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Finance Ministry Outlines Steps Taken To Boost Economy

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Capital Market
Last Updated : Dec 13 2019 | 5:50 PM IST

Finance Ministry outlined the steps that the government has taken to boost the economy. The latest Economic survey had outlined a plan to make India $5 trillion economy with emphasis on driving up investment. On the consumption side, the government has taken steps to help the NBFCs and HFCs. The govt provided support to NBFCs/HFCs under the partial credit guarantee scheme. The government sanctioned support for Rs 4.47 lakh crore to NBFCs & HFCs which includes Rs 1.29 lakh crore for pool buyout of assets.

To boost liquidity in the market, the government has cleared dues worth more than 60% of 32 CPSEs in the last two months. Under the new external benchmarking scheme announced by the RBI, more than 8 lakh or Rs 72,201 crore worth of loans sanctioned under the new regime till Nov 27.

Around 66% of Budgeted capex expenditure of Rs 3.38 lakh crore has been taken so far. Higher government capital expenditure allows crowding in of private investment. April-Nov capex of 32 CPSEs is at Rs 98,000 crore. Railway and road ministries will have undertaken capex of Rs 2.46 lakh crore by December 31, he said. Rs 60,314 crore of capital has been infused into PSU banks. Lenders have disbursed Rs 2.2 lakh crore to corporates and Rs 72,985 crore to MSMEs.

For supporting consumption, the RBI mandated banks to link their lending rates to external benchmarks. A total of Rs 8.18 lakh repo linked loans (Rs 72.20 crore) have been sanctioned till 15th November 2019.

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First Published: Dec 13 2019 | 5:40 PM IST

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