After growing at 8.4 per cent for consecutive financial years, economic growth fell to 6.5 per cent in 2011-12, primarily owing to a dismal show by the manufacturing sector, as well as a part of the services segment.
The Union finance ministry is believed to have agreed to modify its notification for exempting from tax the entire 9.5 per cent interest on provident fund deposits for 2010-11, and will soon announce the good news for EPFO's 6 crore (60 million) depositors.
The amount would enable the banking behemoth to fuel its business plans, particularly in the face of rising competition from private and overseas rivals with deep pockets.
The government banks on the support of the Bharatiya Janata Party to push the Insurance and LIC Bills in the next Parliament session, but it seems to have adopted different tactics on the Goods and Services Tax (GST) Bill.
United Progressive Alliance-led government proposed lenders as insurance brokers; new FM not too keen, say insurers.
The rupee has lost over 2.5 per cent in the two trading days of this week and nearly 10 per cent in the past six weeks on concerns of scaling down of stimulus packages by the US.
In one of its many arguments, North Block has maintained that direct tax exemptions may be viewed as a subsidy by importer countries, which may then impose countervailing duties on exports from Indian special economic zones. The issue is pending with the empowered group of ministers on special economic zones headed by External Affairs Minister Pranab Mukherjee.
A parliamentary committee on Friday hauled up the finance ministry for fall in Tax:GDP ratio to 9.2 per cent in 2003-04 from 10.1 per cent in 1990-91
Earlier last month, SBI had priced its rights share at Rs 1,590 per share (face value Rs 10 each). Even after decline in its price in the recent days, SBI share was ruling at over 25 per cent premium over the rights issue price. The scrip was ruling at Rs 2,131.90 in the afternoon trade on BSE on Friday, down 1.08 per cent from Thursday's close of Rs 2,155.20.
Finance ministry said on Friday that there was no cause for "panic" due to scanty rains in many parts of the country and it was too early to call it a drought, but expressed the fear that delay in monsoon was sure to affect agriculture productivity.
The Union finance ministry has temporarily suspended the facility for e-filing of income tax returns as it could not procure a security certification for the Income Tax Department's website in time.
Finance Minister P Chidambaram has so far given three packages to exporters aggregating Rs 5,200 crore (Rs 52 billion) as the $160 billion export target for 2007-08 appears difficult to meet. He has expressed hope that exports target would be met. Palanimanickam said government was already providing 100 per cent tax benefits on profit on exports apart from indirect tax incentives.
Such cold-shoulder by banks also indicates a credit freeze that is hard to overcome, unless the government comes out with credit guarantee schemes for loans given by banks. Since that is not happening, and there is no indication of that too, banks are not willing to listen to RBI prodding.
PSB may get its first non-Sikh at the helm, vigilance clearances are awaited.
The government on Tuesday said it cannot disclose the identity of persons involved in black money cases before initiating prosecution proceedings.
Presently, the government allows foreign investments of up to $15billion in corporate bonds and upto $5 billion in government bonds.
In order to expedite the implementation of the Parekh Committee's recommendations on infrastructure financing, the finance ministry has decided to pursue a few key issues instead of taking up the whole report.
The Finance Ministry is considering a proposal to rope in professionals from the private sector for appointment of chairman and CEO-cum-managing director in state-owned financial institutions as it looks for talent from a wider pool of applicants.
Disinvestment secretary Sunil Mitra last month wrote to his counterpart in Petroleum ministry R S Pandey seeking comments on 'public offerings from Government's shareholding' in ONGC and IOC. While government has not allowed IOC and other retailers Bharat Petroleum and Hindustan Petroleum to raise petrol, diesel, domestic LPG and kerosene price in line with the cost, they have not been given the promised compensation.
Hailing the Supreme Court verdict on tax exemption to Mauritius-based companies, the finance ministry said on Wednesday that it would help in higher inflow from foreign institutional investors.
The new tax is expected to subsume various indirect taxes, including excise and value-added tax.
The Finance Ministry is exploring the possibilities of another round of buyback of government securities from banks and financial institutions, as the first auction yielded only 14 per cent of the targeted Rs 1,00,438 crore (Rs 1,004.38 billion).
As the role of the powers-that-be in the government comes under the scanner, pressure is being mounted on the two ED officers investigating the 2G case from the highest level, particularly the finance ministry.
A decision on upgradation of Delhi and Mumbai airports is likely to be taken by the finance ministry in a week's time as part of government's efforts to create world-class civil aviation infrastructure in the country.\n\n
If budget policy started changing around the mid-1980s, it is for a reason. The original oak wood table used by successive finance ministers, right from the time of the interim government before Independence, went missing around then.
Finance Ministry officials are engaging in hectic parleys with the PSUs to speed up the process so that the disinvestments can take place in the December and March quarters.
RBI had last week announced a 0.5 per cent increase in cash reserve ratio to 5.5 per cent in two phases to absorb excess liquidity from the economy and check rising prices.
The finance ministry on Thursday denied a newspaper report that it has increased the foreign fund ceiling in State Bank of India, the country's biggest commercial bank.
They expressed concern on taxation issues, the high fiscal and current account deficits, and sought removal of capital gains tax.
Move aimed at strengthening Sebi's powers to investigate market-related offences.
Finance ministry maintains that all KYC requirements will be followed.
The main responsibility for producing the Budget rests with the Budget Division of the Department of Economic Affairs in the finance ministry
At present, the auto sector accounts for about 60 per cent of India's current machine tool demand.
Prime Minister Manmohan Singh's decision to keep the finance portfolio for himself drew sharp criticism from the Bharatiya Janata Party which said it was too vast a ministry to be adjunct of the PMO.
According to the package, the dues will be cleared in six monthly instalments by March 2009. Current ATF purchases will get 90 days' credit, supported by bank guarantees. Also, jet fuel price revisions will henceforth happen every fortnight. Praful Patel on Thursday admitted in the Lok Sabha that it may take another two months to make the recently-opened third runway at the Delhi airport fully operational.
The Reserve Bank of India is unlikely to ease the requirement for banks to keep cash with the central bank through a cut in CRR rate in its mid-term monetary review on October 24 even though the banking system is facing liquidity problem, Finance Ministry sources said on Wednesday.
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