English Release 27-February 2015
- Vice President's Secretariat
- VICE PRESIDENT RELEASES HINDI TRANSLATION OF BOOKS BY LATE DR. NARENDRA DABHOLKAR
- Prime Minister's Office
Text of PM's reply to the debate on Motion of thanks to President’s Address in the Lok Sabha
- Panchagavya Therapy
- Election Commission
- Bye-elections to the Council of States from various States.
- Min of Agriculture
- Sowing Area Under Rabi Rice and Summer Pulses And Oilseeds
- Online Agri Platforms for Sale of Agri Produce
- Malpractices in Cooperative Societies
- Decrease in Crops Sowing Area
- Dependence on Imported Pulses
- Infrastructure for Online Trading
- Fertility of Agricultural Land
- Setting up of Fish Brood Banks
- Production of Foodgrains and Fruits in Maharashtra
- Min of Chemicals and Fertilizers
- Steps Taken to Keep the Prices of P&K Fertilizers at Reasonable Rates
- No Proposal for Deregulation of Urea
- Min of Commerce & Industry
- 'Make in India' Programme
- Delhi-Mumbai Industrial Corridor
- Ease of Doing Business Index
- Ban on Import of Poultry Products from United States
- Boost to Leather Sector
- Min of Comm. & Information Technology
- TRAI issues draft Tariff Order prescribing framework for commercial interoperability of Customer Premises Equipment (CPE) in DTH services, for consultation.
- TRAI issues a draft Amendment to the Telecommunication Tariff Order, 1999 for revision of tariff regime for national roaming service for comments of the stakeholders.
- Min of Consumer Affairs, Food & Public Distribution
- Recommendations for Restructuring of FCI are Under Consideration of the Government
- National Food Security Act Implemented in Eleven States
- Steps to Ensure Better Targeting of Food Subsidies
- 612.91 Lakh Tons of PDS Foodgrains Allocated to the States During Current Year
- Rs 16,904 Crore Subsidy Released to the States for Procuring Foodgrains for Central Pool
- Damage in Central Pools Stocks Brought Down to 0.044%
- Min of Corporate Affairs
- National Company Law Tribunal
- Regulation of Salary
- Contribution to Political Parties
- Corporate Frauds
- Competition Commission of India
- Min of Culture
- Government accepts the resignation of Shri Mani Shankar Aiyar from the Chairmanship of Coordination Committee of Zonal Cultural Centres (CCZCC)
- Min of Defence
- Indian Navy Concludes Its Annual Exercise
- Participation of States in Republic Day Celebrations
- Ex-Servicemen Contributory Health Scheme
- Setting up of Technology Development Board
- Transportation of Arms and Ammunitions
- Aircraft and Helicopter Crashes
- Shortage of Articles in Army
- Procurement of Arms and Ammunition
- Production of Defence Equipment
- Road Projects of BRO
- Illegal Entry of Foreign Vessels
- To be Answered on the 27th February, 2015
- National Cadet Corps
- Development of Defence Industries
- Import of Defence Equipment
- Veterans Commission
- Export of Defence Products
- Submarine Construction Project
- Purchase of Fighter Aircraft
- Replacement of Avro Fleet
- Blacklisting of Companies
- Min of Earth Science
- Maldivian Minister Calls on the Minister for Science & Technology and Earh Sciences Dr. Harsh Vardhan to Discuss Issues Relating to Regional Integrated Multi-Hazard Early Warning Systems (Rimes)
- Ministry of Finance
- Dr. Kshatrapati Shivaji, IAS(MH:86) Appointed as Chairman and Managing Director, Small Industries Development Bank of India(SIDBI) on Deputation Basis for a period of Three Years
ED Investigation on Black Money
Recommendations made by the Shome Committee/Tax Administration Refroms Commission
- Rashtriya Swasthya Bima Yojana; Provides Health Insurance to Unorganized Workers Belonging to BPL Category and their Families
- Cut in Repo Rate
- Payment of Dividents from Public Sector Banks
- Improvement in Female Literacy and Educational Challenges
- Wiping Every Tear from Every Eye: The Jan Dhan Yojana, Aadhaar and Mobile Numbers Provide the Solution
- Major Reform Initiatives Undertaken by Government in Banking, Insurance and Financial Sector
- Economic Survey highlights the need for balance between ‘Make in India’ and ‘Skilling India’
- A Growth Rate of over 8 Per Cent Expected for the Coming Year
- Government Remains Committed to Fiscal Consolidation; Economic Survey says Enhanced Revenue Generation is a Priority
- Infrastructure Growth in terms of Eight Core Industries Higher than Industrial Growth since 2011-12
- India’s National Solar Mission Being Scaled up Five-Fold to 100,000 Megawatts
- India needs to create additional Fiscal Space: Economic Survey 2014 – 15
- Economic Survey Recommends Reform of Railway’s Structure, Commercial Practices, Overhaul of Technology
- Skill Development and Employment are major Challenges: Economic Survey
- Economic Survey 2014-15 Highlights
