Morning Tidings

Tag: Nirmala Sitharaman

  • RBI extends new support of ₹ 50,000 crore to NABARD, NHB, SIDBI

    RBI extends new support of ₹ 50,000 crore to NABARD, NHB, SIDBI

    The RBI on Wednesday announced various developmental and regulatory policy measures to aid liquidity management and target areas, to mitigate the effects of the epidemic and help in economic revival.

    The central bank decided to provide a facility of ₹ 50,000 crore to All India Financial Institutions for grant of new loans in the financial year 2012. This will help the economy to support the continuation of debt and nurture the stillborn growth impulses in the post-COVID-19pandemic.

    Accordingly, NABARD was awarded a special liquidity facility (SLF) of ₹ 25,000 crore for one year to support agriculture and allied activities, rural non-agricultural sector and non-banking financial companies-Micro Finance Institutions (NBFC-MFIs). Will go. RBI said

    The SLF of ₹ 10,000 crore will be extended to the National Housing Bank for one year to support the housing sector. 15,000 crore will be provided under this facility to SIDBI for funding Micro, Small and Medium Enterprises (MSMEs). Althese three facilities will be available at the prevailing policy repo rate.

    While pointing out the importance of Asset Reconstruction Companies (ARC) in the current context to deal with bad debts, the RBI stated that it would undertake a comprehensive review of the functioning of ARCs in financial jurisdictions and recommend appropriate measures to enable such entities Will constitute a committee. To meet the growing requirements of the financial sector.

    It stated that when ARCs had grown in number and size, their ability to resolve stressed assets had not yet been fully realized.

    Classification of Priority Sector Lending (PSL) for lending by banks to ‘on-lending’ sectors to NBFCs – which contribute significantly to economic growth in terms of exports and employment – six more months, ie 30 By September 2021. Approved. This will provide an impetus to the loan granting NBFC at the bottom of the pyramid.

    To enhance the liquidity position of NBFCs, the RBI in August 2019 allowed banks to classify lending to registered NBFCs (other than MFIs) as banks for lending to banks, agriculture and MSMEs and housing. PSL up to 5% of the total PSL. RBI said that as of March 31, 2020. This disbursement was later extended to 31 March 2021., Rs 37,000 crore has been lent by banks to the NBFC.

    RBI also decided to increase the loan limit from ₹ 50 lakh to increase to 75 lakh per borrower against encroachment of agricultural produce supported by NWR / (E-NWR) issued by WDRA registered and regulated warehouses. This will promote loans for individual farmers.

    The priority sector lending limit supported by other warehouse receipts will continue to be ₹ 50 lakh per borrower, it said.

    RBI said that due to a multiplier effect on both backward and forward linkage and growth to focus on liquidity measures to revive activity in specific sectors, RBI said that TAP would extend the TLTRO on the plan by six months. That is, till 30 September 2021.

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  • ‘Government. The scheme will increase health benefits’

    ‘Government. The scheme will increase health benefits’

    Finance Minister Nirmala Sitharaman said on Tuesday that the government’s health insurance scheme has catalyzed a large private investment cycle in healthcare infrastructure.

    Presiding over the first meeting of BRICS Finance Ministers and Central Bank Governors with Reserve Bank of India Governor Shaktikanta Das, Ms. Sitharaman coordinated more between BRICS member countries on the review of quotas in the International Monetary Fund (IMF) .

    Before explaining thematic priorities for the New Development Bank, a multilateral lender backed by BRICS countries, the minister said: “The Prime Minister’s Health Insurance Scheme, using an output-based funding model, will lead to a major private investment cycle in healthcare infrastructure. Has triggered. Enabling significant expansion of health services for able-bodied citizens. ”

    Emphasizing the importance of BRICS in response to the COVID-19 crisis through policy support and enhancing international coordination, Ms. Sitharaman highlighted the qualifications for engaging with the private sector and exploring innovative financing models.

    “Efforts should be made to deliver results that reflect the needs and aspirations of BRICS, particularly in emerging markets and developing economies,” he said.

    As the BRICS President of 2021, India’s approach is focused on strengthening intra-BRICS cooperation on the basis of continuity, consolidation and consensus, the Finance Ministry said, discussing the financial cooperation agenda set by India at the meeting.

