Tag: Finance Minister Nirmala Sitharaman

Lok Sabha Election 2024 | FM Sitharaman won’t contest as she ‘doesn’t have the money’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman said on Wednesday that she would not contest the Lok Sabha election as she does not have the “kind of money” needed to contest elections.

The Election Commission of India allows a candidate to spend up to ₹95 lakh for a Parliamentary election campaign. However, according to an EC report, the 2019 elections saw an average of ₹100 crore spent per constituency, or ₹700 per vote.

“After thinking over a week or 10 days, I just went back to say… maybe not. I do not have that kind of money to contest. I also have a problem, whether (to contest from) Andhra Pradesh or Tamil Nadu,” Sitharaman said.

“It’s also going to be a question of various other winnability criteria that they use… Are you from this community or are you from that religion? I said no; I do not think I am going to be able to do it,” she said at the Times Now Summit 2024.

FM Sitharaman said BJP President JP Nadda had given her the choice to contest either from Andhra Pradesh or Tamil Nadu.

The Finance Minister added, “I am very grateful that they accepted my argument… So I am not contesting.”

Sitharaman, when questioned about why even the country’s finance minister lacks the funds to contest Lok Sabha elections, pointed out that she does not possess the Consolidated Fund of India.

She further added that her salary, her earnings and her savings belong to her and not the Consolidated Fund of India.

Sitharaman, a Rajya Sabha member from Karnataka, will be campaigning for different candidates for the elections, beginning April 19.

“I will also be attending a lot of media events. And going with the candidates, like tomorrow, I will be going for the Rajiv Chandrasekhar campaign and so yes, I’ll be on the campaign trail,” she further said.

The ruling BJP has fielded a number of Rajya Sabha members, including Piyush Goyal, Bhupender Yadav, Rajiv Chandrasekhar, Mansukh Mandaviya, and Jyotiraditya Scindia, for the upcoming general elections.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

From Coal to 2G spectrum scam, ‘White Paper’ points to web of frauds from UPA’s era

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian government, led by Prime Minister Narendra Modi, presented a ‘White Paper’ on the Indian economy in the Lok Sabha on Thursday, February 8. The presentation was made by Union Finance Minister Nirmala Sitharaman. The document accused the United Progressive Alliance (UPA) government of experiencing a “crisis,” marked by alleged economic mismanagement, financial indiscipline, and widespread corruption, before the BJP came to power in 2014.

The report suggested that the UPA government‘s decade of governance from 2004-2014 “(or its absence)” was marked by policy misadventures and scams, such as the non-transparent auction of public resources (coal and telecom spectrum), the spectre of retrospective taxation, unsustainable demand stimulus, ill-targeted subsidies, and reckless lending by the banking sector with undertones of favoritism, etc.

The White Paper highlighted that the 2G spectrum scam, involving 122 telecom licenses that had sliced ₹1.76 lakh crore off the exchequer as per the estimates of the Comptroller and Auditor General (CAG), the coal gate scam costing ₹1.86 lakh crore to the exchequer, the Commonwealth Games (CWG) scam, etc., indicated an environment of heightened political uncertainty and reflected poorly on India’s image as an investment destination.

Talking about the 80:20 gold export-import scheme, the report alleged that the scheme provided illegitimate windfall gains to the beneficiaries before it was withdrawn by our government.

The White Paper also listed some of the high-profile cases like Coal Block Allocation, Commonwealth Games, 2G spectrum allocation, Saradha Chit Fund, INX Media Case, Land for Jobs, Allotment or release of Prime Land in Panchkula and Gurgaon, J&K Cricket Association, Aircel-Maxis case, Antrix-Devas Deal and Adarsh Housing scam.

It also included some of the high-profile cases in the aviation and aerospace sector like Embraer Deal, Hawk aircraft purchase, Augusta Westland helicopter scam and Pilatus Basic Trainer Aircraft.

The document pointed out that poor policy planning and execution also resulted in large unspent funds for many social sector schemes during the UPA years, which in turn crippled the effectiveness of the government’s schemes.

The White Paper compared the “scam-riddled” Commonwealth Games, 2G scam, and Coal gate scam during the UPA government with the Modi government’s success at hosting G20 Presidency, extensive 4G coverage and 5G rollout, and auctions for harnessing natural resources, respectively.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Editor’s take on Interim Budget 2024: A look at the political setup

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman is all set to create history as she rises in parliament in a short moment from now to present her sixth consecutive Budget and the final Budget of the Modi government’s second five-year term.

