FM Sitharaman sees GDP growth in negative zone or near zero this fiscal

 

Finance Minister Nirmala Sitharaman on Tuesday said there were visible signs of revival in the economy but the GDP growth may be in negative zone or near zero in the current fiscal.

This is primarily because of a huge 23.9 per cent contraction in the economy in the first quarter of current fiscal (April-June), she added.

Speaking at the India Energy Forum of CERAWeek, she said there was a "very firm lockdown" imposed beginning March 25 as the government put lives before livelihood. The lockdown also gave time to do preparatory work to deal with the pandemic.

But with unlock, macroeconomic indicators have shows signs of revival, she said.

Festive season will further spur the economy, rekindling hopes of positive growth in third and fourth quarters.

Overall, the GDP growth current fiscal (April 2020 to March 2021) will be in negative zone or near zero, she said, adding the growth will revive from the next fiscal.

The focus for the government is on public spending to boost economic activity, Sitharaman added.

Deep Dive with AKB: Facts you should know if you plan to avail LTC facility

 

Finance Minister Nirmala Sitharaman recently announced a two-pronged stimulus package to step up capital expenditure and stimulate consumer demand during the coming festival season. But how effective will these steps prove in boosting consumption? Who stands to gain the most? Are the measures indeed the most fiscally prudent in these times?

.

Let's take a Deep Dive with AKB to understand.

FM asks 14 CPSEs to spend 75% of Rs 1.15 trillion capex by December end

 

Finance Minister Nirmala Sitharaman on Monday asked officials to ensure that 14 state-owned companies spend 75 per cent of their capital outlay for the year by the end of December.

This is because the government looks to maintain the pace of capital and infrastructure projects in a bid to soften the economic blow from the pandemic.

According to an official statement, Sitharaman held a video conference with secretaries of the ministries of petroleum and natural gas and ministry of coal, as well as the 14 PSUs under these departments.

“This was the fourth in the ongoing series of meetings that the finance minister is having with various stakeholders to accelerate the economic growth in the background of Covid-19 pandemic,” the statement said.

The combined capex target for the 14 central public sector enterprises (CPSEs) for FY21 is Rs 1.15 trillion. Sitharaman asked the concerned secretaries to closely monitor their performance and ensure they spend 75 per cent of their capex by the end of the third quarter of the current fiscal.

Govt's latest demand stimulus not enough, impact to be limited: Experts

 As the Finance Minister Nirmala Sitharaman has announced a couple of demand boosting measures along with loans to states for increasing capital expenditure after a lot of anticipation, concerns have again been raised over the adequacy and effectiveness of the measures.

As per stock brokerages, the latest demand-moving measures are insufficient and the results are only going to be "modest".

Sitharaman on Monday announced an 'LTC Cash Voucher Scheme' which will be launched with applicability till March 31, 2021. Under the LTC scheme, central government employees get LTC in a block of four years -- one travel to anywhere in India and one to hometown or two for hometown visits. Air or rail fare, as per pay scale or entitlement, is reimbursed and in addition leave encashment of 10 days (pay and dearness allowance) is paid.

In this case, the government will make full cash payment on leave encashment and payment of fare in three flat-rate slabs depending on class of entitlement, including making the fare payment tax free.

An employee opting for this scheme, would be required to buy goods or services worth 3 times the fare and one time the leave encashment before March 31, 2021. The money must be spent on goods attracting GST on 12 per cent or more from a GST registered vendor through digital mode and GST invoice will be required to be produced.

ICICI Securities said in a report that it is difficult to estimate how many people will avail this scheme. "The requirement to contribute money from one's own pocket could prove to be a dampener for many," it said.

It noted that in April, the government froze dearness allowance hike for central government employees till July 2021 which could also keep demand muted.

Moreover, requirement to buy goods or services that attract 12 per cent or more GST rate and only through digital mode could restrict options.

Noting that it is an earnest attempt to revive demand, a report by Emkay Research said that however, the package "is not likely to be sufficient to move the needle".

"The recovery in demand is likely to be ephemeral and thus not likely to be reflationary in nature, i.e., having a low demand push impact on inflation," it said.

Further, with the recent job losses of 1.9 crore people in salaried class, revival in that demand would require more aggressive steps by the government, it said.

The impact of the Rs 73,000 crore package would be marginal it said, adding that generally capital spending has much higher multiplier impact on growth and is likely to last longer.

However, the Emkay report noted that pent-up demand and demand for white goods or durables ahead of the festive season could provide some traction for this scheme.

On the additional capital expenditure of Rs 25,000 crore by the Centre, the ICICI Securities said that although the entire fresh capex amount of Rs 25,000 crore is fiscal outgo, the actual fiscal cost is expected to be lower than the announced number.

