News Analysis India

Tag: Finance Minister Nirmala Sitharaman

  • White Paper: From Crisis to Confidence: Modi govt’s ‘White Paper’ examines economic evolution since UPA tenure

    The government has released a white paper, shedding light on what it perceives as the economic challenges inherited from the previous administration. The document, presented by Finance Minister Nirmala Sitharaman in Parliament, outlines the alleged shortcomings of the Congress-led United Progressive Alliance (UPA) government and emphasizes the strides made under the current leadership.

    Economic Comparison

    The white paper underscores contrasting economic conditions between the previous UPA tenure and the present government’s term. It accuses the UPA of leaving behind a “non-performing” economy after a decade in power, contrasting it with the purportedly healthier economic landscape inherited by the current administration from the Atal Bihari Vajpayee government.Challenges and Progress

    Highlighting the hurdles faced, the Bharatiya Janata Party (BJP) acknowledges the multifaceted challenges in revitalizing the Indian economy. Despite facing what it terms a “hydra-headed challenge,” the government asserts progress in restoring economic fundamentals and global confidence. The paper cites achievements such as India’s substantial contribution to global growth and successful international engagements like the G20 Presidency in 2023.

    Addressing Previous ConcernsThe white paper references past scandals and economic crises during the UPA tenure, including the 2G and Coalgate scams, double-digit inflation, foreign exchange crises, and policy paralysis. In contrast, it highlights current achievements such as extensive 4G and 5G coverage, transparent resource auctions, reduced inflation rates, and record foreign exchange reserves.The white paper concludes by asserting the current government’s progress in overcoming the purported challenges inherited from the previous administration. Finance Minister Nirmala Sitharaman defends the timing of the document’s release, emphasizing the need to address past economic issues. However, opposition figures like P Chidambaram from the Congress call for independent scrutiny of the paper’s contents.

    In response to the government’s white paper, the Congress has issued its own document, termed a ‘black paper,’ highlighting concerns such as rising unemployment, sluggish GDP growth, and vacant government positions. Mallikarjun Kharge, party leader, released the document, indicating a continued political debate over economic performance.

    This white paper serves as a comprehensive overview of the government’s perspective on economic governance, inviting scrutiny and debate as the nation approaches a pivotal general election.

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  • Finance Minister Nirmala Sitharaman to meet CEOs of public sector banks on Wednesday

    By PTI

    NEW DELHI: Finance Minister Nirmala Sitharaman will meet heads of public sector banks (PSBs) on Wednesday to review the financial performance of the lenders and progress made by them in supporting the pandemic-hit economy, sources said.

    The meeting with MD and CEOs of PSBs assumes significance given the importance of the banking sector in generating demand and boosting consumption.

    Recently, the finance minister had said the government is ready to do everything required to revive and support economic growth hit by the COVID-19 pandemic.

    The meeting is expected to take stock of the banking sector and progress on the restructuring 2.0 scheme announced by the Reserve Bank of India (RBI), the sources said, adding that banks may be nudged to push loan growth in productive sectors.

    The revamped Rs 4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) would also be reviewed during the meeting likely to be held in Mumbai, the sources said.

    Besides, the finance minister is expected to take stock of the bad loans or non-performing assets (NPAs) situation, and discuss various recovery measures by banks, they said.

    As a result of the government’s strategy of recognition, resolution, recapitalisation, and reforms, NPAs have shown a declining trend, from Rs 7,39,541 crore on March 31, 2019 to Rs 6,78,317 crore on March 31, 2020 and further to Rs 6,16,616 crore as on March 31, 2021 (provisional data).

    At the same time, comprehensive steps were taken to control and to effect recovery in NPAs, which enabled PSBs to recover Rs 5,01,479 crore over the last six financial years, the government informed Parliament recently.

    Besides, Sitharaman is expected to declare the results of Ease 3.0 Index for 2020-21, they said, adding that PSBs would be rated on various indexes for the year.

    Launched in January 2018, Enhanced Access and Service Excellence (Ease) is the common reform agenda for all public sector banks aimed at institutionalising clean and smart banking.

  • Cabinet clears Development Finance Institution with capital infusion of Rs 20000 crore

    By ANI
    NEW DELHI: The Union Cabinet has cleared the setting up of a Development Finance Institution (DFI) with a capital infusion of Rs 20,000 crore, announced Finance Minister Nirmala Sitharaman on Tuesday.

    “During the Union Budget, we had mentioned that we will be setting up a national bank to fund infrastructure and developmental activities. Past attempts to have alternative investment funds were taken up, but for various reasons, we ended up with no bank which could take up long-term risk (which is very high) and fund development. Following this, Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgement of the realisation that both development and financial objectives will matter for setting up a DFI,” said Sithraman while addressing a press conference.

    Earlier, Sitharaman attended the meeting of the Cabinet Committee of Economic Affairs (CCEA).

    “DFI will help raise long-term funds; the Union Budget of 2021 will provide an initial amount. The capital infusion will be of about Rs 20,000 crore this year; the initial grant will be Rs 5,000 crore, additional increments of the grant will be made within limit of Rs 5,000 crore,” the Finance Minister said.

    “Union government is also planning to issue some securities to Development Finance Institution, by which cost of funds will come down. All this will help DFI leverage initial capital and draw funds from various sources; will also have a positive impact on the bond market in India,” she said.

    On February 1, Sitharaman had announced that the central government will set-up a “professionally managed” DFI capitalised with Rs 20,000 crore, aiming to have a lending portfolio of at least Rs five lakh crore within three years time.

    While presenting the budget 2021-22, Sitharaman had said that the government would introduce a bill in the budget session of Parliament to set up a new DFI.

    “The National Infrastructure Pipeline which I had announced in December 2019 is a first of its kind. The NIP was launched with over 6,835 projects, now it has expanded to over 7,400 projects. Around 217 projects worth Rs 1,01 lakh crore have been completed,” she said.