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  • RBI extends new support of ₹ 50,000 crore to NABARD, NHB, SIDBI

    RBI constitutes panel to conduct comprehensive review of ARC

    In the latest budget, Finance Minister Nirmala Sitharaman announced the establishment of Asset Reconstruction Company and Asset Management Company for the disposal of assets.

    To facilitate the smooth functioning of asset reconstruction companies (ARCs), the Reserve Bank of India (RBI) on 7 April decided to constitute a panel to conduct a comprehensive review of the functioning of such institutions.

    In the latest budget, Finance Minister Nirmala Sitharaman announced the establishment of an Asset Reconstruction Company and an Asset Management Company to deal with stressed assets.

    Regulatory guidelines for ARCs were issued in 2003 to enable the development of the sector and facilitate the smooth functioning of these companies, following the enactment of the Securitization and Reconstruction of Financial Assets and Reconstruction and Security Interest (SARFAESI) Act in 2002.

    Since then, ARCs have grown in number and size, but their ability to resolve stressed assets is yet to be fully realized, with RBI Governor Shaktikanta Das announcing the first bi-monthly monetary policy for the current fiscal on Wednesday. Said while doing.

    He has, therefore, proposed to constitute a committee to comprehensively review the functioning of ARCs in the financial sector ecosystem and appropriate measures to enable such entities to meet the growing needs of financial institutions. Recommends

    In her budget speech in February, Ms. Sitharaman said that high-level provision has been made by public sector banks for measures to clear bank books to their stressed assets.

    “An Asset Reconstruction Company Limited and an Asset Management Company will be set up to consolidate and recoup existing stressed debt and then recover the final value for disposal of assets to alternative investment funds and other potential investors,” he said. said.

    To expand the centralized payment system, RBI has also decided to increase membership in them.

    RBI operated centralized payment systems – RTGS and NEFT are currently limited to banks with few exceptions.

    “It is now proposed to enable prepaid payment instruments such as non-bank payment system operators. [PPI] Issuers, Card Networks, White Label ATM Operators and Trade Receivable Discount Systems [TReDS] A platform regulated by the Reserve Bank for direct membership in CPS, ”he said.

    The facility is expected to reduce settlement risk in the financial system and increase access to digital financial services to all users.

    With the aim of encouraging agricultural loans to individual farmers against the pledge / hypothesis of agricultural produce, Das said that it has been decided to increase the loan limit under priority sector loans from ₹ 50 lakh to ₹ 75 lakh per borrower. This will be done against the pledge / hypothesis of agricultural produce supported by Nigohi Warehouse Receipts (NWR) / Electronic-NWR (E-NWR) issued by warehouses registered with the Warehousing Development and Regulatory Authority (WDRA).

    He said that for other warehouse receipts, the loan limit for classification under priority sector loans would continue to be ₹ 50 lakh per borrower.

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  • Nirmala Sitharaman says that the salary income of Indian workers in the Gulf is exempt from IT

    Nirmala Sitharaman says that the salary income of Indian workers in the Gulf is exempt from IT

    In response to the tweet by Trinamool MP Mahua Moitra, the Finance Minister said that Finance Act 2021 has not brought any new or additional tax on Indian workers in Saudi / UAE / Oman / Qatar.

    Finance Minister Nirmala Sitharaman said on Thursday that salary income earned by non-resident Indians in Gulf countries will remain tax-free in India.

    Quoting a tweet by TMC MP Mahua Moitra, Ms Sitharaman clarified that the Finance Act 2021 has not brought any new or additional tax on Indian workers in Saudi / UAE / Oman / Qatar.

    The minister said that amendments to the Finance Act, 2021 incorporated the common definition of the term “liable to tax” in the Income Tax Act to provide clarity.

    “This amendment has not changed the taxation of salary income earned by NRIs in Gulf countries. His salary income earned in Gulf countries will continue to be discounted in India, ”Finance Minister Nirmala Sitharaman tweeted.

    Earlier in the day, Ms. Moitra tweeted a photo of the amendment to the Finance Bill, 2021, stating that the “complicated word” in the amendment is actually “a special Gulf workers tax”.

