nirmala Sitharaman said fuel supplies were kept running without interruption during COVID-19 lockdown.
Analysts were expecting the government to announce details regarding setting up of vehicle scrappage infrastructure which will be conducive enough for rolling out of scrappage policy in the near future.
The eastern and western dedicated freight corridors will be commissioned by June 2022, it was announced. The FM also announced plans for east coast corridor, east-west corridor, north-south corridors.
The areas of focus will be preventive and curative healthcare as well as well being, she said. The allocation is likely to be around Rs 2,23,846 crore, a 137% percentage rise from the previous budget.
The higher the allocation announced, the more the thumping of desks in Parliament on budget day, the decibels generated against the wood being a ‘market reaction’ of its own.
All India LIC Employees Federation and Joint Forum of Trade Unions and Associations in Public Sector General Insurance Companies told that both the unions have chalked out further action plans, including employees’ demonstrations at all LIC offices on Feb 8 and a “two-hour walkout” by general insurance employees at their workplaces on Feb 24.
Days after Finance Minister Nirmala Sitharaman announced the Union Budget for 2021-22 laying out various measures (including disinvestment proposals) to bolster the pandemic-hit economy, Rajiv Kumar also emphasised that the Modi government has shown consistent commitment for the welfare of farmers and for the improvement of the agriculture sector.
“The budget forecasts wider near-term deficits of 9.5% of GDP in FY21 and 6.8% in FY22 and a more gradual pace of consolidation than we had previously anticipated, reaching 4.5% only by FY26,” Jeremy Zook, director, Asia-Pacific sovereigns, at Fitch Ratings, said.
The government's proposal to create a permanent institutional framework to buy investment grade debt securities in stressed and normal times and to deepen the bond market is a very positive step for debt mutual funds, experts said on Monday.
Finance Minister Nirmala Sitharaman announced increases in rural infrastructure development by 34% to Rs 40,000 crore and doubling of micro-irrigation corpus to Rs 10,000 crore among other measures.
The allocation for the education ministry has been cut to Rs 93,223 crore from Rs 99,311 crore for the current financial year, as per the budgetary proposals.
To meet the aim of doubling the textile industry size to $300 bn by 2025-26, 7 mega textile parks have been planned for a ramp up of the sector.
The Reserve Bank of India (RBI) is supposed to maintain consumer inflation at 4%, with a 200 basis points tolerance either side. The mandate expires by March-end this year.
Even before Covid-19, ever-increasing traffic congestions, the resulting emission of carbon and other greenhouse gases, and deteriorating air quality were causing a health crisis.
Finance Minister Nirmala Sitharaman announced three unique features: the re-use of scrap metal, the new vehicle scrapping policy, and the conception of the National Research Foundation (NRF).
The Nifty Realty index was up 0.8 per cent.
Indian airlines are currently carrying 60 per cent of the total pre-COVID domestic passengers and this is better than most countries in the world, he said in an interview.
Though the government has not allocated any funds for this new company, expectations are that public sector banks which are likely to be the biggest beneficiaries of this proposal will also be asked to invest.
"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.
In the spot market, gold prices were marginally down by Rs 81 to Rs 50,057 per 10 gram on Thursday, according to HDFC Securities. Silver also witnessed muted trend as it slipped marginally by Rs 4 to Rs 62,037 per kg.
The government also announced a Rs 1.10 lakh crore platform for infra debt financing with a Rs 6,000 crore equity infusion in the National Investment and Infrastructure Fund to provide a boost to infrastructure financing.
Policymakers are of the view that a further extension is required as the economy is yet to emerge from contraction and businesses need relief for some more time.
In rich countries, the fundamental real-world change goes under the name of secular stagnation. Older people who expect to live longer spend less per capita, as do low income households who don’t see their economic prospects improving. However, with a median age of 29 our population is young, our economy is consumption driven and inflation prone.
The Dhanteras announcements might have some fiscal implications of course, but those are well within the limits budgeted by investors that rightfully anticipated higher federal expenditure in a crisis.
“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 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.
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.
42nd GST meet: Rs 20,000 crore Compensation cess collected this year to be disbursed to all states tonight
Earlier today, the GST panel had increased borrowing limit of Rs 1.1 lakh crore instead of Rs 97,000 crore in the first borrowing limit to states. The council has approved extension of the GST compensation cess levy beyond 2022.
The Finance Minister Nirmala Sitharaman’s first post-Covid budget had several measures to bring the unorganised working class into the mainstream economic fold.
Finance Minister Nirmala Sitharaman’s measures to give a leg up to the MSME sector in the Budget have left the fraternity largely unimpressed.
