FINANCE MINISTRY

govt-writes-to-every-department-on-austerity-measures

Govt writes to every department on austerity measures

In its move to bring down official and some other expenses further, the government has written to every department to take austerity measures. Every department has been asked to cut down unnecessary expenses including unproductive works with great expanses and such works that could be done with much less resources.

Sources said that some of the departments have already identified such splurge of money and is planning to corrective measures without compromising the work. Though the Modi government has always been talking about cutting costs but in view of slowing economy, this is in focus now.

Sources said that there are certain departments where splurge of government resources is very common and the government has noticed those waste of money. So the government is now not only very serious but very tough on this that the government order must be complied with utmost responsibility.

 

05 Feb 2020
finmin-may-push-for-rs-25-30k-cr-interim-dividend-from-rbi

FinMin may push for Rs 25-30K cr interim dividend from RBI

Union finance ministry is expected to push for Rs 25,000-30,000 crore interim dividend from the RBI for the third time in a row. Reportedly with the interim dividend from the RBI, the govt wants to put a check to 3.3 percent fiscal deficit target slippage. Reportedly, the Finance Minister may take up the matter in a post-Budget.

The RBI paid a total Rs 38,000 crore as an interim dividend in the past. The government has a Budget estimate of Rs 90,000 crore dividend from RBI in FY20. The RBI follows July-June as FY and usually distributes dividend in August after annual accounts are finalised and interim dividends if any, they are given around February to the government.

For 2018-19, the RBI transferred a total of Rs 1.76 trillion to the government, including a one-time transfer of Rs 52,637 crore which was deemed as excess reserves and comprising Rs 1,23,414 crore of surplus for the year 2018-19. The government is fighting a six-year low growth, subdued demand, and consumption leading to projections of 5 percent growth.

22 Jan 2020
govt-writes-to-every-department-on-austerity-measures

Govt writes to every department on austerity measures

By IndianMandarins 05 Feb 2020

In its move to bring down official and some other expenses further, the government has written to every department to take austerity measures. Every department has been asked to cut down unnecessary expenses including unproductive works with great expanses and such works that could be done with much less resources.

Sources said that some of the departments have already identified such splurge of money and is planning to corrective measures without compromising the work. Though the Modi government has always been talking about cutting costs but in view of slowing economy, this is in focus now.

Sources said that there are certain departments where splurge of government resources is very common and the government has noticed those waste of money. So the government is now not only very serious but very tough on this that the government order must be complied with utmost responsibility.

 

finmin-may-push-for-rs-25-30k-cr-interim-dividend-from-rbi

FinMin may push for Rs 25-30K cr interim dividend from RBI

By IndianMandarins 22 Jan 2020

Union finance ministry is expected to push for Rs 25,000-30,000 crore interim dividend from the RBI for the third time in a row. Reportedly with the interim dividend from the RBI, the govt wants to put a check to 3.3 percent fiscal deficit target slippage. Reportedly, the Finance Minister may take up the matter in a post-Budget.

The RBI paid a total Rs 38,000 crore as an interim dividend in the past. The government has a Budget estimate of Rs 90,000 crore dividend from RBI in FY20. The RBI follows July-June as FY and usually distributes dividend in August after annual accounts are finalised and interim dividends if any, they are given around February to the government.

For 2018-19, the RBI transferred a total of Rs 1.76 trillion to the government, including a one-time transfer of Rs 52,637 crore which was deemed as excess reserves and comprising Rs 1,23,414 crore of surplus for the year 2018-19. The government is fighting a six-year low growth, subdued demand, and consumption leading to projections of 5 percent growth.

fm-takes-on-board-suggestion-on-reducing-it-rate-cut

FM takes on board suggestion on reducing IT rate cut

By IndianMandarins 03 Dec 2019

There was a long pending demand for reducing cut in personal income tax, Finance minister Nirmala Sitharaman had taken on board the suggestion from lawmakers to reduce personal income tax rates and it would be considered for its merit, rather than to bring parity with the government’s decision to slash corporate income tax rates.
It is very different to compare developed countries and developing countries and emerging economies and then say they have income tax reduction and therefore you should give, Sitharaman said, adding that the government has periodically given relief to individual taxpayers and several exemptions have been offered.
A government panel on direct tax has suggested relief for tax payers and the finance minister had earlier said the government was examining the report. Experts have demanded a cut in personal income tax rates to boost demand and consumption, but the government has little headroom to slash rates, given concern over the fiscal deficit which the Centre has said will be kept at the targeted level of 3.3% of GDP.

over-rs-1-trillion-gst-collection:-a-sigh-of-relief-for-sitharaman

Over Rs 1 trillion GST collection: A sigh of relief for Sitharaman

By IndianMandarins 02 Dec 2019

In a situation when GST collection has become a parameter of economic health of the country, a seven-month high recovery in November crossing the Rs 1-trillion gives a sigh of relief to the government. However, this rise is attributed to festive season demand and anti-evasion measures by the government but it is still short of its target that is around Rs 1.18 trillion.