FM Sitharaman announces slew of relief measures, says bigger ones to follow

Finance Minister Nirmala Sitharaman on Tuesday announced a slew of regulatory and compliance measures across sectors to alleviate the hardships being faced by various sectors as the country enters an unprecedented lockdown due to the Covid-19 pandemic. Sitharaman also said that a larger economic package will be announced soon.

At 8 PM in the evening, Prime Minister Narendra Modi is expected to address the nation.

In a media briefing held through video conference, the Finance Minister said that the threshold for default under the Insolvency and Bankruptcy Code was increased to Rs 1 crore from Rs 1 lakh, to prevent triggering of bankruptcy proceedings for micro, small and medium enterprises, removed charges for three months for debit card holders withdrawing cash from ATMs of other banks, waived off the minimum balance fees, and extended the date for most direct tax and goods and service tax filings to June 30.

Sitharaman said that the centre was deliberating upon the suggestions from stakeholders, including a targeted income support scheme and deferment of loan payments for individuals and companies alike. She said that the Covid-19 Economic Response Task Force had been set up constituting of ministers, members of Parliament, industrialists, economists and experts, and had been divided into sub-groups dealing with various issues.

“We are close to coming out with an economic package which will be announced sooner than later,” Sitharaman said.

The minister said that the last date for income tax returns for FY2018-19 has been extended to 30 June, 2020, and for delayed payments till that time the interest rate has been reduced to 9 per cent from 12 per cent.

The mandatory linking of Aadhaar cards with PAN cards, and the direct tax Vivaad se Vishwaas scheme has also been extended to June 30. The earlier criteria in Vivaad se Vishwaas, of not paying a 10 per cent additional amount till March 31, was extended to June 30.

“For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, equalization levy and other such made between 20th March 2020 and 30th June 2020, the interest rate has been reduced to 9 per cent from 12-18 per cent earlier. No late fee and penalty shall be charged for delay relating to this period,” she said.

Sitharaman also said that Those having aggregate annual turnover less than Rs 5 Crore can file GST returns for March-May 2020 by last week of June, and no interest, late fee, and penalty will be charged. For the others, a reduced interest rate of 9 per cent will be levied.

Addressing questions from reporters, the Minister remained non-committal on the impact of the Covid-19 lockdown on the economic growth, the centre’s tax and divestment revenues and whether the centre had estimated the size of economic losses due to the shutdown.

“There have been suggestions from people on a universal basic income, on deferring EMIs for individuals and loans for companies. We are deliberating on these issues. You will hear something soon,” she said.

Coronavirus outbreak: FM Nirmala Sitharaman takes stock of situation

Union Finance Minister Nirmala Sitharaman on Friday met her ministerial colleagues and bureaucrats of various departments to assess the impact of the coronavirus pandemic. In multiple meetings, the ministries discussed the problems in their sectors, which are some of the worst-hit, and presented memorandums from stakeholders.

While the meetings on Friday were preliminary discussions, Business Standard has learnt that sectors like tourism; hospitality; aviation; micro, small and medium enterprises (MSMEs); and livestock have sought deferring loan repayments and temporary tax holidays in specific cases to help them tide over the steep fall in economic activity.

Friday’s meetings were a precursor to the meetings of the Covid-19 Economic Response Taskforce, which is yet to be constituted.

“Officially the task force has not yet been constituted. We are holding the meetings because of the urgency of the situation. We have started work, and the work that we are doing right now will go into the task force as well,” Finance Minister Nirmala Sitharaman told reporters after the meeting. In his address to the nation on Thursday, the prime minister had announced the formation of the taskforce, to be led by Sitharaman.

In four meetings, Sitharaman met Civil Aviation Minister Hardeep Puri, Animal Husbandry Minister Giriraj Singh, and Tourism Minister Prahlad Patel. The MSME ministry was represented by its secretary. Also present were Finance Secretary Ajay Bhushan Pandey, Economic Affairs Secretary Atanu Chakraborty, and the secretaries to the other ministries.

ALSO READ: Airlines may ground 68% planes amid coronavirus outbreak, says govt

“We held discussions with these ministries in detail. They had brought memorandums from the stakeholders in their respective sectors. We are in the stage of compiling all their demands,” Sitharaman said.

A top official aware of the deliberations in the meetings said the ministers spoke about the difficulties being faced by their sectors and the possible measures that could be taken by the government and regulators. Loan repayment and tax relaxation were among the measures sought by industries in their memorandums. “There will be many meetings over the coming week once the task force is notified. Only after that may a detailed relief package be announced,” the official said.

Sitharaman said senior policymakers in the finance ministry would meet on Saturday morning to discuss the way forward.

Through its memorandum, the more than $14-billion Indian poultry industry asked for deferring all instalments on loans taken by poultry companies and small players for one year and working capital support to tide over the immediate crisis.

“We don’t want our loans to become non-performing assets after 90 days if we are not able to repay our instalments as serving them is getting difficult with each passing day,” an executive of the sector said.

