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FM's stimulus push: Govt to clear Rs 20,000 cr dues by Oct 1st week
"Money should go where people have been waiting. Money should get going to the ground level," she said
Finance Minister Nirmala Sitharaman addresses media after her meeting with Secretaries & Financial Advisors of key selected Ministries | Credits: @ANI
The government will not sit on funds and it will ensure that "money reaches the ground", said Finance Minister Nirmala Sitharaman on Friday as she announced yet another measure to lift growth from a six-year low that has led to job losses and fueled discontent in the countryside.
Sitharaman said the government aims to clear Rs 20,000 crore dues by the first week of October. She was speaking to journalists after meeting with secretaries and financial advisors of key selected ministries.
"The larger story is government will not sit on payments due," she said, adding she had asked ministries to give their capital expenditure plans for the next four quarters.
"Money should go where people have been waiting. Money should get going to the ground level," she said.
Expenditure Secy GC Murmu said government departments have spent almost 50 per cent of their capex plans so far this fiscal
Sitharaman, a week ago, announced a cut in corporate tax rate to woo manufacturers and revive private investment. Corporate taxes for domestic companies were reduced to 22 per cent from 30 per cent. Factoring in surcharge and cess, the effective tax rate fell to about 25 per cent from around per cent.
That announcement was among the several steps the Narendra Modi government has taken for the economy. The steps include a capital infusion of Rs 70,000 crore into public sector banks and allowing 100 per cent foreign investment for coal mining.
"There is a demand and the banks don't mind lending. Things are looking forward and upward; consumption is happening, demand will get back in festive season," said Sitharaman on Thursday.