Page 31 - Finance Minister

Govt may ask 16th Finance Commission to include HDI, SDG in formula

Article 280 of the Constitution says that the President of India can constitute a Finance Commission to make recommendations regarding the distribution of tax proceeds between the Centre and states

NBFCs should remain cautious on lending as suggested by RBI, says FM

Finance Minister Nirmala Sitharaman on Thursday said NBFCs and small finance banks need to remain cautious while lending as suggested by the Reserve Bank. Speaking at 'DATE with Tech' event here, Sitharaman cautioned that NBFCs and small finance banks should respect the red line and should not go too far in their enthusiasm. "Enthusiasm is good but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later," she said. Reserve Bank Governor Shaktikanta Das on Wednesday had said the central bank's tougher stance on unsecured loans earlier this month is a "preemptive" move aimed at ensuring financial stability. Following a massive rise in unsecured lending and delinquencies, the Reserve Bank on November 16 tightened the norms for unsecured consumer credit, asking banks and NBFCs to assign a higher risk weight. As a result, it

15 Tamil Nadu fishermen reached Chennai after being released from Sri Lanka

The Finance Minister spoke to the Foreign Secretary and the Indian High Commission in Sri Lanka, following which the fishermen were rescued

Economy still fragile, support from IMF to continue: Pakistan's FM

Pakistan's caretaker Finance Minister Shamshad Akhtar has said Pakistan's economy continues to remain fragile despite improvements and the cash-strapped nation would have to go for more IMF loans for some time, a media report said on Friday. Akhtar also emphasised that Pakistan needs strong financial reforms to strengthen its economy, the Dawn newspaper quoted her as saying. "The next International Monetary Fund (IMF) programme is very necessary for some time as the economy has returned to stability that was still very fragile. Until we are able to increase exports and domestic resources, we will need another programme," Akhtar said. Her remarks came a day after the Pakistan government and the IMF concluded a review of the ongoing USD 3 billion stand-by agreement with a staff-level agreement, opening the way for Pakistan to get USD 700 million in the second tranche. She said there was no more refuge from undertaking long-standing reforms. The country will not survive without this.

India to emerge as third largest global economy by 2027: FM Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said India is expected to overtake Japan and Germany to emerge as the third largest economy in the world by 2027. Addressing the Indo-Pacific Regional Dialogue here, Sitharaman said India's economic growth is estimated to be just under 7 per cent during the year, the highest among major economies, despite global headwinds. The Indian economy is therefore on the right track and is heading towards a bright future, she said. Amidst supply-chain disruptions and economic turbulence due to contemporary conflicts that impact the Indo-Pacific, irrespective of whether they are occurring in relatively distant Ukraine or in relatively-proximate Israel or Yemen, and despite the palpable tensions prevalent in the South- and East China Sea, the Indian economy stands out as a bright spot, she said. "Even according to the usually conservative estimates of the IMF, the Indian economy is set to emerge as the world's third largest economy by 2027, hopp

FinMin focuses on bringing all business establishments under GST net

Finance minister Nirmala Sitharaman on Tuesday said that the finance ministry's focus is not only on increasing GST revenue but also on bringing all the business establishments under its ambit. She was speaking at a function to open 12 GST Suvidha Kendras in Gujarat from here, which will help business establishments to have flawless GST registration and will help them resolve their issues at such centres. "GST 'one nation one tax', collection is going up every year, every month. GST has brought tax rates down on many items compared to earlier times. Businessmen know that they are not going to be double taxed under GST which was the case earlier. GST collection is increasing because of it," Sitharaman said. But many establishments still prefer to remain out of the ambit of GST and are not part of the formal economy, she said. "Why should they come in the tax net, not because they will pay me tax, but for the true strength of the economy what we capture is only some and not entire an

The stunning resilience of emerging markets

Prudent economic policies and central bank independence have allowed them to defy analysts' expectations of a debt spiral

India's G20 presidency gave clear policy direction: FM Nirmala Sitharaman

The Finance Minister said that the current pace of global growth remains quite weak, well below the 3.8 per cent average in the two decades before the pandemic

Finmin questions rationale for extending FAME scheme beyond current fiscal

The Heavy Industries Ministry proposed an extension to subsidies for EVs under FAME III with a higher allocation for five more years to support the growth of electric and alternate fuel vehicles

India will work closely with Sri Lanka to deepen civilisational ties: FM

India, the Finance Minister said, had rendered an unprecedented financial assistance of over $4 billion for the people of Sri Lanka