ALSO READ: Sebi unveils measures to tackle market volatility, curbs short selling

He said the poultry industry, which is one of the biggest employers of small and marginal farmers in India, was suffering a daily loss of almost Rs 2,000 crore due to a massive slump in demand in view of false rumours that consuming non-vegetarian food hastened the Covid-19 infection.

“This is absolutely untrue and despite best efforts and repeated advice sent by the Indian Council of Medical Research (ICMR), demand hasn’t picked up. The poultry industry directly employs almost 1 million small and marginal farmers whose livelihood is at stake due to the drop in demand,” the person said.

“We hope the finance minister will consider our demand because our survival is directly linked to the survival of small and marginal farmers and unorganised sector workers,” said another senior representative of the Indian poultry industry.

In the last few weeks, millions of chicken and eggs have been destroyed due to a sharp drop in demand over rumours surrounding Covid-19. Weak demand from the poultry sector has resulted in a sharp decline in feed prices too, with both soybean and maize prices falling by nearly 25 per cent in the past two months. The poultry market consumes around half the soybean and maize production in India.

Finance ministry officials say that while the situation is fluid and there will be many meetings before a decision is taken, it still remains to be seen if loan repayment and tax relaxations will be provided for as much as a year. A call will also be taken on whether such relaxations will be sector-specific or not, or whether they will be for only MSMEs

Govt, RBI to take necessary steps, says Sitharaman on coronavirus impact

The government and the Reserve Bank of India were closely monitoring the impact of coronavirus on the Indian economy and stock markets and will take all steps necessary, Finance Minister Nirmala Sitharaman said on Friday.

Chief Economic Advisor Krishnamurthy Subramanian said that following actions by various central banks, and given the inflation situation, there was a case for an interest rate cut. This comes ahead of the RBI’s next Monetary Policy Committee meeting, scheduled on April 1.

“Global markets have undergone severe volatility, and we are monitoring the situation. It is no consolation to say that stock markets in India and elsewhere have suffered. Globally there are serious repercussions being felt. We are conscious of the developments. Together with the RBI, we are monitoring and making sure where necessary, we take steps,” Sitharaman said at a post-Cabinet press conference.

“The interactions and engagement with the various sectors, through the concerned departments, is happening almost on a daily basis. We are trying to attend to the requirements of the affected industries, and to see where all the departments will have to make an intervention related to their sectors,” she said.

When asked if there was case for an interest rate cut by the MPC, the Finance Minister said: “The RBI Governor has said that he very clearly recognized that there is this development globally, and that he is open to need of the hour. I am sure he will take a call from his end.”

After being battered in the early session, the BSE Sensex rose 1,325.34 points and the NSE Nifty rose 365.05 points to settle the day at 9,955.20. The Indian markets saw their biggest intra-day selloff in early session, wiping nearly Rs 12 trillion off investor wealth in less than 20 minutes of opening trade. Both Sensex and Nifty plunged over 10 per cent in the opening session, hitting their lower circuit levels, the first time in 12 years.

Speaking to reporters earlier in the day, Subramanian was also asked on the possibility of a rate cut. “This is something that is being thought through. Other central banks have certainly responded and inflation data clearly suggests moderation,” he said.

"Also we expect core inflation to go down further because of decline in oil prices. So I think there is scope for the central bank to consider these different aspects." He said services sectors like tourism, hotels, restaurants and movies would be impacted due to the lockdown on account of coronavirus and the government will continue monitoring these sectors.

"Government is watching and tracking the data very carefully. Government and RBI will take all steps necessary," Subramanian said.

Official data released on Thursday showed that Consumer Price Index-based inflation (CPI) for the month of February eased to 6.58, from a 68-month high of 7.59 per cent in January, primarily on the back of lower prices of fruits and vegetables, official data showed on Thursday. The latest numbers have increase clamour for a rate cut by the MPC, which the Narendra Modi government hopes will inject some confidence to boost growth.

Subramanian said the fall in Indian stock indices is lower than the decline witnessed globally and the situation in India will stabilise over the next few weeks as focus shifts to economic fundamentals like declining inflation, growing industrial production and adequate forex reserves.

"So what we are seeing currently is a reflection of some of the global factors related to coronavirus episode... Stock markets often react with greed and fear. Currently, there is fear because of coronavirus. It (the decline in stock market) is because of global factors and fear sentiment which I expect to come down un the next few weeks as we get a handle," he said.

The global Covid 19 pandemic has led to over 5,000 deaths globally, leaving over 130,000 people infected. In India, there are 82 cases of coronavirus and one case of death so far.

FM Nirmala Sitharaman to meet bank CEOs to review merger preparedness

As the bank merger becomes effective April 1, Finance Minister Nirmala Sitharaman is scheduled to meet the chief executives of the amalgamating banks on Thursday to review the preparedness for the merger.