- The Fourteenth Finance Commission (FFC) will enhance Fiscal Federalism in India: Economic Survey 2014-15
- Government approves a Rs. 200 crore Central Sector Scheme for implementing e-platform for agri-marketing
Hyper-Growth in Tech start ups in India, says Economic Survey on Services Sector
- Services Sector Clocks Double Digit Growth
External Sector is returning to the path of strength and resilience: Economic Survey
- Inflation shows a declining trend during the year 2014-15 (April-December)
- Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed average food grain production of last five years by 8.5 million tones
- From Carbon Subsidy to Carbon Tax: India’s Green Actions
- Food Subsidy Bill stands at Rs. 107823.75 crore during 2014-15 (upto January, 2015), shows an increase of 20% over previous year
- Create National Common Market in Agricultural Commodities: Economic Survey 2014-15
- Revive public investment to improve investment climate: Economic Survey 2014 – 15
- Min of Health and Family Welfare
- Medical Facilities in Tribal Areas
- Mission Indradhanush will Provide Immunization Against
7 Life-Threatening Diseases
- Steps Taken to Reduce IMR and MMR
- National Deworming Drive Launched in 11 States
- Healthcare of Elderly People
- Health Research
- AIIMS Like Institutions
- Essential Drugs
- Stufies for Assessment of Health and Family Welfare
- Polio Eradication Programmes
- National Guidelines for Stem Cell Research and Therapy
- Evaluation of Accredited Social Health Activists (ASHA)
- Steps Taken for Prevention and Control of
- Min of Home Affairs
- Rajnath Singh calls for Promotion of Education with Scientific Temper and Skills
- Min of Law & Justice
- Press Communique Related to Appointment of Shri Justice Amitava Roy, Chief Justice of the Orissa High Court as the Judge of the Supreme Court
- Min of Personnel, Public Grievances & Pensions
- ACC Appointments
- Min of Petroleum & Natural Gas
- Global crude oil price of Indian Basket was US$ 59.19 per bbl on 26.02.2015
- Min of Planning
- The Government to continue the financial assistance to 88 districts for Left Wing Extremism Affected Districts
- Initiatives to improve the performance in infrastructure sectors
- Min of Science & Technology
National Science Day 2015
- CSIR Wins International Competition to Set up Wax Deoiling Technology at Numaligarh Refinery of BPCL
- Min of Women and Child Development
- 2774 adoptions during April-December, 2014
- 26.55% reduction in moderately/severely underweight children under ICDS between 2009-10 to 2013-14
- 887 Lakh rupees released to States/UTs for effective implementation of District Action Plans under BBBP programme
- An amount of Rs 12727 lakh for Child Care Institutions and Rs 915 lakh for Specialized Adoption Agencies allocated under ICPS during 2014-15
- Setting up of Special Juvenile Police Units under JJ Act, 2000
- A sum of Rs. 400 lakhs and a total of 24000 beneficiaries covered under the STEP Scheme till date during 2014-15
Prime Minister's Office07-December, 2008 16:37 IST
|Government announces measures for stimulating the economy
|The Government has been concerned about the impact of the global financial crisis on the Indian economy and a number of steps have been taken to deal with this problem.|
The first priority was to re-assure the people of the stability of the financial system in general and of the safety of bank deposits in particular. To this end, steps were taken to infuse liquidity into the banking system and also to address problems being faced by various non-bank financing companies. These steps have ensured that the financial system is functioning effectively without suffering the kind of loss of confidence experienced in the industrialised world.
Having assured stability of the system, the Government has focussed its attention on countering the impact of the global recession on India's economic growth. On the monetary side, the RBI has sought to pump sufficient liquidity into the banking system to enable bank credit to meet the expanded requirements of the economy keeping in mind the contraction in credit from non-bank sources. Banks have been provided adequate liquidity through a series of reductions in the CRR and additional flexibility in meeting the SLR requirement. Interest rate reductions have also been signalled by reductions in the repo and reverse repo rates, the most recent of which was announced on Saturday when both the repo rate and the reverse repo rate were cut by 100 basis points. Access to external commercial borrowings has also been liberalised so that borrowers capable of accessing funds from abroad are allowed to do so. The banks are being encouraged to counter what might otherwise become self-fulfilling negative expectations by enhanced lending to support economic activity.