FM Nirmala Sitharaman seeks global help to nab smuggling masterminds

Export-import frauds threaten the global supply chain and are inimical to economic and national security

India needs its own P&I entity for maritime, says FM Nirmala Sitharaman

Addressing the Global Maritime India Summit 2023, the finance minister said that such an entity would provide greater strategic flexibility to India's shipping operations

Capabilities, legal systems needed for arbitration on maritime sector

Finance Minister Nirmala Sitharaman on Thursday called for developing capabilities and legal systems, so that the country can have an international arbitration centre for the maritime sector. Addressing the final day of the three-day global maritime summit here, the minister said, while there are many Indians working in international arbitration centres in London or Singapore or Dubai, they are all just helping the senior lawyers there and not leading a case. This needs to change and can change, she said. But there is a need to improve and strengthen our arbitration processes and laws so that they meet global standards, the minister said, adding that "when we have developed a system for this we can also have an arbitration centre". On the need to improve financing to the maritime sector, she admitted that despite having a strong balance sheet, banks are not very enthused about funding this sector, largely due to higher risks this sector is associated with. Sitharaman said she is i

Best of BS Opinion: Olympian ideals, land leasing needs a sound law & more

Here is the best of Business Standard's opinion pieces for today

Work in progress

Multilateral bank reforms will need more effort

FM Sitharaman urges private sector to come forward and support SDGs

Finance Minister Nirmala Sitharaman on Saturday urged the private sector to come forward and support the Sustainable Development Goals (SDGs) saying it is the collective responsibility of all stakeholders to participate and contribute in this endeavour. Speaking at an event organised on the sidelines of the IMF-World Bank Annual meetings at Marrakesh in Morocco, the minister exuded confidence that MDB reform process emanating from the G20 deliberations will prompt multilateral development banks (MDBs) to maximise investments into developing nations. The 17 SDGs adopted by United Nations member states in 2015 were aimed at addressing a wide range of social, economic, and environmental challenges by 2030, she said. "India under its Presidency has called upon all G20 members to collectively resolve to fully and effectively implement the 2030 Agenda and accelerate progress toward the SDGs, in a timely manner," Sitharaman said. Observing that the SDGs provide a shared blueprint for peac

No central team to be allowed to survey land for canal in Punjab: FM Cheema

No central team will be allowed to survey land for the SYL canal in Punjab, Finance Minister Harpal Singh Cheema said on Saturday. Cheema, who met reporters after a Cabinet meeting, was asked if the Punjab government had received any intimation about a likely central team visit to conduct a survey. "We have not received any information in this regard yet," the AAP leader said and added that if any central team arrives in the state, the Punjab government will strongly oppose the visit and not allow a survey. Cheema's response follows Shiromani Akali Dal leader Prem Singh Chandumajra claiming on Friday that central survey teams would arrive in Punjab on November 1. "We have learnt that central survey teams are expected to come to Punjab on November 1," Chandumajra had said. The Sutlej Yamuna Link (SYL) canal was conceptualised for effective allocation of water from the Ravi and the Beas rivers. The project envisages a 214-kilometre canal, of which a 122-kilometre stretch is to be ..

FM Sitharaman pitches for strong, quota-based and adequately resourced IMF

Finance Minister Nirmala Sitharaman on Saturday made a case for a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net and climate action. The 16th General Review of Quotas (GRQ) is expected to provide greater say to developing economies in the International Monetary Fund (IMF). As per an IMF resolution, the 16th GRQ should be concluded by December 15, 2023. Any adjustment in quota shares would be expected to result in an increase in voting rights of emerging countries in line with their relative positions in the world economy. Participating in a breakfast meeting of the IMF Board of Governors on the theme of 'Dialogue on Policy Challenges' in Marrakesh, Morocco, Sitharaman expressed concerns with regard to slowdown in global growth. However, she said, India continues to be the fastest growing large economy with a growth of 7.8 per cent during the first quarter of 2023-24. With regard to escalating global debt vulnerabilities, she ...

World Bank needs headroom to help low-income countries, says G20

Addressing a press conference, Finance Minister Nirmala Sitharaman said the members appreciated the work of the Independent Expert Group (IEG) and welcomed the report

G20 ministerial for swift implementation of roadmap to deal with crypto

The G20 Roadmap on Crypto Assets adopted by the G20 Finance Ministers was spelt out in a Synthesis Paper prepared jointly by the International Monetary Fund (IMF) and Financial Stability Board (FSB)