The Union cabinet already approved consolidation of 10 public sector banks into four, earlier in the month.

The meeting would deal also on readiness of anchor banks to minimise disruption to customers and ensuring credit flow to productive sectors of the economy.

Sitharaman is likely to check the readiness and capacities of the amalgamating banks to handle and address customer queries and difficulties. The banks may also be asked to set up a common call centre with regional language support, so that customer issues are addressed and responded at the earliest.

In one of the biggest consolidation exercise in the banking industry, the government last year announced amalgamation of the Oriental Bank of Commerce and the United Bank of India with the Punjab National Bank, of the Syndicate Bank into the Canara Bank, of the Andhra Bank and the Corporation Bank into the Union Bank of India, and of the Allahabad Bank into the Indian Bank.

The amalgamation would result in creation of seven large PSBs with scale and national reach with each amalgamated entity having a business of over Rs 8 lakh crore. The mega consolidation would help create banks with scale comparable to global banks and capable of competing effectively in India and globally.

The Punjab National Bank would be the second largest public sector bank after the amalgation of Oriental Bank of Commerce and the United Bank of India with it, with over 10,900 branches. It would have a business of Rs 17.91 crore and have a CRAR of 14.46 per cent.

The amalgamation of Canara Bank and Syndicate Bank would form the fourth largest PSB with over 10,300 branches and business of Rs 15.64 crore and CRAR of 13.90 per cent.

The merger of Union Bank, Andhra Bank and Corporation Bank would form the fifth largest PSB in the country with 9,593 branches and a business of Rs 15.08 crore.

The banks would also present their business and financial plans to the minister, including credit and deposits growth and year-wise synergy realisation plan, which they have already submitted to the Department of Financial Services in the Finance Ministry.

Greater scale and synergy through consolidation would lead to cost benefits which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system, as per the government.

Further, consolidation would also provide impetus to amalgamated entities by increasing their ability to support larger ticket-size lending and have competitive operations by virtue of greater financial capacity.

The adoption of best practices across amalgamating entities would enable the banks improve their cost efficiency and risk management, and also boost the goal of financial inclusion through wider reach.

 

Steadiness in economy is good sign: Sitharaman as GDP growth stands at 4.7%

Finance Minister Nirmala Sitharaman on Friday said the "steadiness" in the economy is a good sign, soon after the official data showed the December quarter GDP growth at 4.7 per cent.

Speaking at CNBC TV 18's business leadership awards event, Sitharaman made it clear that she was not expecting a jump in the number either.

India's economic growth slowed to 4.7 per cent in October-December 2019, according to official data released on Friday.

The Gross Domestic Product (GDP) growth was registered at 5.6 per cent in the corresponding quarter of 2018-19, as per the data released by the National Statistical Office (NSO).

On the impact of coronavirus on the economy, she said there is no need to immediately press the "panic button", but admitted that it may get challenging if the issues prolong for another two or three weeks, citing her conversations with the industry players over the last few days.

She also said the pharmaceutical and electronic industries, which depend heavily on imports from China for raw materials, have suggested airlifting of essential items and the government may consider the same.

However, the logistics of the same, like aggregating the goods and getting them to a single place will have to be done by the industry itself, she said, promising help from the government through the consular staff.

Sitharaman said the government is "pushing the banks like never before" to lend as much as possible across all categories, including retail, home and agriculture segments.

She, however, said that the government wants to learn from the experiences of the 2008-09 and ensure that there are no non-performing assets piled up for later years.

Sitharaman said the government is working creating a development finance institution (DFI), as were bodies like ICICI and IDBI before they turned into full-fledged banks.

The minister said that the ministry has managed to do whatever it can for the economy within the space offered by keeping the fiscal deficit under check and also added that it is not "closing options" on the same.

Delhi violence: Anurag Thakur ducks question on 'goli maro' remark

Finance Minister Nirmala Sitharaman came to the rescue of her deputy minister Anurag Thakur on Wednesday to a question related to alleged hate speech during the campaign of the Delhi Assembly elections recently.

When a reporter asked for Thakur’s reaction on the Delhi High Court’s remarks on Wednesday, Sitharaman said, “No reaction. I am here to address the question. No reaction. Today’s meeting will concentrate on what’s been done with the banks.” Thakur, the minister of state for finance, remained silent and didn’t respond to the question after Sitharaman intervened.

The Delhi High Court on Wednesday expressed "anguish" over the failure of the police to register first information reports (FIRs) against those making alleged hate speeches, including the Bharatiya Janata Party (BJP) leaders, and asked the Delhi Police Commissioner to take a "conscious decision" on this by Thursday.

A high court bench of Justices S Muralidhar and Talwant Singh said that if the police can register 11 FIRs in incidents related to arson, looting, stone pelting, why it did not show alacrity when it came to taking a similar action against the alleged hate speeches made by three BJP leaders -- Anurag Thakur, Parvesh Verma and Kapil Mishra.