She’s the only Finance Minister after Morarji Desai to present six budgets. Now, will this be Sitaraman’s sixer? That’s the big question. A cursory look at the government’s economic review shows that it goes into this Interim Budget from a position of confidence both as far as the fiscal situation is concerned and on growth projecting FY25 gross domestic product (GDP) growth at 7%.

Now the question is what will the government build on to deliver the Prime Minister Narendra Modi hat-trick that is what the Bharatiya Janata Party (BJP) is hoping for – its slogan says so Tisri Baar Modi Sarkar, Ab Ki Baar Charsau Paar. So this Interim Budget is going to try and build on that momentum, build on that mood.

The expectations are tempered given the fact that it is an Interim Budget, but it is an important moment for the government, for the Finance Minister to articulate the decade gone by but more importantly signal the times coming up.

Also Read | Interim Budget 2024: When and where to watch FM Sitharaman’s budget speech

The welfare war chest – it was the 2019 Interim Budget when the then Finance Minister Piyush Goyal delivered a new scheme in the form of Pradhan Mantri Kisan Yojana (PM Kisan) to focus on the farmers. The expectation is that PM Kisan’s allocation will be enhanced in the Interim Budget from ₹6,000 to about ₹9,000 and that is accounting for inflation.

The other big one, the PM Garib Kalyan Yojana, was from the COVID program, and that has already been extended ahead of the Budget for another five years. So that has been done and dusted. Tweaking of the Ujjwala scheme, the LPG program has already been seen, and that perhaps could get further boost in the Interim Budget.

The PM Awas Yojana rural housing could potentially be a focus area. So the welfare war chest will be something to watch out for.

The infra imperative, a record historic government capex program has been announced by the government in the previous Budget. The hope is that it will continue to signal that directionally as well as enhance allocations for road railway, defense, etc. And hope is that at least a 20% increase in government capex will certainly be on the table – so one should watch out for that.

The manufacturing aspiration making India manufacturing Magnet – continuation of existing schemes, the production linked incentive (PLI) push, 14 schemes already announced but as CNBC-TV18 has been reporting, the DPIIT Secretary confirming that perhaps two or three PLI schemes will be tweaked. Could the Interim Budget take that forward?

Tariff cuts – to continue to promote domestic manufacturing ahead of the Budget, the duty on components for the mobile manufacturing sector being cut to 10% from 15% has already been seen. More sectors could be impacted in the Interim Budget is what has been given to understand and of course, bringing down logistics costs will be key. That is something that the Economic Review also alluded to.

Female focus ‘Nari Shakti’ – Prime Minister Narendra Modi’s comments, at the start of the Budget session or the President’s speech, it is very clear, the government intends to focus on females, on women voters, on the women constituency. So could there be an additional scheme, a new scheme or could there be perhaps as far as Mudra and other schemes are concerned, any other tweaks? One will wait to see.

Child care could be something that is taken forward in some form or fashion, perhaps a public private partnership. That’s the buzz. One will have to wait to see what the Budget unveils.

Ahead of the Budget already the Road Transport Ministry, putting out a notification saying that there should be parity as far as highway construction is concerned.

Budget 2024 LIVE Updates: Government weighs extension of NPS benefits to new tax regime?

Climate call – ahead of the Budget, a new solar rooftop scheme for households being announced by the Prime Minister, that momentum could perhaps be taken forward in the Interim Budget.

Push towards renewables – there is of course the expiration of the current FAME scheme. Will that be renewed or will it be tweaked? One will have to wait to see.

Another scheme for electric vehicle (EV) program, support scheme perhaps in the anvil as well.

So the climate push and the energy transition, perhaps a Green Transition Fund, which is the ask of industry, those will have to be some of the things that one will have to watch out for.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FM Sitharaman tells public sector banks to crackdown against frauds and wilful defaults

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Finance Minister Nirmala Sitharaman has asked public sector banks to tighten their vigilance against frauds and wilful defaults. In a meeting chaired by Sitharaman on Saturday in New Delhi, the Finance Minister asked banks to monitor the early warning signals to check potential frauds and advised them to put more effort into recovery from accounts declared as fraud and wilful default. Banks were directed to make efforts for timely identification of accounts as fraud and their subsequent investigation.

Finance Minister asked banks to concentrate on fraud prevention activities on both large corporate frauds and wilful defaults as well as on actions that defraud individual customers. The FM instructed the banks to adopt advanced fraud prevention and detection mechanisms and ensure that the customers are further educated about safe banking practices.

