Page 40 - Finance Ministry

Global uncertainty, domestic disruption to keep inflation elevated: FinMin

The finance ministry on Tuesday said the inflation in food items is likely to be transitory as preemptive measures by the government and arrival of fresh crops will cool prices, even though global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months. In its Monthly Economic Review for July, the ministry said going forward, while domestic consumption and investment demand are expected to continue driving growth, enhanced provision for capital expenditure by the government in the current fiscal is now leading to crowding in of private investment. The consumer price index based retail inflation spiked to a 15-month high of 7.44 per cent in July 2023, with specific food commodities mainly driving the increase. Core inflation, however, stayed at a 39-month low of 4.9 per cent. Cereals, pulses and vegetables exhibited double-digit growth in July compared to the corresponding period last year. Disruption in domestic production also aggravated

Inflation pressures warrant government, central bank vigilance: FinMin

The ministry's comments come weeks after data showed retail inflation in July rose to its highest in 15 months, as vegetable and cereals prices skyrocketed

Price pressure in food items to be transitory, says finance ministry

The finance ministry of Tuesday said the inflation in food items is likely to be transitory as preemptive measures by the government and arrival of fresh crops will cool prices, even though global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months. In its Monthly Economic Review for July, the ministry said going forward, while domestic consumption and investment demand are expected to continue driving growth, enhanced provision for capital expenditure by the government in the current fiscal is now leading to crowding in of private investment. The consumer price index based retail inflation spiked to a 15-month high of 7.44 per cent in July 2023, with specific food commodities mainly driving the increase. Core inflation, however, stayed at a 39-month low of 4.9 per cent. Cereals, pulses and vegetables exhibited double-digit growth in July compared to the corresponding period last year. Disruption in domestic production also aggravated

Finance Commission expected to be constituted by November end: Finance secy

The government is expected to constitute the 16th Finance Commission by end of November, finance secretary T V Somanathan said. Finance Commission is a constitutional body that gives suggestions on Centre-state financial relations. It suggests, among other things, the ratio in which tax is to be divided between the Centre and states for five years, beginning April 1, 2026. "The Finance Commission is expected to be constituted by end of November because that's the statutory requirement," he told PTI in an interview. Terms of Reference (ToR) for the commission is being finalised, he said. The previous Finance Commission submitted its report on November 9, 2020, for the 5 fiscals -- 2021-22 to 2025-26 -- to the President. The 15th Commission under N K Singh had kept the tax devolution ratio at 42 per cent -- at the same level suggested by the 14th Commission. The central government accepted the report of the commission, and accordingly, the states are being given 42 per cent of the

Vegetable prices likely to cool down next month, says FinMin official

The government expects vegetable prices to start cooling off from next month with the advent of new crops in the market, but rising crude oil prices is a concern even though it is still within the tolerable zone of USD 90 a barrel, a finance ministry official said. The official further said that reduction in excise duty is not on cards and the government is driving infrastructure investment, and private sector capital investment is yet to gather steam. He further said that the Centre's capital expenditure which was 28 per cent of Budget estimates at the end of June quarter, will reach 50 per cent by September end. In the 2023-24 budget, the government had hiked capital investment outlay by 33 per cent to Rs 10 lakh crore in the current fiscal. The official further said that a 6 per cent rainfall deficit is unlikely to impact kharif sowing as the agriculture sector is resilient. The government has been taking steps to control inflation, including releasing wheat and rice stocks from

Framework in works to make GIFT City global hub for accounting: Sitharaman

Union Finance Minister Nirmala Sitharaman on Saturday said a comprehensive legal framework will soon be in place to enable accounting, auditing and taxation professionals to provide services from GIFT City, turning it into a global hub for accounting and financial back-office functions. Chairing a review meeting on the growth and development of GIFT-IFSC at Gujarat International Finance Tec-City (GIFT City), Sitharaman also emphasised using the maximum potential of the Indian International Bullion Exchange IFSC (IIBX) -- launched here in 2022 -- in ensuring disintermediation and efficient price discovery. She asked the Reserve Bank of India to pilot the import of tariff rate quota (TRQ) gold under the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates through IIBX to pave the way for Indian banks efficiently using the IIBX platform, an official release stated. The Union minister exhorted both the International Financial Services Centres Authority (IFSC