At an election rally during the Delhi Assembly elections, which was held on February 8, Thakur had chanted slogans of “desh ke gaddaro ko (traitors of the country)” to which the crowd had responded, “goli maaro saalon ko” (shoot the traitors) – a slogan used by other BJP leaders against the anti-CAA protesters.

“Why are you not showing alacrity when it comes to registration of FIR in these cases?... We want peace to prevail. We do not want the city to witness another 1984 riots. This city has seen enough violence and anguish. Let it not repeat 1984," the bench said. The anti-Sikh riots after the assassination of Prime Minister Indira Gandhi in 1984 left nearly 3,000 people dead.

The court noted in its order that Special Commissioner Praveer Ranjan has assured he will sit with the police commissioner today itself and view all video clips and take a conscious decision as desired on the issue of lodging of FIRs and convey it to the court on Thursday.

The court, however, made it clear it was not confining the proceedings to the video clips of the three BJP leaders and that it will look into other clips as well.

It was hearing a plea seeking lodging of FIRs and arrests of those involved in the communal violence related to the CAA.

"We are not angry. We are anguished. A Constitutional Court's anguish is very serious and everyone should take it seriously," Justice Muralidhar said.

No timeline to remove income tax exemptions, says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Sunday said the idea behind introducing second alternative tax slabs sans exemptions is to take the country towards "a simplified, exemption-free and reduced rate of tax regime."

However, there was no timeframe set by the government to remove all exemptions, she told reporters here after an interactive session with trade representatives and intellectuals on the Union budget.

"At the moment we only started a second alternative with some exemptions removed or some exemptions included, although the original intention was to remove all exemptions and give a clear simplified reduced rate of income tax," the finance minister said.

The budget 2020-21 has introduced more tax slabs and offers higher limits provided the taxpayer is ready to forego all the existing exemptions and deductions including home loan interest, other tax savings investments.

"We have not made up our minds as yet (on the removal of all exemptions)... We are trying step by step, move forward and no particular timeline given," she said when asked if there is any timeframe for removing all income tax exemptions.

Addressing a post-budget press conference on February 1, Sitharaman had said the government intended to remove all I-T exemptions in the long run.

On Sunday, she said that based on a simulation and assumption, 69 per cent of taxpayers would have benefitted and probably 11 per cent would have been "attracted" had the new tax regime been introduced last year.

When asked about the Supreme Court order on telcos' payment of dues and the concerns expressed by some bankers, Sitharaman said it may not be proper for her to comment on the matter as there is a Ministry concerned looking into it.

"The concerned Ministry is looking into it. So, it may not be proper for me to comment on it" she added.

To a query on allegations by the Telangana government that there was a decline in devolution of funds to states from the Centre, she said the allocation is followed as per the recommendations of the Finance commissions and it is not true that the centre is not cooperating with states.

Industry urges FM Nirmala Sitharaman to change tax settlement scheme

Industry on Monday asked Finance Minister Nirmala Sitharaman to tweak the Bill on settling direct tax disputes by reducing the amount of tax under the scheme on the lines of a similar one for indirect taxes announced in the previous Budget.

Sitharaman on Monday met industry representatives on the scheme that provides opportunity to taxpayers to pay outstanding taxes and get waiver of interest and penalty.

Sources in the Federation of Indian Chambers of Commerce and Industry (Ficci) said the main lacuna of the scheme was that 100 per cent of the disputed tax had to be paid.

On the other hand, a similar scheme to settle pre-GST excise and services tax dispute had a provision to reduce tax liability by half.

The chamber recommended that reduction of tax should also be provided under the direct tax scheme.

The Direct Tax Vivad se Vishwas Bill offers waiver of interest, penalty and prosecution for settlement of these disputes pending before the commissioner (appeals), Income Tax Appellate Tribunal (ITATs), high courts or the Supreme Court as of January 31.

While a complete waiver of interest and penalty will be given in case of payment made by March 31, an additional 10 per cent of the disputed amount will have to be paid after that.

Separately PHD Chamber of Commerce President D K Aggarwal in a statement said that the last date for the scheme should be extended by a month till April 30.

The scheme “will benefit many taxpayers and can generate more than Rs 2 trillion for the government in the coming times if it is broadened and exclusions are minimum under this scheme,” said Aggarwal.

Sources at Ficci said the deadline for filing declaration should be March 31, instead of payment of taxes.

They said the scheme should also cover those taxpayers who have approached the dispute resolution panel, but have not filed appeal before the Commissioner of Income Tax (Appeals).

About 500,000 cases involving Rs 9 trillion direct taxes are locked up in litigation. The scheme cannot be availed of in case where prosecution has been instituted or where tax arrears relate to undisclosed foreign income or assets.

Filmmaker Sudhir Mishra's take on the best and worst things in Budget

Has Finance Minister Nirmala Sitharaman steered the economy out of the woods?