The GST mop-up grew by 6 per cent in November over the corresponding period last year to Rs 1.03 trillion, against Rs 95,380 billion in October. These figures are for October, collected in November.

Although the collection figures come as a breather for the government, it is lower than the expected collection rate needed to meet the steep target for 2019-20 (FY20). Being a festival month, GST collection on domestic transactions witnessed a 12 per cent growth — the highest during the year. GST collection on imports continued to see negative growth of (-)13 per cent, against (-)20 per cent in October.

This is the eighth time since GST inception in July 2017 that the monthly collection has crossed the Rs 1-trillion-mark. Also, the November 2019 collection is the third-highest monthly collection since the introduction of GST, next only to April 2019 and March 2019 collections.

finmin:-a-complete-overhaul-in-next-5-months-

FinMin: A complete overhaul in next 5 months?

By IndianMandarins 25 Nov 2019

If some top sources are to believed all four departments under Union Ministry of Finance are set to get a fresh set of departmental heads in the next five months. The Department of Expenditure, presently under ad-hoc arrangement, became headless after G C Murmu (IAS:1985:GJ) was picked up as J&K Lieutenant Governor. Union Finance Secretary Rajiv Kumar (IAS:1984:JH), Secretary, DFS, is retiring in February next year followed by Economic Affairs Secretary Atanu Chakraborty (IAS:1985:GJ) scheduled to retire April next year. Though Revenue Secretary A B P Pandey (IAS:1985:MH) may remain on turf till February 2021 but with vital figures dipping steadily the power corridors are abuzz that Pandey may be shifted to some other key departments. If that be the case the Finance Ministry may see a fresh set of faces to steer the economy which would be key to take NaMo 2.0 to its 3.0 version.

aiming-at-$5-tn-economy:--govt-says-economy-still-best-in-the-world

Aiming at $5 tn economy: Govt says economy still best in the world

By IndianMandarins 19 Nov 2019

Almost all financial institution predicting India’s GDP going below 5 per cent but the government is patting its back by saying that despite deceleration India will remain the fastest growing economy. There is no slump and India is still projected to be the fastest growing economy in FY20 among the G-20 nations.

Finance Minister Nirmala Sitharaman is of the view that the government has been taking several measures to address moderate levels of fixed investment rate in the economy, plateauing of private consumption rate and a modest export performance, with a view to increasing the GDP growth. She was confident that the goal of $5 trillion economy will be achieved by 2025.

The government also talks about implementing major reforms to build the investment climate in the country for becoming a $5 trillion economy. The WEO of October 2019 projects a significant slowdown in world output and trade in 2019. Yet India, despite some recent deceleration of GDP growth, is still projected by WEO to grow at the fastest rate in 2019-20 among G-20 countries.

The World Bank's Ease of Doing Business 2020 Report, India's ranking improved by 14 positions to 63 in 2019 from 77 in 2018 after GST was implemented in 2017 will have certain impacts.

fy-2019-20:-it-department-to-ask-for-a-cut-of-rs-1-lakh-crore

FY 2019-20: IT Department to ask for a cut of Rs 1 lakh crore

By IndianMandarins 11 Nov 2019

When Prime Minister Narendra Modi is constantly pitching for making India a $5trillion economy, the income-tax department will ask for a cut of at least Rs 1 lakh crore in the target for direct tax collection in 2019-20 because of growth in the segment sliding to 3 per cent as of October 31. This declining growth is largely because of the consumption slowdown and tax rate cuts.

Corporation tax collection, net of refunds, grew by just 0.5 per cent in the first seven months of the financial year, against the year’s expansion target of 15.4 per cent at Rs 7.66 trillion. However personal I-T collection grew by 5 per cent till October.

a-real-bold-move:-fm-announces-significant-tax-cut-to-spur-growth

A real bold move: FM announces significant tax cut to spur growth

By IndianMandarins 20 Sep 2019

Few economists call it ‘a real bold move’. This is not mere nitpicking, this is not tidbits, this is a significant tax reduction. Is it so?

Union Finance Minister Nirmala Sitharaman today surprised the business world with a slew of measures to brave economic slowdown. As FinMin announced Indian firms will have the option to pay income tax at 22 percent if they don't avail any exemptions or incentives as effective tax for these companies comes to 25.17 per cent inclusive of all surcharge and cesses.

To spur growth, corporate tax cut will be brought through an ordinance besides that domestic firms will not have to pay minimum alternate tax, no tax surcharge on capital gains on sale of securities, including derivatives in the hands of FPIs. There will be no tax on listed companies' share buybacks announced before July 5, 2019. In another big move, the government has decides to allow spend CSR of 2 per cent on incubators run by PSUs.

It is believed that companies will benefit significantly from the move as it will put more money in the hand of corporate, enabling them to invest more.

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Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.

Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.