Recognising that the effectiveness of legal action against defaulters before courts and tribunals largely depends on effective representation by lawyers and attorneys assisted by bank officials, the Finance Minister also called for a performance review of counsels representing public sector banks to ensure better legal outcomes.

FM: Focus on responsible lending practices

The minister urged the public sector banks (PSBs) to adopt responsible lending practices across the board. The minister instructed the PSBs to enhance due diligence before loan disbursement, ensure regular monitoring of large loan accounts, and undertake swift and thorough legal action in cases of such default. Sitharaman also exhorted the banks to take strict administrative action against the conniving officials of the banks who enable fraud and wilful defaults. 

FM: Implement stringent cyber security protocol; protect customer privacy

Issues related to cyber security were also deliberated in the meeting. The Finance Minister noted the need to adopt proactive cybersecurity measures and implement stringent security protocols to protect sensitive financial information and systems from cyber-attacks. In this regard, the preparedness of all the PSBs in addressing cyber security risks was reviewed by the Union Finance Minister. Banks have also been directed to ensure complete privacy of customer data.

FM: NARCL should expedite on boarding of stressed assets 

The progress on the acquisition of accounts by the National Asset Reconstruction Company Ltd (NARCL) was also deliberated. Sitharaman directed that the acquisition of stressed accounts by NARCL needs to improve further, and necessary efforts must be made in this direction. It was advised that NARCL and banks should hold regular meetings to expedite the on-boarding of stressed accounts.

FM: Offer attractive deposit schemes 

In addition, the Finance Minister emphasised the importance of mobilising deposits, urging public sector banks to innovate and offer attractive deposit schemes to enhance their deposit base, which will also enable them to extend more credit.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FM Sitharaman meets World Bank Chief, discuss G20 outcomes & engagement of MDBs in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman on Wednesday, December 20, met with World Bank Group President Ajay Banga in New Delhi for discussions that centered on the outcomes of the G20 India Presidency, the evolution of the World Bank, and its ongoing engagement with India across various sectors. The meeting also addressed issues of mutual interest.

“The Union Finance Minister stated that @WorldBank should take the lead in advancing recommendations contained in the Volume-I #TripleAgenda and the recommendations that #MDBs must be bigger, better and bolder as contained in the Volume-II, of the reports of the G20 Independent Experts Group #IEG, prepared under the #G20India Presidency, and added that other #MDBs look up to @WorldBank for such #reform initiatives,” the finance ministry said in a statement on X.

Independent Expert Group (IEG), appointed under India G20 Presidency, has recommended a triple agenda to harness the potential of Multilateral Development Banks (MDBs).

The report suggested adopting a triple mandate of eliminating extreme poverty, boosting shared prosperity, and contributing to global public goods, tripling sustainable lending levels by 2030 and creating a third funding mechanism, which would permit flexible and innovative arrangements for purposefully engaging with investors willing to support elements of the MDB agenda.

Banga informed the Finance Minister that the World Bank has set up a task force team to study recommendations by the IEG under G20 India Presidency.

He said the bank has identified eight unique global challenges to focus on in the next few years as they affect many countries and require attention.

In discussions regarding the Country Climate and Development Report (CCDR) exercise of the World Bank, Sitharaman stressed the importance of aligning the report with India’s priorities and circumstances.

Sitharaman expressed India’s support for it. “Finance Minister Smt. @nsitharaman stressed that the Country Climate and Development Report #CCDR exercise of the @WorldBank should take into account the country’s priorities and circumstances,” it said. She highlighted the need for the World Bank to explore the possibility of coordinated approach in implementation of the projects with special emphasis on Finance Plus or Budget Plus elements in projects funded by the MDB.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Finance Minister Sitharaman urges regional rural banks to boost digital banking

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

“Lots of good discussions,” IMF’s Gita Gopinath tweets photo with Nirmala Sitharaman at G20 event

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is currently holding the presidency of the Group of 20 (G2) nations and will host the G20 summit in 2023. With the forum members meeting to discuss matters related to financial outlook, climate change and more, the summit is a platform for policymakers from various countries to interact with each other.

It is at one such event of the G20 that Gita Gopinath, the Indian-American economist currently serving as the First Deputy Managing Director of the International Monetary Fund, met with Finance Minister Nirmala Sitharaman.

Gopinath wrote “lots of good discussions” while posting the photograph on Twitter.

Also Read: India’s foreign minister S Jaishankar’s checklist for the G20 meeting

“It was really nice to catch up with Finance Minister Nirmala Sitharaman at the G20 FMCBG meetings in Bengaluru. Lots of good discussions,” Gopinath said.

