FM's stimulus push: Govt to clear Rs 20,000 cr dues by Oct 1st week

The government will not sit on funds and it will ensure that "money reaches the ground", said Finance Minister Nirmala Sitharaman on Friday as she announced yet another measure to lift growth from a six-year low that has led to job losses and fueled discontent in the countryside. 

Sitharaman said the government aims to clear Rs 20,000 crore dues by the first week of October. She was speaking to journalists after meeting with secretaries and financial advisors of key selected ministries.

"The larger story is government will not sit on payments due," she said, adding she had asked ministries to give their capital expenditure plans for the next four quarters.

"Money should go where people have been waiting. Money should get going to the ground level," she said.

Expenditure Secy GC Murmu said government departments have spent almost 50 per cent of their capex plans so far this fiscal

Sitharaman, a week ago, announced a cut in corporate tax rate to woo manufacturers and revive private investment. Corporate taxes for domestic companies were reduced to 22 per cent from 30 per cent. Factoring in surcharge and cess, the effective tax rate fell to about 25 per cent from around per cent.

That announcement was among the several steps the Narendra Modi government has taken for the economy. The steps include a capital infusion of Rs 70,000 crore into public sector banks and allowing 100 per cent foreign investment for coal mining. 

"There is a demand and the banks don't mind lending. Things are looking forward and upward; consumption is happening, demand will get back in festive season," said Sitharaman on Thursday.

5:10 PM

Rs 20,000 crore govt dues to be cleared

Government should clear Rs 20,000 crore dues by October first week: Finance Minister Nirmala Sitharaman.

5:06 PM

Govt won't sit on funds due: FM

"The larger story is government will not sit on payments due," says Finance Minister Nirmala Sitharaman.

5:05 PM

Govt capex to be monitored

Expenditure Secy GC Murmu says government capex to be monitored closely over next two quarters. He says most govt departments have spent 50 per cent of their capex plans so far this fiscal.

5:03 PM

'Govt won't sit on funds due'

'I'm looking to get expenditure going. At this moment I want to ensure government doesn't sit on funds which is due," says Finance Minister Nirmala Sitharaman in response to question about fiscal deficit target.

4:58 PM

Capital expenditure plans

Finance Minister Nirmala Sitharaman asks ministries to give capital expenditure plans for next 4 quarters.

4:58 PM

Meetings with secretaries

Nirmala Sitharaman addresses media after her meeting with secretaries and financial advisors of key selected ministries: "Tomorrow (Saturday), we'll have a separate meeting with different agencies of public sector undertaking and other agencies which come under different ministries," she says.

4:54 PM

'Money should go to the ground'

Money should go to where people have been waiting. Money should get going to the ground level: FM Sitharaman

 

4:53 PM

Govt spending

Little bit of spending that's left will be done in the next few months: Nirmala Sitharaman

4:36 PM

Revenue Secretary A B Pandey told Business Standard the corporate tax cut will give much more in long run than the revenue government has lost. "Once investments start flowing in, naturally it will help our economic growth story," he said in an interview.

4:32 PM

Sitharaman on Thursday met with top executives of private sector banks, housing finance companies, and micro finance institutions (MFIs). Last week, she had met heads of public sector banks and asked them to go for an outreach programme to step up lending.

4:28 PM