Govt's reform push: FPI surcharge rolled back, banks get Rs 70,000 cr

Finance Minister Nirmala Sitharaman's measures come after the government was criticised for failing to stem a rout in local equity markets and a slowdown in demand.

The government rolled back an additional levy on foreign funds and announced a raft of measures to boost economic growth from a five-year low.

The enhanced surcharge on long and short-term capital gains has been withdrawn, Finance Minister Nirmala Sitharaman said in New Delhi Friday. She also announced an immediate infusion of Rs 7,000 crore set aside in the budget last month to boost capital of banks, and lifting on curbs on government departments to buy new vehicles.

“The enhanced surcharge on FPI goes, in simple words,” Sitharaman said, referring to a budget proposal pertaining to Foreign Portfolio Investors. “In