Page 11 - Finance Ministry

Govt forgone ₹99K cr in FY24 due to corporate tax incentives: MoS Finance

The government is estimated to have forgone around Rs 99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives extended to corporates, Minister of State for Finance Pankaj Chaudhary said on Tuesday. Corporate tax rates have been gradually reduced since 2016 while phasing out the exemptions and incentives. In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone due to the tax incentives by way of various deductions in corporate tax, from FY 2019-20 to 2023-24. The corporate tax revenue foregone in 2023-24 stood at Rs 98,999, followed by Rs 88,109 crore and Rs 96,892 crore in 2022-23 and 2021-22, respectively. In 2020-21 and 2019-20, the total corporate tax revenue foregone was Rs 75,218 crore and Rs 8,043 crore respectively. The minister was replying to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25, and for the financial year (2024-25). Estimated

Govt ups engagement with rating agencies to show economic strength: FinMin

The government has strengthened its engagement with global rating agencies through a structured interactive process, during which the overall macroeconomic scenario is highlighted before them, Parliament was informed on Tuesday. Sovereign credit rating agencies such as S&P, Fitch, and Moody's have assigned India the lowest investment-grade rating. Moody's Ratings has assigned a 'Baa3' rating on India, with a 'stable' outlook, while S&P Global Ratings has a 'BBB-' with a 'positive' outlook. Fitch rates India at 'BBB-' with a 'stable' outlook, while Morningstar DBRS in May upgraded India's rating to 'BBB', with a stable trend. In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the government has made sustained efforts to strengthen India's overall economic outlook, thereby positively impacting its credit profile. These include maintaining sound macroeconomic fundamentals, such as steady growth, price stability, fiscal consolidation, a ...

FinMin looks to widen infrastructure plans for capital expenditure push

Experts say that, given the higher capital spending by the Centre in April-May of FY26, there is room to raise the capex target beyond the budgeted ₹11.2 trillion

Delhi to receive Rs 600 cr Central funds under special assistance scheme

Delhi Chief Minister Rekha Gupta said the funds will be used to accelerate development projects across the city

India needs tax breaks, startup push to lead global wellness tourism

KPMG-FHRAI report projects India's medical tourism to reach $58.2 bn by 2035, calls for tax incentives, global branding and startup support to drive growth

From educator to minister, FM Nirmala Sitharaman opens up on her journey

Finance Minister Nirmala Sitharaman, in a candid conversation in Shillong, reflects on her journey in education, personal values, North East development, and governance

Govt to give best of attention to promote GCCs: FM Nirmala Sitharaman

Finance Minister Sitharaman says the Centre will offer tax, legal and administrative support to boost GCCs in India and guide states to develop hubs in tier 2 cities

Refunds account for 17.6% of India's gross tax collections in FY25

Tax refunds in FY25 accounted for 17.6% of gross collections, a sharp rise from FY14. The average time to process refunds dropped to 17 days in 2024, compared to 93 days in 2013

Finance ministry seeks Claims portal control from health ministry

The department of financial services, under the ministry of finance has sought the Prime Minister's Office (PMO) regarding the same

Govt may bring health claims portal under FinMin to tackle inflated costs

The move is aimed at strengthening oversight of the portal and improving transparency in pricing and billing practices across the health insurance sector, Reuters reported

FinMin directs public sector banks to evaluate board performance

"Independent third-party board evaluations are a widely accepted global practice, and India has only recently begun adopting them," remarked S. Krishnan

Govt extends NPS-like tax benefits to Unified Pension Scheme staff: FinMin

In a bid to promote Unified Pension Scheme, the government has made necessary changes to provide tax benefits to employees opting for UPS at par with those under National Pension System (NPS). The inclusion of UPS under the tax framework marks another step forward in the government's effort to strengthen retirement security for central government employees through transparent, flexible and tax-efficient options, the finance ministry said in a statement. "The government has decided that tax benefits as available under NPS would apply mutatis mutandis to UPS as it is an option under NPS," it said. These provisions ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS. The finance ministry through a notification dated January 24, 2025 had notified introduction of the UPS as an option under NPS for the recruits to the central government civil service with effect from April 1, 2025, giving one-time option to the .

FinMin pushes PSBs to expand branches amid private sector competition

Amid rising competition from private and small finance banks, PSBs have been asked to scale up physical infrastructure and cover over 200 unbanked population clusters

Small savings rates unchanged for sixth straight quarter from July 1

Interest rates for the popular PPF and post office savings deposit schemes are also unchanged at 7.1 per cent and 4 per cent, respectively

EVs, defence, RE sectors face rare earth risks, says finance ministry

Finance ministry's May 2025 review notes easing inflation and strong GDP growth, but flags upside risks from global conflicts, oil prices and investor sentiment shifts

FinMin working to double the life insurance cover under the PMJJBY

As part of this revamp, a revision in premiums is also under consideration

Finance Minister urges PSU banks to boost credit growth, maintain profits

Finance Minister Nirmala Sitharaman on Friday asked public sector banks (PSBs) to take advantage of Reserve Bank's jumbo 50 basis points rate cut to increase lending toward productive sectors of the economy. During a meeting to review financial performance of PSBs, Sitharaman asked their chiefs to maintain profitability momentum in FY26, sources said. Cumulative profit of 12 PSBs rose to record Rs 1.78 lakh crore in FY25, registering a growth of 26 per cent over the previous year. The year-on-year increase in profit in absolute terms was about Rs 37,100 crore in FY25. According to sources, the minister expected that PSBs credit growth should improve post 50-bps rate cut by RBI. Banks were also directed to try maintain the FY25 credit growth level or increase during the current financial year. On June 6, the RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra lowered the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. It also slashed

Govt urges state-run banks to boost lending amid economic growth push

Financial Services secretary M. Nagaraju said banks were also urged to boost credit to small businesses and improve deposit mobilisation, following a review meeting chaired by FM Nirmala Sitharaman

BCs seek meeting with finance ministry to break deadlock over remuneration

Industry representatives for business correspondents point out that there is pressure from banks to raise deposits, despite the fact that the BC channel has already overtaken branches in doing so

FinMin may bring cheques, credit cards, higher overdrafts in PMJDY 2.0

The official said that the government believes that these upgrades will also help reduce the number of inoperative accounts