Page 5 - Finance Ministry

Prebudget meetings for FY27 to start on October 9, Finance Ministry says

The Finance Ministry issued the Budget circular for FY27 announcing prebudget meetings from October 9 to mid-November to review expenditure needs and receipts of ministries

RBI inflation target review, liquid MFs' demand rises, S&P's sovereign rating India upgrade & more

The RBI has floated a discussion paper, seeking views on whether the 4% target should continue, if headline or core inflation should be tracked, and whether the current ±2% band should be tweaked.

MFIs raise loan-waiver concerns with RBI, finance ministry ahead of polls

Bihar, Assam, Kerala, Tamil Nadu and West Bengal - which go to polls between the latter half of 2025 and the early part of 2026 - account for 42 per cent of microfinance institutions' (MFIs) portfolio

GoM backs GST rejig; states flag risk to revenue ahead of Council meet

The GoM of state finance ministers endorsed the Centre's proposal for a two-tier GST structure with 5 and 18 per cent slabs and a 40 per cent levy on sin and luxury goods

Finance ministry asks PSBs to broaden credit focus amid tariff woes

"PSBs have been told to focus on credit growth across loan sizes, especially in core engineering, manufacturing, agriculture, MSMEs, and startups," the official said

FinMin reviews Q1 performance of PSBs, urges higher lending to economy

The finance ministry on Wednesday held a meeting of heads of public sector banks (PSBs) to review their first-quarter financial performance. The three-hour-long meeting was chaired by Financial Services Secretary M Nagaraju. During the meeting, the secretary urged the MDs and CEOs of state-owned banks to increase lending towards the productive sector of the economy, according to sources. The review meeting with public sector banks assessed the performance of the first quarter of 2025-26. Led by State Bank of India (SBI), public sector banks, cumulatively, logged a record profit of Rs 44,218 crore in the first quarter of the current fiscal, with an 11 per cent year-on-year growth. All 12 public sector banks together made a profit of Rs 39,974 crore in the June quarter of FY25. The increase in profit in absolute terms was Rs 4,244 crore. Market leader SBI alone contributed 43 per cent to the total earnings of Rs 44,218 crore, as per the published numbers on stock exchanges. SBI lo

Govt likely to revive anti-profiteering rules under GST 2.0 overhaul

Anti-profiteering provisions were first introduced in 2017, when GST replaced multiple indirect taxes and several items had lower tax incidence

Parliamentary panel for export policy reset, manufacturing focus

The Standing Committee on Finance urges recalibrating India's export strategy with a focus on manufacturing competitiveness, AI, market diversification, and addressing geopolitical uncertainties.

Traders likely to keep input tax credit on old stocks in GST revamp

The GST Council is also likely to update the tax administration system to ensure a smooth transition and shield businesses from additional costs

Centre released ₹36,000 cr to states so far under special assistance scheme

The Centre has disbursed ₹36,027 crore to states and UTs under SASCI till August 11, with Uttar Pradesh receiving the highest share, followed by Bihar, Rajasthan and MP

As many as 409 firms operating from IFSC GIFT City: FM informs Parliament

As many as 409 companies are operating in Gujarat International Finance Tec City - International Financial Services Centre (GIFT IFSC) as on July 31, 2025, Parliament was informed on Monday. "Between October 1, 2020 and July 31, 2025, the number of such companies has grown from 82 to 409. Further, banking, asset management and other financial ecosystems have been included and enabled in GIFT IFSC," Finance Minister Nirmala Sitharaman said in a written reply in the Lok Sabha. Over the last 5 years, the government has provided several progressive policy measures for development of GIFT IFSC, such as - setting up of International Financial Services Centres Authority (IFSCA) as a unified statutory regulator for development and regulation of International Financial Services Centres (IFSCs) in India, she said. To further enhance ease of doing business in GIFT IFSC, the government has also delegated powers of Development Commissioner under the Special Economic Zones (SEZ) Act, 2005 to ...

FinMin to meet CEOs of PSBs on August 20 to review Q1 performance

The finance ministry has called a meeting of heads of public sector banks (PSBs) on Wednesday to review the first-quarter financial performance. The meeting is scheduled to be chaired by Financial Services Secretary M Nagaraju. The review meeting on August 20 with public sector banks to assess the performance of the first quarter of 2025-26, according to sources. Led by State Bank of India (SBI), public sector banks, cumulatively, logged a record profit of Rs 44,218 crore in the first quarter of the current fiscal, with an 11 per cent year-on-year growth. All 12 public sector banks together made a profit of Rs 39,974 crore in the June quarter of FY25. The increase in profit in absolute terms was Rs 4,244 crore. Market leader SBI alone contributed 43 per cent to the total earnings of Rs 44,218 crore, as per the published numbers on stock exchanges. SBI logged a net profit of Rs 19,160 crore in Q1 FY26, 12 per cent higher than the same period of the previous fiscal. In terms of siz

Two-slab 'Next Gen GST' to pay way for single tax rate by 2047: Centre

Describing the proposed GST tax reforms as Next Gen GST', senior government officials on Saturday said that the two-slab tax regime will eventually pave the way for a single sales/services tax rate, hopefully by 2047. They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats. The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the goods and services tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs. Calling it the "next Gen GST', one government official said "it is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there." The officials spoke on condition of anonymity. They said the new structure would mean that almost all of the common use items will move to the lower tax bracket, leading to price cuts, which in turn would boost consumption. "Lower

'Double Diwali': Rejigged rates, red tape cuts to define GST 2.0

The proposal was announced by the prime minister Narendra Modi from the ramparts of the Red Fort in his independence day speech as a Diwali gift

No, Minister: Subhash Chandra Garg's 2nd memoir mirrors tone of his first

The tenor of the second part of former finance secretary Subhash Chandra Garg's memoir is not dissimilar to that which pervaded his first one --and the title is a dead giveaway

World is witnessing trade policy dislocation, says finance ministry

Presence of risks to world economy make medium term fiscal projections difficult, the ministry emphasised

Parl panel urges FinMin to expedite full enforcement of GSTAT benches

A parliamentary committee has asked the finance ministry to adopt a "time-bound" approach and "actively pursue and coordinate" with all states to make Goods and Services Tax Appellate Tribunal (GSTAT) benches fully functional across the country. GSTAT is a crucial body for resolving Goods and Services Tax (GST) related disputes and significantly reducing the burden on higher courts. The government has notified the principal bench, to be located at New Delhi, and 31 state benches at various locations across the country. In May last year, the government had appointed Justice (Retd) Sanjaya Kumar Mishra as the first President of the GST Appellate Tribunal (GSTAT). The government shall appoint the members in GSTAT on the recommendations of a search-cum-selection committee. The Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, in its report expressed 'concern' over GSTAT benches not being fully operational nationwide. Significant delays persist in appointment of Memb

PSBs face FinMin heat over delay in release of customers' property docs

State Bank of India has 18,000 pending cases and Bank of Baroda has around 1,000 cases, said the official. The two companies had not responded to Business Standard's emails till Friday evening

Why are GCCs in India, touted as the next big thing, in a tax tangle?

The key problem, say tax experts, lies in the classification of GCCS and what they do: while tax authorities look at the share of operational work done in India

Inflation likely to be below RBI's target in FY26: FinMin review

The finance ministry's June 2025 review says inflation could fall below the RBI's 3.7% target, providing scope for further easing, though credit growth remains weak