Jan Dhan accounts cross 500 mn mark in less than 9 years: Finance ministry

The total number of Jan Dhan accounts in the country has crossed 50 crore-mark, with 56 per cent of the accounts belonging to women, the finance ministry said on Friday. About 67 per cent of these accounts have been opened in rural and semi-urban areas, it said in a statement. The total deposits in these accounts are above Rs 2.03 lakh crore while around 34 crore RuPay cards have been issued with these accounts free of cost. The average balance in Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts is Rs 4,076 and more than 5.5 crore of these are receiving Direct Benefit Transfer (DBT), it said. The National Mission on Financial Inclusion -- popularly known as PMJDY -- which was launched on August 28, 2014, has been successful in changing the financial landscape of the country, it added. PMJDY offers multiple advantages to account holders such as a bank account without the requirement of a minimum balance, free of cost RuPay debit cards with in-built accident insurance of Rs 2 lakh, a

Ensure smooth implementation of PM Vishwakarma scheme: FinMin to PSBs

Under the scheme, the government will provide credit support of up to Rs 1 lakh for the first tranche and Rs 2 lakh for the second tranche at an interest rate of 5 per cent

Number of Jan Dhan accounts crosses the 500 million mark, shows data

The average balance in PMJDY accounts stands at Rs 4,076, and over 55 million PMJDY accounts are receiving Direct Benefit Transfer (DBT) benefits

Railways seeks finance ministry's help in addressing pension liabilities

FinMin had earlier rejected the request; Railways had met pension needs for FY23 from its own funds

Contract reform seeks to settle disputes, make doing business easier

Second edition of the Vivad Se Vishwas scheme nudges government officers not to pursue adverse arbitration orders endlessly

FinMin to hold Chintan Shivir in Gujarat, discusses roadmap for India 2047

The finance ministry will organise a two-day Chintan Shivir in Gujarat starting from August 20 to discuss various issues, including the roadmap for India to become a developed nation by 2047, officials said on Monday. Secretaries and senior officials from the six departments in the finance ministry and the corporate affairs ministry will attend the two-day session that will be held at Kevadia. Finance minister Nirmala Sitharaman will address the meeting on August 21. The Chintan Shivir, which is being held days before the G20 Leaders' Summit, will also see separate sessions on various agenda being pursued under India's Presidency. India is currently holding G20 Presidency and the Summit meeting is scheduled to be held on September 9-10 in the national capital. Prime Minister Narendra Modi has given a clarion call to make India a developed country by 2047 -- the 100th year of its independence. In the nine years of the Modi government, the Indian economy has moved from being the te

Direct tax collections rise 16% to Rs 6.53 trillion till Aug 10: I-T dept

Gross direct tax collection grew 15.73 per cent to Rs 6.53 lakh crore till August 10 in the current fiscal, the Income Tax department said on Friday. Net direct tax collection after adjusting refunds stands at Rs 5.84 lakh crore, which is 17.33 per cent higher than the net collections for the corresponding period of last year. "The provisional figures of direct tax collections up to 10th August, 2023 continue to register steady growth," the Central Board of Direct Taxes (CBDT) said in a statement. The collection is 32.03 per cent of the total budget estimates of direct taxes for current fiscal 2023-24. Refunds amounting to Rs 69,000 crore have been issued till August 10, which are 3.73 per cent higher than refunds issued during the same period in the preceding year.

FM Sitharaman exhorts int'l community to help debt-saddled countries

Union Finance Minister Nirmala Sitharaman on Friday pitched for greater coordination among the international community to address the challenges faced by debt-saddled low and mid-income countries. Addressing a seminar on the global economy organised as part of the finance track of India's G-20 presidency, Sitharaman said such a move can help shield vulnerable populations from economic hardships. "The international community must collaborate and find stronger ways to coordinate debt restructuring, for low-income and vulnerable middle-income countries facing debt distress," the finance minister said in a video address. She said as part of the Indian presidency of the top economies' grouping, the country has placed great importance on the management of global debt vulnerabilities because of its commitment to be the voice of the global south. The finance minister said the G-20 finance track has discussed the issue of debt challenges in vulnerable economies which present "significant ..