    Ms Moitra tweeted, “FM is going back on their words. Hardworking Indian workers in Saudi / UAE / Oman / Qatar will be taxed on extras.”

    Ms Sitharaman’s office tweeted: “No going back on words. The Finance Act, 2021 has not brought any additional or new tax on hardworking Indian workers in Saudi / UAE / Oman / Qatar.” The minister also said that it is worrying to conclude without understanding the facts.

    The minister’s office tweeted, “Further, a conclusion is not only misleading on social media platforms, but also causing undue nervousness in people.”

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  • ‘Government. The scheme will increase health benefits’

    April-February: Center’s fiscal deficit at 76% of revised estimates during CGA

    The central government’s fiscal deficit at the end of February worked out 76% of the revised estimate, indicating that it was likely to remain within the estimates made by Finance Minister Nirmala Sitharaman last month.

    The minister revised the fiscal deficit estimates for 2020-21 to ₹ 18.48 lakh crore or 9.5% of GDP from the original budget estimate of ₹ 7.96 lakh crore or 3.5% of GDP, mainly to deal with excess Is in Outgo’s account. Kovid 19 Ubiquitous Epidemic.

    According to figures released by the Comptroller and Auditor General (CGA), the fiscal deficit at the end of February was 76 14.05 lakh crore or 76% of the revised estimates. It is 135.2% during the same period of the previous financial year.

    The total receipts of the government during April-February were 13 14,13,096 crore or 88.2% of the Revised Estimates (RER) were presented in the budget on 1 February. The collection was an estimated 74% over this year’s period.

    The total expenditure of the Center, according to the CGA, was 28,18,643 crore, or 81.7% of the revised estimate. It was 91.4% RE during the same period of the previous financial year.

    Finance Minister Nirmala Sitharaman, while presenting the budget 2021-22, said that the government proposes to bring down the fiscal deficit to below 4.5% of GDP by 2025-26.

    The fiscal deficit is a sign of government borrowing to meet the shortfall between expenditure and receipts from taxes and other sources.

    The deficit had increased to a high of 4.6% of GDP in 2019-20, mainly due to poor revenue recovery.

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  • Government withdraws rate cut order on small savings schemes

    Government withdraws rate cut order on small savings schemes

    This is the first time that the Center has cut notified interest rates on small savings schemes after switching to the quarterly interest rate setting system in April 2016.

    After hours of notifying significant reductions in the returns of small savings instruments for this quarter, the government has backtracked on these sharp cuts. This is the first time that the Center has cut notified interest rates on small savings schemes after switching to the quarterly interest rate setting system in April 2016.

    The government feels that the middle class is being sabotaged due to a sharp reaction on social media. Retail inflation has come down by 6% and the government has also decided to tax employee PF savings starting this year.

    Finance Minister Nirmala Sitharaman said in a tweet on Thursday morning.

    The government fixes the interest rate on small savings instruments every quarter, but this round of rate cuts was significant after the release of three-fourth rates. The last round of rate cuts was in the quarter from April to 2020, when small savings rates were cut from 0.5% to 1.4%.

    On Wednesday night, the notified rates for the April to June 2021 quarter were lower by 40 basis points (0.4%) to 110 basis points (1.1%) on various devices.

    The fastest reduction was proposed in the quarterly interest rate on one-year fixed deposits at 4.4% in the quarter from January to March. The rate of return on Senior Citizen Savings Scheme was cut from 7.4% to 6.5%, while the return of Sukanya Samriddhi Account Scheme was reduced from 7.6% to 6.9%.

    The rate of return on the popular Public Provident Fund (PPF) scheme fell to 7.1% from 7.9% last April and fell to 6.1% for the quarter, before the minister announced the rollback on Thursday morning.

    The rate of interest on National Savings Certificate and Kisan Vikas Patra has also come down significantly from 6.8% to 5.9% and 6.9% to 6.2% respectively. Consequently, the Kisan Vikas Patra, which matured in 124 months, was to mature in 138 months.

    It remains to be seen whether keeping the rates at the same level will hurt the government’s expectations of executing its lending plans for the year at lower interest rates and if the same range of rate cuts will now be affected in the June to September quarter.

