IndiaCatalog.com
India News
Search Web Directory
News Home
Government duty bound to achieve fiscal deficit of 3% as per law: Finance Minister Nirmala Sitharaman
Posted on 8th July 2019
Assuring that all the numbers mentioned in the Budget are realistic and achievable, Finance Minister Nirmala Sitharaman said as a government minister she is duty bound to follow glide path to achieve fiscal deficit target of 3% as per the law.

In the Budget presented on Friday, the government lowered the fiscal deficit target to 3.3% of the GDP for 2019-20 as compared to 3.4% projected in the interim Budget in February.

"I am a government Minister. There is a law under FRBM where we have committed ourselves for the gliding path for the adherence to achieving 3% (fiscal deficit) limit set on me. Till such time the law exists, I have to comply," Sitharaman said.

The Centre has committed to reduce the fiscal deficit -- the gap between total expenditure and revenue -- to 3% of the gross domestic product (GDP) by 2020-21, and eliminate the primary deficit as per the Fiscal Responsibility and Budget Management (FRBM) Act.

Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit.

On the narrative of fiscal relaxation to boost growth, she said, "I would happily join the debate either this way or that way to say should we for a country like India have obsession with 3% (fiscal deficit)...Even now it is a debate. It has not come to the extent of changing FRBM law and permitting fiscal relaxation yet."

She further said that all the figures mentioned in the Budget are realistic and reasonable.

"People feel that targets set for ourself are reasonable and achievable. There is no exaggeration in any of the targets inclusive of disinvestment. It is only Rs 25,000 crore more than what it was earlier," she said in her interaction with media a day after the Budget was presented in Parliament.

As far as revenue targets are concerned, she said, projections for both direct and indirect tax collection are realistic.

The Budget has set a target of 17.5% growth in direct taxes and about 15.5% growth in indirect taxes.

On criticism that the Budget has too little to propel consumption, the finance minister said, "We have not ignored consumption. We did not ignore consumption even in the last term. I am reiterating that public expenditure would be focused through infrastructure development."

Public spending on infrastructure is one of the most effective ways money can reach the hands of the people and that will trigger consumption, she added.

She also said that the Budget has attempted to push consumption by taking the much needed step to tackle the crisis in non-banking financial companies (NBFC) sector.

In a bid to address the stress in NBFC sector, the government proposed that public sector banks would purchase high-rated pooled assets of financially sound NBFCs, amounting to a total of Rs 1 lakh crore during the current financial year.

For this, the government will provide one-time six months' partial credit guarantee to PSBs for first loss of up to 10%.

The government also proposed to allow NBFCs raise funds in public issues and do away with the requirement for creating a debenture redemption reserve (DRR), which is currently applicable for only public issues as private placements are exempt.

As of now, NBFCs that do public placement of debt have to maintain a DRR and in addition, a special reserve as required by the RBI also has to be maintained.

In a bid to improve regulatory oversight, the government also proposed to bring housing finance companies under RBI from the fold of National Housing Bank.


Other Latest News
Auroinbo recalls heartburn drug ranitidine, two others from US market
Posted on 6th December 2019

Aurobindo Pharma Limited has initiated a nationwide recall of three drugs from the US, two of them due to manufacturing issues. The development comes close on the heels of the regulatory compliance issues being faced by several of its manufacturing facilities back home.

These three products include heartburn drug Ranitidine that the US Food and Drug Administration(US FDA) had recently asked the companies to withdraw from the market owing to the presence of carcinogenic nitrosodimethylamine (NDMA) compound above the daily acceptable intake limits in the formulation.


MTPL to set up off-highway tyre facility in Gujarat, invest $107 million
Posted on 6th December 2019

Mahansaria Tyres Private Limited (MTPL) will set up a $107-million facility to manufacture off-highway tyres in Gujarat, backed by International Finance Corporation (IFC) through equity and loan.

IFC will provide a loan of up to $30 million and it will buy a stake in MTPL for up to $7.74 million.


Growth of world cities to decline in 2020-21 amid global slump: Research
Posted on 6th December 2019

The blockbuster growth in the world's major cities in recent years will slow sharply in 2020 and 2021 as the global trade slowdown takes its toll, according to new research.

Nine of the top 10 biggest global cities will slow next year, with the stars of the US Silicon Valley showing the most dramatic signs of slamming on the brakes, Oxford Economics researchers found in a report provided to AFP.


Mahindra & Mahindra nears 52-week low; stock slips 12% in one month
Posted on 6th December 2019

Shares of Mahindra & Mahindra (M&M) slipped 2 per cent to Rs 512 on the BSE on Friday and was trading close to its 52-week low level. The car & utility vehicles maker's stock is less than 2 per cent away from its 52-week low price of Rs 503, touched on August 14, in intra-day trade.

In past one month, M&M has underperformed the market by falling 12 per cent as the company's tractor sales delivered disappointing performance.


Vodafone Idea will shut shop if govt doesn't provide relief: KM Birla
Posted on 6th December 2019
Vodafone Idea Ltd, India's third largest mobile service provider, will shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order, its billionaire chairman Kumar Mangalam Birla said on Friday. "If we we are not getting anything then I think it is end of story for Vodafone Idea," Birla said at the HT Leadership Summit when asked about the future of Vodafone Idea in absence of a government relief on payment of Rs 53,038 crore dues.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Government duty bound to achieve fiscal deficit of 3% as per law: Finance Minister Nirmala Sitharaman
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Government duty bound to achieve fiscal deficit of 3% as per law: Finance Minister Nirmala Sitharaman

Most Read News

Adani Group shares rally; Adani Gas, Adani Transmission surge 12%

India's banks wrote off Rs 2 trillion worth of bad loans in 2018-19

Month after results, Uddhav Thackeray takes oath as Maharashtra CM

Dilip Buildcon bags Bundelkhand Expressway Project worth Rs 1,362 cr in UP

Piramal Capital borrows Rs 1100 crore for 4 months from Barclays: Report

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement