Photo: Mint
Photo: Mint

Govt actively taking steps to boost economy: FinMin

  • In the last two months, Sitharaman has already announced a series of measures, including a deep cut in corporate tax
  • On September 14, the government announced several steps to stimulate exports in the economy and boost the housing sector

NEW DELHI : In continuation with the slew of short and long term measures announced by the government in the last two months towards various sectors--banks, automobiles, exporters, among others-- the finance ministry on Thursday said that the government is actively considering steps towards the implementation to boost the economy.

Out of the 32 measures announced by the finance minister Nirmala Sitharaman on August 23 that included rolling back some of the controversial measures introduced in the budget, including the enhanced surcharge levied on capital gains, 13 announcements have been implemented.

The 13 announcements also include rolling back another budget announcement that violation of corporate social responsibility (CSR) being treated as criminal offence, withdrawal of angel tax provisions for startups and their investors, state-owned banks periodically reviewing lending rates and passing on the benefit of the RBI cutting benchmark interest rates to consumers, steps to boost sales for automobile industry, among others.

In the last two months, Sitharaman has already announced a series of measures, including a deep cut in corporate tax, to counter severe demand slowdown and slump in private investment that have left economic growth cool down to a six-year low of 5% in the quarter ending June.

Out of the remaining 19 measures that are yet to be implemented, the government has made significant progress in eight measures which includes support to non-banking financial companies (NBFCs) and housing finance companies (HFCs), upfront release of 60,314 crore into state-owned banks in September through recapitalisation bonds, including 4,557 crore into IDBI Bank, simplified know your customer (KYC) norms for foreign portfolio investors (FPI), Goods and Services Tax (GST) refund to MSMEs in 30 days, among others, the ministry said. Besides, draft guidelines to set up vehicle scrapping centres has also been issued.

“In respect of twelve (12) measures announced on 14.09.2019 to boost exports, three (3) announcements have been fulfilled. The rest of the announcements are under active consideration by relevant ministries. Further, action on one (1) out of three announcements made for the housing has been completed and on other two (2) is also being taken," the ministry said in a statement.

On September 14, the government announced several steps to stimulate exports in the economy and boost the housing sector. Besides, on August 30, mega consolidation of public sector banks was announced towards building fewer, larger and stronger banks.

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