These measures in the area of money and credit are being supplemented by fiscal measures designed to stimulate the economy. In recognition of the need for a fiscal stimulus, the government had consciously allowed the fiscal deficit to expand beyond the originally targeted level because of the loan waivers, issue of oil and fertilizer bonds and higher levels of food subsidy. In addition, the following steps are being taken:
1. Plan Expenditure:
In order to provide a contra-cyclical stimulus via plan expenditure, the Government has decided to seek authorisation for additional plan expenditure of upto Rs 20,000 crore in the current year. In addition, steps are being taken to ensure full utilisation of funds already provided, so that the pace of expenditure is maintained. The total spending programme in the balance four months of the current fiscal year, taking plan and non-plan expenditure together is expected to be Rs.300,000 crore.
The economy will continue to need stimulus in 2009-2010 also and this can be achieved by ensuring a substantial increase in plan expenditure as part of the budget for next year.
2. Reduction in Cenvat:
As an immediate measure to encourage additional spending, an across-the-board cut of 4% in the ad valorem Cenvat rate will be effected for the balance part of the current financial year on all products other than petroleum and those where the current rate is less than 4%.
3. Measures to Support Exports
i) Pre and post-shipment export credit for labour intensive exports, i.e., textiles (including handlooms, carpets and handicrafts), leather, gems & jewellery, marine products and SME sector is being made more attractive by providing an interest subvention of 2 percent upto 31/3/2009 subject to minimum rate of interest of 7 percent per annum.
ii) Additional funds of Rs.1100 crore will be provided to ensure full refund of Terminal Excise duty/CST.
iii) An additional allocation for export incentive schemes of Rs.350 crore will be made.
iv) Government back-up guarantee will be made available to ECGC to the extent of Rs.350 crore to enable it to provide guarantees for exports to difficult markets/products.
v) Exporters will be allowed refund of service tax on foreign agent commissions of upto 10 percent of FOB value of exports. They will also be allowed refund of service tax on output services while availing of benefits under Duty Drawback Scheme.
Housing is a potentially very important source of employment and demand for critical sectors and there is a large unmet need for housing in the country, especially for middle and low income groups. The Reserve Bank has announced that it will shortly put in place a refinance facility of Rs.4000 crore for the National Housing Bank. In addition, one of the areas where plan expenditure can be increased relatively easily is the Indira Awas Yojana. As a further measure of support for this sector public sector banks will shortly announce a package for borrowers of home loans in two categories: (1) upto Rs.5 lakhs and (2) Rs 5 lakh-Rs 20 lakh. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.
5. MSME Sector
The Government attaches the highest priority to supporting the medium, small and micro enterprises (MSMEs) sector which is critical for employment generation. To facilitate the flow of credit to MSMEs, RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken.
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans will be extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.
(b) The lock in period for loans covered under the existing credit guarantee scheme will be reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.
(c) Government will issue an advisory to Central Public Sector Enterprises and request State Public Sector Enterprises to ensure prompt payment of bills of MSMEs. Easing of credit conditions generally should help PSUs to make such payments on schedule.
(a) An additional allocation of Rs.1400 crore will be made to clear the entire backlog in TUF Scheme.
(b) All items of handicrafts will be included under 'Vishesh Krishi & Gram Udyog Yojana'.
7. Infrastructure Financing
A large number of infrastructure projects are now being cleared for implementation in the Public Private Partnership mode. These projects may experience difficulty in reaching financial closure given the current uncertainties in the financial world. In order to support financing of such projects, Government has decided to authorise the India Infrastructure Finance Company Limited (IIFCL) to raise Rs.10,000 crore through tax-free bonds by 31/3/2009. These funds will be used by IIFCL to refinance bank lending of longer maturity to eligible infrastructure projects, particularly in highways and port sectors. In this way it is expected that IIFCL resources used for refinance can leverage bank financing of double the amount. Depending on need, IIFCL will be permitted to raise further resources by issue of such bonds. In particular, these initiatives will support a PPP programme of Rs.100,000 crore in the highways sector.
(a) Government departments will be allowed to take up replacement of government vehicles within the allowed budget, in relaxation of extant economy instructions.
(b) Import Duty on Naphtha for use in the power sector will be eliminated.
(c) Export duty on iron ore fines will be eliminated and on lumps will be reduced to 5%.
The Government is keeping a close watch on the evolving economic situation and will not hesitate to take any additional steps that may be needed to counter recessionary trends and maintain the pace of economic activity.
(Release ID :45376)