More or less the Budget is status quo. It has no imagination. For me “nutrition” is above all and by nutrition I mean both the physical and mental stimulation of people. But most of the experts say this Budget doesn’t take care of that sort of “nutrition” for India.

Is this a populist, please-all Budget?

I am not an expert but for me, unless the Budget triggers employment and innovation and creativity, it is not effective. I don’t see it as “this government versus that government,” and I think this has been the case for the last 20 years.

Will it help the economy, create jobs, restart stalled projects?

If people become physically secure and mentally imaginative, then nothing will stop the country. But for long our education budgets have been going down and most of our universities are not being funded well, in most laboratories science is not being encouraged. There will come a situation where all the patents will lie abroad and for everything India will be forced to look elsewhere. If the push to manufacture and “Make in India” works, I would be happy.

What was the best thing about the Budget? And the worst?

It is good that there are reforms in personal tax. To trigger creativity in cinema, the making of films has to become cheaper too. I have been saying this for 25 years but why are we still taxing people for going to a cinema hall? All the taxes in cinema, because we pay taxes through our nose, should be scrapped. I think cinema should be tax free. Except, of course, for those of us

who make money from it and must pay the relevant income taxes. Also, we are in a climate emergency. I think India should go solar, so the policies encouraging solar power are necessary.

FM Nirmala Sitharaman to hold review meeting with PSB chiefs on Saturday

Finance Minister Nirmala Sitharaman is set to hold a review meeting with chief executive officers (CEOs) of public sector banks (PSBs) on Saturday.

The FM is set to follow up on the Union Budget announcement made in July, in which she had said customers or merchants won’t be charged merchant discount rates (MDRs) as the Reserve Bank of India and banks will absorb the costs. Sitharaman will also discuss with PSBs the prospects of launching RuPay credit cards, a move that was recently announced by SBI Card.

Further, overdraft facility to beneficiaries of the Pradhan Mantri Jan Dhan Yojana through RuPay card will be taken up in the meeting which is scheduled to be held over a duration of two hours.

Do not want businesses to shut, will help revive: Sitharaman to India Inc

Finance Minister (FM) Nirmala Sitharaman on Friday assured India Inc that the government will help revive businesses as it does not want any company to shut and urged industry to come out of “self-doubt” mood.

“This government does not want businesses to close. We want to help them to be revived by legislative and other administrative changes... we are with you. I want this mood of self-doubt to be completely removed from your minds,” the FM said at an event by industry body Assocham.

“Several steps (have been) taken post-Budget which were essentially responding to industry and some of them are probably showing some impact on the ground now.”

The FM said state-owned banks have been told to lend out more money instead of holding it in reverse repo with the Reserve Bank of India and that the most stressed non-banking finance companies (NBFCs) had been provided liquidity, as the government looks for ways to turn around a flagging economy.

The government has identified at least 10 projects so far as part of an infrastructure pipeline and these will get funds upfront.

“I had announced during the Budget that ~1 trillion will be given for infrastructure and I also announced that this is front-loaded. At least 10 new infrastructure projects are ready for clearance in the coming year so that they get the money upfront,” she said.

After Sitharaman’s Budget announcement, the Centre had, in September, set up a high-level task force to identify infrastructure projects for ~100 trillion investment by 2024-25.

Addressing industry representatives, Sitharaman said India’s macro-economic indicators were on a solid footing. Inflation had been kept under control, macro-economic fundamentals and foreign direct investment (FDI) inflows were strong, and foreign exchange reserves at record highs.

Highlighting some of the steps taken by the government after the Budget, she said liquidity crunch was addressed, capital was infused in public sector banks as well as the NBFC sector and professionalisation of Public sector undertaking (PSU) boards was done.

The government’s decision to slash corporation tax rate in September has made a difference and a lot of new investments are expected to flow into India, she said.

The FM also emphasised that the government has brought in transparency and technology in tax collection and eliminate harassment. With the introduction of faceless assessment, tax harassment is going to be a thing of the past, she added.

“We assure each one of you that if you receive a notice from the tax authorities and if it does not have a DIN number then consider it as no notice... After this also (if) you get a notice, you reply to it. Even after this if there is something, it will be a faceless assessment,” she said.

Centre will not renege on promise of GST compensations, FM assures states

Union Finance minister Nirmala Sitharaman on Monday assured states that the Centre will not "renege" on the promise of GST compensations.

The delays to pass on the money are due to a slip in collections and the states have nothing to be embarrassed about, she said.

The remarks come at a time when states like Maharashtra and Kerala have been demanding the compensation sooner.

"It is certainly their right, I am not denying. At the same time, I am also making clear to say that I am not reneging on that. States will be given. We are certainly not reneging on it.

"I admit that the payments which had to go the compensation head have not been given for two months slot," Sitharaman said, addressing the Times Network's India Economic Conclave through video conferencing.