It was really nice to catch up with Finance Minister ⁦@nsitharaman⁩ ⁦@nsitharamanoffc⁩ at the G20 FMCBG meetings in Bengaluru. ⁦Lots of good discussions ⁦@g20org⁩ pic.twitter.com/jq5FhZ7L33

— Gita Gopinath (@GitaGopinath) February 23, 2023

India is currently hosting the G20 FMCBG or the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru. This is the first FMCBG meeting under India’s presidency of G20 and is being held between February 22 and 25. A total of 72 delegates from the 19 member countries, the European Union, and various international organisations have been invited to the event. The G20 Finance and Central Bank Deputies Meetings (FCBD), the second one under India’s G20 presidency, is also being held at the same time.

The FMCBG meeting is being jointly chaired by Sitharaman and Reserve Bank of India Governor Shaktikanta Das. Spread over three sessions, there will be discussions on various topics to help set the agenda for the G20 Finance Track for 2023.

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Addressing the delegates at one of the sessions, Prime Minister Narendra Modi said that it is up to the FMCBG delegates to ensure that people have confidence in the growth and stability of the global economy.

“It is now up to you — the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy. It is not an easy task,” PM Modi said.

The topics of discussion include matters such as“strengthening multilateral development banks to address shared global challenges of the 21st century, financing for resilient, inclusive and sustainable ‘cities of tomorrow’, leveraging Digital Public Infrastructure (DPI) for advancing financial inclusion and productivity gains.

The sessions will also cover issues related to the global economy, health, and taxation, according to a statement by the government. The event will have sideline discussions on topics like the use of national payment systems for cross-border payments, crypto assets, digital public infrastructure and more.

Also Read: Brazil working with India to make G20 a success, says envoy

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

G20: FM Sitharaman spotlights UPI, CoWin at power meet on digital public infrastructure

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A high-level symposium on digital public infrastructure (DPI) was held on Thursday, February 23, at the start of the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting. 

The participants in the symposium included prominent leaders like Finance Minister Nirmala Sitharaman, Indonesia FM Dr Sri Mulyani Indrawati, International Monetary Fund MD Kristalina Georgieva, Governor of Central Bank of Brazil Roberto de Oliveira Campos Neto, and GM of Bank for International Settlements Agustin Carstens. The session was moderated by Nandan Nilekani.

During the symposium, FM Sitharaman discussed the success of India’s Aadhaar-enabled DPI in transforming the country’s economy and empowering billions of people. She highlighted the significance of UPI, CoWin, Account Aggregator, eKYC, and how they have contributed to the country’s economic growth.

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The high-level symposium on DPI also saw insightful discussions on inclusive growth, resilience, and innovation. The participants discussed how the adoption of digital public infrastructure could lead to inclusive economic growth and enhance the resilience of financial systems.

Day 2 of the FMCBG meeting will have two primary activities in addition to the symposium — the route to policy consensus on crypto assets and utilising national payment systems to improve cross-border payment arrangements.

A preview of the RBI’s e-currency was also presented in conjunction with the FMCBG meeting. The Reserve Bank of India (RBI) issued the digital rupee or India’s Central Bank Digital Currency (CBDC), which is a digital token that serves as legal tender and is regarded as fiat money. The denominations of digital rupee are the same as those of the present paper money and coins.

Also Read: FM Nirmala Sitharaman meets US Treasury Secretary Yellen ahead of first G20 FMCBG meeting

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2023: Total capital outlay increased 33% to Rs 10 lakh crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman has increased the country’s total capital investment outlay by 33 percent from last year to Rs 10 lakh crore.

The allocation amounts to 3 percent of the country’s GDP.

With this allocation, the effective capital expenditure will be Rs 13.7 lakh crore or 4.5 percent of the GDP.

The Finance Minister also increased the outlay for the Railways to Rs 2.4 lakh crore, the highest ever and more than 9x compared to financial year 2014.

The minister also said that interest-free loans to state government have been extended by another year. This will cost the exchequer a sum of Rs 1.3 lakh crore.

Ratings agency ICRA said that the increase in capital oulay is a big positive not only for the construction sector, but also for capital goods and engineering plays, who will benefit through the increased order book.

The increase in capital outlay is also positive for both ferrous and non-ferrous metals.

With regards to the interest-free loans to state governments, ICRA said that its efficiency will depend on the speed of the offtake.

Catch all the LIVE updates of the Union Budget 2023 here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow