Page 65 - Finance Ministry

Railway asset monetisation through Rs 18,000 cr InvIT unlikely in FY23

Both the finance ministry and Union cabinet have recently come down heavily on railways and asked it to expedite its monetisation efforts

Sale of machine made or polyester national flag exempt from GST: FinMin

Hand-woven, hand-spun national flags made of cotton, silk, wool or Khadi are already exempt from GST.

FM meets heads of PSU banks, asks them to ensure credit flow to KCC holders

Finance Minister Nirmala Sitharaman on Thursday urged public sector banks to ensure smooth flow of credit to Kisan Credit Card (KCC) holders to boost rural incomes. During the half-day long meeting with the CEOs of public sector banks, she also asked them to help Regional Rural Banks (RRBs) in technology improvement. After the meeting, Minister of Fisheries, Animal Husbandry and Dairying Parshottam Rupala said the finance minister reviewed the Kisan Credit Card (KCC) scheme and discussed how institutional credit can be made available to the segment. "The meeting was presided over by the finance minister and the issuance of Kisan Credit Card to all those engaged in fishing and dairying sector was discussed. "In another session on Regional Rural Banks, it was decided that the sponsor bank should help them in digitalisation and technology improvement," Minister of State for Finance Bhagwat K Karad said. RRBs, which play an important role in agriculture credit, are sponsored by publi

Revenue deficit grant of Rs 7,183 cr released to 14 states: FinMin

Finance ministry on Wednesday released the fourth instalment of revenue deficit grant of Rs 7,183 crore to 14 states for the current fiscal. The states for which Post Devolution Revenue Deficit Grant has been recommended by the 15th Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal. "The Department of Expenditure has on Wednesday released the 4th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 7,183.42 crore to 14 states," the ministry said in a statement. The 15th Finance Commission has recommended a total PDRD Grant of Rs 86,201 crore to 14 states for the financial year 2022-23. The grant is released in 12 equated monthly instalments. The ministry said that with the release of the fourth instalment for the month of July 2022, the total amount of PDRD grants released to the states in 2022-23 stands at Rs 28,733.67 ...

What RBI's letter to govt on missing inflation target is likely to contain

Failure to keep inflation between 2-6% for three straight quarters will require RBI Governor to explain to FinMin why target was missed, and steps MPC will take to achieve it going forward

FinMin extends duty exemption on raw cotton imports till October 31

The finance ministry has extended the exemption of customs duty on raw cotton imports by a month till October 31. On April 14, the ministry had given exemption from the duty and Agriculture Infrastructure Development Cess (AIDC) till September 30, 2022, for import of cotton to lower prices in the domestic market. In a notification dated July 4, the ministry extended this till October 31, 2022. Amid rise in cotton and yarn prices, the textiles ministry had been pitching for an extension of the duty waiver beyond September. Industry too had been demanding extension of the duty-free import of cotton. Before April 14, raw cotton imports attracted 5 per cent Basic Customs Duty (BCD) and an equal percentage of AIDC. The exemption from duty would benefit the textile chain -- yarn, fabric, garments and made-ups -- and provide relief to consumers. Cotton prices have increased from Rs 44,500 per candy in February, 2021, to Rs 90,000 per candy in March 2022. Each candy weights 356 kilogram.

New infrastructure finance secretariat to boost capacity, financing

The new framework is expected to be out by the end of this calendar year

Highest 28% GST on luxury, sin goods to continue: Revenue Secretary

On the industry demand for bringing petroleum products under GST net, Tarun Bajaj said since fuel constitutes a larger part of their revenues, both the Centre and states have some apprehension

Don't stipulate solvency ratio for public sector general insurers: FinMin

Department of Financial Services under the Ministry of Finance requested other Ministries not to include solvency ratio as a criterion for participation of public sector general insurers in tenders

No GST compensation: Will the Centre find another way to give states money?

It is also important to see which states can finance a reasonable portion of their regular expenditure with their own revenue

Twin deficit problem: What does it mean and how does it affect an economy?

The finance ministry recently said that India is at low risk of stagflation. But it also cautioned about a twin deficit problem that India may face. This report tells us what it means

GST: Tech use to plug revenue leaks, Rs 1.3 trn monthly tax 'new normal'

As the government releases the June GST collection numbers on July 1, it is widely expected that the collections will follow the past four months' trend and be around Rs 1.4 lakh crore

GST Council meet: The Goose Point Theorem for rate rationalisation

The real issue before taxation lies in identifying the Goose Point and the way goes through 'neutral goods'

Assessing & delivering bad news on economy no longer taboo in FinMin

Change in mindset has been brought on by Chief Economic Advisor V Anantha Nageswaran who has ensured that discussions on the economy are now much more data-driven and without bluster

47th GST Council meet: Here's what became expensive after Tuesday meeting

The GST Council today is expected to take up extending compensation to the state

GST Council: Stormy discussion around states' compensation likely today

States will demand an extension of the compensation period or a change in the GST revenue distribution formula

Top headlines: 28% tax on online gaming, Dish TV-YES Bank tussle, and more

Business Standard brings you the top headlines at this hour

Finance Ministry permits state-owned NBFCs to issue letter of comfort

Modifying its earlier order, the finance ministry has permitted state-owned NBFCs to issue 'Letter of Comfort (LOC)' to banks for for fund tie-up for infra projects. Earlier in March, the finance ministry had asked other ministries and departments not to issue 'Letter of Comfort' to any hired entity for undertaking projects on their behalf, as part of efforts to improve transparency in fiscal management. "In view of the foregoing and considering that the CPSE-NBFCs are important players in the infrastructure sector, it has been decided that CPSE NBFCs may issue LOCs," an office memorandum issued by the finance ministry dated June 10 said. The memorandum posted on the the finance ministry website on Monday laid down certain conditions which include that lender should be a NBFC (Non-Banking Finance Company) registered with RBI. NBFCs should be involved in infrastructure sector and LOCs should be provided by banks only for opening letter of credit for supply of goods and services by .

FinMin asks banks to explore fintech partnership, co-lending opportunities

The Finance Ministry has asked public sector banks to explore fintech partnerships and co-lending opportunities to expand their business

Dept of Expenditure warns against extending the free food scheme: Report

In an internal note, the FinMin's Dept of Expenditure has warned that extension of the free food scheme beyond September or any more tax cuts will have consequences for the Centre's fiscal situation