The GST Council, the highest decision making body for indirect tax, is slated to hold its meeting on December 18.

"I do not want them (states) to feel embarrassed because it's not their fault nor is it personally my fault," she said, admitting that the GST collections have been much lower than expectations.

She attributed the dip in collections to a slip in GST filing due to natural calamities and also due to a slowdown in consumption that has a direct impact on the collections.

"I am working with the states. Each of them have taken a lot of effort from their end to improve the GST collection. I guess with their efforts and the centre and revenue department officials...the prospects of improving GST collection is likely to go up," she said.

When asked about reports of cuts in GST rates, Sitharaman said there is no such call to review.

"I don't think, I am even talking about raising or rationalising the slabs at all at this stage. But Eventually at some time the GST Council would want to talk about it, but I am not readying myself for this particular meeting on this particular issue," she said.

Govt working to improve data credibility, says FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said the government is focusing on improving data credibility amid concerns over computing methodologies for various macro-economic data.

The aspects which are being looked at include Gross Domestic Product (GDP), inflation and employment, she said.

The comments come months after the government has been accused of adopting faulty data computation methodologies which may throw up convenient conclusions.

A group of over 100 economists had publicly written against such tendencies earlier this year.

"Data is something which the government has been looking at ... and making sure that any misgivings about the data will be addressed so that data from the government irrespective of whatever it reflects is going to be credible for people to accept," she said, addressing the India Economic Conclave organised by Times Network through video conferencing.

She said the National Statistical Commission and the Ministry of Statistics and Programme Implementation are among the government agencies that are working on this aspect of data.

"On the numbers, there is a lot of work going on," she said.

The minister, however, said that on unemployment, the government's measure on jobs is not as good because of the informal sector.

It can be noted that recently, the government's official data had revealed unemployment to be at a four decade high.

Budget 2020: FM to meet stakeholders tomorrow, seek inputs to boost growth

Beginning the customary pre-Budget consultation exercise from Monday, Finance Minister Nirmala Sitharaman will seek inputs from various stakeholders including industry bodies, farmer organisations and economists for reviving consumption and boosting growth.

Sitharaman is likely to present her second Budget for the Modi 2.0 government in Parliament on February 1.

Sources said the pre-Budget consultations starting Monday will last till December 23.

They said the main focus of the Budget this time will be on boosting economic growth, which slowed to an over six-year low of 4.5 per cent in the second quarter of 2019-20.

As per the finance ministry, Sitharaman will meet stakehokder groups of 'New Economy: Start-ups, Fintech and Digital Sector' on Monday morning, and financial sector and capital market representatives later in the day.

Industry sources said the government has sought their views on matters like ease of doing business, regulatory environment impacting private investment, export competitiveness, role of state (delayed payments, contract enforcement), and revival of private investment and growth, among others.

The minister is likely to meet industry chambers on December 19.

With the government already effecting significant cut in corporate taxes, expectations are high that it would announce some relief for the salaried class by making changes in the personal income tax structure.

Industry bodies have demanded that income up to Rs 5 lakh should be exempt from tax for individual taxpayers from the current Rs 2.5 lakh to spur demand for goods and services.

They are also demanding hiking the overall deduction limit to at least Rs 3 lakh (from the current Rs 1.5 lakh under Section 80C of the Income Tax Act) to boost investments and increase tax savings for individual taxpayers.

The finance ministry has already started the Budget preparation exercise, with different ministries and departments making expenditure projections.

The Budget will be keenly watched by market participants for numbers on key macroeconomic indicators like fiscal deficit.

Nirmala Sitharaman among Forbes' world's 100 most powerful women 2019

Finance Minister Nirmala Sitharaman, HCL Corporation CEO and Executive Director Roshni Nadar Malhotra and Biocon Founder Kiran Mazumdar-Shaw have been named among the world's 100 most powerful women by Forbes.

The Forbes 2019 list of The World's 100 Most Powerful Women' has been topped by German Chancellor Angela Merkel, followed by President of the European Central Bank Christine Lagarde in the second spot and Speaker of the US House of Representatives Nancy Pelosi, ranked third. Also on the list is Bangladesh Prime Minister Sheikh Hasina (29).

In 2019, women around the globe took action, claiming leadership positions in government, business, philanthropy and media. These trailblazers are not to be messed with, Forbes said.

Sitharaman, a newcomer on the Forbes most powerful women list, is ranked 34th. India's first female finance minister, Sitharaman has also served as the country's defence minister.

Sitharaman is the first female to hold the portfolio full time. Before this, former prime minister Indira Gandhi briefly took the additional charge of the ministry.

Nadar Malhotra is ranked 54th on the list. As CEO of HCL Corporation, she is responsible for all strategic decisions for the $8.9 billion technology company.