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  • Don’t see India’s rating below: Finance Minister Nirmala Sitharaman

    Don’t see India’s rating below: Finance Minister Nirmala Sitharaman

    He attacked the Congress-led UPA government for misuse of the economy, which the Modi administration justified.

    Finance Minister Nirmala Sitharaman said on Wednesday that India has an investment grade rating and does not see the rating fall due to higher spending.

    Responding to a debate in the Rajya Sabha on Finance Bill 2021, he cited low inflation, high GDP growth, record foreign investment and low fiscal deficit to handle his government’s economy.

    He attacked the Congress-led UPA government for leaving the “mess” and showing the economy the wrong way which the Modi administration justified.

    He said that the measures taken by the UPA in response to the 2008 global financial crisis led to high inflation and ‘tantrums’.

    Ms. Sitharaman further stated that the average growth of GDP between 2014 and 2019 was 7.5% as compared to 6.7% during 2009 to 2014.

    Similarly, during the five-year reign of the UPA, consumer price inflation was 10.3%, while it was 4.8% during 2014–19.

    He said that the fiscal deficit during 2014-14 was 3.65% of GDP, compared to 5.3% in the last five years, adding that the current account deficit also improved from (-) 3.34% to (-) 1.43%. is.

    He said that the foreign exchange reserves have increased from US $ 303 billion in 2014 to US $ 411.9 billion. He said that by March 2020, the NPA or bad debt has come down to 8.99 lakh crore.

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  • No digital tax on goods, services sold through Indian branch of Indian e-commerce players

    No digital tax on goods, services sold through Indian branch of Indian e-commerce players

    The digital tax, introduced in April 2020, applies only to non-resident companies with an annual income of over Rs 2 crore, and covers online sales of goods and services to Indians.

    To provide a level playing field, the government has decided not to impose a 2% digital service tax on selling goods and services through the Indian branch of foreign e-commerce players.

    An amendment to the Finance Bill 2021 makes it clear that offshore e-commerce platforms do not have to pay a 2% equalization levy on permanent establishment or pay any income tax here.

    However, foreign companies that are not paying any tax will have to pay.

    The digital tax, introduced in April 2020, applies only to non-resident companies with an annual income of more than ₹ 2 crore, and covers online sales of goods and services to Indians.

    Finance Minister Nirmala Sitharaman, while replying to the debate on Finance Bill 2021 in the Lok Sabha on Tuesday, said, “Through government amendment … I want to clarify that this right to equality does not apply to goods that belong to Indian residents.” Are near. ” .

    Pointing out that this government is in favor of digital transactions, he said, “We will never do anything to weaken it.” But still, the same levy is a tax imposed in India to give a level playing field between Indian businesses paying tax and foreign e-commerce companies that do business in India, but there is no Do not pay income tax. “The equality levy became a controversial issue after the US declared it discriminatory against American firms.

    Defending its stand, India stated that the levy aims to provide greater clarity, certainty and predictability to all stakeholders regarding the characterization of digital services and consequently payment for tax liabilities, so as to reduce compliance and administration costs. Can also be reduced. Tax dispute in these cases.

    The parity levy is seen as an additional levy against BEPS (Base Aerosion and Profit Shifting) and revenue loss in India due to the activities of e-commerce operators in the country.

    The concept of a similar levy in India emerged as a result of the deliberations of the OECD Base Aerosan and the Profit Shifting Project, which crystallized in the BEPS project report.

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  • It is not possible to bring petrol and diesel under GST regime even for the next 8-10 years: Sushil Modi

    It is not possible to bring petrol and diesel under GST regime even for the next 8-10 years: Sushil Modi

    Finance Minister Nirmala Sitharaman said in the Lok Sabha on Tuesday that she would be “happy to discuss the suggestion of bringing petrol and diesel within the ambit of Goods and Services Tax” at the next meeting of the GST Council.

    BJP member Sushil Kumar Modi said in the Rajya Sabha on Wednesday, that it is not possible to bring petrol and diesel under the GST regime for the next 8-10 years because no state is ready to face revenue loss of more than 2 lakh crore diesel. is. .

    Speaking in support of the Finance Bill, the former Finance Minister of Bihar dared the opposition to take up the matter in the GST Council, stating that no Chief Minister or Finance Minister of the non-NDA-ruled states has passed any of the GST Council Has not opposed the verdict.