Biscuits and dairy products maker Britannia said it expects rural India to contribute about 35% of its total sales in the next 16 months, up from 30% at present.
Every proposal that Finance Minister Nirmala Sitharaman announced in her Budget will have long-term repercussions and some stocks are better positioned to benefit from them, analysts said.
As per the recent estimates of RBI, GDP growth rate for Q2 would be at -8.6 percent, pushing the economy to a recessionary phase. In such a scenario, strong measures are needed to guide the economy to a recovery path.
Eight months after its roll out, Government's Rs 3-lakh crore ECLG scheme helped some, bypassed other
For Covid-stricken small businesses, the ECLG scheme was to be a savior. After eight months, the results may be mixed.
Tweet Buster: What IPOs can tell you about market outlook? Plus, Sabharwal's mantra on value investing
In today's edition of Tweet Buster, the stock market mavens react to the government's latest stimulus announcement, discuss investment opportunities and dole out some tips to make money in the market.
Public sector banks have three months to build up their portfolios to be eligible for the extended Partial Credit Guarantee Scheme (PCGS 2.0), which will be based on actual amounts disbursed within this period, according to guidelines released by the finance ministry on Thursday.
Under a pre-packaged insolvency plan, debtors and creditors agree upon the restructuring plan in advance, helping speed up the process.
The scheme will come with a gross budgetary support of Rs 1.2 lakh crore over five years will be result-oriented where the distribution companies will invest first and get money later, he said. Singh also said a group of ministers headed by home minister Amit Shah has cleared the National Tariff Policy that would soon be sent to the Union cabinet for consideration.
Senior spokesperson of the party Anand Sharma said the country believed that Prime Minister Narendra Modi was serious when he made the "dramatic" announcement of giving 10 per cent of the GDP as a package to revive the economy and support workers and migrant labourers, and that expectations had soared.
Citing the example of the South Asian crisis in 1997, he said that a large number of public sector banks in the region had to be privatised post the crisis and in many cases were sold at fire sale prices to private equity investors from abroad.
The government plans to run a Kisan rail through PPP model for transport of perishable goods.
More notably, the return on assets and net profit margin turned around from negative to positive, surpassing that of peer firms. This indicated that privatized CPSEs could generate more wealth from the same resources.
PFC had raised over $2 billion through similar overseas offerings in the previous fiscal year.
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.
A total of 50 stocks hit 52-week highs on the BSE. These included Ambuja Cements, Apollo Hospitals, Coforge, GTPL Hathway, Hero MotoCorp, Aditya Birla Money and Greenpanel Industries, among others.
Among bluechip names, Infosys was the biggest gainer, up 2.93 per cent to Rs 1,139.20, followed closely by ITC that advanced 2.74 per cent.
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.
Loans to the economically weaker sections in April was nearly 40% higher than loans to big corporates, indicating low credit demand for investments while also pointing to the need for borrowings to keep the poor going at a time when economic activities came to a virtual standstill.
You may have the cash in your business to carry on operations or undertake that expansion, but as this pandemic has proven, there can be a complete shutdown of all activities suddenly.
Income-tax refund of Rs 14,632 crore to 15,81,906 assesses and corporate tax refund amounting to Rs 11,610 crore to 1,02,392 assesses have been processed during this period, the CBDT said in a statement.
The cabinet is likely to take up key proposals of the ₹20 lakh crore package, including guarantees for collateral-free loans to small businesses, this week, a senior government official told ET.
Last week, Finance Minister Nirmala Sitharaman announced that a scheme will be implemented in states for industrial cluster upgradation of common infrastructure facilities and connectivity.
“We need better policy framework to make ourselves self-reliant,” NRAI president Anurag Katriar said in a statement. “It is also clear that we will perhaps be one of the last sectors to open up, which means we perhaps need maximum support to stay alive. Our primary demands were largely around policy and liquidity support and did not require massive financial outlay from the govt,” he added.
The Cellular Operators' Association of India (COAI) on Sunday said the industry has been left "disappointed" that its long-standing demand for cut in licence fee and other levies did not figure in measures and reforms announced by the government to boost the economy amid the coronavirus pandemic.
Sandeep Aggarwal, chairman of the telecom committee of the PHD Chambers of Commerce & Industry and co-chairman of Tepc said while the government’s decision might help local electronic equipment companies, tenders worth Rs 200 crore and below in the Indian Railways and Department of Telecommunications (DoT) are very few.
‘We never dreamt that India will offer a package like this’
Revenue secretary Ajay Bhushan Pandey has said the new tax regime would lessen scrutiny, lessening paperwork for taxpayers. “Scrutiny should come down in the new tax regime,” Revenue Secretary Ajay Bhushan Pandey told ET.