New Delhi: Finance Minister Nirmala Sitharaman on Friday (December 13) said that the results have now started showing in the economy after the big decisions taken by the government.
Addressing media persons, the Finance Minister said "We are here to report about what has happened in Parliament/ about legislative reforms and the decisions taken by the government," adding "And where we are now, after the recent decisions taken by Finance Ministry or the government to revive the economy.
"I will be speaking on two things. One on the recent Parliamentary measures, and the progress on the measures introduced in the past. So that we have a template before the Budget session," the FM said.
Chief Economic Advisor (CEA) Krishnamurty Subramaniam, present with the Finance Minister, talked about the detail measures taken so far to bolster the economy.
He said, "Evidence of measures to boost investment is actually seen in the record FDI inflows - $35 Billion in the first half of 2019-20 as against $31 Bn during the same period last year. It's a good sign of foreigners seeing India as a very important destination."
According to him, the government has focused on clearing all past dues of PSUs, enabling retail credit by supporting NBFCs and HFCs and supporting MSMEs by bill discounting tax refunds.
The other key measures that the government has taken are given below, according to the CEA.
1. Clearing all govt dues including those of PSUs enabling retail credit by supporting NBFCs supporting MSMEs.
2. Clearing all govt dues including those of PSUs enabling retail credit by supporting NBFCs supporting MSMEs via bill discounting
3. Measures to support consumption support to NBFCs and HFCs to support retail lending partial credit guarantee scheme for NBFCs and HFCs.
4. Government and PSU dues cleared in two stages- upto Rs 61000 crores previously and Dues of 32 cpses cleared by more than 60% in the last two months.
5. Measures to support consumption following RBI guidelines mandating banks to link their lending rates to external benchmarks, all PSBs have introduced Repo rate linked loan products MSME bill discounting 5.06 lak bills till November 15, 2019.
6. Transparent one-time settlement policy in PSBs- 5.26 lakh ( Rs 16716 cr) sanctioned.
7. 66% of budgeted Capex of Rs 3.38 lakh crore already undertaken, says CEA on steps taken to boost the economy.
8. More than 8 lakh repo-linked loans amounting to Rs 70,000 crore sanctioned till November 27.
Other key point of Chief Economic Advisor's presentation:
1. Survey had unveiled a plan to Become $5 trillion economy via higher investments
2. Steps taken to include Corporate Tax cuts to improve risk-return of corporates
3. Steps taken include Capitalisation of PSBs, giving last-mile funding to Realty Projects
4. Sanctions To NBFCs/HFCs At Rs 4.47 Lakh crore to support retail lending
5. 17 proposals amounting to Rs 7,657 Cr approved under the partial credit guarantee scheme
6. 66% of Budgeted Capex of Rs 3.38 Lakh crore already undertaken
7. RBI mandate to banks to link Lending Rates to External Benchmarks been implemented
8. Transparent one-time settlement system introduced in PSU Banks
9. Railway & Roads Ministries to have undertaken Capex of Rs 2.46 Lakh crore By Dec 31
10. Rs 60,314 cr of capital infused into PSU Banks
11. Banks have disbursed Rs 2.2 Lakh crore to Corporates, Rs 72,985 Cr to MSMEs
12. Govt has passed a law for a unified regulator for International Financial Services
11. One National Market for Financial Instruments set up by Ratioanlising Stamp Duty
12. Shares with differential Voting Rights Enabled Especially To Help Startups
Ajay Bhushan Pandey, Revenue Secretary, said on steps taken to boost consumption in economy.
1. Electronic Invoice mandatory from 1st April 2020 for companies having turnover of Rs 100 cr
2. Then the turnover limit will be brought down to make benefits available to larger base
3. In coming days, once E-Invoice generated then a separate E-Way Bill will not be required
4. Rs 1.57 lakh cr tax refunded this year vs Rs 1.23 lakh cr last year