    The Center and the states collectively collected more than ₹ 5 lakh crore tax on petroleum products, Mr. Modi said. The statement said that in view of the increase in petrol prices for the last one year, in some states, ed 100 per liter and Congress and some other parties have demanded that petrol and diesel be brought under the purview of GST. .

    Finance Minister Nirmala Sitharaman said in the Lok Sabha on Tuesday that she would be “happy to discuss the suggestion of bringing petrol and diesel within the ambit of Goods and Services Tax” at the next meeting of the GST Council.

    Sushil Modi said that it is easy for opposition leaders to make outside statements, but no one raises these issues within the GST Council.

    “Again and again, the issue of putting petrol and diesel under the GST regime is being raised. I have been associated with GST for a long time, I want to know from the House whether petrol and diesel are placed under the GST regime. Which Will compensate the states for loss of revenue of more than ₹ 2 lakh crore, ”he asked.

    “I want to tell this House that it is not possible to keep petrol and diesel under GST in the next eight to 10 years, because no state is ready to lose revenue of ₹ 2 lakh crore, whether it is Congress or Any other government, ”he said.

    He said that the Center and the state together earn more than ₹ 5 lakh crore annually from taxes on petroleum products.

    “Opposition people make fun of the GST regime and someone has also said that it is ‘Gabbar Singh Tax’. If you have the courage …. there is presence in all the states … (Congress ruled) Chhattisgarh or Rajasthan, no Chief Minister or Finance Minister has ever opposed the GST structure.

    Sushil Modi told the House, “It is easy to make out statements, but you need courage to implement GST by Narendra Modi. If there was another Prime Minister, he would not be able to implement GST.”

    He pointed out that if petroleum products are brought under GST, then 28% tax will be levied on them, as it is the highest slab in the tax regime. “Currently, 60% tax is being levied on petroleum products. This will reduce the% from 2 lakh crore to 2.5 lakh crore (both for the Center and the states),” he explained in the House. “If we collect 28% tax on petroleum products, it will be collected be 14 (per liter) as against only be 60 currently,” he said. “If petrol or diesel is priced (100 (per liter) then the tax component is rol 60 which includes ₹ 35 for the Center and Center 25 for the respective states. Also, in addition to the 35 taxes per liter, 42% of the states Goes, “added Mr. Modi. He also dismissed those doubts over the use of revenue generated from diesel and petrol, stating that the funds are used for development activities.

    “It is said that the tax collected on petrol and diesel goes into the pocket of the government. There is no separate pocket of the government. Where will the money come from to provide electricity and tap water to all the houses. The cost of tax collection in the country Kalyan is being challenged, ”the BJP leader lamented.

    Sushil Modi was the convener of the GST Council for a long time as the Finance Minister of Bihar.

    In the first rate cut in over a year, on Wednesday, petrol price was cut by 18 paise per liter and diesel by 17 paise per liter, as international oil prices were the lowest in early February. In Delhi, the price of petrol was reduced from ₹ 90.99 per liter to 91.17 per liter. Diesel now comes for 30 81.30 liters in the national capital, down from the earlier 81.47. Rates have been reduced across the country based on local incidence of taxation (VAT) and vary from state to state. Prices were last reduced on March 16, 2020.

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  • Five more states ease trade reforms

    Five more states ease trade reforms

    With this, 20 states are now eligible to borrow additional 0.25% of GDP.

    The Finance Ministry said on Saturday that 20 states have completed ease of doing business.

    States completing the reforms are eligible to borrow additional 0.25% of the gross state domestic product (GSDP).

    He said, “The number of states successfully completing the ‘Ease of Doing Business’ reforms has risen to 20. Five more states namely Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura have completed the ‘Ease of Doing Business’ offers”. Department of Expenditure, “the ministry said in a statement.

    The Department of Expenditure has allowed these 20 states to raise additional financial resources of ₹ 39,521 crore through open market lending.

    Ease of doing business is an important indicator of favorable climate of investment in the country. Improvement in ease of doing business will lead to rapid development of the economy of the state.

    Therefore, the government of India decided in May 2020 to link the grant of additional borrowing permissions to states that improve for ease of doing business, the ministry said.

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