Malhotra is also the chairperson of the company's CSR Committee and is a trustee of the Shiv Nadar Foundation, which is focused on education and has established some of India's top colleges and schools, Forbes said.

Mazumdar-Shaw, ranked 65 on the list, is India's richest self-made woman and founder of the country's largest biopharmaceutical firm Biocon in 1978.

Biocon has successfully forayed into the lucrative US biosimilars market, catching the attention of investors and it also became the first company to gain approval from the USFDA for two different biosimilars of drugs used in certain cancer treatments.

Mazumdar-Shaw has invested in research infrastructure and scientific talent with the aim of building a deep R&D-based biotech firm, not a copycat generics maker, Forbes said.

The Forbes list also includes Co-Chair of the Bill & Melinda Gates Foundation Melinda Gates (6), IBM CEO Ginni Rometty (9), Facebook COO Sheryl Sandberg (18), New Zealand Prime Minister Jacinda Ardern (38), First Daughter and Advisor to President Donald Trump Ivanka Trump (42), singers Rihanna (61), Beyonce (66) and Taylor Swift (71), tennis star Serena Williams (81) and teenage climate activist Greta Thunberg (100).

Referring to Pelosi's recent "Don't mess with me remark to a reporter, Forbes said that could be the mantra for just about every one of the Forbes 100 Most Powerful Women.

"The top-ranked woman for the ninth year in a row, German Chancellor Angela Merkel, is crusading against anti-immigrant sentiment in Europe; Taylor Swift is battling industry stalwarts and private equity firms over musician song-ownership rights; and 16-year-old environmental activist Greta Thunberg one of 23 newcomers to the list is fighting inaction on climate change and galvanizing millions of young people around the globe.

Open to suggestions, criticism from industrialists: FM Nirmala Sitharaman

Amid attack by Bharatiya Janata Party (BJP) MPs on industrialist Rahul Bajaj in the Lok Sabha on Monday, Finance Minister Nirmala Sitharaman told the House her government is open to suggestions and criticisms from industrialists.

The FM said it was “unfair to say that government is not willing to listen to criticism”. Sitharaman, however, said that she stands by her comment that industrialist Rahul Bajaj should have sought answers from the government rather than spreading his own impressions which, on gaining traction, can hurt national interest.

“I have been told that I am the worst finance minister. They are not even waiting for me to finish my term. I ask them to give me more ideas, and we will work on it. If there's a government that listens, it is PM Modi's government,” she said, bemoaning how she started to face criticism even when she was just few months into her current job.

During the debate on the Taxation Laws (Amendment) Bill, 2019, opposition MPs, including Nationalist Congress Party (NCP)’s Supriya Sule, flagged the concerns that Bajaj had raised at an event on Saturday.

Participating in the debate, BJP MP Ajay Misra ‘Teni’, who represents Kheri in Uttar Pradesh, alleged that a sugar factory that Bajaj runs, which is located in his constituency, owes millions of rupees in unpaid dues to sugarcane farmers.

Several opposition MPs, including Sule and BSP’s Danish Ali, pointed out that the two Bajajs, the one who made the comments on Saturday and the one who runs the sugar factory, might be members of the extended Bajaj family, but are not the same.

They said Rahul Bajaj, or his business group, does not run the Kheri sugar factory.

However, that did not stop Misra from continuing to make allegations and he charged opposition members of doing chamchagiri, or sycophancy, of the industrialist.

For the record, Bajaj Hindusthan Sugar Limited is run by Kushagra Bajaj.

Earlier in the day, Biocon’s Kiran Mazumdar Shaw came out in support of Bajaj. She tweeted: “Madam we are neither anti-national nor anti-government. We want you to succeed big time as fastest growing economy n rise to the top of the global league of economies. I am a proud apolitical national and only want the government to promote good policies including at state level.”

Shaw had earlier said the government treated Indian industry as “pariahs” and doesn't want to hear any criticism of the economy. In her speech, Sitharaman referred to comments by Shaw.

The FM did not mention Shaw by name, but said she has read what the businesswoman has had to say on the issue, and that Shaw had attacked her earlier as well.

In her speech, Sitharaman rejected allegations that the BJP-led government favours only a few select industrialists in the country. She said that unlike the Congress-led UPA government, the Modi government worked for the people and not just somebody’s jija, or brother-in-law, a reference to Robert Vadra. “There are no jijas in our party, only party workers,” Sitharaman said.

The FM slammed Congress MP Adhir Ranjan Chowdhury for saying that it would be more apt to address her as Nirbala Sitharaman. Sitharaman said no woman minister in the Modi cabinet is powerless.

“Women have been given good portfolios in this government. I am Nirmala, shall remain Nirmala, and because of my party and the Prime Minister, all of us are sabala,” she said.

Meanwhile, the Congress took to social media to ridicule BJP MP Nishikant Dubey for his comments during the debate in the Lok Sabha that GDP as a tool to measure economic growth had not relevance.