Sri Lanka now offers many opportunities to Indian investors: Lankan FM

Sri Lanka has outperformed the IMF targets with the country becoming revenue surplus and the country is offering many opportunities for Indian investors, the island nation's Minister of Finance Shehan Semasinghe said on Thursday. The Minister, in Prime Minister Dinesh Gunawardena's cabinet, said the Sri Lankan government has commenced negotiations to join the Regional Comprehensive Economic Partnership (RCEP). "Compared to the IMF target for the quarter, we have outperformed the set targets with the country's revenue now in surplus in the first quarter of 2023," he said at an event organised by CII. 2023 is "very crucial" for the island nation as the International Monetary Fund is scheduled to hold its review meeting in September, he said. "We are introducing the Public Finance Management Act by December 2023 and other legislation bringing in robust fiscal rules and disciplines on fiscal transparency," he said. "In one of the many firsts, our government has commenced negotiations

Finance ministry cautions people against 'matrimonial dating scam'

The Ministry of Finance said that customs will never call or send a text message asking people to pay customs duty through a personal bank account

India's anti-dumping duty impositions drop amid post Covid-19 shift

The Indian government's stance on anti-dumping duties has seen a decrease in the acceptance of recommendations from the DGTR, particularly concerning goods from China

Govt lost Rs 1 trn in taxes in FY21 due to corporate tax cut: MoS Fin

The government lost a little over Rs 1 lakh crore in 2020-21 on account of a cut in corporate taxes, Minister of State for Finance Pankaj Chaudhary said on Tuesday. In September 2019, the government announced a cut in base corporate tax for then existing companies to 22 per cent from 30 per cent; and for new manufacturing firms, incorporated after October 1, 2019, to 15 per cent from 25 per cent. Companies opting for these new tax rates had to forego all exemptions and incentives. The effective tax rate for existing units, after considering surcharges and cess -- such as Swachh Bharat cess and education cess, which are levied on top of the income and corporate tax rates -- is 25.17 per cent as compared to 34.94 per cent earlier. For new units, it is 17.01 per cent as against 29.12 per cent previously. In a written reply in the Rajya Sabha, Chaudhary had said the estimated revenue loss (due to reduction in corporate tax) in FY 2020-21 has been reestimated to be Rs 100,241 crore. In

CAG asks FinMin to put in place online Customs refund system for efficiency

The Comptroller and Auditor General (CAG) has asked the Finance Ministry to consider having an online system for processing customs refunds along the lines of the GSTN system to make it more efficient. The official auditor has also flagged "inordinate delays" in the implementation of the module for daily updation of exchange rate and asked to make the system operational at the earliest. Under the Customs Act, refunds can be claimed in cases where the imported goods are found to be defective or not in conformity with the specification agreed upon, when the goods are exported after payment of the export duty/cess and the exported goods are returned to the exporter. A refund can also be claimed by a person who has paid duty on assessment of imported goods and applies for refund of duty consequent on remission /abatement of duty due to pilferage/damage of goods. "The Ministry may consider having an online workflow for capturing and processing refunds on the lines of the GSTN System so

14,277 GST appeals pending against disputed tax demands by authorities

As many as 14,227 appeals against disputed tax demands raised by Central GST authorities are pending as of June 2023, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said the 49th meeting of the GST Council had approved the setting up of GST Appellate Tribunals across the country. "It has been planned to establish the State benches in a phased manner based on the request of states," the Minister said in a written reply in the Lok Sabha. He also gave details of the number of GST appeals against demands by Central GST authorities pending at various levels. During 2023-24 (up to June 2023), 14,227 appeals were pending. The number was gone up from 11,899 pending appeals as of March 2023. Setting up of GST Appellate Tribunal benches in states would help in faster dispute resolution. Currently, taxpayers aggrieved with the ruling of tax authorities are required to move the respective High Courts. The resolution process takes longer time as High Courts a