Page 6 - Finance Ministry

Finance ministry to kick-start FY27 Budget making exercise from October 9

The finance ministry will kick-start the exercise to prepare the annual budget for 2026-27 from October 9 in the backdrop of geopolitical uncertainties and the steep US tariff of 50 per cent imposed on shipments from India. The budget for the next year will have to address issues of boosting demand, job creation and putting the economy on a sustained 8 per cent-plus growth path. The government estimates the Indian economy to grow in the range of 6.3-6.8 per cent during the current financial year. "Pre-budget meetings chaired by Secretary (Expenditure) shall commence from October 9, 2025," according to the Budget Circular (2026-27) of the Department of Economic Affairs. "Financial advisers should ensure that the necessary details required in the appendices I to VII are properly entered...before or latest by October 3, 2025. Hard copies of the data in the specified formats should be submitted for cross-verification," the circular added. The Budget Estimates for 2026-27 will be ...

Next gen GST reforms will set economy open and transparent: Sitharaman

The next generation GST reforms would 'absolutely' set an economy open and transparent with further reduction in compliance burden and benefiting small businesses, Union Finance Minister Nirmala Sitharaman said on Tuesday . She was speaking at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank, where President Droupadi Murmu was the chief guest. Sitharaman said Prime Minister Narendra Modi recently announced the creation of a Task Force for next generation reforms with a clearer mandate to simplify regulations, lower compliance costs and also build a more enabling ecosystems for startups, Micro, Small and Medium enterprises and entrepreneurs. "Complementing this, the planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive" Sitharaman said.

Account Aggregator ecosystem driving credit access, says Finance ministry

Account Aggregator ecosystem is poised to unlock new frontiers in formal credit access, especially for MSMEs and personal lending, contributing meaningfully to India's journey towards Viksit Bharat by 2047, the Finance Ministry said on Tuesday. The Account Aggregator (AA) framework was officially launched on September 2, 2021, establishing a secure, consent-based system for financial data sharing. In 2016, the Reserve Bank of India issued the Master Directions for the AA ecosystem. On the occasion of the 4th anniversary, the ministry in a statement said, the AA ecosystem has grown rapidly and is witnessing accelerated adoption across banking, securities, insurance and pension sectors, strengthening India's DPI (digital public infrastructure). As on date, 112 Financial Institutions have gone live both as Financial Information Providers (FIP) and Financial Information Users (FIU), while 56 have gone live solely as FIP and 410 as FIU, it said. Over 2.2 billion financial accounts are n

TCA Kalyani takes charge as Controller General of Accounts, Finance

T.C.A. Kalyani, a 1991-batch ICAS officer, has been appointed Controller General of Accounts, bringing her 34 years of experience in key ministries to the Finance Ministry

FinMin, MeitY assure transition period for Online Gaming Act compliance

Govt to provide transition period for banks and fintechs under Online Gaming Act 2025; compliance clarity to come once rules are notified

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